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    Applied Economics: Introduction-For ABM-12 Rembrandt 10:30-11:30 - Oct 2020

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    Arjae Dantes
    Here are 5 sentences answering the questions: The essence of studying economics is to understand how scarce resources are allocated in society. Economics helps explain why certain goods and services are produced, how production occurs, and who benefits from economic activity. At a household level, economics guides financial decisions like budgeting and spending and saving. For example, I consider costs and benefits when deciding how much to spend on food, utilities, and other necessities. Economics also influences larger purchases by analyzing factors like interest rates and opportunity costs. Studying economics provides useful knowledge and skills for managing household finances and making informed choices as consumers.

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    Applied Economics: Introduction-For ABM-12 Rembrandt 10:30-11:30 - Oct 2020

    Uploaded by

    Arjae Dantes
    2K views21 pages
    Here are 5 sentences answering the questions: The essence of studying economics is to understand how scarce resources are allocated in society. Economics helps explain why certain goods and services are produced, how production occurs, and who benefits from economic activity. At a household level, economics guides financial decisions like budgeting and spending and saving. For example, I consider costs and benefits when deciding how much to spend on food, utilities, and other necessities. Economics also influences larger purchases by analyzing factors like interest rates and opportunity costs. Studying economics provides useful knowledge and skills for managing household finances and making informed choices as consumers.

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    Here are 5 sentences answering the questions: The essence of studying economics is to understand how scarce resources are allocated in society. Economics helps explain why certain goods and services are produced, how production occurs, and who benefits from economic activity. At a household level, economics guides financial decisions like budgeting and spending and saving. For example, I consider costs and benefits when deciding how much to spend on food, utilities, and other necessities. Economics also influences larger purchases by analyzing factors like interest rates and opportunity costs. Studying economics provides useful knowledge and skills for managing household finances and making informed choices as consumers.

    Copyright:

    © All Rights Reserved
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    2K views21 pages

    Applied Economics: Introduction-For ABM-12 Rembrandt 10:30-11:30 - Oct 2020

    Uploaded by

    Arjae Dantes
    Here are 5 sentences answering the questions: The essence of studying economics is to understand how scarce resources are allocated in society. Economics helps explain why certain goods and services are produced, how production occurs, and who benefits from economic activity. At a household level, economics guides financial decisions like budgeting and spending and saving. For example, I consider costs and benefits when deciding how much to spend on food, utilities, and other necessities. Economics also influences larger purchases by analyzing factors like interest rates and opportunity costs. Studying economics provides useful knowledge and skills for managing household finances and making informed choices as consumers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 21

    Applied

    Economics
    Introduction- for ABM-12 Rembrandt
    10:30-11:30- Oct 2020
    True or False: Carefully read each sentence and
    determine if the sentence is true or if the sentence is
    false.
    1. Economics comes from the Greek word oikonomia
    which means household chores.
    2. Economics is considered a field of social science.
    3. Economics is relevant because it is part of everybody’s
    life.
    4. There are three (3) divisions of Economics, the
    microeconomics, the macroeconomics and the home
    economics.
    5. As a science, Economics is related to other sciences.
    Answer the following using five (5)
    sentences and above.
    1. As an individual, what do you
    think is the essence of studying
    economics?
    2. How do you apply economics in
    your household?
    Economics as defined
    ECONOMICS From the Greek words Oikos
    meaning household and nomos meaning
    management = household management

