The Basics
It is when you choose one thing which causes you to have to give up, or sacrifice, another.
Trade-off
Alise has two ways to spend her afternoon. One is to travel and the other is to visit her farm.
The opportunity cost if Alise chooses to visit the farm.
Value or satisfaction from travelling
The assumption that what is true for a part is also true for the whole
Fallacy of composition
Give an example of a land resource
Raw materials
Give the full name of the Italian economist who described Pareto efficient and Pareto improvement allocations.
Vilfredo Pareto
The branch of economics wherein the situation below can be studied.
2025 Midterm Philippine Elections
Macroeconomics
The term used to describe an outward shift of the PPC
Expansion
The meaning of ceteris paribus
Other things being equal
These are intangible and often actions that involve innate or acquired skills offered and availed by an individual or groups of people.
Services
This is described as one of the basic economic questions characterized by the target market/ consumers
For whom to produce
This the efficient allocation of resources in an economy such that the goods and services produced reflect the preferences and needs of society.
Allocative Efficiency
If your original choice is C then you change it to D, what change do you observe in the quantity of y variable?
Decrease quantity of healthcare
It states the facts of the economy. It answers the question, "what is/was/will"
Positive Economics
The term used to describe the payment when labor is used
Salary/Wage
This is the type of technology used in the production wherein more capital is employed compared to labor
Capital-intensive technology
The model that shows the flow of resources, commodities and money which assumes a very simple economy that has only two actors.
Circular Flow Model
Compute for the opportunity cost when the hypothetical economy chooses at point B if originally it is producing at point A due to priority changes.
A: (0, 100)
B: (20, 90)
C: (45, 65)
D: (80, 25)
F: (100, 0)
2
Translate the phrase,
"post hoc, ergo propter hoc"
After this, therefore necessary because of this.
It consists of tangible, human-made objects that individuals buy or invest in and use to produce other goods.
Capital Goods/ Physical Capital
This is the popular title of the 1776 book of Adam Smith.
The Wealth of Nations
The meaning of Pareto Efficiency
No individual’s economic welfare can be improved unless someone else is made worse off
The graph of a hypothetical economy is given below which produces only two goods.
Interpret the y-intercept
The hypothetical economy produces the maximum quantity of healthcare if all resources will be spent on the production of healthcare while none on education.
The fallacy committed in the statement,
"There were periods of business expansion in 1929 after rising prices of commodities. Therefore, price and wage increases directly caused a change in the business cycle. Due to this, the appropriate legislation to tamper depressions is to increase price and wages."
Post Hoc Fallacy
This is a land resource in the Philippines that is featured in the hundred-peso banknote wherein geothermal energy could be extracted from it.
Mount Mayon
The term used in social science to describe a situation in a shared-resource system where individual users acting independently according to their own self-interest behave contrary to the common good of all users by depleting or spoiling that resource through their collective action.
Tragedy of the Commons