Reflection Paper(MICRO)
Silla Emanuel S.
2-5 BSE SOCIAL STUDIES
1.)Microeconomics feels personal because it’s about the small, everyday choices that
shape our lives. Last year, I remember standing inside Llanas the one at Libertad,
staring at two brands of pancit canton. One cost 4 pesos less, so I grabbed it,even
though I preferred the other(it had more umami in it). That simple decision wasn’t just
about saving money; it was about balancing what I wanted with what I could afford.
Microeconomics taught me how to adapt when prices change, incomes shrink, or
surprises like a broken phone drain my wallet.
I’ve also seen microeconomics at work in my local community. When our town’s only
hardware store closed, a neighbor from another street transformed his garage into a
tool rental spot. He didn’t need a fancy degree to figure it out, he just saw a need and
filled it, charging enough to keep the lights on but not so much that people walked a
sizable distance to the next barangay. This example show how an individual can impact
his/her community and to quietly steer resources, time, and energy toward what matters
most. Microeconomics, in the end, is about people finding clever, practical ways to
survive and help each other thrive, even when life feels unpredictable.
50 CONCEPTS OF MICROECONOMICS.
1. Scarcity: Limited resources vs. unlimited wants—forces trade-offs.
2. Opportunity Cost: What you give up to choose something else.
3. Supply: How much of a good producers are willing to sell at different prices.
4. Demand: How much of a good consumers are willing to buy at different prices.
5. Equilibrium: Price where supply and demand meet; no surplus or shortage.
6. Price Elasticity: How responsive quantity demanded is to price changes.
7. Income Elasticity: How demand changes when income changes (e.g., luxuries vs.
necessities).
8. Cross Elasticity: How demand for one good changes when another’s price changes
(e.g., substitutes).
9. Total Utility: Total satisfaction from consuming a good.
10. Marginal Utility: Extra satisfaction from one more unit of a good.
11. Diminishing Marginal Utility: Each additional unit adds less satisfaction.
12. Indifference Curves: Combos of goods that give equal satisfaction.
50 CONCEPTS OF MICROECONOMICS.
13. Budget Constraint: What you can afford given income and prices.
14. Consumer Surplus: Difference between what you’d pay and what you pay.
15. Producer Surplus: Difference between market price and what producers would
accept.
16. Deadweight Loss: Inefficiency from market distortions (e.g., taxes).
17. Price Ceiling: Gov’t cap on prices (e.g., rent control).
18. Price Floor: Gov’t minimum price (e.g., minimum wage).
19. Tax Incidence: Who actually bears the tax burden (buyers/sellers).
20. Subsidy: Gov’t payment to lower production costs or encourage consumption.
21. Production Function: Inputs (labor, capital) turned into outputs (goods).
22. Fixed Costs: Costs that don’t change with output (e.g., rent).
23. Variable Costs: Costs that change with output (e.g., materials).
24. Marginal Cost: Cost of producing one more unit.
25. Average Total Cost: Total cost divided by output.
50 CONCEPTS OF MICROECONOMICS.
26. Economies of Scale: Lower per-unit costs as production scales up.
27. Diseconomies of Scale: Higher per-unit costs due to inefficiency at large scale.
28. Perfect Competition: Many small firms, identical products, no price control.
29. Monopoly: Single firm controls market, sets prices.
30. Oligopoly: Few large firms dominate (e.g., airlines).
31. Monopolistic Competition: Many firms with differentiated products (e.g., fast food).
32. Game Theory: Strategy in decision-making.
33. Nash Equilibrium: Players’ best moves given others’ choices.
34. Dominant Strategy: Best move regardless of others’ actions.
35. Prisoner’s Dilemma: Conflict between self-interest and group cooperation.
36. Externalities: Costs/benefits affecting third parties (e.g., pollution).
37. Public Goods: Non-excludable and non-rival (e.g., streetlights).
38. Free Rider Problem: People benefit without paying (e.g., public radio).
50 CONCEPTS OF MICROECONOMICS.
39. Tragedy of the Commons: Overuse of shared resources (e.g., overfishing).
40. Asymmetric Information: One party knows more than another (e.g., used cars).
41. Adverse Selection: Bad risks dominate due to info gaps (e.g., insurance).
42. Moral Hazard: Risky behavior after a deal (e.g., careless driving with insurance).
43. Giffen Goods: Inferior goods where demand rises with price (rare).
44. Veblen Goods: Luxury goods where demand rises with price (status symbols).
45. Normal Goods: Demand increases with income (e.g., organic food).
46. Inferior Goods: Demand decreases with income (e.g., instant noodles).
47. Substitutes: Goods you swap (e.g., Coke vs. Pepsi).
48. Complements: Goods used together (e.g., peanut butter and jelly).
49. Factors of Production: Land, labor, capital, entrepreneurship.
50. Marginal Product of Labor: Output added by one more worker.
50 CONCEPTS OF MICROECONOMICS.