SlideShare a Scribd company logo

Applied economics introduction to economics abm specialized subject

Applied Economics based on the book Applied Economics by R. P. Dinio, PhD and G. A. Villasis Learning Competencies Covered: ABM_AE12-Ia-d1 ABM_AE12-Ia-d2 ABM_AE12-Ia-d3 Note: Just notice the technical error in my slide Economic System. The last column should be Market Economy. Thanks for understanding.

Applied economics introduction to economics abm specialized subject

1 of 19
Download to read offline
APPLIED ECONOMICS
A B M S P E C I A L I Z E D S U B J E C T
This course deals with the basic principles of applied economics, and its
application to contemporary economic issues facing the Filipino
entrepreneur such as prices of commodities, minimum wage, rent, and
taxes.
It covers an analysis of industries for identification of potential business
opportunities. The main output of the course is the preparation of a
socioeconomic impact study of a business venture.
Presentation made by:
GIAN PAULO M. RABANAL, LPT, MBA©
Chapter 1
Introduction to Applied Economics
Lesson 1.1 Introduction to Economics
Lesson 1.2 Economics as an Applied Science
At the end of the session the learners will be able to:
a. Differentiate Economics as a Social Science and as an Applied Science
b. Give real-life situation in which the Principles of Applied Economics are used.
c. Cite current economic issues that needs to be addressed.
d. Relate the Principles of Applied Economics to current issues using critical thinking.
Scarcity
Insufficiency of resources to meet the
wants of consumers and insufficiency
of resources for producers that hamper
enough production of goods and
services.
LIMITED
RESOURCES
UNLIMITED
HUMAN WANTS
Choices & Decision-making
Because of scarcity, there is a need for
a ma to make decisions in choosing
how to maximize the use of the scarce
resources to satisfy as many wants as
possible.
Land
Labor
Capital
Entrepreneurship
Food
Clothing
Shelter
Security, etc.
Relative Scarcity
Absolute Scarcity
Opportunity Cost
ECONOMICS
Economics is the social science that involves the
use of scarce resources to satisfy unlimited
wants.
Economics is a social science because it studies
human behavior just like Psychology and
Sociology.
Social Science
The study of society and how people behave and
influence the world around them.
Economics as a Social Science
As a Social Science, Economics studies how
individuals make choices in allocating scarce
resources to satisfy their unlimited wants.
Scarcity
LIMITED
RESOURCES
UNLIMITED
HUMAN WANTS
Choices & Decision-making
BRANCHES OF ECONOMICS
Macroeconomics
A division of Economics that is concerned with
the overall performance of the entire company.
It studies economic system as a whole 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.
Microeconomics
Is concerned with the behavior of individual
entities such as the consumer, the producer, and
the resource owner.
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.
It is also concerned with the process of setting
prices of goods that is also known as PRICE
THEORY.
MICROECONOMICS studies the decision and
choices of the individual units and how these
decisions affects the prices of goods in the
market.
SCARCITY
Is a condition where there are insufficient
resources to satisfy all the need and wants of a
population.
Relative Scarcity
Is when a goods 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.
Absolute Scarcity
Is when supply is limited.
ABSOLUTE SCARCITY explains why there are
some products that are very expensive in the
Philippines.
Ad

Recommended

Introduction applied economics
Introduction applied economicsIntroduction applied economics
Introduction applied economicsRowena Alarcon
 
Revisiting economics as a social science
Revisiting economics as a social scienceRevisiting economics as a social science
Revisiting economics as a social scienceHannah Enriquez
 
Lesson 2 - Economics as an Applied Science
Lesson 2 - Economics as an Applied ScienceLesson 2 - Economics as an Applied Science
Lesson 2 - Economics as an Applied ScienceHannah Enriquez
 
Lesson 3 Basic economic problems
Lesson 3 Basic economic problemsLesson 3 Basic economic problems
Lesson 3 Basic economic problemsHannah Enriquez
 
Lesson 5 Contemporary Economic Issues Affecting The Filipino Entrepreneur.pptx
Lesson 5 Contemporary Economic Issues Affecting The Filipino Entrepreneur.pptxLesson 5 Contemporary Economic Issues Affecting The Filipino Entrepreneur.pptx
Lesson 5 Contemporary Economic Issues Affecting The Filipino Entrepreneur.pptxHeronLacanlale1
 
Phases of Economic Development
Phases of Economic DevelopmentPhases of Economic Development
Phases of Economic DevelopmentRich Pagaduan
 
Introduction to applied economics
Introduction to applied economicsIntroduction to applied economics
Introduction to applied economicsRabie Pasturan
 

