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Subject: Applied Economics: Subject Teacher: Ms. Jane M. Caranguian
Subject: Applied Economics: Subject Teacher: Ms. Jane M. Caranguian
RESOUR HUMAN
Entrepreneurship Shelter
Security,
etc.
CES WANTS
Relative Scarcity
Scarcity Absolute
Social Science
The study of society and how people behave
and influence the world around them. Scarcity
Economics as a Social
Science
As a Social Science, Economics studies how
individuals make choices in allocating
scarce resources to satisfy their unlimited
Choices & Decision-
wants. making
BRANCHES OF
ECONOMICS
Macroeconomics Microeconomics
A division of Economics that is concerned Is concerned with the behavior of individual
with the overall performance of the entire entities such as the consumer, the producer,
company. and the resource owner.
It studies economic system as a whole rather It is more concerned on how foods flow from
than the individual economic units that make the business firm to the consumer and how
up the economy. resources move from the resource owner to
the business firm.
MACROECONOMICS is about the nature of
economic growth, the expansion of It is also concerned with the process of
capacity and the setting prices of goods that is also known
productive
national income. growth of as PRICE THEORY.
RELATIVE SCARCITY occurs not because the ABSOLUTE SCARCITY explains why there are
good is scarce per se and is difficult to some products that are very expensive in the
obtain but because of the circumstances that Philippines.
surround the availability of the good.
CHOICE AND DECISION
MAKING
With the presence of scarcity, there is a need
to make decisions in choosing how to
maximize the use of the scarce resources to
satisfy as many wants as possible.
Opportunity
Cost
Refers to
alternative.
the value of the
bes
forgon
e
t
The concept of OPPORTUNITY COST holds
true for individuals, businesses, and even a
society. In making a choice, trade-offs are
involved.
Opportunity
Cost
Refers to
alternative.
the value of the
bes
forgon
e
t
The concept of OPPORTUNITY COST holds
true for individuals, businesses, and even a
society. In making a choice, trade-offs are
involved.
On the national level, economics will enable the students to take a look on how the economy
operates and to decide for themselves if the government officials and leaders are effective in
trying to shape up the economy and formulate policies for the good of the nation.
MEASURING THE
The heart of economy is production whose value measures both resource input and output of
ECONOMY
people. The interplay of resources and outputs tells how well the economy has performed.
Economic Resources
also known as factors of production, are the resources used to produce goods and services.
Land
Soil and natural resources that are found in nature and are not man-
made. Owners of lands receive a payment known as RENT.
Labor
Physical and human effort exerted in production. It covers manual workers like construction
workers, machine operators, and production workers, as well as professionals like nurses,
lawyers and doctors. The term also includes jeepney drivers, farmers and fisherman The
income received by labors is referred to as WAGE.
Capital
Man-made resources used in production of goods and services, which include machineries
and equipment. The owner of capital earns an income called INTEREST.
GNP vs.
GDP
Gross National Product
Market value of final products, both sold and unsold, produced by the resources of
the economy in a given period.
GNP = C + I + G+ (X –
M)
Imports
Exports
Government Expenditures on Goods
and Services
Investments (stocks of values for future
use)
GNP vs.
GDP
Gross Domestic Product
Better indicator of domestic employment opportunities.
Defined as the market value of final products produced within the country.
NET FACOR INCOME from abroad is net export of factor service equal to Factor income from
abroad less the factor payments of other countries.
Based on the budget, determine what expenditures are the government’s top priorities,
and then expenditures which are the least priorities.
LINK:
https://www.rappler.com/move-ph/issues/budget-watch/145988-proposed-2017-national-
budget
Thank
You!
Reference(s):
Dinio and Villasis 2017. Applied Economics. Rex Bookstore First Edition. Pages 2 -14
Rappler
https://www.rappler.com/move-ph/issues/budget-watch/145988-proposed-2017-national-
budget