DIZON, JESSICA J.

OLTA211E007
OLCBBME01: ACTIVITY 1

Directions: Read the question carefully. Answer in at least 5 sentences.

Give 2 microeconomic activities. Explain how these activities consider as microeconomics.

Answer:
1. An individual creating a budget to put themselves in a better financial position.
Creating budget plan that show us how we can spend our money every month. Making a budget can
helps us to make sure you do not run out of money month. A budget also help us to save money for the
possible emergencies that will happen. It can help us understand where our money goes, what we can
afford and makes sure debts are paid. Budgeting can gives us peace of mind that we can handle an
unexpected expense and avoid debts.

2. A business cutting costs in order to maximize profit.

Cost cutting is a measure taken by a company to reduce its expenses and improve profitability. When a
company is in financial distress or there is an economic downturn is when companies are most likely to
enact cost cutting measures. As we have experience our client is currently in cost cutting system, they
ask our company to revised all the approve plan so they can adjust the project cost. They tried to allocate
the other budget to the project. I think in this activities it helps them to increase their profits.