Eco1-MICRO ECONOMICS

Module 1
    TOPIC 1- The Study of Economics

I. Introduction:
Every person makes economic decisions, major or minor throughout their
lives, As only a few become economically well-off, it may be safely pressured that
they are the only ones who made the right economic decision. If this statement is
true, then that alone would be sufficient reason to study economics. 

II. Rationale:
Economic decisions are part of our daily life. In as much as we pay price for
every wrong economic decisions we make, Economics must be a very important
course to learn because the task of economics is to address the problem of scarcity.

III. Learning Objectives:

1. Discuss the evolution of the word economics through several languages.
2. Give a standard definition of the term economics.
3. Enumerate related words to the key terms in the definition of economics.
4. Generate an original definition of the term economics.
5. Explain the history behind household management in detail.

IV. Preliminary Exercise:

Multiple Choices: Read each statement carefully and complete the correct thought
of each statement by writing the CAPITAL LETTER corresponding to your answer
on the space provided before each item, should answers not be found from the given
choices, write CAPITAL LETTER E.
        ______1.) Economics has two root words  originating from the ________language.
A. Latin B. Greek C. Spanish D. English
      ______2.) The root word oikos, in its truest sense means 
A. house B. household C. managing D. management
      ______3.) The root word nomos, in its truest sense means
A. house B. household C. managing D.
management
      ______4.) The terms oikos and nomos were known to mean 
 A. Resources management C. Income
management 
B. Household management                        D. Material
management
      _______5.) The term autarky characterizing the nomads of early times would most
closely refer to the concept of 
A. self-sufficiency B. independence   C. Scarcity  D.
abundance
        _______6.) After experiencing a little definition of roles in society during the ancient
times, people started to trade goods for other goods. This was known as 
 
A. trade       B. buy and sell       C. barter         D. none of the above
                   _______7.) Economics is a social science because it invol;ves the study of
A. man’s evolution C. man’s mind 
B. man’s behavior D. man’s body functions
_______8. ) All of the following are related to the word scarce except
A. scant   B. short supply C. inadequate D. insufficient
_______9.) All of the following are related to the word unlimited except
A. indefiniteB. limitless C. finite D. unbounded
_______10.) Several civilizations sprang out near fresh water bodies, All of the following are
the   modern day countries where these civilization came from, except
A. Iran B. Iraq C. India D. China

V. Lesson Opening:
Several authors define the term economics in various ways. The American
Heritage Dictionary, for example, defines this term as follows:
Economics is from the Greek word “oikonomia” or “oikonomos’ which
means management of a household, oikos (home) and nomos (managing)
In the modern world, economics, means 
1. The careful or thrifty use or management of resources, as of income, materials or
labor or
2. The management of the resources of a country, community or business
Somebody interested    in the evolution of the word economics may
inspect the following:
Greek-    oikos + nomia
Latin-      oeconomia
 Spanish-  economia
English-   economics
` Filipino-   ekonomiya
However, we will employ a standard, simple yet comprehensive definition
for the term economics:
“Economics is a social science that deals with the efficient allocation of
scarce resources to satisfy man’s unlimited wants and needs”.
To further understand this definition, let us perform the activity.
This activity is designed to wider the vocabulary of students in relation to
understanding the definition of economics better.
Activity Objectives: At the end of the activity, the students are expected to have
enumerated as many synonyms and closely related concepts for each key term in the
definition of economics and have formulated their own definition of economics using
these words.

     
    I.
List of Key Words Synonyms and Related Concepts
Social
Science
Allocation
Scarce
Resources
Satisfy/Satisfaction
Unlimited
Wants 
Needs

II. Formulate your own definition of economics out of the generated words
1. Economic is
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2. Economic is
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VI. Discussion Proper:

At the heart of the study of economics is the irony found in the definition
of economics. How do we reconcile something limited (scarce) against something
unlimited? How do we make with something finite (scarce) against something
(unlimited)? 
This is why economics is a necessary science to be studied. There remains
a great need to study how man behaves, particularly on how he decides given several
choices. The study of economics is supposed to help man make good decisions and
better judgments.

