Reaction Paper

Dave Ian Liang

IT4B

By Marie S. Neri

Two independent oil players raised prices of their petroleum products by P1 per liter as a result of hikes in crude prices in the international market.

Phoenix Petroleum said the P1 per liter hike in the price of diesel, gasoline and kerosene would take effect at 12:01 a.m. Wednesday.

Seaoil, on the other hand, enforced the price adjustment since 6 a.m. Tuesday.

As of Jan. 8 Dubai crude was pegged at US$ 80 per barrel, higher than the US$ 75 per barrel average for the month of December.

Unleaded gasoline also hit US$ 89 per barrel this month as compared to US$ 82 per barrel last month while diesel reached US$ 88 per barrel as against the US$ 82 per barrel in December.

Price surveillance conducted by the Department of Energy showed that unleaded gasoline are sold between P41 and P45 per liter, diesel at P32 to P35 per liter and kerosene at P40 to P45 per liter.

Flying V, one of the country’s leading independent oil player was the first to implement the price adjustment.

Other oil companies including oil giant Pilipinas Shell Petroleum Corp., Petron Corp., and Chevron Philippines are expected to follow suit. (PNA) (source: http://www.newsbalita.com/oil-price-increase-in-the-philippines/)

The increase of oil price after the year of 2010 would cause more suffering for those who drive public utility vehicle and as for private vehicle owners. This coming year 2011 the people would have a hard time budgeting for buying diesel for their vehicle. I feel unhappy and irritated because of the increase of diesel oil price it becomes more expensive and instead the public utility vehicles can have their extra income in transporting their passengers, but now their extra income are consumed in buying diesel to continuously transport their passengers, thus the price of the diesel oil increase added with the value added tax (VAT) it makes the oil price expensive for those public utility vehicle drivers.

Chapter 3 Review

1. A - the author assumes the farmers can switch at a constant rate from producing meat to producing potatoes.

2. B - can produce a good using fewer resources than other producers.

3. A - has a lower opportunity cost than other producers in the production of a good.

4. C - Nations should specialize in producing those goods for which they have an Absolute Advantage.

5. B - Nations should specialize in producing those goods for which they have the lowest opportunity cost.

6. A - Yes, as long as the boy's opportunity cost is less than half of Tiger Woods' opportunity cost.

7. B - Yes, because the gains outweigh the losses: new businesses and new jobs will flourish in other industries.

8. B - Jill should specialize in reviewing articles and Jim in typing.

9. B - Jill has an absolute advantage over Jim in reviewing articles.

10. C - free trade allows producers to specialize.

Chapter 2 Review

1. D - Economic theories represent irrefutable facts.

2. C - simplify economic theories, so as to make it possible to answer economic questions.

3. D - all of the other options are true.

4. C - the model describes two circular flows: one for inputs and one for resources.

5. B - dollars in the economy are used over and over in an endless cycle.

6. A - Any point along the PPF represents an efficient level of production.

7.B - shift of the PPF away from the origin.

8. C - how households and firms make decisions and how they interact in markets.

9. B - The government should increase spending during recessions, so that the economy recovers quickly.

10. D - all the other options are true.

Chapter 1 Reviewer

1. A - usually do so at the expense of equity.

2. C - room and board (that costs her about the same as she was paying before entering college)

3. C - Any price above zero that will entice standby passengers to take the flight.

4. C - fewer pedestrians were killed in car accidents.

5. B - both persons usually gain from the exchange.

6.B - all producers and consumers.

7. D - decide what and how much should be produced

8. A - relentless increases in the productivity of labor over the years.

9. C - rapid increases in the quantity of money in the economy.

10. D - increase in the long-run.

Exams tomorrow

Two subjects....

Philosophy of ethics

Eonomics111

Hoping to pass the 2 subjects stated above...:D