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    Economics Definition For A Progressive Philippines

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    Jeff Ramos
    Economics is the social science that studies how scarce resources are allocated to meet unlimited human wants. It can be analyzed through its key elements: as a social science that utilizes scientific methods to study human interactions and group dynamics; its focus on resources, human needs, and scarcity; and the process of allocating resources. Economics examines both macro-level issues like overall growth and income as well as micro-level decisions made by individuals, consumers, and businesses.

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    Economics Definition For A Progressive Philippines

    Uploaded by

    Jeff Ramos
    216 views19 pages
    Economics is the social science that studies how scarce resources are allocated to meet unlimited human wants. It can be analyzed through its key elements: as a social science that utilizes scientific methods to study human interactions and group dynamics; its focus on resources, human needs, and scarcity; and the process of allocating resources. Economics examines both macro-level issues like overall growth and income as well as micro-level decisions made by individuals, consumers, and businesses.

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    Economics is the social science that studies how scarce resources are allocated to meet unlimited human wants. It can be analyzed through its key elements: as a social science that utilizes scientific methods to study human interactions and group dynamics; its focus on resources, human needs, and scarcity; and the process of allocating resources. Economics examines both macro-level issues like overall growth and income as well as micro-level decisions made by individuals, consumers, and businesses.

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    Download as pptx, pdf, or txt
    216 views19 pages

    Economics Definition For A Progressive Philippines

    Uploaded by

    Jeff Ramos
    Economics is the social science that studies how scarce resources are allocated to meet unlimited human wants. It can be analyzed through its key elements: as a social science that utilizes scientific methods to study human interactions and group dynamics; its focus on resources, human needs, and scarcity; and the process of allocating resources. Economics examines both macro-level issues like overall growth and income as well as micro-level decisions made by individuals, consumers, and businesses.

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    APPLIED ECONOMICS

    For a progressive Philippines


    INTRODUCTION
    • In a society where we live in, a number of things are
    undertaken for ourselves, our family, our community
    and our country for various reasons including among
    others MATERIAL SURVIVAL, STABILITY AND
    DEVELOPMENT.
    • Food
    • Shelter
    • Clothing, etc.
    • And all these activities are intended for the
    material survival of the people and its community.
    Two BRANCHES of Economics

    •MACROECONOMICS
    •MICROECONOMICS
    Macroeconomics
    • Study of the economy as a whole.
    • Eg. The country as a whole
    • Macroeconomics is a division of the economics that is concerned with
    the overall performance of the entire company or country.
    • It is about the nature of economic growth, the expansion of
    productive capacity and the growth of national income.
    • INCOME THEORY
    Microeconomics
    • Study of a single entity, an individual or a consumer, the producer, or
    the resource owner
    • It is more concerned on how foods flow from the business firms to
    the consumer and how resources move from the resource owner to
    the business firms.
    • Concerned with the process of setting prices of goods that is known
    as PRICE THEORY.
    • Microeconomics studies the decision and choices of the individual
    units and how these decisions affects the price of goods in the
    market.
    What is economics?
    • Economics can be traced back to the GREEK word:
    • “OIKONOMIA” -
    • Which in turn is composed of two GREEK words:
    • Oikos and Nemein
    • Oikos means a house
    • Nemein means to manange
    There are many contributors of the definition
    of economics:
    •ADAM SMITH (1723- 1790)
    • Father of Economics
    • In which he stated that, economics as the practical science of
    production and distribution of wealth.
    Alfred Marshall (1842- 1924)
    (He wrote the book “Principles of Economics in 1980)

    • He defined economics as a study of mankind in the ordinary business


    life and it examines that part of individual and social action which is
    most likely connected with the attainment and with the use of
    material requisites of well being.
    Lionel Robbins (Scarcity)
    • According to him, economics is a science which studies human
    behavior as a relationship between ends and scarce means which
    have alternative uses.
    Economics Definition:
    • Economics is a social science that deals with the allocation of scarce
    resources to meet the unlimited human wants.

    • Economics is the social science that deals with the allocation of scarce
    resources to satisfy the needs, wants and demands of the people.
    There are three strands in the development of
    the definition of economics.

    • The first focus is WEALTH.


    • The second focus is DECISION- MAKING
    • The third concentrates on the
    ALLOCATION PROCESS
    Economics as study of wealth

    • The earlier definition of economics as the science or wealth- getting and wealth
    using implies the motivation of the PROCESS of wealth accumulation is the
    utilization of wealth for the individual’s satisfaction and society’s welfare.
    • This initial definition pertains to production and consumption.
    • The intent of producing goods and services is meant for consumption and other
    forms of disposition of these produced goods and services.
    • Thus economics is all about wealth and how this wealth is being used by
    individuals and society at large for material survival, stability and development.
    Economics as Study of Making Choices

    • Economics as a science of making choices. In everything we do, whether we


    produce or consume, whether it is wealth- getting or wealth- using, we make
    decisions and these decisions are based on alternative choices.
    • When we make choice from among the alternatives, we are foregoing or
    sacrificing the benefits that would have been derived from the alternatives
    that were not selected.
    • Thus in making a decision, we have to consider a major concept in the study
    of economics- opportunity cost/ opportunity foregone.
    • In everything we do, there are costs and sacrifices that we have to carry.
    • The choice that we pursue must be based on a valuation of cost and benefits.
    Economics as Study of Allocation
    • Consistent with the process of wealth getting and wealth using, and
    the process of making choices is the process of allocation.
    • The definition of economics will be explained further as a social
    science that deals with the study of allocation of scarce resources to
    answer the unlimited human wants.
    • Although the third definition concentrates on the allocation process,
    economics can be analyzed comprehensively in terms of its FIVE key
    elements.
    FIVE key elements
    • Social science
    • Resources
    • Human needs, wants and demand
    • Scarcity
    • Allocation
    Economics as a social science
    • As a science, it utilizes the scientific method of inquiry from identifying
    the problem, proposing alternative tentative answer or hypotheses,
    testing the tentative answers to the questions or to the problems at
    hand, gathering and treating the data and answering the questions
    through the conclusion.
    • As a social science, this systematic or scientific method can be described
    as the study of various modes and aspects of human interactions in a
    group as these people aspire to preserve their group as a social unit, to
    make it stable, and to promote its growth, expansion and development.
    • As a social science, economics pertains to the study on how society
    creates its material wealth, how it makes this wealth available to its
    people with minimum difficulties and how it expands its wealth.
    Economics as a social science cont.….
    • As a social science, economics is related to the other sciences that study the
    other dimensions of a society.
    • For example: in political science the creation and utilization of power is being
    studied for the preservation, stability and growth of the society’s political unit.
    • In a similar manner, individual examined in behavioral sciences including
    sociology, anthropology and psychology for the preservation, stability and
    growth of society’s cultural identity.
    • Lastly, the recording and analysis on how these goals of societal preservation,
    stability and development are achieved over time are the concerns in the
    study of history.

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