basic eco exam
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this was our exam notes for basic economicsTRANSCRIPT
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PRODUCT DIFFERENTIATION- the real.. differences between……. of the same in dispute
MARGINALS- in economics it means increment or additional
PERFECTLY ELASTIC -A price elasticity of demand that is the horizontal line
ELASTIC DEMAND-A price elasticity of demand that is the flat line or curve
PRICE MAKER-It is the ability to set one’s own price
INCENTIVE- Something that induces people to act
OPPORTUNITY COST-The cost of something is what you give up to get it
MARKET-The group of buyers and seller with the potential to trade
PURE COMPETITION-It is the market in which no buyer or seller have the power to influence the price
PERFECTLY INELASTIC DEMAND-A price elasticity of demand that is the vertical line
SATURATION POINT- It is a point in which the market cardinal distraction will eventually diminish
PERFECTLY ELASTIC-A price elasticity of demand approaching finals infinity
MONOPOLY-Comes from the Greek word ‘monos’ which means ‘one’ and ‘polein’ means to ‘sell’. There
is only one seller of goods or services
CARTEL- It refers to a market situation in which firms agree to cooperate with one another to behave as
if they were a single firm and thus eliminate competitive behavior among them.
ECONOMIC SYSTEM- refers to a set of economic institutions that dominate a given economy with the
main objective of solving the basic economic problems.
CETERIS PARIBUS- a Latin phrase, translated as “other things being equal”, used as a reminder that all
variables other than ones being studied are assumed to be constant.
PRODUCTION POSSIBILITY CURVE- a curve showing mono combination of goods and then they
produced their source of technology entirely available.
VARIABLE-Is the kind of cost which changes in proportion to volume of production..more production
means more cost.
TAXABLE INCOME-is the gross income define above less the deduction enact by law including the
..individual, the allowable personnel and additional exemptions.
TAXATION- is the inherent power of the state to impose and demand contribution upon persons,
properties, or rights for the purpose of generating revenues for public purposes.
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VALUE ADDED TAX- It is a tax on consumption levied on the sale of goods and services and on the
imports of goods.
TAX EXEMPTION- is the grant of immunity or freedom from a financial charge, obligation, or burden to
which others are subjected.
TARIFF- it is a tax on imported goods
TAX EVATION-is the practice by the taxpayer through illegal or fraudulent means to defeat the amount
to be paid.
FINAL GOOD- a new good that undergoes to an order processing before it sold to consumer. No more
further processing
INTERMEDIATE GOOD- a good that undergoes further processing before it sold to consumer.
If fried chicken and spaghetti are complimentary goods in the decreased in the price of fried chicken
will result in an increase of demand of spaghetti
RETURN OF INVESTMENT-all except one is the bachelor used of money if you exceed during the caps
stop over value return of investment.
CONSUMPTION- the act of using goods and services to satisfy human wants and needs
PRODUCTION- the act making goods and services
LAW OF SCARCITY- this law state that goods and resources are scarce because there is not enough
resources to produce all goods consumers wants and need
LAW OF SUPPLY- as price increases, quantity supplies also increases; as price decreases, quantity supply
also decreases, under the condition of ceteris paribus.
ELASTICITY- this refers to the responsiveness of one variable that change to another variable.
_________________________________________
A- 1ST STATEMENT- TRUE, 2ND STATEMENT- FALSE
B- 1ST STATEMENT- FALSE, 2ND STATEMENT- TRUE
C- BOTH STATEMENT- TRUE
D- BOTH STATEMENT- FALSE
_________________________________________
1ST Statement - Utility denotes of destruction
2nd Statement –Does if the consumer derives measures to a goods and service there is no sees rapture
involved
ANSWER: A- 1ST STATEMENT- TRUE, 2ND STATEMENT- FALSE
__________________________________________
1ST Statement- There are 3 classification of Monopoly
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2nd Statement- These are Natural, Legal and Coercive
ANSWER: C - BOTH STATEMENT- TRUE
1ST Statement -There are 2 types of Oligopoly, Pure and Differentiated
2nd Statement- Pure Oligopoly is done when there is few sellers that produce identical products.
ANSWER: C - BOTH STATEMENT- TRUE
1ST Statement - There are 2 types of Organization in an Oligopoly
2nd Statement- These are Cartel and Collusion
ANSWER: B -1ST STATEMENT- FALSE, 2ND STATEMENT- TRUE
1ST Statement- A Cartel is an informal agreement among Oligopolies in set of monopoly price, allocate
output in shared property.
2nd Statement- One example is Meralco
ANSWER: A- 1ST STATEMENT- TRUE, 2ND STATEMENT- FALSE
Nominal GDP- these are the value of GDP at current prices
GDP- it refers to the market value of all the final goods and services produced domestically in a given
period of time.
Inflation- refers to the rate of increase in the average price of goods and services
Endogenous- these theories explain the causes of business cycle come from factor within the economy.
Labor Force- these sectors includes all persons aged 15 and above who contribute to the production of
goods and services.
Central Bank/ Banko Central- The entity of the institution of the government that regulates money
supply, physical and monetary policies as well as the printing of money and printing of coins.
Tax exemption- is the grant of immunity of freedom from a financial charge or obligation or burden to
which others are subjected.
The following are determinants of the man except- CHANGE IN TECHNOLOGY