More Related Content

What's hot

Introduction to applied economics
Introduction to applied economicsIntroduction to applied economics
Introduction to applied economicsmskriz
 
PRICE & COMMODITIES (APPLIED ECONOMIC)
PRICE & COMMODITIES (APPLIED ECONOMIC)PRICE & COMMODITIES (APPLIED ECONOMIC)
PRICE & COMMODITIES (APPLIED ECONOMIC)DepEd - DIS
 
Dlp applied economics 1 29 - 31, 18
Dlp applied economics 1 29 - 31, 18Dlp applied economics 1 29 - 31, 18
Dlp applied economics 1 29 - 31, 18paul nuez
 
Economics as an applied science
Economics as an applied scienceEconomics as an applied science
Economics as an applied sciencemskriz
 
Introduction to Applied Economics
Introduction to Applied EconomicsIntroduction to Applied Economics
Introduction to Applied EconomicsChristy Juarez
 
Applied-Economics-11 (1).pptx
Applied-Economics-11 (1).pptxApplied-Economics-11 (1).pptx
Applied-Economics-11 (1).pptxRandyBaquiran1
 
Revisiting Economics as a Social Science
Revisiting Economics as a Social ScienceRevisiting Economics as a Social Science
Revisiting Economics as a Social ScienceLeah Condina
 
LESSON-3.1-PRINCIPLES-TOOLS-AND-TECHNIQUES.pptx
LESSON-3.1-PRINCIPLES-TOOLS-AND-TECHNIQUES.pptxLESSON-3.1-PRINCIPLES-TOOLS-AND-TECHNIQUES.pptx
LESSON-3.1-PRINCIPLES-TOOLS-AND-TECHNIQUES.pptxMaIsabel13
 
Industry and environmental analysis: business opportunity identification
Industry and environmental analysis: business opportunity identificationIndustry and environmental analysis: business opportunity identification
Industry and environmental analysis: business opportunity identificationdorotheemabasa
 
APPLIED ECONOMICS
APPLIED ECONOMICSAPPLIED ECONOMICS
APPLIED ECONOMICSMiss Ivy
 
Applied economics module 2 final
Applied economics module 2 finalApplied economics module 2 final
Applied economics module 2 finalRonaldDeLaRama2
 
the role of business in the economy
the role of business in the economythe role of business in the economy
the role of business in the economyGeorge Silandote Jr.
 
VARIOUS-SOCIO-ECONOMIC-FACTORS-AFFECTING-BUSINESS-INDUSTRY.pptx
VARIOUS-SOCIO-ECONOMIC-FACTORS-AFFECTING-BUSINESS-INDUSTRY.pptxVARIOUS-SOCIO-ECONOMIC-FACTORS-AFFECTING-BUSINESS-INDUSTRY.pptx
VARIOUS-SOCIO-ECONOMIC-FACTORS-AFFECTING-BUSINESS-INDUSTRY.pptxRyzaNicoleFrancisco
 
AE_L6_Contemporary Economic Issues_demo
AE_L6_Contemporary Economic Issues_demoAE_L6_Contemporary Economic Issues_demo
AE_L6_Contemporary Economic Issues_demoMarienor Solas
 
Holistic vs Partial Point of View
Holistic vs Partial Point of ViewHolistic vs Partial Point of View
Holistic vs Partial Point of ViewJehnMarieSimon1
 
Lesson-2_-The-Utility-and-Application-of-Applied-Economics-to-Solve-Economic-...
Lesson-2_-The-Utility-and-Application-of-Applied-Economics-to-Solve-Economic-...Lesson-2_-The-Utility-and-Application-of-Applied-Economics-to-Solve-Economic-...
Lesson-2_-The-Utility-and-Application-of-Applied-Economics-to-Solve-Economic-...JETERJUNMUCHO3
 
Principles of Marketing for Grade 12 Students
Principles of Marketing for Grade 12 Students Principles of Marketing for Grade 12 Students
Principles of Marketing for Grade 12 Students Johemie Lopez Quinones
 
Role of business in relation to the economy
Role of business in relation to the economyRole of business in relation to the economy
Role of business in relation to the economyKathleen Abaja
 
Application of Supply and Demand Analysis
Application of Supply and Demand AnalysisApplication of Supply and Demand Analysis
Application of Supply and Demand AnalysisRizze
 

What's hot (20)

Introduction to applied economics
Introduction to applied economicsIntroduction to applied economics
Introduction to applied economics
 
