Lesson 1 Chapter 1

Question 1

Is a social science that studies human behavior, similar to psychology and sociology.

Answer 1

ECONOMICS

Question 2

It studies how individuals make choices in allocating scarce resources to satisfy their unlimited wants.

Answer 2

ECONOMICS

Question 3

Who described economics as a study of mankind in the ordinary business of life?

Answer 3

Alfred Marshall, an English Economist.

Question 4

The insufficiency of resources to meet the wants of consumers and producers.

Answer 4

SCARCITY

Question 5

Is when a good is scarce compared to its demand.

Answer 5

RELATIVE SCARCITY

Question 6

Is when supply is limited.

Answer 6

ABSOLUTE SCARCITY

Question 7

An act of selecting when faced with two or more possibilities, involving trade-offs.

Answer 7

CHOICE

Question 8

Involves choosing how to maximize the use of scarce resources to satisfy as many wants as possible.

Answer 8

DECISION-MAKING

Question 9

It refers to the value of the best-foregone alternative.

Answer 9

OPPORTUNITY COST

Question 10

Known as factors of production, are the resources used to produce goods and services.

Answer 10

ECONOMIC RESOURCES

Question 11

The four types of economic resources?

Answer 11

1. LAND
2. LABOR
3. CAPITAL
4. ENTREPRENEURSHIP

Question 12

Is a division of economics concerned with the overall performance of the entire economy.

Answer 12

MACROECONOMICS

Question 13

Is concerned with the behavior of individual entities such as consumers, producers, and resource owners.

Answer 13

MICROECONOMICS

Question 14

The process of setting prices of goods.

Answer 14

PRICE THEORY

Question 15

3 Basic Economic Problems

Answer 15

1. WHAT TO PRODUCE AND HOW MUCH.
2. HOW TO PRODUCE.
3. FOR WHOM TO PRODUCE.

Question 16

Are the means through which society determines the answers to basic economic problems.

Answer 16

ECONOMIC SYSTEMS

Question 17

Is one where decisions are based on traditions and practices passed down through generations.

Answer 17

TRADITIONAL ECONOMY

Question 18

Is an authoritative system where decision-making is centralized in the government or a planning committee.

Answer 18

COMMAND ECONOMY

Question 19

The most democratic form of economic system, based on demand and supply.

Answer 19

MARKET ECONOMY

Question 20

It helps students understand the need for budgeting and resource allocation, and how to make rational decisions.

Answer 20

ECONOMICS (IMPORTANCE)

Question 21

It deals with what is, focusing on actual occurrences like inflation rates and employment levels.

Answer 21

POSITIVE ECONOMICS

Question 22

It refers to what should be, focusing on ideal situations and policy formulation.

Answer 22

NORMATIVE ECONOMICS

Question 23

The Father Of Modern Economics

Answer 23

Adam Smith

Question 24

soil and natural resources that are found in nature and are not man-made

Answer 24

LAND

Question 25

physical and human exerted in production. It covers manual workers, as well as professionals.

Answer 25

LABOR

Question 26

man-made resources used in the production of goods and services, which include machineries and equipment.

Answer 26

CAPITAL

Question 27

must decide what goods and services should be produced in the economy

Answer 27

What to produce and how much

Question 28

is a question on the production method that will be used to produce the goods and services.

Answer 28

How to produce

Question 29

is about the market for the goods.

Answer 29

For whom to produce

Question 30

is an overview of what is happening in the economy that is possibly far from what is ideal.

Answer 30

POSITIVE ECONOMICS

Question 31

focuses on policy formulation that will help to attain the ideal situation

Answer 31

NORMATIVE ECONOMICS