ECONOMICS PHILOSOPHY:

ITS RELATION TO HOME

ECONOMICS
GOOD DAY
CLASS!
How are you?
ECONOMICS PHILOSOPHY:
ITS RELATION TO HOME
ECONOMICS
Module 2
 Learning Targets

At the end of the discussion the learners should

be able to
1. Define Economics
2. Identify the basic components of economics
3. Understand why economics is related to Home
Economics and relate them to your way of
living.
 Introduction
The principle (and problem) of economics is that human
beings have unlimited wants and occupy a world of limited
means. For this reason, the concepts of efficiency and
productivity are held paramount by economists. Increased
productivity and a more efficient use of resources they
argue, could lead to a higher standard of living. Such
principle is also taught in Home Economics.
 In home economics, students develop an understanding of the factors
that influence the well-being of individuals and families within the home
and community and of the actions people take to enhance and sustain
those environments. This understanding manifests the concept brought
about by economics, though in economics context, it merely speaks of
finances.
In the context of food and nutrition, students evaluate current issues
and theories of nutrition, identify and reflect on factors that
influence people’s choices and behaviors, and use this knowledge to
make informed decisions.
Through the processes of selecting, preparing, cooking, and serving
food, students develop their creativity and experience a sense of
accomplishment. At the same time, they develop personal and
interpersonal understandings and skills that contribute to well-being.
Overview of Economics
Economics – came from Greek word “oikonomos” that means
management of household expenditures. This means that
economics refers to the operation of household transactions.
Starting from the simple unit of the society: the Family. The
income generated by the parents up to the budget they stretch to
meet every need for the members of the family is already an
economics in action. If we put it to the upper bracket of the
society:
the GOVERNMENT, economics is about the management or
operation of the entire productions and consumptions of the people
to be able to meet everyone’s need, the need to study intelligently
the process of how to allocate the limited natural resources and
non-natural resources to satisfy the unlimited wants of the people.
“Therefore, economics is the study of efficient and effective
allocation of scarce resources in order to satisfy unlimited wants
of the people.
Definitions of Economics by some
great economists.

Adam Smith
The Father of Economics, states that
economics as an inquiry about the
nature and causes of wealth of the
nations.
 Definitions of Economics by some
great economists.

Paul Samuelson
Economics is a study of how the
society could possibly use and
share the limited resources into
different items of products and
services for all the sectors of the
society for the present and the
future consumption.
Definitions of Economics by some
great economists.

Paul Wonnacott
It is a study of how man works,
looks for food and finds material
needs. Economics emphasizes
problem in production of how to
solve or minimize the problem.
 Definitions of Economics by some
great economists.

Lloyd Reynolds
It is the study of production,
management and use of
scarce resources.
 Definitions of Economics by some
great economists.

Cristobal Pagoso
Economics is
concerned with the
wise allocation of
scarce resources.

Books of Cristobal M. Pagoso

Definitions of Economics by some
great economists.

Roger LeRoy Miller

The situation that needs the
decision of how, when and
where the scarce resources
be used.
Definitions of Economics by some
great economists.

