18. __________8. is the branch of
economics that deals with the
structure, performance, behavior,
and decision-making of the whole,
or aggregate, economy.
21. Applied Economics
Quarter 1 - Week 1 – Module 1
Most Essential Learning Competency:
Differentiate economics as social science and
applied science in terms of nature and scope
Jesheila Bautista De Ocampo
22. Know the definition of economics
and the basics
Differentiate normative and
positive economics
Distinguish the division of
economics
Identify the four factors of
Production
23. – is use or allocation of
scarce resources to meet
man’s unlimited needs and
wants. Richard Lipsey
(People cannot have everything they want.
Consumers are limited by their income while
producers are limited by the factors of
production.)
24. WHAT IS ECONOMICS ?
is defined as the study of
choices that individuals and
societies make in the
production, distribution
and consumption of
goods and services.
LC 1
25.
26. I
Social science is the branch of science
of societies and the relationships
among individuals within those
societies.
27. Scarcity is the insufficiency or
inadequacy of economic
resources and as a result, we
have to decide and choose.
* Scarcity, is a condition of why
people study and practice
economics.
LC 1
28. * Consumers cannot spend money twice.
Ex. Money spent on a cellphone cannot be spent
again on buying a TV.
*Producers cannot use resources
again once they are used up.
Ex. A farmer who decides to use his land
producing corn gives up the opportunity to
produce rice.
29. An economic system
cannot produce all
goods and services
that consumers want,
and most consumers
do not have the
resources to purchase
everything they want.
30. House renovation vs Buying a car
Trade-off- the exchange or choosing
between alternatives.
It is a reality of life that getting one thing
would mean giving up another thing.
31.
32. Absolute Scarcity
When supply is limited
Relative Scarcity
When good is scarce compared to its
demand.
Two ways of measuring economic mobility
33. Office mother:
opportunity cost salary
Full time mother
Opportunity Cost
Is a value or cost of the next best forgone
choice/alternative.
In other words, opportunity cost represents the
benefits that could have been by taking.
34. Ex. “Public healthcare increases
government expenditures.
Ex. “Best Healthcare must
be free to all citizens.”
Positive economics
describes and explains
various economic
phenomena or the
“what is” scenario.
Positive economics is
based on facts.
Normative economics
focuses on the value of
economic fairness, or
what the economy “
should be”. In other
words, normative
economics is based on
value judgements.
36. MICROECONOMICS MACROECONOMICS
Studies individual income
Analyzes demand and
supply of labor
Deals with households
and firms decisions
Studies individual prices
Analyzes demand and
supply of goods.
Studies national income
Analyzes total
employment in the
economy
Deals with aggregate
decisions
Studies overall price level
Analyzes aggregate
demand and aggregate
supply
37. In economics, the factors of production (sometimes
called economic resources or inputs) are essential to
produce goods and services. These are……