    The wise production and use of wealth to


    meet the demands or needs of the people
    Common terms
    1. Scarcity- a situation wherein the amount of
    something available is insufficient to satisfy the
    desire for it
    2. Resources-The labor, capital, land and natural
    resources and entrepreneurship that are used to
    produce goods and services.
    3. Unlimited – without limits, infinite
    4. Wants –desires
    Common terms;
    Two branches of economics
    4. Macroeconomics- concerned with overall
    performance of the entire economy, it studies the
    economic system as a whole rather than the
    individual economic units that make up the economy.
    Macroeconomics- is about the nature
    of economic growth, expansion of
    Productive capacity and growth of
    National income.
    5. Microeconomics-
    a. concerned with the behavior of individual entities
    such as the consumer, the producer and the resource
    owner,
    b. it is more concerned on how goods flow from the
    business firm to the consumer and how resources move
    form the resource owner to the business firm.
    c. also concerned with process of setting prices of goods
    known as price theory.
    d. studies the decisions and choices of the individual
    units, and how these decisions affect the prices of goods
    in the market.
    ECONOMICS – is a social science that
    deals with how people organize
    themselves in order to allocate scarce
    resources in order to produce goods and
    services that will satisfy the unlimited
    and multiplying wants and needs of
    man.
    Economics is concerned with PRODUCTION
    Production- is the use of inputs to produce
    outputs.
    Inputs- are commodities or services that are
    used to produce goods and services.
    Outputs-are the different goods and services
    which come out of production process.

    Society have to decide what outputs will be


    produced and in what quantity
    Economics is concerned with DISTRIBUTION
    Distribution- is the allocation of the total product
    among members of society. It is related to the
    problem of for whom goods and services are to be
    produced.
    Economics is concerned with CONSUMPTION
    Consumption- is the use of a good or service.
    Consumption is the ultimate end of economic activity.
    WHEN THERE IS NO CONSUMPTION, THERE WILL BE
    NO NEED FOR PRODUCTION AND DISTRIBUTION.
    Economics deals with PUBLIC FINANCE

    Public Finance- is concerned with government


    expenditures and revenues.
    Economics studies how the government raises
    money through taxation and borrowing.
    The Four Basic Problems of an Economy
    The central economic problem of scarcity of resources
    is broken down into four basic problems of an economy..
    #1 – What to Produce?
    What does a society do when the resources
    are limited? It decides which goods/service it
    wants to produce. It also determines the
    quantity required.
    Basic Problems of an Economy –

    #2 – How to Produce?
    The production of a good is possible by
    various methods. This refers to the
    resource mix and technology that will be
    applied in production.
    Basic Problems of an Economy –

    #3 – For whom to Produce?


    Is about the market for the goods, for whom
    will the services and goods be produced? In
    other words, society decides on the
    distribution of the goods and services among
    the members of society.
    Basic Problems of an Economy –
    #4 – What provision should be made for
    economic growth?
    Can a society use all its resources for current consumption? Yes, it can.
    However, it is not likely to do so. The reason is simple. If a society uses all
    its resources for current consumption, then its production capacity
    would never increase.
    Therefore, the standard of living and the income of a member of the
    society will remain constant. Subsequently, in the future, the standard of
    living will decline. Hence, society must decide on the part of the
    resources that it wants to save for future progress.
    Q1. What are the four basic problems of an
    economy?
    Answer: The four basic problems of an economy,
    which arise from the central problem of scarcity of
    resources are:
    What to produce?
    How to produce?
    For whom to produce?
    What provisions (if any) are to be made for
    economic growth?
    Q2: How these questions are answered
    then? It defends on the nature of the
    economic system.
    Types of economic systems;
    1. Traditional economy- Decisions are based
    on traditions and practices upheld over the
    years and passed on from generation to
    generation.Traditional societies exist in
    primitive and backward civilization.
    2. Command economy- This is the
    authoritative system wherein decision-
    making is centralized in the government
    or a planning committee. Decisions are
    imposed on the people who do not have a
    say in what goods are to be produced.
    Holds true in dictatorial, socialist, and
    communist nations.
    3. Market economy- The most democratic
    form of economic system. Based on the
    workings of demand and supply, decisions are
    made on what goods and services to produce.
    People preferences are reflected on the prices
    they are willing to pay in the market and
    therefore the basis of the producers decisions
    on what to produce.
    In the Philippines, what type of Economic system do
    we have? Explain its process, and give examples.
    #1: Individual task
    Answer the following using five (5)
    sentences and above.
    1. As an individual, what do you think
    is the essence of studying economics?
    2. How do you apply economics in
    your household?

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