PRICE & COMMODITIES (APPLIED ECONOMIC)
PRICE & COMMODITIES (APPLIED ECONOMIC)PRICE & COMMODITIES (APPLIED ECONOMIC)
PRICE & COMMODITIES (APPLIED ECONOMIC)
 
Dlp applied economics 1 29 - 31, 18
Dlp applied economics 1 29 - 31, 18Dlp applied economics 1 29 - 31, 18
Dlp applied economics 1 29 - 31, 18
 
Economics as an applied science
Economics as an applied scienceEconomics as an applied science
Economics as an applied science
 
Introduction to Applied Economics
Introduction to Applied EconomicsIntroduction to Applied Economics
Introduction to Applied Economics
 
Applied-Economics-11 (1).pptx
Applied-Economics-11 (1).pptxApplied-Economics-11 (1).pptx
Applied-Economics-11 (1).pptx
 
Revisiting Economics as a Social Science
Revisiting Economics as a Social ScienceRevisiting Economics as a Social Science
Revisiting Economics as a Social Science
 
LESSON-3.1-PRINCIPLES-TOOLS-AND-TECHNIQUES.pptx
LESSON-3.1-PRINCIPLES-TOOLS-AND-TECHNIQUES.pptxLESSON-3.1-PRINCIPLES-TOOLS-AND-TECHNIQUES.pptx
LESSON-3.1-PRINCIPLES-TOOLS-AND-TECHNIQUES.pptx
 
Industry and environmental analysis: business opportunity identification
Industry and environmental analysis: business opportunity identificationIndustry and environmental analysis: business opportunity identification
Industry and environmental analysis: business opportunity identification
 
APPLIED ECONOMICS
APPLIED ECONOMICSAPPLIED ECONOMICS
APPLIED ECONOMICS
 
Applied economics module 2 final
Applied economics module 2 finalApplied economics module 2 final
Applied economics module 2 final
 
the role of business in the economy
the role of business in the economythe role of business in the economy
the role of business in the economy
 
VARIOUS-SOCIO-ECONOMIC-FACTORS-AFFECTING-BUSINESS-INDUSTRY.pptx
VARIOUS-SOCIO-ECONOMIC-FACTORS-AFFECTING-BUSINESS-INDUSTRY.pptxVARIOUS-SOCIO-ECONOMIC-FACTORS-AFFECTING-BUSINESS-INDUSTRY.pptx
VARIOUS-SOCIO-ECONOMIC-FACTORS-AFFECTING-BUSINESS-INDUSTRY.pptx
 
AE_L6_Contemporary Economic Issues_demo
AE_L6_Contemporary Economic Issues_demoAE_L6_Contemporary Economic Issues_demo
AE_L6_Contemporary Economic Issues_demo
 
Holistic vs Partial Point of View
Holistic vs Partial Point of ViewHolistic vs Partial Point of View
Holistic vs Partial Point of View
 
Lesson-2_-The-Utility-and-Application-of-Applied-Economics-to-Solve-Economic-...
Lesson-2_-The-Utility-and-Application-of-Applied-Economics-to-Solve-Economic-...Lesson-2_-The-Utility-and-Application-of-Applied-Economics-to-Solve-Economic-...
Lesson-2_-The-Utility-and-Application-of-Applied-Economics-to-Solve-Economic-...
 
Principles of Marketing for Grade 12 Students
Principles of Marketing for Grade 12 Students Principles of Marketing for Grade 12 Students
Principles of Marketing for Grade 12 Students
 
Role of business in relation to the economy
Role of business in relation to the economyRole of business in relation to the economy
Role of business in relation to the economy
 
Application of Supply and Demand Analysis
Application of Supply and Demand AnalysisApplication of Supply and Demand Analysis
Application of Supply and Demand Analysis
 
Entrepreneurship module 1
Entrepreneurship module 1Entrepreneurship module 1
Entrepreneurship module 1
 

Similar to Applied economics introduction to economics abm specialized subject

appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptx
appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptxappliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptx
appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptxCHUBBYTITAMAESTRA
 
Lecture1 Basic Economic Concepts (1)
Lecture1  Basic Economic Concepts (1)Lecture1  Basic Economic Concepts (1)
Lecture1 Basic Economic Concepts (1)katerinamailru
 
60146982 handout-ee-fa-unit-i
60146982 handout-ee-fa-unit-i60146982 handout-ee-fa-unit-i
60146982 handout-ee-fa-unit-ihomeworkping4
 
What is economics unit1week1
What is economics unit1week1What is economics unit1week1
What is economics unit1week1anobles
 
Introduction to Managerial Economics
Introduction to Managerial Economics Introduction to Managerial Economics
Introduction to Managerial Economics NIILM University
 
