introductionappliedeconomics-180108121827.pptx

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1. Introduction to economics

2. WHAT IS ECONOMICS Is a social science concerned with using scarce resources to obtain the maximum of the unlimited wants of society. Is the study of how societies use scarce resources to produce commodities and distribute them among different people Is the study of production, distribution, selling and use of goods and services Is the study of how people use their limited resources to try to satisfy unlimited wants.

3. “FIXED ME I AM CRUMBLED” Instruction : Fixed the following rumbled letters: Correct Answer: SEIPRENRTE

4. “FIXED ME I AM CRUMBLED” Instruction : Fixed the following rumbled letters: Correct Answer: ANDL

5. “FIXED ME I AM CRUMBLED” Instruction : Fixed the following rumbled letters: Correct Answer: RBOLA

6. “FIXED ME I AM CRUMBLED” Instruction : Fixed the following rumbled letters: Correct Answer: APITLCA

7. Learning Objectives 1. Identify basic economics problems of the country 2. Discuss the economic problems affecting the economic stability of the country 3. Analyze and explain the root cause of the economic problems of the country ABM_AE12-Ia-d-1

8. Scarcity - the limited nature of resources, which underlies the basic economic problem Economic Resources - the problem of having unlimited wants, but limited resources to satisfy them Natural Resources – came from nature that are used in production, including land, raw materials, and natural process Capital Resources - the processed materials, equipment, and buildings used in production

9. Human Resources - the efforts of people involved in production, including labour and entrepreneurship Needs - the essentials of life, such as food and shelter Wants - desires for non-essential items

10. Scarcity Is a condition where there are insufficient resources to satisfy all the needs and wants of a population.

11. Scarcity is the reason why people have to practice economics. Economics , as a study, is the social science that involves the use of scarce resources to satisfy unlimited wants

12. Alfred Marshall described economics as study of mankind in the ordinary business life. It examines part of the individual and social action that is most connected with the attainment and use of material requisites of well-being.

13. Relative Scarcity- Is when a good is scarce compared to its demand. Absolute Scarcity- is when supply is limited.

14. Choice and decision making Because of the presence of scarcity, there is a need for man to make decisions in choosing how to maximize the use of the scarce resources to satisfy as many wants as possible .

15. Opportunity cost Refers to the value of the best foregone alternative.

16. Economic resources Land Labor Capital

17. Land Soil and natural resources that are found in nature and are not manmade. Owners of lands receive payment known for rent.

18. Labor Physical and human effort exerted in production. It covers manual workers like construction workers, machine operators and production workers, as well as professionals like nurses, lawyers and doctors.

19. capital Man-made resources used in the production of goods and services which include machineries and equipment. The owner of capital earns an income called interest.

20. Economic as social science As a social science, economics studies how individuals make choices in allocating scarce resources to satisfy their unlimited wants

21. 2 branches of economics Macroeconomics Microeconomics

22. Macroeconomics is a division of economics that is concerned with the overall performance of the entire economy.

23. Microeconomics Studies the decision and choices of the individual units and how these decisions affect the prices of goods in the market. It also concerned with the process of setting prices of goods that is also known as Price Theory.

24. Basic economic problems of society What to produce and how much How to produce For whom to produce

25. What to produce and how much Society must have to decide what goods and services should be produced in the economy. Having decided on the nature of goods that will be produced, the quantity of these goods should also decided on.

26. How to produce Is a question on the production method that will be used to produced the goods and services. This refers to the resource mix and technology that will be applied in production .

27. For whom to produce Is about the market for goods. For whom will the goods and services be produced? The young or old, the male or female market, the low-income or the high income groups?

28. Economic systems Traditional economy Command economy Market economy

29. Traditional economy Decisions are based on traditions and practices upheld over the years and passed on from generation to generation. Methods are stagnant and therefore not progressive.

30. Command economy This is the authoritative system wherein decision-making is centralized in the government or a planning committee. Decision are imposed on the people who do not have a say in what goods are to be produced. This economy holds true in dictatorial, socialist, and communist nations.

31. Market economy This is 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 in the prices they are willing to pay in the market and therefore the basis of the producers decisions on what goods to produce.

32.   Activity Sheet “ JUMBLED PROBLEMS” Mechanics: Learners will be divided into six groups and prepare a sheet of paper and a pen. Members must assign a leader who will write their answers. Jumbled words representing economic problems below will be shown to the class After you form the “jumbled problems” each group must Explain each jumbled letters.

33. ECONOMIC PROBLEM 1. CARSCITY 2. CIMNOCOE ERSOUSECR 3. ALURATN ORSECESUR 4. ACTALPI ERSOECSRU 5. MANHU SOURCERES 6. SDEEN 7. STAWN

34. QUIZ !

35. It is the limited nature of resources, which underlies the basic economic problem? Is the study of how societies use scarce resources to produce commodities and distribute them among different people?

36. 3. It is came from nature that are used in production, including land, raw materials, and natural process? 4. It is the processed materials, equipment, and buildings used in production?

37. 5. It is the problem of having unlimited wants, but limited resources to satisfy them? 6. It is the efforts of people involved in production, including labour and entrepreneurship?

38. 7. It is the desires for non-essential items ? 8. It is the essentials of life, such as food and shelter?

39. 9. ________ when a good is scarce compared to its demand. 10. ___________ is when supply is limited.

40. 11-13.) What are the 3 Economic Resources? 14. It Refers to the value of the best foregone alternative?

41. 15. -16.) What are the 2 branches of Economics? 17. This is 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 in the prices they are willing to pay in the market and therefore the basis of the producers decisions on what goods to produce.

42. 18. This is the authoritative system wherein decision-making is centralized in the government or a planning committee. Decision are imposed on the people who do not have a say in what goods are to be produced. This economy holds true in dictatorial, socialist, and communist nations?

43. 19. Decisions are based on traditions and practices upheld over the years and passed on from generation to generation. Methods are stagnant and therefore not progressive.?

44. 20. It is the combination of market and command economy?

45. 21-30 According to Alfred Marshall what is economics?