<div style='margin-bottom: 20px;'> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What does Purchasing Power Parity (PPP) measure?</h2> <p style="font-weight: normal; font-size: 1.2rem;">PPP measures the price of specific goods in different countries to compare the absolute purchasing power of the countries' currencies.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is depicted by the red line in a breakeven analysis?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Total fixed costs amounting to $100,000.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How do monopolies manage their pricing strategies to maximize profits without losing consumers?</h2> <p style="font-weight: normal; font-size: 1.2rem;">They set prices based on consumer's ability to pay and may engage in price discrimination and bundling.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What does GDP measure in an economy?</h2> <p style="font-weight: normal; font-size: 1.2rem;">GDP measures the economic value of all goods and services produced within a country's borders in a specific duration.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How is economic profit calculated?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Total Revenue minus Total Cost</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What does total cost include in the production of goods and services?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The sum of costs associated with all inputs utilized</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">In the context of oligopoly, how do firms typically decide on their pricing strategies?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Firms may engage in collusive pricing, price leadership, or strategic pricing, considering the actions of competitors.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How do policymakers use GDP in economic planning?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Policymakers use GDP to define interest rates and implement other necessary economic policies.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the significance of a country maintaining a debt-to-GDP ratio at 60 percent or lower, according to Secretary Diokno?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It is considered fiscally responsible and is the required level for European Union membership.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the significance of a trade surplus for a country's economy?</h2> <p style="font-weight: normal; font-size: 1.2rem;">A trade surplus indicates that a country exports more goods and services than it imports, which can be a sign of economic strength.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How do fixed costs differ from variable costs in terms of production levels?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Fixed costs remain constant regardless of production levels, while variable costs fluctuate with changes in production.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does revenue differ from profit?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Revenue refers to sales proceeds, while profit represents the excess of revenue over costs</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What distinguishes short-run from long-run production?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Short-run production has at least one fixed input, while long-run production has all variable inputs.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What role does the short-run average cost curve play in capacity planning?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It helps identify the most cost-effective scale of operation and whether to operate at full capacity or scale back.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What does the marginal cost (MC) represent?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The additional expense generated by producing more units of output.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What economic condition combines spiking inflation with slow growth and high unemployment?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Stagflation</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What does the market structure refer to?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The economic setting in which a business functions, characterized by the competitiveness of the industry and factors like ease of market entry.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">Why is analyzing the LRAC critical for market expansion or entering larger markets?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It ensures competitive pricing and effective competition at a larger scale.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What does the X-axis represent in a breakeven analysis graph?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The number of units.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What determines pricing decisions in the short run for a company?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The marginal cost of production influences short-run pricing decisions.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What does the Fixed Cost curve represent in the context of production costs?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It represents the constant costs incurred regardless of the level of output, such as rent and salaries for full-time staff.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does the Variable Cost curve behave as production increases?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It slopes upwards, indicating that variable costs increase with higher production levels.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">Why is the long-run average cost curve important for a firm's pricing strategy?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It provides the lowest sustainable price that covers all costs at the desired production scale.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What happens to a company's financial status beyond the breakeven point?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The company generates a profit.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How is average total cost determined?</h2> <p style="font-weight: normal; font-size: 1.2rem;">By dividing the total cost by the quantity of output produced</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How can a business reduce its breakeven point?</h2> <p style="font-weight: normal; font-size: 1.2rem;">By adjusting product prices or outsourcing.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What are the key components of cost in the production of goods and services?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Cost components include direct costs, indirect costs, fixed costs, variable costs, accounting costs, and economic costs.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How do long-term benefits affect make-or-buy decisions over the long run?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Quality control and supply chain reliability can justify in-house production if the LRAC is lower than the supplier's price.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does Real GDP differ from Nominal GDP?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Real GDP is adjusted for changes in prices due to inflation or deflation, providing a more accurate representation of economic output, whereas Nominal GDP is assessed in current prices without accounting for inflation.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What are the primary causes of inflation?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Cost-push inflation, demand-pull inflation, and excess circulating money.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How is average total cost (ATC) calculated?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Total Cost (TC) divided by Quantity or Output Level (Q).</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the significance of the Total Cost curve in production?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It shows the sum of fixed and variable costs at each level of production, starting at the level of fixed costs and rising as output increases.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does the LRAC curve assist in long-term capacity planning?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It shows cost implications of different production scales, guiding decisions on expanding or downsizing.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What principle underlies laissez-faire economics?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The economy is strongest when the government minimizes its involvement, allowing market forces to behave naturally.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does the Marginal Cost curve typically change with increased production?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It initially decreases due to efficiencies and then rises, often due to factors like overtime pay or the cost of acquiring additional resources.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What distinguishes a monopoly from perfect competition in market structures?</h2> <p style="font-weight: normal; font-size: 1.2rem;">A monopoly has a single seller with complete market power, whereas perfect competition involves a large number of sellers with no market power.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the role of a firm in a market where it is considered a price-taker?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Its role is to accept market prices without the ability to influence or change them.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">Why is a lower debt-to-GDP ratio considered ideal for a country?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It indicates that the country generates more than it owes, suggesting a healthier economic state.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What are the two components that make up the economic cost?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Implicit cost and explicit cost</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">At what point does a company reach breakeven according to the analysis?</h2> <p style="font-weight: normal; font-size: 1.2rem;">At 10,000 units.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What distinguishes monopolistic competition from perfect competition and monopoly?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It features multiple firms selling differentiated products with limited ability to influence prices.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What historical event led to the Philippine economy contracting by more than 20 percent in the mid-1980s?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Large and unsustainable budget deficits experienced by the Philippine national government in the 1980s.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What factor can cause the breakeven point to rise?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Increased customer sales, escalating production costs, or production interruptions.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What factors influence a firm's make-or-buy decisions in the short run?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Short-run variable costs and the comparison to supplier prices determine make-or-buy decisions.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the significance of marginal cost in production?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It represents the cost of manufacturing an additional unit of a commodity</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">Who utilizes breakeven analysis?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Entrepreneurs, financial analysts, businesses, government agencies, investors, and stock and option traders.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How is GDP per capita calculated?</h2> <p style="font-weight: normal; font-size: 1.2rem;">GDP per capita is calculated by dividing the GDP of a country by its population.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What formula is used to calculate break-even quantity?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Fixed Costs divided by (Sales Price per Unit minus Variable Cost Per Unit)</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">Why is break-even analysis important for businesses?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It helps determine the sales needed to cover all expenses and start generating profits</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the main difference between GDP and GNP?</h2> <p style="font-weight: normal; font-size: 1.2rem;">GDP measures economic activities within a nation's borders, including non-residents, while GNP measures the economic activities of a country's residents, regardless of their location, and excludes foreign residents within the country.</p> </div> </div>