2. ECONOMICS – can be a tool to solve economic
problems on the production of goods and services.
NEEDS – the essentials of life.
WANTS – desires for non-essential items
RESOURCES – things provided by nature that can be
used directly or indirectly to satisfy human needs.
PRODUCTION – the process by which resources are
transformed into useful forms.
Important terms for you to understand the
lesson:
3. ECONOMIC RESOURCES – basic items that are used in
all types of production, including natural, capital
and human resources.
NATURAL RESOURCES – resources from nature that are
used in production.
CAPITAL RESOURCES – processed materials, equipment
and buildings used in production.
HUMAN RESOURCES – the efforts of people involved in
production, including labor and entrepreneurship.
4. is the problem of having unlimited wants,
but limited resources to satisfy them.
The Economic Problem
5. - the limited nature of resources, which
underlies the basic economic problems.
SCARCITY
6. 1. What to produce?
2. How to produce?
3. For whom to produce?
4. What provisions/law should be made for
economic growth?
The scarcity gives rise to four basic problems
of an economy:
7. - if there is scarcity of goods in a society,
the firms have to make wise decision on
what goods/service should be produced
and determine the quantity to produced.
What to Produce?
8. In this time of pandemic, which do we
produce more, mask or canned good?
Example:
The society must decide the type and quantity of
goods/service to be produced to meet the
immediate needs of society.
9. - the production of goods or services
needs effective methods and processes.
How to produce?
10. You can produce masks using sewing
machines; sardines using aqua
resources and land resources.
Example:
The production requires more labor and capital
investment.
11. - the society would always consider the
immediate beneficiary of the goods.
For whom to produce?
12. When we produce masks, we suppose
to produce first these for the
frontliners of COVID Pandemic fight.
Example:
A society decides on the distribution of the goods
and services among the members of society who
needs them the most.
13. - a society uses all its resources for current
consumption. If a society uses all its
resources, then its production capacity
will not increase.
What provisions/laws should be
made for economic growth?
14. When we use all the resources to
produce masks for current
consumption, then there will no left
for the future.
Example:
A society must decide also on the part of the
resources to be saved for future progress.
15. What is market demand, market supply
and market equilibrium?
Assignment:
