Economics

1. BASIC ECONOMIC
PROBLEMS
Basic economic problems
How applied economics
work

2. SOMETHING YOU
WOULD LIKE TO
HAVE.
SOMETHING YOU
HAVE TO
HAVE.
THE SHORTAGE OF
SUPPLY

3. THE RESOURCES FROM
NATURE THAT ARE USED IN
THE PRODUCTION
INCLUDING LAND, RAW
MATERIALS AND NATURAL
PROCESS
THE INCREASE IN PRICE OF
GOODS AND SERVICES.

4. THE SHORTAGE
OF SUPPLY
AVAILABLE.
TRADING OFF
COMMODITIES OR
SERVICES WITHOUT
THE AID OF MONEY.

5. THIS CAN BE USED IN
COOKING AS
SUBSTITUTE OF LPG.
FILIPINO WORKERS
WHO WORK
OVERSEAS TO
SUPPORT FAMILY

6. APPLIED
ECONOMICS
The use of this term is believed to
have started nearly 200 years ago, in
the writings of Jean-Baptiste Say
(1767-1832) and John Stuart Mill
(1806-1873). This is the application of
economic principles and theories to
the present economic condition.

7. 1. It enables the true picture of the
situation to show.
2. It helps determine the steps to be taken
to improve the present economic condition.
3. It helps to avoid the recurrence of a
negative situation or at least minimize the
effect.
Applying economic theories to current economic
conditions can be helpful in the following reasons:

8. Application of statistical
and mathematical
theories to economics to
test hypothesis and
forecast future trends.
Econometrics

9. It is the limited
nature of resources.
Resources for an
individual includes
Scarcity

10. For a country limited
resources include natural
resources, work force or we
call it also as labor force where
most of them work abroad to
seek higher salary to meet
Scarcity

11. Other limited resource of a
country is technology. The lack
of technology available leaves
some of our most precious
natural resources useless
because we cannot use them.
Scarcity

12. These resources are all limited as
compared with our unlimited
wants and needs. Because of this,
people and nations should
choose which goods and services
they can avail and which one they
should give up. People opted to
choose to buy basic needs

13. What is the
basic economic
problem?

14. Kakapus

15. 1. What to
produce?

16. 2. How to
produce?

17. 3. For whom
shall goods and
services be
produced?

18. 4. Are the country’s
resources being
utilized, or some of
them are lying idle
and unemployed?

19. 5. Is the economy’s
capacity to produce
goods growing or
remaining the same
overtime?

20. Essential Goods
Non - Essential
Goods

36. SCARCITY IS THE ROOT CAUSE OF ALL
ECONOMIC PROBLEMS. BECAUSE OF THIS,
INDIVIDUALS AND NATIONS SHOULD:
1. Decide on how they use their available resources.
2. They should also produce goods and services based
on their needs
3. Use your resources to produce essential goods
necessary for survival especially in this pandemic time.
4. Learn to appreciate your resources and use it to
benefit mankind.