ECONOMICS AS AN APPLIED

SCIENCE
LESSON 1.2.
 APPLIED ECONOMICS
IS THE APPLICATION OF ECONOMICS THEORY AND
ECONOMETRICS IN SPECIFIC SETTINGS WITH THE GOAL OF
ANALYZING POTENTIAL OUTCOMES.
TWO SETS OF FIELD OF
ECONOMICS
ECONOMICS THEORY
IT IS THE CORE, IT IS TYPICALLY CHARACTERIZED BY THE APPLICATION OF THE CORE.

ECONOMETRICS
AS A MEANS OF DEALING WITH PRACTICAL ISSUES IN FIELDS THAT INCLUDE
DEMOGRAPHIC ECONOMICS, LABOR ECONOMICS, BUSINESS ECONOMICS, AGRICULTURAL
ECONOMICS, DEVELOPMENT ECONOMICS, EDUCATION ECONOMICS, HEALTH ECONOMICS,
MONETARY ECONOMICS, ECONOMIC HISTORY, AND MANY OTHERS.
 JOHN NEVILLE KEYNES

THE FIRST TO USE THE PHRASE “APPLIED ECONOMICS” TO

DESIGNATE THE APPLICATION OF ECONOMIC THEORY TO THE
INTERPRETATION AND EXPLANATION OF PARTICULAR ECONOMIC
PHENOMENA.
 A SOLID UNDERSTANDING OF ECONOMIC PRINCIPLES AND HOW THEY ARE APPLIED IN
REAL-LIFE SITUATIONS CAN SERVE AS SIGNIFICANT TOOLS TO HELP ADDRESS THE COUNTRY’S
ECONOMIC PROBLEM.

KNOWLEDGE OF ECONOMIC THEORIES SUCH AS THE LAW OF SUPPLY AND DEMAND CAN
HELP IN ANALYZING WHY PRICES ARE HIGH AND WHAT THE GOVERNMENT CAN DO TO HELP
BRING DOWN PRICES.
 THE PHILIPPINES’ BASIC ECONOMIC PROBLEMS

DESPITE THIS ADMIRABLE GROWTH, PEOPLE, ESPECIALLY THE POOR, HAVE

BEEN COMPLAINING OF NON-INCLUSIVE GROWTH. MILLIONS OF FILIPINOS ARE
CLAIMING THEY EXPERIENCE HUNGER OR THEY STILL LIVE BELOW THE POVERTY
LEVEL.
UNEMPLOYMENT
IS STILL A MAIN PROBLEM OF THE PHILIPPINE ECONOMY DESPITE IMPROVEMENTS REPORTED BY THE
NATIONAL STATISTICS OFFICE.

POVERTY
ANOTHER SIGNIFICANT OF SOCIO- ECONOMICS PROBLEM IN THE COUNTRY.

BOOMING, POPULATION GROWTH

IS ANOTHER BASIC ECONOMIC PROBLEM THAT CAN BE CONNECTED TO THE ISSUE OF THE SCARCITY.
ASEAN ICON
LEE KUAN YEW
WAS THE PRIME MINISTER OF SINGAPORE FROM 1959 TO 1990 MAKING HIM TO
LONGEST-SERVING PRIME MINISTER IN HISTORY.

LEE KUAN YEW

BECAME THE LONGEST-SERVING PRIME MINISTER IN WORLD HISTORY.

IN 1962, LEE LED SINGAPORE INTO A MERGER WITH MALAYSIA BUT THREE YEARS LATER,
SINGAPORE LEFT THE UNION FOR GOOD.LEE RESIGNED AS PRIME MINISTER IN 1990 AND HIS
SON BECAME THE PRIME MINISTER IN 2004. HE DIED ON MARCH 23, 2015.
THANK YOU FOR LISTENING
 1. IS STILL A MAIN PROBLEM OF THE PHILIPPINE ECONOMY DESPITE IMPROVEMENTS REPORTED
BY THE NATIONAL STATISTICS OFFICE.
2. ANOTHER SIGNIFICANT OF SOCIO- ECONOMICS PROBLEM IN THE COUNTRY.
3. IS THE APPLICATION OF ECONOMICS THEORY AND ECONOMETRICS IN SPECIFIC SETTINGS
WITH THE GOAL OF ANALYZING POTENTIAL OUTCOMES.
4. HE WAS THE PRIME MINISTER OF SINGAPORE FROM 1959 TO 1990 MAKING HIM TO LONG-
EST-SERVING PRIME MINISTER IN HISTORY.
5. IS ANOTHER BASIC ECONOMIC PROBLEM THAT CAN BE CONNECTED TO THE ISSUE OF THE
SCARCITY.