A.         The modern understanding of the word economics is that of household management.

But what is really the concept behind the term economics? For one to understand how the
entire concept of managing one’s household ever came into being, we must be able to
trace the simplest timeline of man’s evolution and consequently, the challenges of
managing one’s environment.

Scientist believes that prior to 11,000 B.C. the temperature of the world
was so radical it would change several degrees below zero in a span of a few
weeks to a few years. This made survival extremely difficult for many species
since the adjustment period was variably inconsistent.

However, it is also believed that after 11,000 B.C somehow the world
temperatures started to slowly stabilize and slowly warm. This allowed the
melting of the polar ice caps, thereby creating fresh water bodies. These bodies of
water, in turn paved the way 

for the for he promulgation of many species and guaranteed their survival. We all
know that the common denominator for species to exist is the presence of water.
Man was one of these species.

Paleontologist and anthropologist were able to find relics of our ancestral

nomads from 9,000 B.C. These nomads were known to roam large territories and
consume whatever they can in their immediate environments. Usually travelling
 in tribes or clans, they had to employ simple delegation techniques in order to
survive. Men were known to make weapons, hunt for food and look for viable
shelters. Women were known to take care of children, appropriate food, make
clothing and maintain their shelters.

These nomadic activities of gathering resources and delegating tasks

among members of the tribe or the clan are the simplest examples of managing a
household. It was usually the oldest ( wisest) member of the tribe or clan who was
the recognized leader of these groups. In other clans it was it was the strongest
male who became the leader .These leaders in turn had the ultimate responsibility
of managing the household’s needs

For 3,000 years our ancestral nomads roamed the earth. It came to a point
however, as a man was slowly developing his intelligence, that he noticed one
important fact about nature; that even though all the resources in one area have
already been utilized and consumed. The same flora and fauna that have been
used up returned to their original state or were replaced after being left untouched
for quite some time the nomad started rationalizing this phenomenon. He later
found out that the key to survival and sustaining an entire ecosystem was fresh
water bodies.Water was supported all life in an area its absence spells the definite
extinction of species in that area. The major characteristics of nomadic activities
were self-sufficiency   providing for everything they need without depending on
other tribes or clans. The modern-day economic term for self-sufficiency is
“autarky”.These nomads had to find their own food ,
shelter,clothing,medicine,etc. Men were known to be food providers and very
good hunters. Women were known to take of shelter and make clothing from
hunted animals. The eldest of the tribe were known to be medicine men shamans.

In 6,000 B.C. these nomads started settling down near fresh water bodies.
Man started to build more permanent shelters, started livestock activities, and
learned the techniques of food production, land cultivation and irrigation. The
first known settlers were the Chinese along the Yang Tze river delta, making them
the oldest known civilization in the world.This may explain why China is the
most populated country in the world today. Settlers in India along the Indus river
came around 3,000 B.C. making them the second oldest known civilization., and
the second most populous country today. Settlers in the Middle East came around
2,800 B.C. along the Tigris and Euphrates rivers. These rivers today are found in
modern day Iraq

VII. Summary of the lesson/ Generalization:

Different periods have their significance in Household Managing
Activities wherein civilizations flourish with the settlement of people in the
communities thus it leads to an early system government.
NOTE:  Generate your own generalization.
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VIII. Post-Learning Assessment:
 The table approximates the early transition of man from early nomadic tribes into
modern civilizations.
 Write down the different Household Managing Activities on each approximate
period.
Approximate Significance of the Period Household
Period Managing
Activities

(Ice Age) polar ice caps started to melt; earliest

11,000 B.C. (and known start of creation of bodies of water in the
beyond) world

Earliest traces of nomadic activity

9,000 B.C.

Earliest known civilization 

6,000 B.C.  (China, Yang Tze River)

Next known civilization

3,000 B.C. (India, Indus River)

Middle East Civilizations

2,800 B.C. (Tigris and Euphrates)

IX. Feedback:
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X. References:
Principles of Economics by:
 Azarcon, Marzo, Navarro
 Resurreccion, Paca
 Degay, Sison, Rojo 

Principles of Economics by:

  Roberto Medina
                  Mastering the Principles of Economics by:
 Juliet S. Guzman
 Danilo B. Aguirre
Prepared by:

DEOSDORA D. NARIO , MBA