Social Scientist

August 12, 2011

Reviewer in Economics 1st Grading 2011-2012

Filed under: Reviewer Economics @ 11:53 pm and

Reviewer In Economics (1st Grading 2011-2012)


Analyze the statements whether they are valid, true, correct or invalid, untrue and incorrect:


Efficiency and economizing are positive economic values.

These values help individual become productive.

Responsible consumerism is a positive attitude towards economic development.

Consumers must assert their rights all the time.

Human needs and wants are numerous.

It gives rise to the economic problem known as scarcity.

The Philippines is rich in natural resources.

Her human resources are one of the bests in the world.
Health and nutrition are the major concerns for many Filipinos.

These are given priority by the government.

Knowledge is the best creator of wealth.

The state of Philippine education is improving.

Human needs and wants are numerous.

It is possible that man could attain satisfaction.

Socialism is a perfect economic system.

It aims to effect social justice among people.

Sacrifice is using the resources efficiently.

It also means foregoing something important in exchange of another which is also important.

Discipline is necessary for progress.

Peace and order is unnecessary for economic development.

The President’s SONA clearly shows the real state of the nation.

All the details are factual and realistic.

Filipinos share a strong desire for material comfort and prosperity.

Migration of skilled professionals to other countries does not pose any problem or danger to our society.

It is the Department of Trade and Industry that examines the components used in foods, drugs, and cosmetics products.

It is the agency’s tasks to protect the consumers from price manipulations.

Economics is important in everyday life.

It cannot help us make a logical and informed decisions.

Every consumer tends to maximize satisfaction or utility. It is not hampered by his/her income and budget.


What are the meaning/definition of the following terms, concepts, and names?
















political science



social science


scientific method


natural resources

physical resource



identification of problem

labor force

population density


brain drain




full employment









esteem needs

safety needs

love needs

self – actualization













market system

economic system



What are the characteristics of the following economic systems?

Capitalist Economic System     

Command Economic System

Traditional Economic System   

Mixed Economic System


Whose economic policies are enumerated below?



Trade liberalization and currency devaluation

Strong republic                                                                                                                                     “Angat Pinoy 2004”

Comprehensive Agrarian Reform Program (CARP) and privatization policy.

Philippines 2000 and industrialization thrusts

New society and the Philippines under the military rule

Land reform program, land for the landless, and rural development.

Economic reconstruction and rehabilitation.

Import substitution

Filipino First Policy or “Pilipino Muna” economic policy


In the Production Possibility frontier and Curve, where could we found the point of attainability, possibility, efficiency, unattainable, and inefficiency?


How to compute population growth and population density?

B. Demographics



God bless on your Periodical Examinations

January 16, 2010

Economics Reviewer

Filed under: Reviewer Economics @ 4:57 am and

Reviewer in Economics:

Macroeconomics – study of the whole economy

Dimensions in the Economics-They are the foundation of economy

Production-is the combination and use of all factors producing goods and services that will satisfy the needs of man.

4 factors of production:

  • Land
  • Labor
  • Capital (fixed, circulating, productive, special)
  • Entrepreneur

2 sectors of economy:

  • Household
  • Business firms

Circular Flow Diagram:

Market for finished product







Market for factors of production
Land, Labor, capital, entrepreneur
Profit, rent, wages, interest

Gross Domestic Product (GDP) – refers to the total market value of goods and services produced within the country for one year.

Gross National Product (GNP) – refers to the total market value of all the final products and services produced in the country.

Kinds of GNP

  1. Potential -estimated total production of the country based on the productivity & capacity of the factors. (estimates, projection, productivity)
  2. Actual –amount of produced goods & services attained in a country for 1 year.
  3. Nominal –refers to the total production of the country based on the prevailing price in the market. (current price)
  4. Real –value of the country’s production based on the price in a given base year (constant price)
X 100

Growth rate= GNP present yr – GNP previous yr

Previous GNP

Main components of National Income (NI)

  1. a. Compensation of employees(CE)

-benefits, commission, allowance of employees

  1. b. Entrepreneurial income(EI)

-income of entrepreneur as factor of projection

  1. c. Corporate income(CI)

-funds for business expansion income by corporations

  1. d. Government income(GI)

-incomes received by the government

Formula for NI:


Capital Consumption Allowance (CCA) -funds for new machinery and facilities.

