APPLIED ECONOMICS

Economics as Social and

Applied Science
Module 1
Topic Overview;

• Nature and Scope of Economics

• Different applications of Economics
• Apply economics as Social and as an
Applied Science in real life situations
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COEMNOCSI
 Yes I am……

ECONOMICS
 What is Economics ?

it is a science of
making choices.
 Revisiting Economics

Three (3) strands in the development of the

definition of economics.
 first focuses on wealth.
 second stresses the decision-making process.
 third concentrates on the allocation process.
 Revisiting Economics
Economics as a study of wealth implies
wealth utilization for individual’s
satisfaction and society’s welfare. As
people produce or consume, whether it is
wealth- getting or wealth-using, they
make decisions which are based on
alternative choices. Consistent with the
process of making decisions and choices
is the process of allocation.
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SCIMONOCE AS
LAICOS ECNEICS
 Yes I am……

ECONOMICS AS
SOCIAL SCIENCE
Economics as Social Science

• A science that deals with the allocation

of scarce resources to meet the
unlimited human wants.
Economics as Social Science
As a social science, economics pertains
to the study on how society creates its
material wealth, how it makes this
wealth available to its people with
minimum difficulties, and how it
expands its wealth.
 Society
the community of people living in a
particular country or region and having
shared customs, laws, and
organizations.
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DEILPPA AS AN
CESCEIN
NOCEMOSCI
 Yes I am……

ECONOMICS AS
AN APPLIED
SCIENCE
Economics as an Applied Science

• A science that applies economic theory

and econometrics in specific setting
with the goal of analyzing potential
outcomes.
Economics as an Applied Science

 What makes economics an applied science is the

formulation of general theories through testing,
mainly using data from the past. In simpler
definition, it is the study of observing how
theories work in practice.
 Applied economics becomes a powerful tool to
reveal the true and complete situation in order to
come up with things to do.
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SECOURSE
 Yes I am……

RESOURCES
 RESOURCES

• These are products of nature, qualities

of individuals, and man made things
which are used in producing goods or
services
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STNAW
NAMUH
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HUMAN WANTS
 Human Wants

• it can be described as
differentiated or expanded human
needs.
 Opportunity Cost

• Refers to the value of the foregone

alternative.
 Human Needs

• It can be portrayed as basic

necessities for material survival.
 Capital
• A man-made resources used in
production of goods and services
which include machineries and
equipment.
 Allocation

• A social mechanism to respond to the

economic problem of scarcity.
 Scarcity
• Is a condition where there are
insufficient resources to satisfy all the
need and wants of a population.
 ACTIVITY TIME….

Do the Activity # 1
 Assignment..

Do the Performance
Task 1
THANK YOU…