(BAMM1) INTRODUCTION-TO-MICRO-ECONOMICS.pptx

Intro to Micro Economics

1. INTRODUCTION TO MICRO ECONOMICS ROMMEL L. HERMOSA T-III/ DepEd Masbate Province

2. Welcome Students Welcome student/learners to your classroom. List of objectives for better understanding: Define basic economic terms; Identify the elements involved in the objective of satisfying wants; Differentiate economic analysis and economic policy; Describe the methodology used in the scientific approach in studying economics; Itemize the characteristics of microeconomics; Apply the use of economic models in economic analysis.

3. Lets talk and analyze Today, the current economic situation seems to interest everybody in society; the provider, the laborer, the bank teller, the accountant, the college professor and even the student. while some of these people have no actual background in economics, it comes as a challenge for a college student to familiarize himself with what economics is all about. He gets to learn how to analyze economic theory and to explain why things are happening in the economy. With todays e mphasis on economics, it is an advantage to have Knowledge on economic theory ; =

4. Over the past year, the study of economics has widened to encompass a wider scope of topics:

5. Class Information Economics studies how prices of land, labor, and capital are determined, and how these prices are used to allocate scarce resources. Economics looks into the behavior of financial market and how it allocates capital to the rest of the economy. Economics looks into the distribution of income and into ways of helping the poor without causing harm to the country’s economic performance. Economics studies the impact on growth of government spending, taxes, and budget deficits.

6. 5. Economics examines the movement in income and employment during the different stages of the business cycles with the goal of developing government policies that will improve economic growth. 6. Economics looks at trade patterns among nations and analyzes the impact of trade barriers. 7. Economics examines growth in developing countries and suggest ways to encourage the efficient use of resources.

7. ECONOMIC ACTIVITY (Man’s Basic Economic Activity) 3 ELEMENTS OF HUMAN SATISFACTION HUMAN WANTS – human wants is that they are unlimited and vary from the needs for survival, otherwise known as basic needs.

8. USE OF RESOURCES – available in limited amounts, man has to learn to allocate them properly in order to maximize the number of wants that can be satisfied.

9. TECHNIQUE OF PRODUCTION – shows how resources are used and combined in production as described as capital-intensive or labor-intensive depending on what factor is predominantly used.

10. RESOURCES PAYMENT Labor Rent Land Wage/Salary Capital Interest Entrepreneurship Profit

11. CONSUMPTION HOUSEHOLD – is the basic consuming unit in the economy. Since human wants are unlimited, humans maximize their satisfaction through the proper allocation or mix of expenditures within the context of budget limitation.

12. BUSINESS FIRM – serves as the economy’s producing unit to satisfy human wants with goods and services.

13. SOME ECONOMIC PROBLEMS Unemployment Economic instability that causes highs and lows in production and investment levels; Low levels of growth and development, which make them more difficult for underdeveloped and developing nations to rise from their low levels of income and employment.

14. 4. Inequality in ldistribution resulting in the concentration of the nation’s wealth in the hands of a few; and 5. Determination of the type of economic system to be adopted to meet the country’s peculiar conditions and needs.

15. Characteristics of Microeconomics 1 . Microeconomics looks at the decisions of individual units. It focuses on the choices made by individual decision units such as households, producers, and firms. 2 . Microeconomics often called price theory, looks at how prices are determined in various types of market structures such as pure competition, monopoly, monopolistic competition, and oligopoly.

16. 3. Microeconomics is concerned with social welfare. It examines the efficiency, relative desirability, and choices of alternative methods by which resources are utilized to alleviate scarcity 4 . Microeconomics has a limited focus. Microeconomics is just a part of the economics discipline.

17. 5. Microeconomics develops skills. It helps develop a set of useful and marketable skills. develop logistical reasoning. Develop skill in the construction and use of models. c. Employs optimizing techniques that are useful for making decisions in a variety of situation. e. Applicable to personal resource allocation decisions, such as career choices or financial investments.

18. TYPES OF ECONOMIC SYSTEM TRADITIONAL ECONOMIC SYSTEM – production are made according to customs and tradition.

19. COMMAND ECONOMY – this system is socialistic as the government owns and controls the factors of production. - p lans what to produce and how resources should be allocated.

20. MARKET SYSTEM – deals with the economic problems by considering consumers’ choices. - Market prices serve as signals to the producers about what goods to produce and how much of these goods should be produced.

21. THANK YOU!...