CELEBRADO, LYKA MALE, KIA - Leader MALINAWAN, MARIGHILE IV-AMA CASE STUDY

1) GOODS AND SERVICES a)Corporate Charitable Institutions b) U.S. aid to developing countries c) Noncable television programs Goods and services are the combination of resources which are Land, Labor and Capital. They require scarce resources and they are themselves scarce. Goods and services are scarce if the amount of what people desires exceeds the amount that freely available. Some of them are free because the available amount of goods and resources exceeds those people want. A Corporate charitable Institution or charitable organization is a type of non-profit organization (NPO). It technically refers to public charity. It differs from other types of NPOs in that its focus is centered on goals of a general philanthropic nature such as charitable, educational, religious, or other activities serving the public interest or common good. It employs all its resources to those charitable activities that are under its direct control. They prioritized the needs of unprivileged class of society. Corporate charitable institution turn to several different methodologies to raise funds designed to support their mission. Even though we are accepting benefits from these charitable institution without giving return we should still not consider it free because The sources of items and services provided by these institutions is scarce. We sometimes think that when someone gave us something without any return it is already for free but this charitable institution should not be considered as one which doesnt requires any return, because the benefits that we gained from them are itself, limited. Those limited

resources serve as the payment, because the fact that those resources are already limited yet they are still being used, they become more limited. That, the resources which are available are insufficient to satisfy wants and needs. There are numerous forms of aid, from humanitarian emergency assistance, to food aid, military assistance, etc. Development aid has long been recognized as crucial to help poor developing nations grow out of poverty. Economic growth is key to transforming the developing world. It is the only way for poor countries to reduce and eventually do away with extreme poverty. Economic growth in developing countries is important to the security of the United States. USAID works to help developing countries achieve rapid, sustained and broad-based economic growth the growth needed to ensure their peoples well-being over time. So, the aid that the U.S government gives to developing countries shall be considered free to the economy as a whole? Those aids that developing countries received comes from limited resources thus, they are not free. Because as stated earlier resources that are already are being continuously used, thats why it becomes more and more limited. Another reason why it should not be considered as free, because even though U.S government doesnt expressly say that they need something in return, they want the developing countries to support them instead. Therefore, U.S government expects a return not in terms of monetary value but in the form of support to their country that is why it is not for free. A non-cable television is where a viewer can only watch FTA (free-to-air) channels in your area. The average numbers of channels that can be generated by your antenna are between five to ten. It means that your satisfaction is not yet good enough. Not only that you are not satisfied with the feature, but also the quality as well. A non-cable television although from its definition you can only watch Free-to-air does not necessarily mean that it is already for free. Since you can watch only limited channels and you are not satisfied enough, it is not for free, because Free in the context of economics is the amount freely available exceeds the amount people desires. The fact that you are still demanding for a more variations of channels and a high value of satisfaction, your desires exceeds the freely available resources.

3) ROLE OF THEORY The economic theory still serves as the basis or framework in predicting the effects of economic changes, economic choices and the effect of these choices on particular markets and on the economy as a whole. Even it cant predict individual behavior; it can still be used to predict changes and their effects by actions of numerous individual. A particular individual may behave in an unpredictable way, but the unpredictable action of numerous people tend cancel one another, so the average behavior of groups can be predicted with greater accuracy. 4) USE OF GRAPHS In the equation, y=mx+b, m represents the slope while b represents the intercept, x and y for the variables.

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Slope = 12/1 or 12

y intercept

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a) So in the equation TC= 10+12Q, the intercept is 10. b) The slope in the relationship TC= 10+12Q is 12/1 or 12.

c) Assume that there are 3 dozens of eggs. By using the equation, TC=10+12Q, we will be able to get the total cost of the 3 dozens of eggs, TC = 10+12(3) TC = 10+36 TC = 46 So the total cost of 3 dozens of eggs is 46. If the eggs will be measured by places, the price will still be the same for the equivalent value of the number of dozens of eggs. But using the same example, where 3 dozens of eggs cost 46, now we will use 36 pieces (12x3) 46 = 10 + m(36) 46 = 10 + 36m 46-10 = 36m 36 = 36m m = 36/36 m=1 So, the slope will be 1/1 or 1. d) The marginal cost of an egg is 12 per dozen, 1 if per piece.

7) COMPARATIVE ADVANTAGE Even though a corporate executive is a better driver than his/her chauffeur, he/she should still employ a chauffeur so he/she will be able to concentrate in his/her responsibilities for the operations and administration of the business. He may be a better driver but, the time that will be spent and lost in driving the car himself is important, where he should be doing a more lucrative activity for the business, which his specialization is needed that will be more advantageous for the business. Clearly, the corporate executive should concentrate on the activities where his relative skills and

abilities are most effectively used even though he has absolutely greater skills in both driving and managing the business. The hired driver may not be as good as the executive in driving but, he is relatively and comparatively more efficient in driving. The most efficient outcome is for the executive to specialize in the administration and operations of the business and the hired driver to concentrate in driving. Based on the principle of comparative advantage, the most efficient and productive pattern of specialization is that people or nations should concentrate on activities in which they are relatively or comparatively more efficient than others. An individual should specialize in doing things with the lowest opportunity cost and, should have a critical mind and be open-minded in analyzing or making decisions in choosing the best alternative which will bring him more advantage or will be more beneficial to him.

8) SUNK COST People tend to have regrets and have a lot of ifs or will say I should have just do that after realizing that they make wrong decisions. People often do not realize that what have been already lost was already lost and that you can never bring back what have been lost. This is the same with the concept of sunk costs, which are the cost/money you spent and already incurred and cannot be recovered no matter what. People should completely ignore sunk costs when making decisions because the money is gone no matter what action is taken next. So, after deciding that you dont want to consume the food youve ordered because you are already full, you shouldnt be having any thoughts of eating all of it because the fact is youve already spent your money to buy the expensive food and no matter what your decision will be you can never get back the money you paid. What will be the benefit if you eat all of it when you are already full? Just because youve spent time and money doesnt mean you should keep at it. Its perfectly natural to feel attached to your sunk costs. Its not good to acknowledge that youve wasted time, money, energy, and reputation. But its even worse to irrationally prolong the waste. It always takes courage to admit you made a bad choice and that you need to change your mind, but it is the only thing to do.

Participation

CELEBRADO, LYKA MALE, KIA MALINAWAN, MARIGHILE

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