1. You are aware that our economy is suffering from hyperinflation, prices of oil, petroleum, products, hogs, chicken, fish and basic commodities increases tremendously, results to shortage in supply. With fixed income or fixed budget on hand, how will you handle the problem faced by every household? What recommendation can you suggest to the consumers and policy makers to cope with the situation

2. Explain what occurs when a new technology makes one obsolete of economic profit. consider firm A to be the existing firm using the old technology. firm B is the new firm with a new technology. Firm A earned positive profits for years, but with the entrance of firm b, firma's goods and services are no longer desired. What will you do if you are the owner of firm A?

3. Discuss the managerial compensation and principal-agent problem. What are the forces that discipline managers, including the solutions to the manager-worker principal-agent problem?

4. What are the major legal forms of business organization? briefly state the advantages and disadvantages of each. How do you account for the dominant role of corporations in our economy? Explain and evaluate the separation of ownership and control which characterizes the corporate form of business enterprise.

5. Differentiate law of diminishing marginal return from law of diminishing marginal revenue, risk averse from risk loving, signaling from screening and block pricing from commodity bundling.