Indirect business taxes (IBT) – tax imposed on the products

Formula for GNP:


Final expenditure approach

  1. Government expenditure (G)
  2. Personal expenditure (P)
  3. Business Expenditure
  4. Net Export (x)(m)
  5. Net factor income from abroad (NFIA)
  6. Statistical Discrepancy (SD

Formula for GNP:

GNP = G+P+B+(x-m) +NFIA+SD

Inflation – The continuing increases in the general price level of commodities

Hyperinflation – prices continue to increase every hour, day, and week

GNP deflator – the average price index used to adjust the current GNP against constant GNP

GNP at constant prices =GNP at current prices

GNP deflator

Wholesale price index – it shows and measures the changes in the price of finished products, intermediate goods and crude materials in wholesale and retail training

Consumer price index (CPI) – measures the average percentage in the change of retail prices of commodities usually purchased by consumers.

Computation of weighted price:

  1. weight x price, to get the TWP
  2. combine the entire WP
  3. compute for CPI using this formula:
x 100

CPI = TWP present yr

TWP base yr

x 100 = 100

CPI (base year) = TWP base yr

TWP base yr

x 100

Inflation Rate = CPI py – CPI by

CPI (by)

PPP = 100


Kinds of Inflation:

  1. Demand pull – it is the condition where aggregate demand is more than the aggregate supply.
  2. Cost-push – the increase in the production costs of firms leads to price increases.
  3. Structural inflation – there is competition among wage earners and profit earners

Causes of inflation:

  • Military expenses
    • Import dependent
    • Export oriented
    • Monopoly cartel
    • Foreign debt

Effects of Inflation:

Groups that benefit:

  • Borrowers
  • Speculators
  • People w/o fixed income

Groups that don’t benefit:

  • Lenders
  • People w/ fixed income
  • Savers/depositors

Solutions of Inflation:

-through monetary policies

Income – the money received by an individual as payment for producing goods and services.

Per Capita Income (PCI) – the income received by an individual if the total population divides the total production


= GNP per capita



= NI per capita


Simple theory of income determination


Y -aggregate income

C -aggregate consumption

S -aggregate saving

Z -aggregate demand

I -investment

T -tax

G -government

NL -net lending

x -export

m -import

Condition of general equilibrium

  1. Y = C + S
  2. Z= C + I
  3. Y= Z
  4. C+ S = C + I
  5. S = I
  6. C + S + T = C + I + G
  7. Y=  C + I + G
  8. C + S + T + NL = C + I + G + (x-m)
  9. Y = C + I + G + (x-m)

Economic progress – is the result of a process that shows changes in economy

Principles and theories on progress and development:

  1. Theory of Physiocrats (Francois Quesnay)

-significant role of agriculture

  1. Theory of Adam Smith

-centered in the development of production through specialization

  1. Theory of David Ricardo

-centered on the advantage provided by the possession of natural        resources, particularly land.

  1. Neoclassical school

-competition is an important mechanism

Models on progress and development

  • Model on capital (Roy Harrod)

– Abundant, sufficient capital is vital for economic progress

  • Model on Technology (Nicholas Caldor)

-important role of technology

  • Model of cumulative process (Gunnar Myrdal)

-cumulative process is the key to economic development

  • Innovation theory (Joseph Schumpeter)

-gave emphasis on important role played by innovator in economic      development

  • Theory of Karl Marx

-derived from beliefs of the classicist emphasis on labor

Walt Rostow’s Stages of growth:

  1. Traditional society
  2. Pre-conditions for take-off
  3. Take-off
  4. Drive to maturity
  5. Age of high mass consumption

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