Laminas Micro Westhill primeras semanas
Laminas Micro Westhill primeras semanasLaminas Micro Westhill primeras semanas
Laminas Micro Westhill primeras semanasMoises Cielak
 
TUTORS CIRCLE - Cpt Super Circle Summary Economics december 2013
TUTORS CIRCLE - Cpt Super Circle Summary Economics december 2013 TUTORS CIRCLE - Cpt Super Circle Summary Economics december 2013
TUTORS CIRCLE - Cpt Super Circle Summary Economics december 2013 Tutors Circle
 
Economic Policies And Economic Policy
Economic Policies And Economic PolicyEconomic Policies And Economic Policy
Economic Policies And Economic PolicyRenee Jones
 
Introduction To Economics
Introduction To EconomicsIntroduction To Economics
Introduction To Economicsnaresh83
 
Economics FOR engineers
Economics FOR engineersEconomics FOR engineers
Economics FOR engineersJitesh Kaushik
 

Similar to Applied economics introduction to economics abm specialized subject (20)

appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptx
appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptxappliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptx
appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptx
 
Lecture1 Basic Economic Concepts (1)
Lecture1  Basic Economic Concepts (1)Lecture1  Basic Economic Concepts (1)
Lecture1 Basic Economic Concepts (1)
 
Ecotar
EcotarEcotar
Ecotar
 
EAB UNIT-I.pptx
EAB UNIT-I.pptxEAB UNIT-I.pptx
EAB UNIT-I.pptx
 
60146982 handout-ee-fa-unit-i
60146982 handout-ee-fa-unit-i60146982 handout-ee-fa-unit-i
60146982 handout-ee-fa-unit-i
 
What is economics unit1week1
What is economics unit1week1What is economics unit1week1
What is economics unit1week1
 
Basics of economics
Basics of economicsBasics of economics
Basics of economics
 
Jade june Macro Economics
Jade june Macro EconomicsJade june Macro Economics
Jade june Macro Economics
 
Introduction to Managerial Economics
Introduction to Managerial Economics Introduction to Managerial Economics
Introduction to Managerial Economics
 
Cfo11e micro ch01
Cfo11e micro ch01Cfo11e micro ch01
Cfo11e micro ch01
 
Laminas Micro Westhill primeras semanas
Laminas Micro Westhill primeras semanasLaminas Micro Westhill primeras semanas
Laminas Micro Westhill primeras semanas
 
The Seven Core Principles Of Economics
The Seven Core Principles Of EconomicsThe Seven Core Principles Of Economics
The Seven Core Principles Of Economics
 
TUTORS CIRCLE - Cpt Super Circle Summary Economics december 2013
TUTORS CIRCLE - Cpt Super Circle Summary Economics december 2013 TUTORS CIRCLE - Cpt Super Circle Summary Economics december 2013
TUTORS CIRCLE - Cpt Super Circle Summary Economics december 2013
 
Brue-Chapter-1.pdf
Brue-Chapter-1.pdfBrue-Chapter-1.pdf
Brue-Chapter-1.pdf
 
Brue-Chapter-1.pdf
Brue-Chapter-1.pdfBrue-Chapter-1.pdf
Brue-Chapter-1.pdf
 
Microeconomic Reflection
Microeconomic ReflectionMicroeconomic Reflection
Microeconomic Reflection
 
Introduction to economics
Introduction to economicsIntroduction to economics
Introduction to economics
 
Economic Policies And Economic Policy
Economic Policies And Economic PolicyEconomic Policies And Economic Policy
Economic Policies And Economic Policy
 
Introduction To Economics
Introduction To EconomicsIntroduction To Economics
Introduction To Economics
 
Economics FOR engineers
Economics FOR engineersEconomics FOR engineers
Economics FOR engineers
 

Recently uploaded

OAT_RI_Ep16 WeighingTheRisks_Jan24_BitcointotheMoon.pptx
OAT_RI_Ep16 WeighingTheRisks_Jan24_BitcointotheMoon.pptxOAT_RI_Ep16 WeighingTheRisks_Jan24_BitcointotheMoon.pptx
OAT_RI_Ep16 WeighingTheRisks_Jan24_BitcointotheMoon.pptxhiddenlevers
 
Indistinguishable from Magic: How the Cybersecurity Market Reached a Trillion...
Indistinguishable from Magic: How the Cybersecurity Market Reached a Trillion...Indistinguishable from Magic: How the Cybersecurity Market Reached a Trillion...
Indistinguishable from Magic: How the Cybersecurity Market Reached a Trillion...Adrian Sanabria
 
