Teaching

2. Economics

3. Learning objectives
⊹ Define economics
⊹ Apply the concept of
economics in everyday life as a
student, member of the family,
and society.
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4. Economics
⊹ The term economics comes from the
Greek word “oikonomia”.
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⊹ Oikos means “household”
⊹ Nomos means “managing”
SCARCITY
⊹ refers to a gap between limited resources and
theoretically limitless wants.
⊹ Limited resources + unlimited wants = scarcity

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⊹ Allocation
⊹ - the action or
process of
allocating or
distributing
something.

6. Definition of economics
⊹ Is a social science that studies how an
individual makes choice in deciding how
to allocate the scarce resources in
satisfying his unlimited needs and
wants.
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⊹ Is the study of human and their choices.

7. Resources
- Materials, objects, people, and tools used to make the goods
and services we buy.
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Three Kinds of Resources
- Natural Resources
- Human Resources
- Capital Resources

8. Natural Resources
- Things that are found in nature and are not handmade
that we use to make things.
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9. Human Resources
- People who do the work to make goods or provide
services.
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10. Capital Resources
- The man-made tools, machines, or locations used in
manufacturing goods.
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11. Branches of Economics
Microeconomics & Macroeconomics
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12. Microeconomics
Branches of economics
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- Studies the smaller units of the economy.
- It studies the behavior, activities, and decision-
making of a household and company.
Ex: How a student spends and saves his allowance is an
example of what is being studied in microeconomics.

13. Macroeconomics
Branches of economics
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- Studies the entire activities of the bigger
economy.
- It studies the interaction of the households,
companies, government, and the international
market.
Ex: How the government apportions and spends the
national budget.

14. Microeconomics
- An individual
- A household
- A firm
- An industry
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Macroeconomics
- The country’s unemployment
rate.
- Inflation (increase in the
prices of goods)
- GDP or Gross Domestic
Product.

15. Positive and normative statements
Positive Statements
- statements that
describe reality or what
is happening.
- Ask “What actually is?”
Normative Statements
- Statements that
describe how a
society should be.
- Ask “What is ought
to be?”
Ex: The price of petroleum
should be lowered to help
alleviate the plight of the
poor.
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Ex: An increase in the price
of petroleum will result in
the increase in price of basic
commodities.

16. Positive statements
- Not all 9th grade
students submitted
their assignments
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Normative statements

17. Economics plays a vital role in man’s
life. It studies the actions, ways, and
behavior of an individual towards
his environment and the society
where he/she is a member of.
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18. Thanks!
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