Price Elasticity of Supply ....................................................................... 47 Summary .............................................................................................. 50 End of Chapter Assessment: Elasticity and Its Application ................. 51
MANAGERIAL ECONOMICS IN THE 21ST CENTURY
CHAPTER 4: CONSUMER BEHAVIOR
2022 04-AC-00049-0 978-621-04-3888-8 BSBA major in Business Economics 53 Consumer Behavior............................................................................... 54 Measuring Utility................................................................................... 55 Indifference Map .................................................................................. 59 The Budget Line .................................................................................... 59 Consumer’s Choice................................................................................ 62 Summary .............................................................................................. 66 End of Chapter Assessment: Consumer Behavior............................... 67
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CHAPTER 5: REVENUE AND THE COST OF PRODUCTION 69 Definitions ............................................................................................. 70 Is Opportunity Cost a Cost? .................................................................. 71 Accounting Profit vs. Economic Profit................................................... 71 Price and Production............................................................................. 72 Summary .............................................................................................. 80 End of Chapter Assessment: Revenue and the Cost of Production .... 81
SCAN ME
CONTENTS
CONTENTS
Preface ........................................................................................................................... vii Acknowledgment ........................................................................................................... ix CHAPTER 1: THE ECONOMIC WAY OF THINKING 1 Is Economics a Science? ........................................................................ 2 How Do Economics Allocate Resources? .............................................. 3 What Is Scarcity? ................................................................................... 3 The Economic Way of Thinking ............................................................. 4 Rational Behavior .................................................................................. 7 Marginal Analysis .................................................................................. 7 Branches of Economics ......................................................................... 9 Methodologies of Economics................................................................ 9
CHAPTER 6: MARKET STRUCTURES
83 What Is a Market Structure? ................................................................. 84 Perfect Competition ............................................................................. 85 Monopolistic Competition .................................................................... 87 Oligopoly ............................................................................................... 89 Monopoly .............................................................................................. 90 Summary .............................................................................................. 92 End of Chapter Assessment: Market Structures ................................. 93 95 Gross Domestic Product: A Measure of the Nation’s Output............... 96 Final Goods and Services ...................................................................... 97 The Expenditure Method in Measuring GDP ........................................ 100 GDP and the Incomes of Capital and Labor .......................................... 103 Nominal GDP vs. Real GDP .................................................................... 103 GDP as a Country’s Report Card: A Measure of Economic Well-being ...................................................................... 105 GDP Does Not Capture It All ................................................................. 107 Summary .............................................................................................. 109 End of Chapter Assessment: Measuring National Income .................. 111 113 Meaning and Use .................................................................................. 114 Importance of Money ........................................................................... 115 Concept of Banking ............................................................................... 115 Types of Bank ........................................................................................ 117 Central Banking in the Philippines ........................................................ 118 Monetary Policy .................................................................................... 119 Money Creation .................................................................................... 120 Summary .............................................................................................. 121 End of Chapter Assessment: Money and Monetary Policy................. 123 125 The Power of Compounding ................................................................. 126 Investing vs. Saving ............................................................................... 127 Financial Markets and the Economy ..................................................... 128 Real and Financial Assets ...................................................................... 129 Are Properties Investments, Too?......................................................... 130 Key Considerations in Investments ....................................................... 131 Financial Intermediaries........................................................................ 131 Summary .............................................................................................. 132 End of Chapter Assessment: Basic Finance ......................................... 133
CHAPTER 7: MEASURING NATIONAL INCOME
Basic Circular Flow ................................................................................ 10 Summary .............................................................................................. 11 End of Chapter Assessment: The Economic Way of Thinking ............. 13 15 What Is a Market? ................................................................................. 16 What Is Demand?.................................................................................. 16 What Is Supply? ..................................................................................... 20 Market Equilibrium................................................................................ 24 Movement and Shifting of the Supply and Demand Curve .................. 26 Summary .............................................................................................. 30 End of Chapter Assessment: Demand and Supply .............................. 31 33 What Is Elasticity? ................................................................................. 34 Price Elasticity of Demand .................................................................... 35 Income Elasticity of Demand ................................................................ 40 Cross-Price Elasticity of Demand .......................................................... 43 iii Price Elasticity of Supply ....................................................................... 47 Summary .............................................................................................. 50 End of Chapter Assessment: Elasticity and Its Application ................. 51 53 Consumer Behavior............................................................................... 54 Measuring Utility................................................................................... 55 Indifference Map .................................................................................. 59 The Budget Line .................................................................................... 59 Consumer’s Choice................................................................................ 62 Summary .............................................................................................. 66 End of Chapter Assessment: Consumer Behavior............................... 67
CHAPTER 2: DEMAND AND SUPPLY
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CHAPTER 8: MONEY AND MONETARY POLICY
CHAPTER 3: ELASTICITY AND ITS APPLICATIONS
CHAPTER 9: BASIC FINANCE
CHAPTER 4: CONSUMER BEHAVIOR
CHAPTER 5: REVENUE AND THE COST OF PRODUCTION 69 Definitions ............................................................................................. 70 Is Opportunity Cost a Cost? .................................................................. 71 Accounting Profit vs. Economic Profit................................................... 71 Price and Production............................................................................. 72 Summary .............................................................................................. 80 End of Chapter Assessment: Revenue and the Cost of Production .... 81
CHAPTER 10: FISCAL POLICY AND PUBLIC EXPENDITURE 135 Keynesian Theory of Macroeconomics................................................. 136 Fiscal Policy as a Stabilization Tool........................................................ 136 Monetary Policy vs. Fiscal Policy........................................................... 137 Taxation in the Philippines .................................................................... 139 Economics of Tax................................................................................... 139 Equality and Equity in Tax ..................................................................... 142 Other Benefits of Fiscal Policy .............................................................. 143
CHAPTER 6: MARKET STRUCTURES
83 What Is a Market Structure? ................................................................. 84 Perfect Competition ............................................................................. 85 Monopolistic Competition .................................................................... 87 Oligopoly ............................................................................................... 89 Monopoly .............................................................................................. 90 Summary .............................................................................................. 92 End of Chapter Assessment:
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