Applied Economics

What is the main difference between nominal wage and real wage?

• Nominal wage is money received, real wage is purchasing power

• Nominal wage is higher real wage is always lower

• Nominal wage is for part time jobs railways is for full time wage is for part time jobs railways is for full time jobs

• Nominal wage is a fixed amount real wage is changes daily

What happens to a market when barriers to entry increase

• The market becomes less competitive and harder to enter

• The market allows more firms to compete freely

• The prices of goods and services automatically decrease

• The number of businesses in the market rapidly grows

Which of the following best explain why barriers to entry reduce market competition

• They prevent new firms from entering limiting choices for consumers

• They help small businesses grow and become industry leaders

• They more businesses to start up quickly

• They make it easier for all companies to complete fairly

Which of the following best describes monopolistic competition

• A market structure where a single cell are dominates the market with no close substitutes

• A market structure with many sellers offering differentiated products with some control over price

• A market structure where a few firms dominate and pricing decisions are interdependent

• A market structure with many firm suffering identical products with no barriers to entry

A large telecommunications company is facing difficulty entering a new market dominated by a few films what type of market structure is the company trying to enter

• Pure competition

• Monopolistic competition

• Oligopoly

• Pure monopoly

How does monopolistic competition differ from pure competition

• Films in monopolistic competition sell identical products why pure competition has differentiated products

• Pure competition has fewer barriers to enter the monopolistic competition

• Films in monopolistic competition have some control over price due to product differentiation

• Pure competition has a small number of sellers while monopolistic competition has only one seller

Why do films in pure competition have no control over price

• They produce differentiated goods that attract different consumers

• They are only a few films competing in the market

• The presence of many firm offering identical products force prices to be determined by supply and demand

• Government regulations set fixed prices for all firms in pure competition

If you were an entrepreneur entering a monopolistic competition market what strategy would you use to gain a competitive advantage

• Offer a standardized product with no differentiation

• Differentiate product through branding and advertising

• Set the highest possible price to maximize short term profit

• Restrict market entry to limit competition

Which of the following statements best describes the role of agribusiness in the philippine economy

• Agribusiness is focused only on small scale farming and does not impact industrial growth

• Agribusiness contributes to industrial development by improving farming technologies and creating stable supply chains

Which of the following best describes the manufacturing process

• The manufacturing process converting raw materials into finished goods that meet customers specifications

• A system where only machines are used to produce goods without human intervention