CREATED BY: ​JOSHUA FRANCISCO

ECONOMICS WEEK 20 (48/50)

A regular payment, usually on an hourly, daily or weekly basis, made by an employer to

an employee, especially for manual labor.
- Wage

An act or process of trying to get or win something over one’s rivals.

- Competition

It studies the conditions in an industry at a particular time, including the behavior of and
relations between competitors, suppliers, and customers.
- Industrial Analysis

This is undertaking by a person or a group of persons who are partners, or of

stockholders who own a juridical entity known as a corporation whose main objective is
to earn profit for owners.
- Business

A​ ​principle or body of principles to guide decisions and achieve rational outcomes.

- Policy

Those that can be changed easily and on short notice.

- Variable Inputs

Refers to an evaluation of the possible or probable effects of external forces and

conditions on the survival and growth of the business.
- Environmental Analysis

It refers to the combined utility derived from consuming certain units of a good.
- Total Utility
Production​ ​refers to the use of goods and services to satisfy human wants.
- False

Consumers are a business’ source of raw materials, intermediate goods or final

products and services.
- False

An entity organized by people with similar needs to provide themselves with goods or
services or to jointly use available resources to improve their income.
- Cooperative

The Law of Diminishing Marginal Utility ​states that as additional units of a good are
consumed, the additional utility derived from each additional unit tends to diminish,
while keeping consumption of other goods constant.
- True

Target market refers to the group of customers the business aims to cater to.
- True

It​ ​refers to goods purchased from a foreign country.

- Imports

This sector processes raw materials from agriculture, fishery and forestry into
intermediate products which are further processed into final products.
- Industrial Sector

It ​is a tool that lists the strengths, weaknesses, opportunities, and threats that face the
business.
- SWOT Analysis

The product created as a result of the combination of inputs in the production process.
- Output

Consumer Theory ​describes how consumers make decisions about what to buy given
their income and prices of goods and services.
- True
An equation showing the maximum output of a commodity that a firm can produce per
period of time with each set of inputs.
- Production Function

Production​ ​is the transformation of inputs into outputs of goods & services.
- True

A form of business organization in which two or more persons combine their resources
in a business with a view to making profit.
- Partnership

It produces the intangibles supporting and complementing production in the other

sectors as well as among its own industries.
- Service Sectors

A form of business organization that is owned by a single individual who is singly

responsible for running the business and is accountable for all debts and obligations
related to the business.
- Sole Proprietorship

The term used for satisfaction derived from consuming a good/service.

- Utility

A business with total assets worth below P1,500,001.

- Micro Business

These are semi-processed goods which are not ready for final use by the consumer,
which have undergone some processing but need to go through additional processing
before they can be actually used by the consumer. These are supplied to final good
firms for conversion into goods in their finished stage.
- Intermediate Goods

The ​commonly accepted measure of market concentration. It is calculated by squaring

the market share of each firm competing in a market, and then summing the resulting
numbers.
- HERFINDAHL-HIRSCHMAN INDEX (HHI)

The resources used in the production of goods & services. It refers to the use of
economic resources to create goods and services that will be used to satisfy human
wants.
- Inputs

Goods that are ready for direct consumption and are then sold to customers for their
use.
- Final Goods

The basic facilities, services and installations needed for the functioning of a community
or society.
- Infrastructure

It refers to the average contribution per unit of input and is equal to TP/i.
- Average Product

It​ ​shows the relationship between utility and consumption.

- Utility Function

It is a legal entity that is separate from its owners, the shareholders. No shareholder is
personally liable for the debts, obligations or acts of the corporation.
- Corporation

Retailers are wholesalers or brokers who buy in big quantities from manufacturers, add
a mark-up to their purchase price and sell to distributors.
- False

It refers to the additional utility derived from consuming an additional unit of the good.
- Marginal Utility

It is an aggregation of the different businesses engaged in the same kind of

undertaking.
- Industry

This includes a look at the population size, the geography of the place where business
will be located, land distribution, climate, and today’s global warming situation, whether
or not the area is prone to flood or earthquake.
- Physical Environment
The basic consuming unit, makes use of goods and services which are available in the
economy.
- Household

The combined production of several units of a given set of inputs.

- Total Product

These​ ​are domestically produced goods sold to foreign countries.

- Exports

This involves a look at economic factors such as income of the people, specifically the
target market, economic conditions such as inflation, recession, prosperity, demand,
and supply in the market.
- Economic Forces

The ​value of a particular monetary unit in terms of the goods and services that it can
buy.
- (Money)

The Law of Diminishing Marginal Returns ​states that additional output starts to diminish
at a certain point as additional units of a variable input are combined with one or more
fixed inputs.
- True

A ​written estimate of anticipated government revenues and expenditures during a

specific period of time.
- National Budget

It is the basic producing unit, delivers the goods and services to the household for its
consumption.
- (Trade and Transport)

These are unprocessed goods like raw materials, logs, and wheat, they are materials
extracted from their sources and do not undergo any process of production.
- Raw Materials

A Business with total assets worth from P15,000,001 to P60,000,000. Large scale
business is one with total assets in excess of P60,000,000.
- Medium Business
A Business with total assets worth from P1,500,001 to P15,000,000.
- Small Business

The additional output produced by an additional unit of the input and is equal to TP/ i.
- Marginal Product

Those that cannot be readily changed during the time period under consideration except
at a very great expense.
- Fixed Input