This document provides an introduction to economics. It defines economics as the study of how societies use scarce resources to produce and distribute goods and services. It discusses key economic concepts like scarcity, resources, needs and wants. It also outlines the basic economic problems societies face, including what and how much to produce, how to produce, and for whom to produce. Finally, it briefly describes different economic systems like traditional, command, and market economies.

1. INTRODUCTION TO
ECONOMICS
By: RowenaC.Alarcon
Teacher II
SHS RioChico National High school

2. WHAT IS ECONOMICS
■ Is a social science concerned with using scarce
resources to obtain the maximum of the unlimited
wants of society.
■ Is the study of how societies use scarce resources to
produce commodities and distribute them among
different people
■ Is the study of production, distribution, selling and
use of goods and services
■ Is the study of how people use their limited
resources to try to satisfy unlimited wants.

3. “FIXED ME IAM CRUMBLED”
Instruction: Fixed the following rumbled letters:
CorrectAnswer:
SEIPRENRTE
ENTERPRISE

4. “FIXED ME IAM CRUMBLED”
Instruction: Fixed the following rumbled letters:
CorrectAnswer:
ANDL
LAND

5. “FIXED ME I AM CRUMBLED”
Instruction: Fixed the following rumbled letters:
CorrectAnswer:
RBOLA
LABOR

6. “FIXED ME IAM CRUMBLED”
Instruction: Fixed the following rumbled letters:
CorrectAnswer:
APITLCA
CAPITAL

7. LearningObjectives
■ 1.Identify basic economics problems of the country
■ 2.Discuss the economic problems affecting the economic
stability of thecountry
■ 3.Analyze and explain the root cause of the economic
problems ofthe country
■ ABM_AE12-Ia-d-1

8. which
■ Scarcity - the limitednatureof resources,
underlies the basic economic problem
■ Economic Resources - the problem of having
unlimited wants, but limitedresources to satisfy them
■ Natural Resources – came from nature that areused
in production, including land, raw materials, and
natural process
■ Capital Resources - the processed materials,
equipment, and buildings used in production

9. ■ Human Resources - the efforts of people
involved in production, including labour
and entrepreneurship
■ Needs - the essentials of life, such as food
and shelter
■ Wants - desires for non-essential items

10. Scarcity
■Is a condition where there are
insufficientresourcesto satisfy allthe
needs and wants of a population.

11. ■Scarcity is the reason why people
have to practice economics.
Economics, as a study, is the social
science that involves the use of
scarce resources to satisfy
unlimited wants

12. Alfred Marshall describedeconomics as
study of mankind in the ordinary
business life. It examines part of the
individual and social action that is most
connected with the attainment and use
of material requisitesof well-being.

13. RelativeScarcity-Is when a good
is scarce compared to its
demand.
Absolute Scarcity- is when supply
is limited.

14. Choice and decision making
■ Because of the presence of scarcity,there
is a need for man to make decisions in
choosing how to maximize the use of the
scarce resources to satisfy as many wants
as possible.

15. Opportunity cost
■ Refers to the value of the best foregone
alternative.

16. Economic resources
■Land
■Labor
■Capital

17. Land
■Soil and natural resources that are
found in natureand arenot manmade.
Owners of lands receive payment
known forrent.

18. 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 anddoctors.

19. capital
■ Man-made resources used in the production of
goods and services which include machineries
and equipment.The owner of capitalearns an
income calledinterest.

20. Economic as socialscience
■ As a social science, economics studies how
individuals make choices in allocating
scarce resources to satisfy their unlimited
wants

21. 2 branches of economics
■ Macroeconomics
■ Microeconomics

22. ■Macroeconomics is a division of
economics that is concernedwith the
overall performance of the entire
economy.

23. Microeconomics
■ Studies the decision and choices of the
individual units and how these decisions
affect the prices of goods in the market.
■ It also concerned with the processofsetting
prices of goodsthat is also known asPrice
Theory.

24. Basic economic problems of society
■What to produce and how much
■How toproduce
■For whom to produce

25. What to produce and how much
■ Society must have to decide what goods and
services should be produced in the economy.
Having decided on the nature of goods that will
be produced, the quantity of these goods
should also decided on.

26. How toproduce
■Is a question on the production method
that will be used to produced the
goods and services. This refers to the
resource mix and technology that will
be applied in production.

27. For whom to produce
■ Is about the market for goods. For whom
willthe goods and services be produced?
The young or old, the male or female
market, the low-income or the high
income groups?

28. Economicsystems
■ Traditionaleconomy
■ Command economy
■ Market economy

29. Traditionaleconomy
■ Decisions are based on traditions and
practicesupheld over the years and passed
on from generation to generation.
Methods are stagnant and therefore not
progressive.

30. Command economy
■ This is the authoritative system wherein
decision-making is centralized in the
government or a planning committee. Decision
are imposed on the people who do not have a
say in what goods are to be produced. This
economy holds truein dictatorial,socialist, and
communist nations.

31. Market economy
■ This is the most democratic form of economic
system. Based on the workings of demand and
supply, decisions are made on what goods and
services to produce.. People preferences are
reflectedin the prices they are willing to pay in
the market and therefore the basis of the
producers decisions on what goods to produce.

32. ■
■ Activity Sheet
■ “JUMBLED PROBLEMS”
■ Mechanics:
■ Learners willbe divided into six groups and prepare a sheet of
paper and apen.
■ Members must assign a leader who will writetheir answers.
■ Jumbled words representing economic problems below will
be shown to the class

33. ECONOMIC PROBLEM
1. CARSCITY
2. CIMNOCOE ERSOUSECR
3. ALURATN ORSECESUR
4. ACTALPI ERSOECSRU
5. MANHU SOURCERES
6. SDEEN
7. STAWN