India Equity Strategy Presentation (2016) - HSBC
India Equity Strategy Presentation (2016) - HSBCIndia Equity Strategy Presentation (2016) - HSBC
India Equity Strategy Presentation (2016) - HSBCDimitarStoyanov46
 
Is the U.S Approaching Another Regional Bank Crisis.pdf
Is the U.S Approaching Another Regional Bank Crisis.pdfIs the U.S Approaching Another Regional Bank Crisis.pdf
Is the U.S Approaching Another Regional Bank Crisis.pdfJasper Colin
 
E-learning Personal Finance Management - with design v2 .pptx
E-learning Personal Finance Management - with design v2 .pptxE-learning Personal Finance Management - with design v2 .pptx
E-learning Personal Finance Management - with design v2 .pptxakinsumboayomide
 
Banking theory law & Practice Unit II.ppt
Banking theory law & Practice Unit II.pptBanking theory law & Practice Unit II.ppt
Banking theory law & Practice Unit II.pptmanikandansMani2
 
Stock Market Brief Deck 214.pdf
Stock Market Brief Deck 214.pdfStock Market Brief Deck 214.pdf
Stock Market Brief Deck 214.pdfMichael Silva
 
Strategic Resources corporate presentation
Strategic Resources corporate presentationStrategic Resources corporate presentation
Strategic Resources corporate presentationAdnet Communications
 
Polycab scam elaborated ppt expalined pro
Polycab scam elaborated ppt expalined proPolycab scam elaborated ppt expalined pro
Polycab scam elaborated ppt expalined proRakshitAchra1
 
Elo’s result 2023: Return on investment increased to 6 per cent and cost effi...
Elo’s result 2023: Return on investment increased to 6 per cent and cost effi...Elo’s result 2023: Return on investment increased to 6 per cent and cost effi...
Elo’s result 2023: Return on investment increased to 6 per cent and cost effi...Työeläkeyhtiö Elo
 
AGRICULTURAL PRICE POLICY -AGRICULTURAL ECONOMICS.pptx
AGRICULTURAL PRICE POLICY -AGRICULTURAL ECONOMICS.pptxAGRICULTURAL PRICE POLICY -AGRICULTURAL ECONOMICS.pptx
AGRICULTURAL PRICE POLICY -AGRICULTURAL ECONOMICS.pptxVISHALI SELVAM
 
Tone at the top: the effects of gender board diversity on gender wage inequal...
Tone at the top: the effects of gender board diversity on gender wage inequal...Tone at the top: the effects of gender board diversity on gender wage inequal...
Tone at the top: the effects of gender board diversity on gender wage inequal...GRAPE
 
2023_-_Master_Trust___GPP_Defaults_Report (2).pdf
2023_-_Master_Trust___GPP_Defaults_Report (2).pdf2023_-_Master_Trust___GPP_Defaults_Report (2).pdf
2023_-_Master_Trust___GPP_Defaults_Report (2).pdfHenry Tapper
 
Deriv Accumulator Trading Stratagies by Vince Stanzione
Deriv Accumulator Trading Stratagies by Vince StanzioneDeriv Accumulator Trading Stratagies by Vince Stanzione
Deriv Accumulator Trading Stratagies by Vince StanzioneVince Stanzione
 
Stock Market Brief Deck 213.pdf
Stock Market Brief Deck 213.pdfStock Market Brief Deck 213.pdf
Stock Market Brief Deck 213.pdfMichael Silva
 
How AI in the Insurance Industry is Influencing Regulatory Changes in 2024
How AI in the Insurance Industry is Influencing Regulatory Changes in 2024How AI in the Insurance Industry is Influencing Regulatory Changes in 2024
How AI in the Insurance Industry is Influencing Regulatory Changes in 2024360factors
 
99MW Nearshore Wind Farm in Colombia.pdf
99MW Nearshore Wind Farm in Colombia.pdf99MW Nearshore Wind Farm in Colombia.pdf
99MW Nearshore Wind Farm in Colombia.pdfVictoriaGaleano
 

Recently uploaded (20)

OAT_RI_Ep16 WeighingTheRisks_Jan24_BitcointotheMoon.pptx
OAT_RI_Ep16 WeighingTheRisks_Jan24_BitcointotheMoon.pptxOAT_RI_Ep16 WeighingTheRisks_Jan24_BitcointotheMoon.pptx
OAT_RI_Ep16 WeighingTheRisks_Jan24_BitcointotheMoon.pptx
 
Indistinguishable from Magic: How the Cybersecurity Market Reached a Trillion...
Indistinguishable from Magic: How the Cybersecurity Market Reached a Trillion...Indistinguishable from Magic: How the Cybersecurity Market Reached a Trillion...
Indistinguishable from Magic: How the Cybersecurity Market Reached a Trillion...
 
