Economics is the study of how individuals, governments, firms, and nations make choices on allocating scarce resources. It can be divided into microeconomics and macroeconomics. Microeconomics analyzes the economic behavior of individual agents like consumers and firms, while macroeconomics looks at aggregates for the whole economy, such as unemployment, GDP, and inflation. Applied economics uses economic theory and techniques to analyze real-world issues, predict outcomes, and inform decision-making. Scarcity necessitates that societies make choices on producing, distributing, and consuming goods and services.

1. ECONOMICS AS A
SOCIAL SCIENCE
Mrs. Genevieve Serilo Huesca

3. How did these companies
survive?

4. ECONOMICS
• Study of economic activities of a man.
• Concerns with the wealth-getting and
wealth-using activities of man (Prof.
Marshall)

5. Applied Economics
• Study of economic in relation to real world
situations
• Trying to predict what the outcomes might
be

6. Why is it important?
• Applied economics can assess the profits
of a certain company
• The result can help the executives to do
some strategies in order to boost its sales

7. Theoretical
Applied
Econometrics

8. What is the problem?
scarcity

9. Basic economic problems
• What to produce?
• How to produce?
• For whom shall the goods and services be
produced?
• Are the country’s resources being utilized or
some of them are lying idle and
unemployed?
• Is the economy’s capacity to produce goods
growing or remaining the same overtime?

10. unemployment

11. 2, 248.60
• If you were given an amount of Php 2, 248.60,
how would you spend it? Make a budget of
your possible expenses. List down your top 5
spending priorities.

13. Make your own top 5 priority sectors
in proposed 2023 budget
• Explain your top priority in 5 sentences

14. ECONOMICS IN A PROCESS
Unlimited
needs &
wants
Scarcity
Make
Choices

15. “oikanomia”
“households”

16. A social science
It deals with human nature.

17. ECONOMICS
Macroeconomics Microeconomics

18. MACROECONOMICS
• Economic behavior of the whole economy or
its aggregates
Business Government
Households

19. Gross
Domestic
Product
Level of
Employment
National
Income
General level
of prices

20. MICROECONOMICS
• Economic behavior of individual units such as
CONSUMERS FIRMS
LANDOWNERS

21. PRICE OF
RICE
NO. OF
WORKERS
IN A FIRM
INCOME
OF MR. Y
EXPENDITURES
OF PLDT

22. DIVISIONS OF ECONOMICS
Production
Consumption
Exchange
Public Finance
Distribution
• Creating goods
• Factors of production (inputs)
• Goods and services (outputs)
• Activities of government (taxation,
borrowings, expenditures)
• Marketing of goods and services
• Transferring goods and services to a
person in return for something
• Proper utilization of economic goods
• Spending money for goods and services

23. ECONOMIC RESOURCES
Factors of production or inputs
LAND
ENTREPRENEURS
LABOR
CAPITAL
FOREIGN
EXCHANGE

24. ECONOMIC RESOURCES
Factors of production or inputs
LAND
Free gifts of nature – soil, rivers, lakes, oceans,
forests, mountains, mineral resources
It is an economic resource because it has a
price attached to it – rent/lease
Land is a limited resource.
Physical land is a fixed resource.

25. ECONOMIC RESOURCES
Factors of production or inputs
LABOR
All human efforts – mental/physical
Earns an income in forms of wages and
salaries
Flexible factor of production

26. ECONOMIC RESOURCES
Factors of production or inputs
CAPITAL
Monetary resources to purchase natural
resources
Major physical assets individuals and companies
use when producing goods and services

27. ECONOMIC RESOURCES
Factors of production or inputs
ENTREPRENEURS
Organizer and coordinator of other factors of
production: land, labor and capital

28. ECONOMIC RESOURCES
Factors of production or inputs
FOREIGN
EXCHANGE
Dollar and dollar reserves that the economy has
We need foreign currency for international
trading and buying materials from other
countries

29. QUIZ