applied eco Flashcards
insufficiency of
resources to meet the wants of consumers and insufficiency
of resources for producers that hamper enough production
of goods and services.
scarcity
s the reason why people must practice economics.
scarcity
as a study is the social science that involves the use of
scarce resources to satisfy unlimited wants
economics
described
economics as the study of mankind in the ordinary
business of life.
alfred marshall
It examines part of the individual and
social action that is most closely connected in the
attainment and use of material requisites of well-being
economics
a condition where there are insufficient
resources to satisfy all the needs and wants of a
population. Scarcity may be relative or absolute
scarcity
y is when a good is scarce compared to its
demand.
relative scarcity
occurs not because the good is scarce per
se and is difficult to obtain but because of the
circumstances that surround the availability of the good.
relative scarcity
when supply is
limited.
absolute scarcity
A division of Economics that is concerned with the overall
performance of the entire company.
MACROECONOMICS
. It studies economic
system rather than the individual economic units that make
up the economy.
macroeconomics
is about the nature of economic
growth, the expansion of productive capacity and the
growth of national income.
macroeconomics
s concerned with the behavior of individual
entities such as the consumer, the producer, and the resource
owner.
microeconomics
It is more concerned on how foods flow from the business
firm to the consumer and how resources move from the
resource owner to the business firm.
microeconomics
It is also concerned with
the process of setting prices of goods that is also known as
price theory
studies the decision and choices
of the individual units and how these decisions affect the
prices of goods in the market.
microeconomics
, there is a need to make
decisions in choosing how to maximize the use of scarce
resources to satisfy many wants as possible.
choice and decision making
Refers to the value of the best forgone alternative.
opportunity cost
holds true for individuals,
businesses, and even a society. In making a choice, trade-offs
are involved.
concept of opportunity cost
, society has to make four
fundamental choices:
- What to produce;
- How much to
produce; - How to produce
- For whom to produce.
The study of
society and how people behave
and influence the world around
them.
social science
s the means through which society
determines the answers to the basic problems mentioned.
economic system
3 economic system:
TRADITIONAL ECONOMIC SYSTEy
COMMAND ECONOMIC SYSTEM
MARKET ECONOMIC SYSTEM
Decisions are based on traditions and practices upheld over the years and
passed on from generation to generation. Methods are stagnant and
therefore not progressive. Traditional societies exist in primitive and
backward civilizations.
traditional economic system
This is when the authoritative system wherein decision-making is centralized
in the government or a planning committee. Decisions are imposed on the
people who do not have any say in what goods are to be produced. The
economy holds true in dictatorial, socialist, and communist nations.
command economic system
This is the most democratic from of economic system
market economic system
also known as the factors of production, are
the resources used to produce goods and services.
economic resources
Soil and natural resources that are found in nature are not
man made. Owners of lands receive a payment known as rent.
land
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 fishermen. The income
received by labors is referred to as wage.
labor
Man-made resources used in the production of goods and
services, which includes machineries and equipment.
capital
The
owner of capital earns an income
Interest
Why do we need to study economics?
ECONOMICS will help the students understand why there is a need
for everybody, including the government, to budget and properly
allocate the use of whatever resources are available.
deals with what is – things that are
currently happening such as the current inflation rate,
the number of employed labors, and the level of the
Gross National Product.
positive economics
efers to what
should be – that which embodies the ideal such as the ideal
rate of population growth or the most effective tax system.
normative ethics
n overview of what is happening in
the economy that is possibly far from what is ideal.
positive economics
the scientific study of the ownership, use, and
exchange of scarce resources – often shortened to the science of
scarcity.
economics
regarded as a social science because it uses
scientific methods to build theories that can help explain the
behavior of individuals, groups and organizations.
economics
is the application of the economic theories and principles to
address practical issues on the economy.
applied economcis