COMPREHENSIVE REVIEWER (FINAL PERIOD) BASIC AND PRINCIPLES OF

ECONOMICS
SPANISH DECREE OF 1894 is the decree that grant landholders with one
year to secure their legal titles to their land. Failure in doing so will
result to forfeiture of their land.
REPUBLIC ACT NO. 6390 is created to finance the Agrarian Reform
Program of the government.
SPANISH DECREE OF 1880 a decree joining all landholders, whether the
caciques or peasants to secure legal titles to their lands.
PUBLIC LAND ACT OF JULY 1, 1902 a public land act that became
effective on July 26, 1904 offering homestead plots not in excess of 16
hectares to families who have cultivated the land they were residing since
August 1, 1898.
ACT NO. 4054, THE RICE SHARE TENANCY ACT OF 1933 this acts regulate
tenancy share contracts by establishing minimum standards of 50-50 crops
sharing.
There are scarcity of resources because MAN WANTS ARE UNLIMITED.
The law of demand states that, when the price goes up, the quantity
demanded goes down. There is an inverse relationship between the
price of a good and the quantity of the good demanded.
The ceteris paribus assumption clause in the law of demand does not allow
which of the following factors to shift or change?
Consumer taste and preferences
Expectations of price changes
The price of related goods
All of the above
Assume that Virgin Cola and RC Cola are substitutes. A rise in the price of
Virgin Cola will have which of the following effects on the market of RC?
A rightward shift in the RC demand curve
Assume that coffee and sugar are complementary goods. The effect on the
sugar market of an increase in the price of coffee (other things being equal)
would best be describe as;
Decrease in the demand for sugar
The theory of supply state that, there is a positive relationship between
the price of a good and the quantity of it being offered for sale by
suppliers.
When the supply curves slope move upward this means that, there is a
increase in prices providing producers with a higher profit incentives
that needed to increase the quantity supplied.
Which of the following will not cause a movement along supply curve?
Changes in the sellers expectations.
Increases in taxes per unit of output
Advances in technology
All of the mention
Market equilibrium is defined as, the condition in which there is neither
a shortage or surplus.

Revised value added tax has a uniform rate of?

12%
Charge or fee that government collects from individuals and organization under
its jurisdiction;
Taxes
The decree which reiterated the abolition of share tenancy and declared the
whole country as a land reform area;
PD 2
Republic Act 6657 is also known as;
CARP
When total cost is greater than the total revenue;
Loss
Results when total revenue is equal to total cost;
Brake-even
The incumbent secretary of Department of Agrarian Reform;
Virgilio R. Delos Reyes
Its is the value of what is foregone in order to have something else;
Opportunity cost
Another name given to equilibrium;
Balance
It reflects the desire of the consumers for a commodity;
Demand
Income received by an entrepreneur;
Profit
Income receive by capitalist;
Interest
Goods that satisfies mans wants;
Essential goods
A social science that aims to answer scarcity;
Economics
What people would buy if their income is unlimited?
Wants
Total amounts or quantities is closely related to;
Aggregates
Those alternatives that exist for any given activity for use of income or time;
Substitution option.
A situation in which the ingredients for producing the things that people desire
are insufficient to satisfy all wants; Scarcity.
It is the inputs use to produce goods and services; Resources.
The natural resources that is available from nature; Land.
All manufactured resources, including buildings, equipment, machines, and
improvement to land is used for production; Capital.
Any things from which individuals derive satisfaction of happiness and are thus
valued; Goods.
Any goods or services that is scarce; Economic goods.
The present Commissioner of the BIR; Kim Henares.
He is the the present Bangko Sentral ng Pilipinas governor, Amando M.
Tetangco, Jr.
At any given price, quantity demanded can change infinitely; Perfectly elastic.

