ECONOMICS AS

A SOCIAL
SCIENCE
MODULE 1
WHAT IS ECONOMICS
Economics is a social science
concerned with the production,
distribution, and consumption of
goods and services.
It studies how individuals, businesses,
governments, and nations make
choices on allocating resources to
satisfy their wants and needs
 ABSOLUTE SCARCITY-
SCARCITY IS WHEN A GOOD IS
SCARCE COMPARED
TO ITS DEMAND.
is a condition where
there are insufficient
resources to satisfy all
the needs and wants of Relative scarcity- is
a population. when supply is

limited.
 Why Economics is
important?
economics is important in order to
understand problems facing the citizen
and the family; to help government
promote growth and improve the quality
of life while avoiding depression and
inflation and to analyze fascinating
patterns of social behavior
Economics as a social
sciences

It is the study of the relations

between people during the
production, distribution, how people
behave, influence the world around
them and consumption of wealth in
human society
 . As a social science, economics studies
how individuals make choices in allocating
scarce resources to satisfy their unlimited
wants or how people interact within
markets to get what they want or
accomplish certain goals.
 Two branches of Economics

Micro-economics:
Macro-economics:
with the economic
is a division of
behavior individual
economics that is
entities such as the
concerned with the
consumer, the producer
overall performance
and the owners of the
of the whole economy
factors of production
ECONOMIC
TOOLS
 1. LOGIC
is a science that deals with sound
thinking and reasoning. In the
process of reasoning, facts and
proofs should be presented;
 2. MATHEMATICS
it is a science that deals with
numbers and their operations.
Actually, economics is the most
quantifiable discipline among social
sciences
 3. STATISTICS
it is a branch of mathematics
engages with the analysis and
interpretation of numerical
data.
 ECONOMIC
RESOURCES
Economic resources are also
known as factors of
production or inputs, are the
resources used to produce
goods and services.

 LAND
• these resources consist of soil and
natural resources that are found in
nature which includes all-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. It refers to
all physical and human
efforts exerted in production
of goods and services.
CAPITAL
• this is the man-made
resources used in the
production of goods and
services, which include
machineries and equipment.