Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
RESOURCE UTILIZATION 
AND 
ECONOMICS 
Timothy O. Atayde 
BAMA203
RESOURCE UTILIZATION AND ECONOMICS 
ECONOMICS 
• Efficient allocation of the scarce means of 
production toward satisfacti...
RESOURCE UTILIZATION AND ECONOMICS 
SCARCITY 
• Limitedness of resources. 
• The limited availability of economic resource...
RESOURCE UTILIZATION AND ECONOMICS 
FACTORS OF PRODUCTION 
• LAND – The soil or the ground surface together with all the 
...
RESOURCE UTILIZATION AND ECONOMICS 
CIRCULAR FLOW MODEL 
BUSINESS 
•WAGES, SALARIES, 
RENT, INTEREST, PROFIT 
RESOURCE MAR...
RESOURCE UTILIZATION AND ECONOMICS 
CIRCULAR FLOW MODEL 
• RESOURCE MARKET - the place where resources or 
the services of...
RESOURCE UTILIZATION AND ECONOMICS 
OPPORTUNITY COST 
• Refers to the foregone value of the next best 
alternative. 
• Exp...
RESOURCE UTILIZATION AND ECONOMICS 
BASIC DECISION PROBLEMS 
• CONSUMPTION – The society decides the goods and 
services t...
RESOURCE UTILIZATION AND ECONOMICS 
FOUR BASIC ECONOMIC QUESTIONS 
• What to produce? 
• How to produce? 
• How much to pr...
RESOURCE UTILIZATION AND ECONOMICS 
3E’S IN ECONOMICS 
• EFFICIENCY- refers to productivity and proper 
allocation of econ...
RESOURCE UTILIZATION AND ECONOMICS 
POSITIVE AND NORMATIVE ECONOMICS 
• POSITIVE ECONOMICS - An economic analysis 
that co...
RESOURCE UTILIZATION AND ECONOMICS 
CETERIS PARIBUS ASSUMPTION 
• “All things are held constant or else equal.” 
• Used as...
RESOURCE UTILIZATION AND ECONOMICS 
BRANCHES OF ECONOMICS 
•MICROECONOMICS – Individual decision, focuses 
on two main pla...
RESOURCE UTILIZATION AND ECONOMICS 
TYPES OF ECONOMIC SYSTEM 
• TRADITIONAL ECONOMY – basically a subsistence 
economy 
• ...
RESOURCE UTILIZATION AND ECONOMICS 
IMPORTANT ECONOMIC TERMS 
• WEALTH- anything that has functional value. 
• CONSUMPTION...
RESOURCE UTILIZATION AND ECONOMICS 
NOTABLE ECONOMISTS AND THEIR CONTRIBUTIONS 
• Adam Smith – known as the “Father of Eco...
Upcoming SlideShare
Loading in …5
×

Resource Utilization and Economics

7,486 views

Published on

A powerpoint presentation on resource utilization and economics.

