Unit 1: Economics Flashcards
What is Economics? (Etymological Definition)
Oikonomia
- greek word which translates to management and household
What is Economics?
(Scholarly Definition)
Economics concerns situations in which choices must be made about how to use limited resources when to use them, and for what purpose
Short sum: Economics is about which and how choices are meant to be made and for what purpose
Two Divisions of Economics
Microeconomics and Macroeconomics
Microeconomics
Micro = small
decisions about specific individuals
Macroeconomics
Macro = large
economic growth for a country or a nation
Scarcity
The fundamental economic problem.
Relative Scarcity
Lack of resources but have plenty for others
Choices
Trade off and Opportunity Cost
Opportunity cost
The cost of the choice not taken
Trade off
Picking one thing from all other possibilities
Basic Economic Questions
What to produce?
How to produce?
How much to produce?
For whom to produce?
How to produce more overtime?
Economics and other disciplines
- It uses logic and mathematics
- It involves history
- It emphasizes science and technology
Why is it important to study economics?
for the future, budgeting, and awareness for world issues
Needs
Basic requirements for human survival
Wants
Specific things we wish to have
Hierarchy of Needs Theory (Maslow)
(top to bottom order)
Self Actualization, Esteem, Love and belonging, Safety needs, Physiological Needs
Factors affecting Wants
Income, Population, Advertisements, Physical Location, and Urbanization
Consumption
Purchase of products to satisfy economic needs and wants
Right to Filipino Consumers
- The right to basic needs
- The right to safety
- The right to information
- The right to choose
- The right to representation
- The right to redress
- The right to consumer education
- The right to a healthy environment
Responsibilities of the Filipino Consumer
- Critical Awareness
- Action
- Social Concern
- Environmental Awareness
- Solidarity
Republic Act No. 7394
Consumer Act of the Philippines
promote general welfare and establish standards for business and industry
Pro-consumer government agencies
- Food and Drug Administration ( FDA )
- National Food Authority ( NFA )
- Energy Regulatory Commission ( ERC )
- Land Transportation and Franchising and Regulatory Board ( LTFRP )
- Bureau of Trade Regulation and Consumer Protection ( BTRCP )
Private consumer organizations
- Nationwide Association of Consumers, Inc ( NACI )
- Consumers Union of the Philippines ( CUP )
- Consumer Commuter Association of the Philippines ( CCAP )
- Metro Manila Transport Consultative Council ( MMTC )
Food and Drug Administration ( FDA )
Pro-consumer government agencies
It works to license, monitor, and regulate the flow of food, drugs, cosmetics, medical services, etc.