India Equity Strategy Presentation (2016) - HSBC
India Equity Strategy Presentation (2016) - HSBCIndia Equity Strategy Presentation (2016) - HSBC
India Equity Strategy Presentation (2016) - HSBC
 
Is the U.S Approaching Another Regional Bank Crisis.pdf
Is the U.S Approaching Another Regional Bank Crisis.pdfIs the U.S Approaching Another Regional Bank Crisis.pdf
Is the U.S Approaching Another Regional Bank Crisis.pdf
 
E-learning Personal Finance Management - with design v2 .pptx
E-learning Personal Finance Management - with design v2 .pptxE-learning Personal Finance Management - with design v2 .pptx
E-learning Personal Finance Management - with design v2 .pptx
 
Banking theory law & Practice Unit II.ppt
Banking theory law & Practice Unit II.pptBanking theory law & Practice Unit II.ppt
Banking theory law & Practice Unit II.ppt
 
Veritas Financial statement presentation 2023
Veritas Financial statement presentation 2023Veritas Financial statement presentation 2023
Veritas Financial statement presentation 2023
 
Stock Market Brief Deck 214.pdf
Stock Market Brief Deck 214.pdfStock Market Brief Deck 214.pdf
Stock Market Brief Deck 214.pdf
 
Strategic Resources corporate presentation
Strategic Resources corporate presentationStrategic Resources corporate presentation
Strategic Resources corporate presentation
 
Monthly Economic Monitoring of Ukraine No.229, February 2024
Monthly Economic Monitoring of Ukraine No.229, February 2024Monthly Economic Monitoring of Ukraine No.229, February 2024
Monthly Economic Monitoring of Ukraine No.229, February 2024
 
Polycab scam elaborated ppt expalined pro
Polycab scam elaborated ppt expalined proPolycab scam elaborated ppt expalined pro
Polycab scam elaborated ppt expalined pro
 
Elo’s result 2023: Return on investment increased to 6 per cent and cost effi...
Elo’s result 2023: Return on investment increased to 6 per cent and cost effi...Elo’s result 2023: Return on investment increased to 6 per cent and cost effi...
Elo’s result 2023: Return on investment increased to 6 per cent and cost effi...
 
AGRICULTURAL PRICE POLICY -AGRICULTURAL ECONOMICS.pptx
AGRICULTURAL PRICE POLICY -AGRICULTURAL ECONOMICS.pptxAGRICULTURAL PRICE POLICY -AGRICULTURAL ECONOMICS.pptx
AGRICULTURAL PRICE POLICY -AGRICULTURAL ECONOMICS.pptx
 
Tone at the top: the effects of gender board diversity on gender wage inequal...
Tone at the top: the effects of gender board diversity on gender wage inequal...Tone at the top: the effects of gender board diversity on gender wage inequal...
Tone at the top: the effects of gender board diversity on gender wage inequal...
 
2023_-_Master_Trust___GPP_Defaults_Report (2).pdf
2023_-_Master_Trust___GPP_Defaults_Report (2).pdf2023_-_Master_Trust___GPP_Defaults_Report (2).pdf
2023_-_Master_Trust___GPP_Defaults_Report (2).pdf
 
Deriv Accumulator Trading Stratagies by Vince Stanzione
Deriv Accumulator Trading Stratagies by Vince StanzioneDeriv Accumulator Trading Stratagies by Vince Stanzione
Deriv Accumulator Trading Stratagies by Vince Stanzione
 
Stock Market Brief Deck 213.pdf
Stock Market Brief Deck 213.pdfStock Market Brief Deck 213.pdf
Stock Market Brief Deck 213.pdf
 
NRES_November_2023_FINAL_EN.pdf
NRES_November_2023_FINAL_EN.pdfNRES_November_2023_FINAL_EN.pdf
NRES_November_2023_FINAL_EN.pdf
 
How AI in the Insurance Industry is Influencing Regulatory Changes in 2024
How AI in the Insurance Industry is Influencing Regulatory Changes in 2024How AI in the Insurance Industry is Influencing Regulatory Changes in 2024
How AI in the Insurance Industry is Influencing Regulatory Changes in 2024
 
99MW Nearshore Wind Farm in Colombia.pdf
99MW Nearshore Wind Farm in Colombia.pdf99MW Nearshore Wind Farm in Colombia.pdf
99MW Nearshore Wind Farm in Colombia.pdf
 

