3Q Applied Economics

• What is economics defined as?

  A social science studying goods and services
• What are the two main fields of economics?

  • Microeconomics: focuses on individual units and markets
  • Macroeconomics: studies the economy as a whole
• What does microeconomics focus on?

  Behavior of individual economic units
• What is the perspective of macroeconomics?

  Looks at the economy as a whole
• What are the two types of policies in macroeconomics?

  Monetary policies and fiscal policies
• What determines the relationships among economic agents?

  A specific territorial, social, natural, and cultural framework
• Who are the economic agents?

  • Consumers
  • Producers
  • The public sectors
• How are goods defined?

  Items that satisfy human wants and are scarce
• What are the types of goods?

  • Tangible goods: material goods or commodities
  • Intangible goods: services
  • Consumer goods: for ultimate consumption
  • Capital goods: used in production
  • Essential goods: satisfy basic needs
  • Luxury goods: provide comfort and satisfaction
  • Economic goods: useful, scarce, and valuable
• What are economic resources also known as?

  Factors of production
• What are the factors of production?

  1. Land
  2. Labor
  3. Capital
  4. Entrepreneurship
• What is the basic definition of economics in the 21st century?

  The study of people and their choices
• What does scarcity refer to?

  Demand exceeds the available supply
• What is opportunity cost?

  Things given up when choosing something else
• What is the background of Agenda 21?

  • Vision and framework for the 21st century
  • Formulated under the long-term Philippine development plan (LTPDP), 2000-2025
  • Comprehensive plan for global, national, and local action
• What is the main focus of the Philippine socioeconomic development in the 21st century?

  Addressing basic economic problems
• What is poverty defined as?

  A restriction condition preventing minimum consumption
• What are the categories of poverty?

  • Absolute poverty: severe deprivation of basic needs
  • Relative poverty: economic status compared to others
  • Situational poverty: temporary conditions affecting individuals