Gerardo Sicat
A scientific study that points out how people and
society decides. People have unlimited needs. In
order to satisfy this, they get resources that are
limited. Consumption may be today or tomorrow
that is why in every decision to choose one has to
take into consideration the time element whether
today or tomorrow. Aside from the usage of
resources it has its own value and demands that this
need to be addressed wisely.
Human Wants
Human wants means your desire to own goods or
services in order to satisfy your needs or yearnings.
Human wants are unlimited; varied and insatiable over an
aggregate period of time
Origins of Wants
1. Survival. People want food, clothing and shelter because they
are needed to survive.
2. Dictated by culture. The desire to have appliances such as
television, refrigerators, gas stoves, are dictated by the culture
where one lives
3. Generated by activity necessary to satisfy other wants. The
desire to complete college education is not because one really
wishes to spend and sacrifice in going to school but it is needed
because it is essential to satisfy the ultimate desire of getting a
The Problem of Scarcity
The problem of scarcity is the main reason why we have to
economize our economic resources as efficiently as possible.
Scarcity refers to the limitations that exist in obtaining all the
goods and services that people want . It gives rise to economic
problems and it is the reason why man has to make a choice. If all
goods were as free as air, there would be need to economize.
Because of scarcity, any society must confront the basic economic
problems.
Four Basic Economic Problems
The following are the four major concerns of economics in
the problem of production or what is called the basic
economic problems.
1. What are the products and services to be produced
2. How to produce.
3. For whom to produce and how much
4. Availability of the produce
Divisions of Economics
1. Microeconomics - It refers to the study of small unit of the
society’s (i.e. family, household, person) consumption,
spending, production and investment
2. Macroeconomics – It refers to the study of large unit of
society like banks, businesses, government or country.
How is Economics Related to Home Management?
The study of home economics emphasizes the
interdependent relationships that exist between
individuals, families and their immediate and distant
environments. This subject provides a good foundation in
careers including Health, Education, Tourism, Clothing
and Design and the Food industry.
T
In home economics, students develop an understanding of the
factors that influence the well-being of individuals and families
within the home and community and of the actions people take
to enhance and sustain those environments.
Economics deals with answering questions like what to produce,
how to produce and for whom to produce. More importantly it
assesses the utility of various things.
Economics in the household management can help answer
questions like what should the household produce and how
much to produce in order to meet the needs of the family.
Since resources are scarce knowing economics will be of
great importance to the family in terms of budgeting their
income for food, clothing, shelter and education of their
children.
Consequently, the household is an important unit in the
economy.
 In the past, such units were quite independent. But because
of Industrialization, their utility has decreased over time and
been replaced with increased utility of the Government and
Corporate units. The study of the household as a unit of the
economy is a part of the study of the Economics.
Household management refers to the various tasks and
chores associated with the organization, financial management,
and day-to-day operations of a home.
 Housekeeping is a term that is sometimes used to refer to
the cleaning and physical upkeep of a house, as distinct from
financial issues or outdoor maintenance. And because the
operation of the home is associated with financial
management then economics and home economics are
interrelated.
 Can you prove the
relationship of economics
and and Home Economics
HH

HAVE A

NICE DAY!!!
How is Economics related to other Disciplines
Economics has developed into one of the most specialized social
sciences. Yet it shares much of its subject matter with other
social sciences and the humanities. At the same time, its methods
of inquiry have been compared to those found in the natural and
life sciences.
Economics is classified as a social science. This view makes
economics an academic relative of political science, sociology,
psychology and anthropology. All of these disciplines study the
behavior of human beings individually and in groups. They study
different subsets of the actions and' interactions of human beings.
Applying the Law of Demand and Law of Supply in Economics, what
is the normal tendency of the consumers in their buying habits when
prices of goods go up So their tendency is to buy more when prices
are low and buy less if the prices are high under ceteris paribus
assumption.
Then we market equilibrium where buyers and sellers
agree to a certain price and certain amount of goods.
These interactions of buyers and sellers manifest the
relationship of economics to other disciplines like
sociology, political science and mathematics.
Economics is a social science. It is a social science
because it studies the forces of supply and demand that
determine the prices that in turn govern how resources
might be allocated to optimize the production of the goods
and services that we all want / need. These interactions of
buyers and sellers manifest the relationships of economics
to other disciplines like sociology, political science,
psychology and anthropology
How is Economics Related to Philosophy?
Philosophy and economics, also philosophy of economics,
studies topics such as rational choice, the appraisal of economic
outcomes, institutions and processes, and the ontology of
economic phenomena and the possibilities of acquiring knowledge
of them. It is useful to divide philosophy of economics in this way
into three subject matters which can be regarded respectively as
branches of action theory, ethics (or normative social and political
philosophy), and philosophy of science.
Economic theories of rationality, welfare, and social choice defend
substantive philosophical theses often informed by relevant
philosophical literature and of evident interest to those interested
in action theory, philosophical psychology, and social and political
philosophy.
Economics is of special interest to those interested in epistemology
and philosophy of science both because of its detailed peculiarities
and because it has many of the overt features of the natural
sciences, while its object consists of social phenomena