BAAWA,GWENETH IZY B.

ABM-12
ASSIGNMENT IN APPLIED ECONOMICS
1)Compare the similarities and differences of the three major strands in the definition of
economics.
Answer;Wealth choices and allocation are actually similar to each [Link] are similar in a
way that all these three deals with economis and wealth getting and wealth [Link] difference
among these three is that wealth deals with wealth and how this is being used by individuals and
society for material survival stability and [Link] making choices deals with the
sacrifice we forego when we make choices among other [Link] allocation it is
consistent with the process of wealth getting and wealth using and the process of making
choices.
2)Explain why profit or net surplus is not maximized when marginal benefits is lower than
marginal cost.
Answer;One of the marginal benefit,is lower than the marginal [Link] marginal net benefit id
negative implying the marginal net benefits has a negative contribution and total net benefits
which further implies that total net returns is declining.
3)Compare how the three economic system of allocation (market command and tradition)Answer
the basic question of production and distribution?
Answer;The market system,answers to the basic question of production and distribution in a way
that economic decisions are based on free enterprise(competition between companies)Important
economic question are not answered by government but by the individual government,Does not
tell a business what goods to produce or what price to [Link] in command system
government, makes all economic decisions and owns most of the property government planning
groups determine such things as the prices of the goods and services and wages of
[Link] in the traditional system, economic decisions are based on costums and
traditions they make their product just how their ancestors did and the people who uses it are
ones in their village who needs it.
4)What is the difference between explicit benefits/cost and implicit benefits/cost?Identify the
explicit and implicit cost of school attendance.
Answer;Explicit benefits/cost are expenses for which one must pay with cash or [Link]
are the out- of- pocket cost such as expencess on labor, rent, and raw [Link], implicit
cost do not involve in cash transaction and we use the opportunity cost to measure [Link] way
I understand what explicit and implicit cost are. the explicit cost of school attendance is the
papers used to print the school attendance where the names of the students are inputted while the
implicit cost is the time allocated by the administration and the teachers to prepare for the
attendance sheet and check if all students are present in the class.
5)Explain what it means to “to think at the margin”and how it related to applied economics.
Answer;When we say “thinks at the margin”,it means to think about your next steps [Link]’s
about your next step [Link] other words, when we had a done certain action and you are not
sure if you want to do the same action again or want to do something about the [Link] is related
to applied economics in a way, that when a rational person thinks at the margin he or she takes
an action if only if the marginal benefits of the action exceeds the marginal cost.
6)Compare the absolute poverty from relative poverty on how they are measured what policies
should be implemented to address to these two types of poverty?
Answer;Absolute property is the lack of income to buy the basic foods and necessities of
subsistence living it is measured in terms of poverty threshold and poverty [Link]
threshold, is the income needed to purchase the minimum nutritional requirements and other
basic necessities for daily [Link] the other hand, poverty incidence is the proportion of
households in the country with family income lower than the poverty threshold or poverty
[Link] ,relative poverty denotes to the structure on how the national income is being
distributed among households in an [Link] is measured by Lorenz curve and the Gini
[Link] curve, shows the share of the various household groups on the national
income, Gini coefficient is a measure of income inequality derived from the Lorenz curve.
7)What are the implications of slow adaption of modern technology on the rational economy?
Answer;The agricultural industry. The agricultural is the most important for it shows the
reserved food for the country and for the exportation
8)Explain the important of protecting of the [Link] are the opportunity costs of a total
ban on logging?
Answer; Protecting the environment, should really be the number one priority of [Link]
our environment is already totally destroyed,we would all cease to [Link] would be no crops
anymore since ourland is already destroyed no more fishes because our oceans are all
filthy,that’s just some of the effects caused by us not protecting our environment. Besides from
the fact that we would all lose our basic necessities in order to survive, our economy will also
cease to exits,since there are nothing left to be sold or produced. They only thing I can think that
can be opportunity costs of a total ban on logging is that we would have to sacrifice the benefits
of woods in ou everyday lives, like when it comes to housing,furniture and more.
9).What is the role of education and training in the pursuit of economic prosperity?
Answer; When proper education and training it can really health in the persuit of economic
prosperity, in a way that we would enough knowledge on how to handle certain things to prevent
or avoid overcome [Link] enough knowledge and awareness,we would not be sitting
around wondering what should be and could be done; instead we would just do it .
10). Show how cost -benefit analysis can be use in explaining the family size among poor
household?
Answer; The cost benefits analysis can explain why fertility rate among women in families tend
to have large family because they consider additional children us investment that can assist them
in future .the opportunity cause having children is low since women in poor households are
usually not working .