Published in: Economy & Finance

Resource Utilization and Economics

  1. 1. RESOURCE UTILIZATION AND ECONOMICS Timothy O. Atayde BAMA203
  2. 2. RESOURCE UTILIZATION AND ECONOMICS ECONOMICS • Efficient allocation of the scarce means of production toward satisfaction of human needs and wants. • Came from two Greek words: “oikos” (household) and “nomus” (system or management). • “Oikonomia” or “oikonomus” therefore means the management of household.
  3. 3. RESOURCE UTILIZATION AND ECONOMICS SCARCITY • Limitedness of resources. • The limited availability of economic resources relative to man’s or society’s unlimited demand for goods and services. • The basic and central economic problem confronting every man and society.
  4. 4. RESOURCE UTILIZATION AND ECONOMICS FACTORS OF PRODUCTION • LAND – The soil or the ground surface together with all the natural resources; the compensation for use of landis called rent. • LABOR – Any form of human effort exerted in the production of goods and services. The compensation for labor rendered is called salary (annual basis) or wage (hourly compensation). • CAPITAL - Man-made goods used in production of other goods and services. • ENTREPRENEURSHIP – The person who manages all the factors of production.
  5. 5. RESOURCE UTILIZATION AND ECONOMICS CIRCULAR FLOW MODEL BUSINESS •WAGES, SALARIES, RENT, INTEREST, PROFIT RESOURCE MARKET •LABOR, LAND, CAPITAL, ENTREPRENEURIAL ACTIVITY •BUY RESOURCE •SELL PRODUCTS •SELL RESOURCE •GOODS AND SERVICES •BUY PRODUCTS PRODUCT MARKET •CONSUMPTION AND EXPENDITURE HOUSEHOLD
  6. 6. RESOURCE UTILIZATION AND ECONOMICS CIRCULAR FLOW MODEL • RESOURCE MARKET - the place where resources or the services of resource suppliers are bought and sold. • PRODUCT MARKET – the place where goods and services produced by businesses are bought by and sold to the households. • BUSINESS – buys resources and sell the products. • HOUSEHOLD – buys products and sell resources.
  7. 7. RESOURCE UTILIZATION AND ECONOMICS OPPORTUNITY COST • Refers to the foregone value of the next best alternative. • Expressed in relative price. This means that the price of one item should be relative to the price of another.
  8. 8. RESOURCE UTILIZATION AND ECONOMICS BASIC DECISION PROBLEMS • CONSUMPTION – The society decides the goods and services they want to consume and utilize. • PRODUCTION – The producers determine the consumer’s demands and decides how to allocate resources to meet them. • DISTRIBUTION – Proper allocation of all the resources for the benefit of the whole society. • GROWTH OVER TIME – All problems of choice have to be seen in the context of future events.
  9. 9. RESOURCE UTILIZATION AND ECONOMICS FOUR BASIC ECONOMIC QUESTIONS • What to produce? • How to produce? • How much to produce? • For whom to produce?
  10. 10. RESOURCE UTILIZATION AND ECONOMICS 3E’S IN ECONOMICS • EFFICIENCY- refers to productivity and proper allocation of economic resources. • EFFECTIVENESS – Attainment of goals and objectives. • EQUITY- Justice and fairness.
  11. 11. RESOURCE UTILIZATION AND ECONOMICS POSITIVE AND NORMATIVE ECONOMICS • POSITIVE ECONOMICS - An economic analysis that considers economic conditions “as they are” or “as it is”. • NORMATIVE ECONOMICS - An economic analysis which ju8dges economic conditions “as it should be”.
  12. 12. RESOURCE UTILIZATION AND ECONOMICS CETERIS PARIBUS ASSUMPTION • “All things are held constant or else equal.” • Used as device to analyze the relationship between two variables while the other factors are held unchanged.
  13. 13. RESOURCE UTILIZATION AND ECONOMICS BRANCHES OF ECONOMICS •MICROECONOMICS – Individual decision, focuses on two main players – the buyer and the seller. •MACROECONOMICS – It seeks to understand the behavior of the economy as a whole.
  14. 14. RESOURCE UTILIZATION AND ECONOMICS TYPES OF ECONOMIC SYSTEM • TRADITIONAL ECONOMY – basically a subsistence economy • COMMAND ECONOMY – production is dictated by the government. • MARKET ECONOMY – resources are privately owned. • SOCIALISM – owned by the state. • MIXED ECONOMY – mixture of market and command.
  15. 15. RESOURCE UTILIZATION AND ECONOMICS IMPORTANT ECONOMIC TERMS • WEALTH- anything that has functional value. • CONSUMPTION- usage of the available goods and services by the buyer or consumer. • PRODUCTION- creation of firms by an output. • EXCHANGE- process of trading or buying and selling goods or services for money. • DISTRIBUTION- process of allocating or apportioning scarce resources to be utilized.
  16. 16. RESOURCE UTILIZATION AND ECONOMICS NOTABLE ECONOMISTS AND THEIR CONTRIBUTIONS • Adam Smith – known as the “Father of Economics”, wrote the “Wealth of the Nations” known as the bible in economics. • Karl Marx – wrote “Das Kapital” • Alfred Marshall – wrote “Principle in Economics” and developed the analysis of equilibrium and the concept of marginalism. • John Maynard Keynes – wrote “The General Theory of Employment, Interest and Money” • John Hicks – recognized for his analysis of the IS-LM model

×