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1 Scrib Upload Course Introduction Nature and Scope of Economics

Economics is the study of how scarce resources are allocated efficiently to satisfy unlimited human needs and wants. It uses a scientific approach and mathematical methods to understand how people obtain goods and services, and how these things are distributed. The objectives of studying economics are to help students understand basic economic concepts from various perspectives, and to apply that understanding to analyze contemporary issues like demand, supply, costs, pricing, and profit. Economics derives from Greek words meaning "household management".

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Neri Sangalang
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38 views10 pages

1 Scrib Upload Course Introduction Nature and Scope of Economics

Economics is the study of how scarce resources are allocated efficiently to satisfy unlimited human needs and wants. It uses a scientific approach and mathematical methods to understand how people obtain goods and services, and how these things are distributed. The objectives of studying economics are to help students understand basic economic concepts from various perspectives, and to apply that understanding to analyze contemporary issues like demand, supply, costs, pricing, and profit. Economics derives from Greek words meaning "household management".

Uploaded by

Neri Sangalang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Nature and Scope of

Economics

By Engr. Ma. Nerissa P. Sangalang, RCE,LPT,MBA


Objectives

• To help the students understand the basic concepts


of Economics from a wide variety of angles
particularly on how people get the things they want
and need and how these things are distributed, and
to help them making sound decisions at individual
and business levels
• To assist the students in applying that
understanding. to contemporary economics issues,
depict demand graphs, analyze supply issues, and
understand the correlation between business costs,
pricing and profit.
09/03/2020 Microeconomics module by Engr. N. Sangalang 2
ECONOMICS AS
A FIELD OF STUDY
Economics

• Derived from the Greek word


“oikonomia” or “oikonomos”
• Oiko meaning household
• Nomia/Nomos meaning management
• Economics = Household Management

09/03/2020 Microeconomics module by Engr. N. Sangalang 4


Economics is a branch of
social science that deals
with efficient allocation of
scarce resources for the
satisfaction of unlimited
human needs and wants.
Economics

Social Science
• uses a scientific approach to study
human behavior
• considered as the queen of the social
sciences
• utilizes mathematical method
– specificity, accuracy, and precision
09/03/2020 Microeconomics module by Engr. N. Sangalang 6
Economics

Efficient Allocation of Scarce Resources


• this is the primary and most important
reason for studying economics
• resources are used to produce good and
services but these are not unlimited
• It is important that these resources are
used efficiently to create the most
benefit to society
09/03/2020 Microeconomics module by Engr. N. Sangalang 7
Economics

Unlimited Needs and Wants


when will our needs and wants be unlimited?
5 Basic Needs
1. Food +Education
2. Shelter +Load
3. Clothing +Gadgets
4. Water +Internet
5. Love and Care +Transportation

09/03/2020 Microeconomics module by Engr. N. Sangalang 8


Economics

Unlimited Needs and Wants


Why are our needs and wants unlimited?
Because of…
• Technological Breakthroughs
• Ads and Commercials – demonstration
effect
• Production – from raw materials to final
goods
09/03/2020 Microeconomics module by Engr. N. Sangalang 9
END

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