Applied economics introduction to economics abm specialized subject

  • 1. APPLIED ECONOMICS A B M S P E C I A L I Z E D S U B J E C T This course deals with the basic principles of applied economics, and its application to contemporary economic issues facing the Filipino entrepreneur such as prices of commodities, minimum wage, rent, and taxes. It covers an analysis of industries for identification of potential business opportunities. The main output of the course is the preparation of a socioeconomic impact study of a business venture. Presentation made by: GIAN PAULO M. RABANAL, LPT, MBA©
  • 2. Chapter 1 Introduction to Applied Economics Lesson 1.1 Introduction to Economics Lesson 1.2 Economics as an Applied Science At the end of the session the learners will be able to: a. Differentiate Economics as a Social Science and as an Applied Science b. Give real-life situation in which the Principles of Applied Economics are used. c. Cite current economic issues that needs to be addressed. d. Relate the Principles of Applied Economics to current issues using critical thinking.
  • 3. Scarcity Insufficiency of resources to meet the wants of consumers and insufficiency of resources for producers that hamper enough production of goods and services. LIMITED RESOURCES UNLIMITED HUMAN WANTS Choices & Decision-making Because of scarcity, there is a need for a ma to make decisions in choosing how to maximize the use of the scarce resources to satisfy as many wants as possible. Land Labor Capital Entrepreneurship Food Clothing Shelter Security, etc. Relative Scarcity Absolute Scarcity Opportunity Cost
  • 4. ECONOMICS Economics is the social science that involves the use of scarce resources to satisfy unlimited wants. Economics is a social science because it studies human behavior just like Psychology and Sociology. Social Science The study of society and how people behave and influence the world around them. Economics as a Social Science As a Social Science, Economics studies how individuals make choices in allocating scarce resources to satisfy their unlimited wants. Scarcity LIMITED RESOURCES UNLIMITED HUMAN WANTS Choices & Decision-making
  • 5. BRANCHES OF ECONOMICS Macroeconomics A division of Economics that is concerned with the overall performance of the entire company. It studies economic system as a whole 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. Microeconomics Is concerned with the behavior of individual entities such as the consumer, the producer, and the resource owner. 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. It is also concerned with the process of setting prices of goods that is also known as PRICE THEORY. MICROECONOMICS studies the decision and choices of the individual units and how these decisions affects the prices of goods in the market.
  • 6. SCARCITY Is a condition where there are insufficient resources to satisfy all the need and wants of a population. Relative Scarcity Is when a goods 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. Absolute Scarcity Is when supply is limited. ABSOLUTE SCARCITY explains why there are some products that are very expensive in the Philippines.
  • 7. CHOICE AND DECISION MAKING With the presence of scarcity, there is a need to make decisions in choosing how to maximize the use of the scarce resources to satisfy as many wants as possible. Opportunity Cost Refers to the value of the best forgone alternative. The concept of OPPORTUNITY COST holds true for individuals, businesses, and even a society. In making a choice, trade-offs are involved. What will happen if there is no SCARCITY? Without scarcity, a person does not need to make choices since he/she can have everything he/she wants.
  • 8. CHOICE AND DECISION MAKING With the presence of scarcity, there is a need to make decisions in choosing how to maximize the use of the scarce resources to satisfy as many wants as possible. Opportunity Cost Refers to the value of the best forgone alternative. The concept of OPPORTUNITY COST holds true for individuals, businesses, and even a society. In making a choice, trade-offs are involved. What will happen if there is no SCARCITY? Without scarcity, a person does not need to make choices since he/she can have everything he/she wants.
  • 9. BASIC ECONOMIC PROBLEMS OF THE SOCIETY All societies are faced with basic questions in the economy that have to be answered in order to cope with constraints and limitations. What to produce? How much? society must decide what goods and services should be produced in the economy. Having decided on the nature of goods that will be produced, the quantity to these foods should also be decided on. How to produce? is a question on the production method that will be used to produce the goods and services. This refers to the resource mix and technology that will be applied in production. SCARCITY LIMITED RESOURCES UNLIMITED HUMAN WANTS CHOICES AND DECISION MAKING What to produce? And How much? How to produce? For whom to produce? For whom to produce? is about the market for the goods. For whom will the goods and services be produced? The young or old, the male or female market, the low- income or the income groups?
