ECONOMICS- analyze the production, distribution, and consumption of good services.

APPLIED ECONOMICS- is the use of insights gained from economic theory and research to
make better decisions and solve real-world problems

Applied economics
Many social processes and phenomena such as:

• Social relationships
• Migration
• Social challenge

Economic concepts such as:

• Demand and supply

• Exchange
• Cost and benefits
• Profit maximization

Economic as a social change

NATURE
- Its studies how individuals make choices in allocating scarce resources to satisfy their unlimited
wants.

- It is qualitative in nature.

Scope of economics as a Social science

- it f1ocuses on the microeconomics branch of economics. Microeconomics is the part of

economics whose subject matter of study is individual units, for instance, a consumer, a
household, a firm, an industry, and the likes.

NATURE
- It is both quantitative and qualitative. It formulates general theories through testing mainly using
data from the past.

SCOPE
- It focuses on the macroeconomics branch of economics that studies the entire economy, instead
of individual units for instance level of output, total investment, total savings, total consumption
and the likes.
SCARCITY
- Is a fundamental concept of economics.
- It refers to the limitation of resource particularly such as land,
labor, capital, and entrepreneurship.
- Economic is the science of scarcity.
Resource and Factor of Production
LAND
- Natural resources that exist without man’s intervention
- The payment for land is for rent.
LABOR
- Manpower skill that are used.
CAPITAL
- Man made factor of production used to create another product
(ex. Machinery and equipment used in manufacturing companies.
- Is the factor of production that integrates, land, labor and capital
to create new product.