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Economics Activity 3 Instructions: Read Each of The Following Questions Carefully and Give Your Answer

The document contains instructions for two economics activities. Activity 3 contains questions about absolute and comparative advantage in trade between the Philippines and Vietnam. It also asks about the importance of absolute versus comparative advantage for trade and whether nations will export or import goods they have a comparative advantage in. Activity 4 contains questions about supply and demand, including definitions of demand and supply curves and how they relate to market equilibrium. It asks about factors that shift and move along these curves, such as price changes and changes in income and technology. [/SUMMARY]

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Kael Pamaran
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57 views2 pages

Economics Activity 3 Instructions: Read Each of The Following Questions Carefully and Give Your Answer

The document contains instructions for two economics activities. Activity 3 contains questions about absolute and comparative advantage in trade between the Philippines and Vietnam. It also asks about the importance of absolute versus comparative advantage for trade and whether nations will export or import goods they have a comparative advantage in. Activity 4 contains questions about supply and demand, including definitions of demand and supply curves and how they relate to market equilibrium. It asks about factors that shift and move along these curves, such as price changes and changes in income and technology. [/SUMMARY]

Uploaded by

Kael Pamaran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ECONOMICS

ACTIVITY 3

Instructions: Read each of the following questions carefully and give your answer
based on the topic. Each question is equivalent to 5 points. Write at least 1 paragraph
and maximum of 4 paragraphs, each paragraph will contain 3-4 sentences.

1. Explain how absolute advantage and comparative advantage differ and


connect it in rice importation/trade between Philippines and Vietnam.

2. Give an example in which one person has an absolute advantage in doing


something but another person has a comparative advantage.

3. Is absolute advantage or comparative advantage more important for trade?


Explain your reasoning, using the example in your answer to Question 2.

4. Will a nation tend to export or import goods for which it has a


comparative advantage? Explain.

5. Why do economists oppose policies that restrict trade among


nations?
6. Make a summary of chapter 3 of what you can use/apply in real
life .

ACTIVITY 4

Instructions: Read each of the following questions carefully and give your answer
based on the topic. Each question is equivalent to 5 points. Write at least 1 paragraph
and maximum of 4 paragraphs, each paragraph will contain 3-4 sentences.

1. What is a competitive market? Briefly describe the types of markets other


than perfectly competitive markets.

2. What determines the quantity of a good that buyers demand?

3. What are the demand schedule and the demand curve, and how are they
related? Why does the demand curve slope downward?

4. Does a change in consumers’ tastes lead to a movement along the demand


curve or a shift in the demand curve? Does a change in price lead to a
movement along the demand curve or a shift in the demand curve?
5. Popeye’s income declines and, as a result, he buys more spinach. Is
spinach an inferior or a normal good? What happens to Popeye’s demand
curve for spinach?

6. What determines the quantity of a good that sellers supply?

7. What are the supply schedule and the supply curve, and how are they
related? Why does the supply curve slope upward?

8. Does a change in producers’ technology lead to a movement


along the supply curve or a shift in the supply curve? Does a
change in price lead to a movement along the supply curve or a
shift in the supply curve?

9. Define the equilibrium of a market. Describe the forces that move a


market toward its equilibrium.

10. Describe the role of prices in market economies.

11. Make a summary of chapter 4 of what you can use/apply in real life.

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