fundamentals of economics and development.pptx

fundamentals of economics

1. economics

2. What is economics? Economics is concerned with the production , distribution, and use of material goods and services. Adam Smith the recognized father of Economics, stated that Economics is “an inquiry into the nature and causes of wealth of the nations.”

3. Basic terms of Economics A good is anything which yields satisfaction to someone. Goods may be tangible when they are in the form of material goods or commodities. They may be also intangible in the form of services. Tangible goods like shoes, books, and umbrellas, while intangible services like those rendered by the doctor, the teacher, or the painter are all used in the satisfaction of human wants and needs.

4. Consumer goods Goods which yield satisfaction directly, just like soft drinks and food are all called consumer goods. Capital goods Goods used in the production of other goods and services. Example of these are buildings, machinery, and equipment .

5. Luxury goods Are those goods man may do without, but are used to contribute to his comfort and well being. Such as perfumes, chocolates, and expensive cars are luxury items that are purchased only by those who can afford. Economic goods Is a good which is both useful and scarce. It has a value attached to it and a price has to be paid for its use. If a good is abundant that there is enough of it to satisfy everyone’s needs without anybody paying for it, that good is free. Air is free, but air from the electric fan is an economic good.

6. Economic resources The things which are needed to carry on the production of goods and services are called economic resources or factor s of production. These resources includes: LAND LABOR CAPITAL ENTREPRENEUR

7. Types of economic system

8. Traditional Economy This is a subsistence economy. A family produces everything that it consumes. Decisions on what, how, and for whom to produce are made by referring to the traditional manner of doing things. Production is carried on in the methods used by forefathers and is therefore very primitive. This type of economic system is very backward since it does not allow for change. Command Economy The means of production are owned by the government. Its decisions are arrived at by planners or government men who dictate what, how, and for whom to produce.

9. Market economy The resources are privately owned and decisions are made by the people themselves. The system depends on prices set by the conditions of demand and supply. Competition is supreme; there is consumer sovereignty, and the price of the good is the guiding factor for producers to know what and how much to produce. In the resource market the price of the resources; the rent, the salaries, and interest, will depend on the amount made available by the resource owners as well as the amount of these resources that the producers will be willing to hire.

10. The mixed economy The United States economy is predominantly market, but it cannot be denied that some form of government control exists. Cuba can best be described as a command since its decisions are planned by the government; however, the price system is also used, even if only minimally. The Philippine economy is a mixed economy since it applies a mixture of the three forms of decision-making. However, it is more market-oriented rather than command or traditional.

11. Politics and governance

12. History and geography The lexicon defined geography as a science, which deals with earth and its life. Man’s physical environment is necessary because it shapes man’s way of life for his environment gives him food, water, clothing, and shelter. These are the basic needs for man to survive and they are found on earth .

13. HISTORY AND POLITICAL SCIENCE (CIVICS) Civics or political science deals with administrative and political setup of one country. It also involves the study of political leadership, systems of government, political power, Constitutions, and public policies. History also taught us the struggle for power, styles of governmental managements, the strengths, weaknesses, and shortcomings of administrative managers.

14. History and economics Man’s constant struggle is on survival. During time immemorial, man was a gatherer of the provisions of nature. Man is always on the move in search for food and find a permanent place to stay. As time progresses man has improved his economic life.

15. History and sociology and anthropology The social and cultural dimension of man’s life is described by the fields of sociology and anthropology. Sociology is the science of society and anthropology is the science of man’s origin.

16. Concepts of political science

17. Political science Is defined as a social science concerned chiefly with the description and analysis of political and governmental institutions and processes (Webster’s New Collegiate Dictionary).

18. Political science and history This discipline is closely related to the study of Political Science. As understood from its etymology from the Greek word “ historia ”, which means investigation or inquiry, gives idea on how the past is to be studied.

19. Political science and economics Etymologically, it comes from the Greek word “ oikonomos ” which means “household management” a concept, which is associated with the individual and family. The concept of this household management was changed to “political economy” signifying that the economy of modern times was no longer that of the household alone but that of a nation.

20. Political science and sociology As taken from its origin, the Latin word “socius”, which means partners, companions, associates, or mates and the Greek word “logos”, which means to study. In short it concerns about the study of social group. This group is almost always the subject of politicking during election time.

21. Political science and anthropology It is the study of the origin of man or humanity. The concern of this field of discipline is to establish the cultural origin of man such as social institutions, education, religion, economy, and government to name a few.

22. Political science and psychology This discipline deals with human behavior. How people behave in selecting candidates during elections, how officials treat public funds, and how the militaristic of the uninformed service works during political leadership crisis are the subject.

23. Political science and geography It is the study of Political Science that concerns about location, territory, and resources. Geography’s lexical definition is the study of Earth and its surface features, how they influence human distribution and activity (Reader’s Digest Universal Dictionary, 1999).

24. Political science and law Government is the province of political science and the very foundation of this agency of the state is law. Without law, no peace and order could be realized. All human activities are subjects of legislation, all governmental agencies are created by law; their functions and powers are also defined by law. All these are within the domain of the government to see it that these are faithfully allocated and discharged by the concerned authorities.