Economics Reviewer – Key Concepts & Consumer Rights

These question-and-answer flashcards cover fundamental economic concepts, types of scarcity, basic economic questions, consumer rights, and key Philippine agencies involved in protecting consumers.

What is the literal Greek origin of the word "Economics"?

It comes from "oikonomia" (oikos = house, nemein = to manage).

How is Economics defined as a social science?

It helps society decide how to use limited resources to satisfy unlimited human wants.

What are the two main methods of economic inquiry?

Deduction (reasoning from general to specific) and Induction (organizing observations into generalizations).

According to Bernardo Villegas, what does Economics study?

The alternative uses of limited resources.

How does Tereso Tullao Jr. describe Economics?

The proper allocation of resources.

What is Roger Miller’s focus in Economics?

Deciding how and for whom resources will be used.

How did Alfred Marshall characterize Economics?

A study of economics in everyday life.

Differentiate Relative Scarcity from Absolute Scarcity.

Relative Scarcity exists when resources are present but insufficient for demand; Absolute Scarcity means the resource is absent or extremely hard to expand.

Give one key difference between Shortage (Kakulangan) and Scarcity (Kakapusan).

Shortage is temporary and due to poor distribution, while Scarcity is permanent and due to the limited nature of resources.

What are the two forms of scarcity?

Physical scarcity (actual lack of resources) and Mental/Psychological scarcity (unlimited human wants).

State Gregory Mankiw’s view (1997) on scarcity.

Society’s resources are limited and cannot satisfy every human desire.

Name two effects of scarcity.

Poverty, illness, conflict or competition (any two).

List two ways to combat scarcity.

Use of modern technology and worker training (others: strengthening organizations, creating protective laws).

Define a trade-off.

Sacrificing one option to obtain another.

What is opportunity cost?

The value of the best alternative that is forgone when a choice is made.

State the first basic economic question and its focus.

"What to produce?" – choose goods/services based on needs.

What does the question "How to produce?" address?

The production method, whether labor-intensive or capital-intensive, aiming for efficiency.

Why ask "How much to produce?"

To avoid shortages or surpluses by producing just enough.

"For whom to produce?" refers to what economic issue?

Determining which groups or individuals receive the goods/services.

What is the added question about future production?

"How can we continue to produce in the future?"—by increasing productivity of people, firms, and government.

Distinguish labor-intensive from capital-intensive production.

Labor-intensive relies mainly on human labor; capital-intensive relies on machines and equipment.

Give two disciplines related to Economics and their roles.

Mathematics (data and graphs) and History (avoiding past mistakes) – others include Philosophy/Theology, Politics, Sociology, Psychology.

Mention two reasons why studying Economics is important.

It teaches us to save and helps us address scarcity (others: broadens outlook, aids trade and development, protects the environment).

What does Microeconomics study?

Small units such as households and firms (Alfred Marshall).

What is the focus of Macroeconomics?

Large units like the whole economy, including national income and government policies (John Maynard Keynes).

Name one characteristic of a Filipino consumer.

Being critical/analytical—examining products carefully before buying (others: has alternatives, budget-conscious, rational, etc.).

What does the consumer’s Right to Safety ensure?

Products bought must be safe to use or consume.

Explain the Right to Basic Needs.

Consumers must have adequate access to essential goods like food, water, and medicine.

What is covered by the Right to Redress?

The ability to complain, demand a refund, replacement or compensation for defective or misleading products.

Which agency licenses and monitors food and drugs in the Philippines?

Food and Drug Administration (FDA) under the Department of Health.

What is the role of the National Food Authority (NFA)?

To safeguard the supply and price of staple foods, especially rice.

Which body hears issues on electricity pricing?

Energy Regulatory Commission (ERC).

What does the LTFRB regulate?

It grants franchises and sets fares for public transportation vehicles.

Which agency enforces laws against deceptive business practices?

Bureau of Trade Regulation and Consumer Protection (BTRCP).

Name one private consumer organization and its advocacy.

Nationwide Association of Consumers, Inc. – fights illegal pyramiding schemes (others: TXT Power, CCAP, MMTCC).