BASIC ECONOMIC

BATAUSA, HEIDELIZA
ROBA
SOCIAL SCIENCES
CONCEPTS FACULTY
1ST SEMESTER 2021-2022
WHAT IS
ECONOMICS?
It is aimed at efficient allocation of scarce resources
Efficiency, scarcity, opportunity cost
What are they?
Scarcity means resources are not enough in order to meet the unlimited wants and
needs of people
Efficiency means making the best use of these resources –minimize waste
Opportunity cost is the value of the alternative forgone. When you use a resource for
one purpose, you give up its use.
RESOURCES
Four broad category of resources:
1) natural –land and other resources from nature
2) labor –the mental and manual capabilities of people. It has a lot of dimensions. It
is simply not the same as population.
3) man-made or capital –equipment, buildings, machines, infrastructure
4) entrepreneurial and managerial/organizational skills

Does Philippines have a lot of them? Which resource/s are we lacking in?
WHAT IS
KEY?
Accumulation of capital and organization of resources
- Very easy to say but very difficult to do
Capital can come in different forms:
Physical capital –machines, buildings, equipment, infrastructure –roads and bridges
Financial capital –money in the bank, money used to start a business etc.
Intellectual capital –inventions and talent (copyright, trademark, etc)
Social capital – your social network online and offline
ECONOMIC
SYSTEM
WHO CAN DO IT BETTER?
IS IT THE MARKET OR GOVERNMENT OR IN BETWEEN?
What is a public good and what is a private good?
How can they be provided and at what cost?
Are education and health private or public goods?
MARKET
SYSTEM
COMMAND
ECONOMY
MIXED ECONOMIES
WHAT ARE THE EXAMPLES
WE CAN SEE?
CHINA, CUBA AND NORTH KOREA ARE EXAMPLES OF CENTRALLY-PLANNED
ECONOMIES
CHINA IS UNIQUE BECAUSE IT IS A COUNTRY GETTING RICH BUT PEOPLE
REMAIN CONTROLLED BY THE GOVERNMENT
MIXED ECONOMIES VARY IN THE AMOUNT OR LEVEL OF GOVERNMENT
INTERVENTION IN THE ECONOMY
U.S. ECONOMY IS DIFFERENT FROM THE FRENCH ECONOMY ETC.
WHAT ABOUT IN THE MIDDLE EASTERN ECONOMIES? WHAT CAN YOU SHARE?
EACH ECONOMY ADOPTS ITS OWN FORMULA/STRATEGY
SUMMARY
CONCLUSION
Economics is a complex field of study. We need to look at a lot of perspectives. But
it is very interesting once you understand how it works! 
Activity: Review the proposals to allow foreign ownership of public services –power
company, telecommunications, newspaper etc here in the Philippines. Do you agree
with it or not? Write your answers on a Word File (maximum two paragraphs) with
your name on it and submit it during the day. Thank you and see you next time!