Applied-Economics-2 (1).ppttytuyiuiyhttrt

ECONOMICS AS AN APPLIED
SCIENCE

Economic growth is often
viewed as a rising tide
that should uplift all the
boats within it.
2

However, the Philippines’
growth in recent decades
has failed to make an
impact on poverty
reduction.
3
3

The AmBisyon Natin 2040
program seeks to address
this by improving the
living standards of all
Filipinos.
4

The questions is, how do we achieve this?
5
5

6
Define basic terms in applied economics
(ABM_AE12-Ia-d-1).

7
● Define and understand the concepts of the
three economic questions and the different
factors of production.
● Differentiate the concepts of economic
growth and economic development.
● Understand the value of sustainable
development and inclusive growth.

The Philippines has often
been given the title of a
tiger economy, or an
economy poised to breakout
as a stronger power.
However, apart from the
numbers, how do we know
our economy is doing
better? 8
WHAT DOES GROWTH LOOK LIKE?

1. Form groups of three members each. Each
trio is required to prepare a presentation of
three to five slides showing how they
perceive economic growth.
2. Each group will prepare the first two slides
without researching the definition of
economic growth.
9

3. For the first two slides, students should
include an image (sourced from the internet)
that explains what economic growth looks
like. After preparing the initial two slides,
students can then conduct a brief research
on the definition of economic growth and the
indicators used to measure economic growth.
10

4. After their brief research, students will prepare
the last few slides to include an image of what
economic growth should look like. The images
should be based on the information they
researched. Students may reuse an image from
their first two slides if applicable.
5. Allow each trio one to two minutes to briefly
share their findings.
11

12
1. WHAT IS ECONOMIC GROWTH?
2. BASED ON YOUR RESEARCH, WHAT ARE THE
INDICATORS USED TO MEASURE ECONOMIC
GROWTH?
3. BASED ON YOUR RESEARCH, WHAT DID YOU
NOTICE ABOUT HOW ECONOMIC GROWTH IS
MEASURED?

13
How does studying economics as an applied
science bring value to the society I belong to?

14
ECONOMICS AS AN APPLIED SCIENCE
The economic problem forces
people to make choices, and this
same obstacle affects societies,
nations, and the world itself.
Three Economic Questions

15
In addressing this problem,
societies are met with three
economic questions of what, how,
and for whom.

16
THREE ECONOMIC QUESTIONS
1. What should we produce?
● Asks what products and services an economy
should focus on producing.
● Forces societies to consider which of their
members’ needs they will prioritize.

17
2. How should we produce it?
● Asks what methods will be used in order to produce
the goods and services needed.
● Considerations include the use of manual labor,
automation, or a mix of both.

18
3. For whom should we produce it?
● Asks who should receive the final goods and
services produced by the economy.
● Goods can be given to all equally, or given to those
who need it most.
● Another consideration is whether goods should be
given to those who can afford it.

19
All three economic questions
focus on proper resource
allocation.
This enables society to make
choices in consideration of their
scarce resources.

20
Factors of Production
● On a micro level, scarce resources refer to time,
money, and opportunities for new experiences.
● On a macro level, there are four resources that
societies have to properly allocate.

21
These four resources are:
1. Land
2. Labor
3. Capital
4. Entrepreneurship
Factors of Production

22
FACTORS OF PRODUCTION
● Refers to resources that can
be attributed to the land or
the sea.
● Consists of all natural
resources, physical land,
and even raw materials.
Land

23
Examples:
● Solar and wind energy
● Coal, oil, and fossil fuels
● Crops and plant life
What examples of land can you
think of?
Land

24
● Refers to the tangible human
element in the production
process.
● These are the contributions of
the workforce, whether
physical or mental.
Labor

25
Examples:
● Courier for food and parcel
delivery
● Teachers in the classroom
● Security guard at banks
Labor

26
● Refers to investments
made to improve
production.
● It can come in the form of
physical capital or human
capital.
Capital

27
FACTORS OF PRODUCTION: CAPITAL
Physical Capital
● Physical tools and
equipment that make
production more efficient
Examples are heavy
machinery, vehicles, and
improved technology.
● Investments made toward
improving the human
element of production
Examples are better
healthcare and improvements
to education.
Human Capital

28
The intellectual capacity to
organize and put together other
factors of production to produce
goods and services the society
needs.
Entrepreneurship

29
CEOs and founders of private
businesses in different sectors
Entrepreneurship

30
Provide a unique example for each of the four
factors of production. Avoid using examples
already provided in the text.
30

31
● The overall expansion of an
economy
● Measured by an increase in
gross domestic product
(GDP)
Economic Growth

32
Economic Growth
● Considered as one of the most important goals
that an economy should strive for.
● However, it has its issues:
○ An increase in military spending can cause GDP
to rise but yield no improvements in living
conditions.
○ Increase in wealth can be concentrated among
a small group of elites.

33
Economic growth does not accurately represent the welfare
or well-being of the members of a particular society.

34
● Measure of the welfare of
an economy’s members
● Takes into consideration a
wider range of statistics
beyond wealth
● Looks at quality of life and
living standards
Economic Development

35
Some factors taken into
consideration are:
● Quality of education
● State of poverty
● Environmental sustainability
Economic Development

36
Economic Growth & Development
● Economic growth can contribute to economic
development.
● An increase in an economy’s wealth may create
more jobs and opportunities.

37
However, economic growth is not needed to improve the
economic development of a society.

38
What other factors would you take into
consideration when measuring economic
development?
38

39
Economic development that
meets meets the needs of the
present without compromising
the needs of future generations.
Sustainable Development

40
Inclusive Growth
● One of the key goals of AmBisyon 2040
● Growth that not only benefits the elite but helps all
members of a society
● Helps eliminate poverty and improves living
standards

41
● You will learn to discern
decisions (by governments
and societies) not just by
their explicit costs but also
their opportunity costs.
● It will enable you to make
well-informed opinions and
decisions.
IT WILL HELP YOU
MAKE BETTER
DECISIONS NOT
JUST FOR YOURSELF
OR FOR THOSE
AROUND YOU, BUT
ALSO FOR FUTURE
GENERATIONS.
Why study economics?

42
GIVE THE CORRESPONDING HAND SIGNAL TO
IDENTIFY WHICH FACTOR OF PRODUCTION EACH
RESOURCE FALLS UNDER.
Land Labor Capital Entrepreneurship
🖐 ✊ 👌 ✌
1. Bulldozer
2. Stovetop at a diner
3. Fossil fuels
4. Founder of a company
5. Teacher at school
6. Solar energy
7. Rice crops
8. Cashiers at a grocery
9. Undeveloped property
10.Healthcare at work

Apart from environmental considerations,
what is another threat to sustainable
development?

44
● The three economic questions are “what should
be produced?”, “how should they be
produced?”, and “for whom should they be
produced?”
● The four factors of production that societies try
to allocate are land, labor, capital, and
entrepreneurship.

45
● Economic growth refers to an increase in the
GDP of a country within a specific time period.
Economic development focuses on the
improvement of the welfare of a country’s
citizens.
● Economics is valuable as a discipline because of
how it teaches you to make better decisions for
yourself, the people around you, and future
generations.

Applied-Economics-2 (1).ppttytuyiuiyhttrt

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