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Polytechnic University of The Philippines College of Business Administration Department of Human Resource Management A.Y 2020-2021

This document appears to be an exercise from a student named John Paul Castillo for their Basic Microeconomics course. It includes 5 questions related to microeconomic concepts. The first question discusses the production possibilities curve and opportunity cost between producing machines and burgers. The second question is a multiple choice review of economic terms like resources, wants, scarcity, and different types of economics. The third question asks the student to identify statements as positive or normative. The document provides context and questions for a microeconomics assessment.

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John Paul Barot
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82 views3 pages

Polytechnic University of The Philippines College of Business Administration Department of Human Resource Management A.Y 2020-2021

This document appears to be an exercise from a student named John Paul Castillo for their Basic Microeconomics course. It includes 5 questions related to microeconomic concepts. The first question discusses the production possibilities curve and opportunity cost between producing machines and burgers. The second question is a multiple choice review of economic terms like resources, wants, scarcity, and different types of economics. The third question asks the student to identify statements as positive or normative. The document provides context and questions for a microeconomics assessment.

Uploaded by

John Paul Barot
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Polytechnic University of the Philippines

College of Business Administration


Department of Human Resource Management
A.Y 2020-2021

BAROT, JOHN PAUL CASTILLO APRIL 15, 2021


BSBA-HRM 2-3N Basic Microeconomics

EXERCISE #1

1.
2. The assumptions in analyzing PPC are Full Employment, Productive Efficiency, Fixed
Resources, Fixed Technology, and Two Goods (consumer good and capital good in thousands).
3. The trade-off of the two commodities which are the Machines and Burgers are the movement
from M to E, E to L, L to C, C to A, and A to H. The only way the economy can produce more
burgers is by giving up some productions of machines.
So, moving from M to E, the economy is producing 1 burger by giving up 1 machine. So,
the opportunity cost of 1 Burger is 1 Machine.
Moving from E to L, the economy is producing another 1 burger by giving up 2
machines. So, the opportunity cost of another 1 Burger is 2 Machines.
From L to C, the economy is producing 1 burger by giving up 3 machines. So, the
opportunity cost of another 1 Burger is 3 Machines.
From C to A, the economy is producing another 1 burger by giving up 4 machines. So,
the opportunity cost of another 1 Burger is 4 Machines.
And lastly from A to H, the economy is producing another 1 burger by giving up 5
machines. So, the opportunity cost of another 1 Burger is 5 Machines.
4. The attainable areas are inside the M-E-L-C-A-H, and the unattainable areas are outside the
M-E-L-C-A-H in PPC. To attain the unattainable areas is by increasing in resources and
advance technology that could increase PPC and it will lead to an upward shift of the PPC to
attain unattainable areas.

II. Underline the correct answer. (20 pts.)


There are three forms of economic resources or factors of production. 1. (Land, Capital)
includes natural resources that can be extracted from water, air, and land itself specifically,
mineral deposits. 2.(Labor, Entrepreneurial ability) pertains to the physical or mental talents
that are utilized to produce goods and services. Lastly, 3.(investment, capital)refers to
the goods that are used for production of other goods and services. However, these resources
are 4. (unlimited, limited) in relation to our needs and wants.
Furthermore, 5. (luxury goods, basic goods)are not necessary for our basic existence
while 6.(luxury goods, basic goods)are goods which stay with us through a lifetime. In reality,
when one of your needs is satisfied, you still look for more. It is because needs and wants are
7.(unlimited, limited).Thus, 8. (Economics, Macroeconomics)deals with the efficient
allocation of scarce resources in producing goods and services to satisfy human wants and
needs.
Economists view things through a unique perspective. 9. (Marginal Analysis, Rational
Behavior) means that the same person may make different choices under different
circumstances but looking for opportunity to increase his utility. In addition, 10. (Marginal
analysis, Rational Behavior) involves in the comparison of additional benefits and additional
costs. Lastly, 11. (Scarcity, Rational Behavior) limits options and necessities that we make
choices
Moreover, there are methodologies used in understanding economy. 12.(Applied
Economics, Descriptive Economics) is simply the compilation of data that describe
phenomena or facts. Those data from surveys and interviews are 13. (secondary data,
primary data).While data taken form released book, journal, or previously conducted
researches are 14.(secondary data, primary data).When the facts are brought into order and
tied up to provide meaning, placed in correct relation, and generalized from them,
15.(economic theory, economic policy)arises. These are used to formulate policies in solving
economic problems, thus becoming 16. (theoretical economics, policy economics).
Moreover, when we consider someone’s value judgment about what economy should to be, we
are using 17.(normative economics, positive economics).But when we deal with facts and
principles to remove our value judgment, we are using 18.(normative economics, positive
economics).On the other hand, economy can also be explained through reasoning. The
process of reasoning from the particular to the general is called19. (deductive reasoning,
inductive reasoning. On the other hand, reasoning from general to particular is called 20.
(deductive reasoning, inductive reasoning).

III. Identify each of the following as either a positive or a normative statement. Write PS if the
statement is a Positive Statement and NS if the statement is a Normative Statement before the
number.
NS 1. The government should provide basic healthcare to all citizens.
PS 2. Government-provided universal healthcare increases public expenditures.
NS 3. Other things held constant, an increase in price reduces the quantity demanded.
PS 4. The government should give ABS-CBN a franchise to continue its operation.
PS 5. GDP posts 6.4% growth in the 4thquarter of 2019.

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