The responsiveness of demand/supply to a change in its determinants;

Elasticity.
Tax imposed on the right of the deceased person to transmit his/her estate;
excise tax.
Under this principle movables follow the law person. Mobilla sequntur
personan.
Tax imposed on income from the sale of stocks, bonds or real estate is; Capital
gain tax.
This refers to income such as interest on bank deposits, dividends, royalties,
prizes and other winnings; Passive income.
It is the use of the taxpayer of illegal and or fraudulent means to defeat or
lessen the amount of tax; Tax evasion.
The excess of income over revenue; Profit.
The amount received by a seller from the sale of goods or commodity item/s;
Revenue.
Role of taxes in the economy; It raise revenue for government spending, It
control the volume of imported goods; stabilize our economy.
Not a passive income of an individual; Salary.
Tax imposed on income earned by corporation engaged in trade or business;
Corporation tax.
A business tax imposed and collected from the seller of services in the course
of trade or every business transactions; Add Valorem or Value Added Tax.
Tax derived from compensation of every resident citizen of the Philippines;
Income tax.
It includes both explicit and implicit costs; Total Revenue.
A fee imposed by the government on income, wealth, property, and profit of
persons and businesses; Tax.
Additional revenue that the firms earns from each additional unit of output
sold; Marginal revenue.
The basis of economics for Agrarian reform; Increasing efficiency; promoting
equality, increasing income.
One of the character of an Agricultural economy; Low productivity.
Refers to the rise in the general price level over time; Inflation.
Measures the value of all final goods and services that are produced in an
economy over a given period of time; Gross Domestic products.
Refers to those people who are part of the labor force but cannot find work;
Unemployment.
A countrys labor force includes people that are; Working, Engaged in
business, Are not working but actively looking for work.

The sum of GDP and net factor income from abroad; GNP
Farming around the world continues to become more productive while generally
accounting for a smaller share of employment and national income; Agriculture.
The running down or payment of a loan by installment. An example is a repayment
mortgage on a house, which is amortized by making monthly payments that over a preagreed period of time cover the value of the loan plus interest. With loans that are not
amortize, the borrower pays only interest during the period of the loan and then repays
the sum borrowed in full; Amortization.
A rise in the value of an asset and the opposite of depreciation. When the value of a
currency rises relative to another, it appreciates; Appreciation.
The belief that people should be taxed according to their ability to pay, regardless of the
benefits they receive; Ability-to-Pay-principle.
The ability to produce more units of a good or service than some other producer, using
the same quantity of resources; Absolute advantage.
A schedule (or graph) that shows the value of output (real GDP) that would be demanded
at different price levels; Aggregate Demand.
A schedule (or graph) that shows the value of output (real GDP) that would be produced
at different price levels. In the long run, the schedule shows a constant level of real GDP
at all price levels, determined by the economy's productive capacity at full employment.
In the short run, the aggregate supply schedule may show different levels of real GDP as
the price level changes; Aggregate Supply.
Something of monetary value owned by an individual or an organization; Asset.
Total cost (TC) divided by the amount produced; Average cost.
Total fixed costs divided by the amount produced; Average Fixed Cost.
Total revenue divided by the amount produced; Average revenue.
The percentage of overall income that is paid in taxes; Average tax ratio.
Total variable costs divided by the quantity produced; Average variable cost.
A approach where a firm compares its total revenue and total cost at all feasible output
level to determine the level that maximizes profit; TR-TC approach.
Aimed at bringing about a new structure of access to land that is more adequate to the
requirements of the socio-economic and political system; Agrarian reform.
An arrangement in which landowner and tenant share in both the decision making and
control aspects of management as well as in the output and costs of the inputs; Share
tenancy.
The record of all transactions (in goods, services, physical and financial assets) between
individuals, firms and governments of one country with those in all other countries in a
given year, expressed in monetary terms; Balance of payment.
An imbalance in a nation's balance of payments where more currency is flowing out of
the country than is flowing in. This unequal flow of currency is considered unfavorable
and can lead to a loss of foreign currency reserves; Balance of payments deficit.
Problem Solving :

TR

MR

MC

AC

TC

PROFIT/

LOSS

97
89
81
73
66
58
50

100
200
300
400
500
600
700

(PXQ)

(TR/Q)

(TC/Q
)

9700
17,800
24,300
29,200
33,000
34,800
35,800

81
65
49
38
18
10

16
14
15
41
35
70

NOTE: Reserve for Quiz

(TC/Q)

(AC)
(Q)

10,000
11.600
13,000
14,400
18,500
22,000
29,000

TR-TC