Lecture Notes 1 Microeconomics Theory and Practice Business exists to provide goods and services through the market.

*First cycle Goods and services; land, labor and capital (economic resources)

Factors we consider in purchasing: 1. Price 2. Quality 3. Affordability 4. Accessibility 5. Market Transparency and Fairness *Maximum satisfaction at the least price possible *The consumers interdependently and businesses perform OBJECTIVES: 1. Protection of consumers against products and services that are hazardous to health and safety. 2. Protection of consumers against deceptive, unfair and unlawful sales acts and practices. 3. To promote information and education to facilitate sound choice and proper exercise of rights by the consumers. 4. Provision of adequate rights and means of redress 5. Involvement of consumer representative in the formulation of social and economic policies. *Second cycle Expenditures As a consumer there is a Republic Act No. 7394 also known as the Consumer Act of the Philippines which took effect on July 15, 1992. This act states a basic policy to protect the interest of the consumer, promote his general welfare and establish standard of conduct for business and industry.

Three groups of decision maker: 1. Households owner of land, labor and capital (economic resources). 2. Firms any organization that produces goods and services. 3. Government both consumer and producer of public goods and services; the one that directs or regulates the operation of the economy

Lecture Notes 2 Microeconomics Theory and Practice

Factor Markets
Labor, land, capital

t, en ,R st re e te t R In fi s, ro e P ag W

Wages, interest, rent

r, bo a l , L ita d p an Ca L

W ag es ,I n Pr te of re s it Re t, R en t,
Taxes

La nd Ca , La pi bo ta l r,

Taxes

Household s

Benefits

Governme
Expenditures

Subsidies

Firms

Goods and

Goods and

Ex pe nd itu G re oo Se s o ds rv n an ic G es oo d Se ds rv an ic d es

Goods

s od o G es on s ic s ice rv e Se ur erv it S d nd an e s xp od E Go

Goods and Services

d an