Basic Economics
Question: What is the study of how people use limited resources to satisfy unlimited wants?
Economics
What are the basic requirements for survival?
Needs
Which factor of production refers to natural resources?
Land
What is demand?
The willingness and ability of consumers to buy a product.
The price of handmade keychains increased from ₱100 to ₱120.
The quantity supplied increased from 500 keychains to 600 keychains. What is the Elasticity
Unit Elasticity = 1
What economic problem exists because resources are limited but human wants are unlimited?
Scarcity
Which level of Maslow's Hierarchy includes food, water, and shelter?
Physiological Needs
Which factor of production refers to human effort?
Labor
According to the Law of Demand, what happens to demand when price increases?
Demand decreases.
The price of beachfront land increased from ₱6 million to ₱9 million.
The quantity supplied remained fixed at 40 lots.
Perfectly Inelastic Supply ( = 0 )
What do you call the value of the next best alternative that is given up when making a decision?
Opportunity Cost
What is consumption?
The use of goods and services to satisfy needs and wants.
Which factor of production organizes resources and takes business risks?
Entrepreneurship
According to the Law of Supply, what happens to supply when price increases?
Supply increases.
The price of face masks increased from ₱10 to ₱15.
Manufacturers increased supply from 5,000 masks to 9,000 masks.
Elastic Supply ( > 1 )
What is the difference between goods and services?
Goods are physical products, while services are activities performed for consumers.
Identify all 5 levels of Maslow's Hierarchy of needs.
Physiological
Safety
Love and Belonginess
Esteem Needs
Self-Actualization
Which business organization is owned by shareholders?
Corporation
What do you call the price at which demand equals supply?
Equilibrium Price
The price of face masks increased from ₱10 to ₱15.
Manufacturers increased supply from 5,000 masks to 9,000 masks.
Find the price elasticity of supply.
A student spends ₱200 on a movie instead of buying a textbook. What economic concept is illustrated by the textbook that was not purchased?
Opportunity Cost
A family buys rice before purchasing a new television. Which economic principle explains this decision?
Needs come before wants (or prioritizing primary needs).
Name the four factors of production.
Land, Labor, Capital, and Entrepreneurship
Differentiate surplus from shortage.
A surplus occurs when quantity supplied exceeds quantity demanded, while a shortage occurs when quantity demanded exceeds quantity supplied.
A supplier is willing to sell unlimited ballpens at ₱10 each.
If the price drops to ₱9, the quantity supplied becomes zero.
Perfectly Elastic Supply ( = ∞ )