Applied Economics

Applied Economics - correct answer It is the study of economics in relation to real world situations, as opposed to the theory of economics. Application of economic principles and theories, and trying to predict what the outcomes might be. Foreign Exchange - correct answer This refers to the dollar and dollar reserves that the company has. We need this, particularly dollars for international trading and buying raw materials from other countries. First - correct answer This is the __ Application of applied economic. It states that applying economics to the status of the economy of a company, a household or a country helps to sweep aside all attempts to dress up the situation so that it will appear to be worse or better that it actually is. Changes in Supply - correct answer It pertains to the shift of supply curve brought by changes in the determinants of supply. Second - correct answer It is the __ application of applied economics. It states that applied economics acts as a mechanism to determine what steps can reasonably be taken to improve the current economic situation. Changes in Quantity Demand - correct answer This indicate the movement from one point to another point. This changes is brought about by changes in prices. Third - correct answer It is the __ application of applied economics. It states that applied economics can teach valuable lessons on how to avoid the recurrence of a negative situation or at last minimize the impact. Changes in Quantity Supplied - correct answer It show the movements from one point to another point in a constant supply curve. This changes is brought about by a change in price. Econometrics - correct answer It is the application of statistical and mathematical theories to economics for the purpose of testing hypotheses and forecasting future trends. It takes economic models and tests them through statistical trials. Market Equilibrium - correct answer A pricing scheme by combining the law of demand and the law of supply. It comes at that price and quantity where the supply and demand forces are in balance. This is the situation where the quantity supplied and quantity demanded are equal. This means that the amount that buyers want to pay is just equal to the amount that the seller want to sell. Theoretical and Applied - correct answer What are the 2 major categories of econometrics? Surplus - correct answer Above the equilibrium Problems faced by Economic Systems - correct answer 1. What to produce? 2. How to produce? 3. For whom shall goods and services be produced? 4. Are the countries resources being utilized, or some of them are lying idle and unemployed? 5. Is the economy's capacity to produce goods growing or remaining the same overtime? Shortage - correct answer Below the equilibrium Frequency Distributions, Probability Distributions, Statistical Inference, Simple and multiple regression analysis, Simultaneous equation models, time series methods - correct answer What are the tools Econometrics use? Prices of Basic Commodities - correct answer The sensitivity of quantity demanded to change in price is not only explained solely by the change in its price itself but also by the change in real income of consumers. Traditional Economy - correct answer Type of Economic system where everything is mostly based on what is popular, production responds to what is in demand from the people. Elastic - correct answer If the quantity demanded changes a lot when prices change a little, a product is said to be ___ The Market Economy - correct answer Type of Economic system where the exchange and trading of goods and services is what takes place. What to produce is determined by what people demand. Everything in Market Economy is produced for people in exchange of goods and services. Inelastic - correct answer When there is a small change in demand when price change a lot, the product is said to be ___ Free Market economy - correct answer The market economy is also known as... Elastic Goods and Services - correct answer Products that have plenty of substitutes. Example: Furniture, Motor Vehicles, Instrument engineering products, Professional services, Transportation services Invisible Hand - correct answer It represents the supply and demand market forces Inelastic Goods - correct answer Products that have fewer substitutes and price change doesn't affect quantity demanded as much. Example: Gas, Electricity, Water, Drinks, Clothing, Food and Oil.