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WEEK 1 - Applied Economics Presentation

This document provides an introduction to economics. It defines economics as the study of how individuals and societies make choices to allocate scarce resources. It then discusses the importance of economics in areas like earning money, buying goods, banking, and government policy. Finally, it describes some of the key concepts in economics like macroeconomics, microeconomics, and factors of production including land, labor, capital, entrepreneurs, and foreign exchange.

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Cameron Velasco
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168 views20 pages

WEEK 1 - Applied Economics Presentation

This document provides an introduction to economics. It defines economics as the study of how individuals and societies make choices to allocate scarce resources. It then discusses the importance of economics in areas like earning money, buying goods, banking, and government policy. Finally, it describes some of the key concepts in economics like macroeconomics, microeconomics, and factors of production including land, labor, capital, entrepreneurs, and foreign exchange.

Uploaded by

Cameron Velasco
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction

to Applied
Economics
APPLIED ECONOMICS
Objectives
1. Define economics;
2. Determine the importance of economics; and
3. Describe the nature of economics.
WHAT IS ECONOMICS?
It is the study of what constitutes
rational human behavior in the
endeavor to fulfill the needs and wants.
Etymology of economics

It comes from the Greek word


“oikanomia” meaning “
household management.”
Other definition
 Fajardo, economics is the proper allocation and efficient
use of available resources for the maximum satisfaction
of human wants.

 Samuelson states that economics is the study of how


societies use scarce resources to produce valuable
commodities and distribute them among different people.
 Nordhaus, is the science of choice. It studies how people choose to
use scarce resources or limited productive resources of limited
productive resources to produce valuable commodities and distribute
them among different people.
 Sicat defined economics as a scientific study which deals with how
individuals and society in general make choices.
 Castillo, economics as the study of how man could best allocate and
utilize the scarce resources of society to satisfy his unlimited want.
 Webster defined economics as a branch of knowledge that deals with
the production, distribution and consumption of goods and services.
Importance of Economics
 Earning money
 Buying goods and services
 Depositing and withdrawing money in the bank
 Understand problem facing the citizen
 Help government
 Improve quality of life
 avoiding depression and inflation
NATURE OF ECONOMICS
Economic is a Science
is a body of systematic knowledge built upon
by conscious effort, the body of knowledge is
made up of different explanation. This
explanation is called theory.

Economics as a Social Science


Is the study of the relations between people during the
production, distribution and consumption of wealth in
human society.
Macroeconomics and
Microeconomics
 Macroeconomics

Deals with the economics behavior of the whole economy or its aggregates such
as government, business, and household. It concerned with the discussion of
topics like Gross National Product, level of employment, national income,
general level of prices, total expenditures, etc.
 Microeconomics

Deals with the economic behavior of individual units such as the consumers,
firms, and the owners of the factors of production. For example the price of the
rice, the number of workers in a certain firm, the income of specific person , the
expenditure of PLDT, etc.
DIVISION OF
ECONOMIC
S PUBLIC
FINANCE
CONSUMPTION
EXCHANGE
DISTRIBUTIO
N
PRODUCTION
TOOLS IN ECONOMICS
LOGIC- science that deals with sound thinking and
reasoning
MATHEMATICS- science that deals with numbers
and their operations. Geometry is known as the simplest
application of mathematics for economics analysis
STATISTICS – branch of mathematics engages with the
analysis and interpretation of numerical data.
ECONOMIC RESOURCES
LAND
LABOR
CAPITAL
ENTREPRENEURS
FOREIGN EXCHANGE
LAND
These resources consist of free gifts of nature
which includes natural resources above, on, and
below the ground such as soil, rivers, lakes,
oceans, forests, mountains, mineral resources and
climate.
LABOR
This is also termed as human resources. LABOR
refers to all human efforts, be in mental or
physical, that help to produce want satisfying
goods and services
CAPITAL
Capital represents the major the major physical
assets individuals and companies use when
producing goods or services.
ENTREPRENEURS
They organize and coordinate the other factors of
production: land, labor, and capital.
FOREIGN EXCHANGE
This refers to the dollar and dollar reserves that the
economy has.

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