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    WEEK 2 - Applied Economics Presentation

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    Cameron Velasco
    Applied economics involves studying real world economic situations and using economic principles to analyze them and predict outcomes. It can be practiced at both the macro and micro level. Applied economics helps provide an accurate assessment of an economy, determine steps to improve economic situations, and learn lessons to avoid negative situations in the future. It involves using statistical and mathematical methods to test hypotheses and forecast trends, comparing results to real examples. The basic economic problems all economies face stem from scarcity of resources compared to unlimited wants, requiring choices about what, how, and for whom to produce goods and services, how to allocate resources, whether resources are fully utilized, and facilitating economic growth over time.

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    WEEK 2 - Applied Economics Presentation

    Uploaded by

    Cameron Velasco
    77 views24 pages
    Applied economics involves studying real world economic situations and using economic principles to analyze them and predict outcomes. It can be practiced at both the macro and micro level. Applied economics helps provide an accurate assessment of an economy, determine steps to improve economic situations, and learn lessons to avoid negative situations in the future. It involves using statistical and mathematical methods to test hypotheses and forecast trends, comparing results to real examples. The basic economic problems all economies face stem from scarcity of resources compared to unlimited wants, requiring choices about what, how, and for whom to produce goods and services, how to allocate resources, whether resources are fully utilized, and facilitating economic growth over time.

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    WEEK_2_-_Applied_Economics_Presentation

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    Applied economics involves studying real world economic situations and using economic principles to analyze them and predict outcomes. It can be practiced at both the macro and micro level. Applied economics helps provide an accurate assessment of an economy, determine steps to improve economic situations, and learn lessons to avoid negative situations in the future. It involves using statistical and mathematical methods to test hypotheses and forecast trends, comparing results to real examples. The basic economic problems all economies face stem from scarcity of resources compared to unlimited wants, requiring choices about what, how, and for whom to produce goods and services, how to allocate resources, whether resources are fully utilized, and facilitating economic growth over time.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    77 views24 pages

    WEEK 2 - Applied Economics Presentation

    Uploaded by

    Cameron Velasco
    Applied economics involves studying real world economic situations and using economic principles to analyze them and predict outcomes. It can be practiced at both the macro and micro level. Applied economics helps provide an accurate assessment of an economy, determine steps to improve economic situations, and learn lessons to avoid negative situations in the future. It involves using statistical and mathematical methods to test hypotheses and forecast trends, comparing results to real examples. The basic economic problems all economies face stem from scarcity of resources compared to unlimited wants, requiring choices about what, how, and for whom to produce goods and services, how to allocate resources, whether resources are fully utilized, and facilitating economic growth over time.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 24

    ECONOMIC AS AN

    APPLIED SCIENCE
    APPLIED ECONOMICS
    Economics Applied Economics

    Is the study of
    economics in relation to
    It is the study of real world situations, as
    what constitutes How to opposed to the theory of
    allocate the economics. It is the
    rational human application of
    behavior in the scarce economic principles
    resources
    endeavor to fulfill and theories to real
    situations, and trying
    needs and wants to predict what the
    outcome might be.
    APPLIED ECONOMICS
    Applied Economics may be practiced at
    macroeconomic
    (the whole aggregate economy)
    Microeconomic
    (analyzing individual consumers and companies)
    APPLIED ECONOMICS APPLICATION
    First, applying economics to status
    of the economy of a company, a
    household or a country help to
    sweep aside all attempts to dress up
    the situation so that it will appear to
    be worse or better than its actually
    is.
    APPLIED ECONOMICS APPLICATION
    Second, applied economics acts a
    mechanism to determine what steps
    can be reasonably be taken to improve
    the current economic situation.
    APPLIED ECONOMICS APPLICATION
    Last, applied economics can teach
    valuable lessons on how to avoid the
    recurrence of negative situations or at
    least minimize the impact.
    What is econometrics?
    The application of statistical and
    mathematical theories to economics
    for the purpose of:
    • Testing hypothesis
    • Forecasting future trends.
    The result of the study is being compared and
    contrasted against real-life examples.
    2 major categories of Econometrics

    Theoretical
    Applied.
    BASIC ECONOMIC PROBLEMS
    The scarcity is the root cause of all economic
    problems. In reality, we see that means or
    resources available for satisfying unlimited
    human wants are scarce compared to their
    demand.
    BASIC ECONOMIC PROBLEMS

    Scarcity of means for satisfying various


    needs is the central problems of our
    economic life and it is scarcity that
    creates the need to make a choice.
    BASIC ECONOMIC PROBLEMS

    All the problem like poverty, unemployment,


    inflation, balance of payments, slow growth,
    etc. that modern economy faces originate
    from the scarcity of resources.
    BASIC ECONOMIC PROBLEMS
    Scarcity refers to the tension between our
    limited resources and our unlimited wants
    and needs. For an individuals, resources
    includes time, money, and skills. For a
    country, limited resources include natural
    resources, capital, labor force and technology.
    Because of the scarcity or
    resources, every
    economic system is faced
    with the following
    problems:
    What to produce?
    The system must determine the desires of all
    the people. Goods and services to be
    produced are based on the needs of the
    consumers.
    1) Availability of resources;
    2) Physical environment; and
    3) Customs and traditions of the people.
    How to produce?
    A clear knowledge of manipulating the
    different factors of production helps a
    lot in coming up with the desire output.
    However, the quality of output must
    come first before quantity.
    For whom shall goods and
    services be produced?

    Once the goods are produced, how shall


    they be distributed?
    Are the country’s resources being
    utilized, or some of them are lying idle
    and unemployed?
    When resources are scarce, it is not in the
    rightness of things to keep some of the
    available resources idle. Yet in free market
    economies, such waste does often occur in
    reality.
    Is the economy’s capacity to produce
    goods growing or remaining the same
    overtime?
    This is essentially a dynamic problem,
    the problem of growth with cycles. To
    achieve a growth in productive capacity
    is a universal objective.
    Group Activity:

    Group 1: If you are the economic planner, how can you resolve
    unemployment. List down your options.
    Group 2: What are the three central problems of an economy? Do you
    have any solutions for these?
    Group 3: Cut some news clippings that have something to do with
    economics. Identify the problems presented and try to solve the
    problems.
    Group 4: In your own opinion, are the country’s resources being utilized?
    Why?

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