  • 10. ECONOMICS SYSTEMS The economic system is the means through which society determines the answers to the basic economic problems mentioned. Traditional Economy 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. Command Economy This is 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 a say in what goods are to be produced. The economy holds true in dictatorial, socialist, and communist nations. Command 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’s preference are reflected in the prices they are willing to pay in the market and are therefore the basis of the producer’s decisions on what goods to produce.
  • 11. WHY ECONOMICS IS IMPORTANT? 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. It will help one understand how to make more rational decisions in spending money, saving part of it, and even investing some of it. Read the front page of the newspapers or watch the news on TV. On the national level, economics will enable the students to take a look on how the economy operates and to decide for themselves if the government officials and leaders are effective in trying to shape up the economy and formulate policies for the good of the nation.
  • 12. MEASURING THE ECONOMY The heart of economy is production whose value measures both resource input and output of people. The interplay of resources and outputs tells how well the economy has performed. Economic Resources also known as factors of production, are the resources used to produce goods and services. Land Soil and natural resources that are found in nature and are not man-made. Owners of lands receive a payment known as RENT. 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 and doctors. The term also includes jeepney drivers, farmers and fisherman The income received by labors is referred to as WAGE. Capital Man-made resources used in production of goods and services, which include machineries and equipment. The owner of capital earns an income called INTEREST.
  • 13. GNP vs. GDP Gross National Product Market value of final products, both sold and unsold, produced by the resources of the economy in a given period. MARKET VALUE is determined by supply and demand ECONOMY’S RESOURCES are those belonging to Filipino citizens and corporations. NOT ALL RESOURCES BELONGING TO THE ECONOMY ARE IN THE ECONOMY. CONVERSELY, NOT ALL RESOURCES IN THE ECONOMY BELONG TO THE ECONOMY. GNP = C + I + G + (X – M) Consumption (household and individual) Investments (stocks of values for future use) Government Expenditures on Goods and Services Exports Imports
  • 14. GNP vs. GDP Gross Domestic Product Better indicator of domestic employment opportunities. Defined as the market value of final products produced within the country. GDP is net of GNP after deducting NET FACTOR INCOME from abroad or by deducting factor income from abroad and adding back FACTOR PAYMENTS to other countries. NET FACOR INCOME from abroad is net export of factor service equal to Factor income from abroad less the factor payments of other countries. Net Inflow = Inflow - Outflow - Net Inflow = - Inflow + Outflow
  • 15. APPLIED ECONOMICS Application of economic theory and econometrics in specific settings with the goal of analyzing potential outcomes. John Neville Keynes First to use the phrase “APPLIED ECONOMICS” to designate the application of economic theory to the interpretation and explanation of particular economic phenomena. Applied Economics in Relation to Philippine Economic Problems Understanding the existence of scarcity can help Economics students analyze how to maximize the use of available resources in order to overcome scarcity. Knowledge of economic theories such as the Law of Supply and Demand can help in analyzing why prices are high and what the government can do to help bring down prices.
  • 16. The Philippines Basic Economic Problems Non-inclusive Growth despite of Economic Growth Millions of Filipinos are claiming they are experiencing hunger or they still live below the poverty level. Unemployment despite of Improvements Main problem of the Philippine Economy. Unemployment Rate in the Philippines: 2nd Quarter of 2015 = Decreased to 6.4 % from 7.0% in the previous year Philippines Unemployment Rate average = 8.85% from 1994 – 2015 Highest = 13.90% 1st quarter of 2000 Lowest = 6.0% 4th quarter of 2014
  • 17. The Philippines Basic Economic Problems cont. Poverty Socio-economic problem. Poverty incidence of the population registered at 26.4 %, 26.5% in 2009 25.2% in 2012 28.8 in 1st quarter of 2014 Population Growth Basic economic problem that can be connected to the issue of scarcity. When population becomes too big, economic resources may no longer be enough to support the growing population. 2010 = 92.3 M 2014 = 100 M – growing by 2% Philippines – one of the highest population in Asia. Represents 1.37% of the worlds population.
  • 18. Class Activity: Debate Download a copy and read the article “What’s in the proposed 2017 national budget?” using the link provided below. Based on the budget, determine what expenditures are the government’s top priorities, and then expenditures which are the least priorities. The debate topic would be “Is it right to prioritize EDUCATION in preparing the National Budget?” 30 minutes preparation per team 15 minutes debate proper. LINK: https://www.rappler.com/move-ph/issues/budget-watch/145988-proposed-2017-national-budget
  • 19. Thank You! Reference(s): Dinio and Villasis 2017. Applied Economics. Rex Bookstore First Edition. Pages 2 -14 Rappler https://www.rappler.com/move-ph/issues/budget-watch/145988-proposed-2017-national-budget Presentation made by: GIAN PAULO M. RABANAL, LPT, MBA©