2. OBJECTIVES: Identify economic issues.
Specify economic systems.
Determine the scientific approach in the
empirical testing of economic theory
Differentiate positive economic and
normative economic
Assimilate how to measure economy
Identify the basic economic problems
3. ECONOMIC ISSUES
1. Poverty and Unequal Distribution of Income
2. Demographic Changes and Its Economic Implications
3. Low Investment in Human Resource Development
4. Pursuing Food Security
5. Slow Adoption of Modern Technology
5. ECONOMIC SYSTEM
1. TRADITIONAL ECONOMY
This is the type of economic system where decisions
are based on traditions and practices practiced over the
years and passed on from generation to generation.
Methods are stagnant and therefore not progressive.
Traditional societies exist in primitive and backward
civilizations.
6. ECONOMIC SYSTEM
2. COMMAND ECONOMY
This is an authoritative system wherein decision-
making is centralized in the government or a planning
committee. Decisions are imposed on the people who do
not have a say in what goods are to be produced. This
economy holds true in dictatorial, socialist, and communist
nations.
7. ECONOMIC SYSTEM
3. MARKET ECONOMY
This is the system that is the most democratic form.
Decisions on what goods and services to produce are
based on the forces of demand and supply. People’s
preferences are reflected in the prices they are willing to
pay in the market and are therefore the basis of the
producers’ decisions on what goods to produce.
8. ECONOMIC SYSTEM
4. MIXED ECONOMY
This system is a combination of traditional economy
and market economy.
9. SCIENTIFIC APPROACH IN THE EMPIRICAL TESTING
OF ECONOMIC THEORY
Economics attempts to explain how an
economy operates and how consumers attempt to
maximize his/her wants within limited means. Using
tools such as logic, math, and statistics, you need to
approach the empirical testing of an economic
theory in a scientific manner.
10. SCIENTIFIC APPROACH IN THE EMPIRICAL TESTING
OF ECONOMIC THEORY
SCIENTIFIC APPROACHES:
1. State the propositions or condition that are taken as given and do not need
further investigation, as the basic starting point of investigation.
2. Observe facts in connection with the activity that you want to theorize.
3. Apply the rules of logic to the observed facts to determine causal
relationships between observed factors and to eliminate facts that are
unnecessary and irrelevant. 4. Establish a set of principles such that formulated
hypotheses may be tested as to whether they are valid or not.
5. Use statistics and econometrics as empirical proof in testing the hypotheses.
11. POSITIVE ECONOMICS VERSUS
NORMATIVE ECONOMICS
Positive economics deals with “what is” - things that are happening
such as the current inflation rate, the number of employed laborers,
and the level of the Gross National Product (GNP). Positive
economics gives an overview of what is actually happening in the
economy that is possibly far from what is ideal.
Normative economics refers to “what should be” – that which
embodies the ideal rate of population growth or the most effective
tax system. In other words, it focuses on the formulation of policies
that will help attain the ideal situation.
12. MEASURING THE ECONOMY
MOST COMMON MEASURES OF AN
ECONOMY:
1. Gross Domestic Product (GDP) – this is the
total monetary or market value of all the
finished products produced with a country’s
borders within a period and it functions as a
scorecard of a country’s economic health.
13. MEASURING THE ECONOMY
MOST COMMON MEASURES OF AN ECONOMY:
2. Gross National Product (GNP) – this is an estimate of the total
value of all the final products and services produced in each
period by a country’s residents. It is commonly calculated by
taking the sum of personal consumption expenditures, private
domestic investment, government expenditure, net exports, and
any income earned by residents from overseas investments,
minus income earned within the domestic economy by foreign
residents. Net exports represent the difference between what a
country exports minus imports of goods and services.
14. MEASURING THE ECONOMY
MOST COMMON MEASURES OF AN ECONOMY:
2. Gross National Product (GNP) – this is an estimate of the total
value of all the final products and services produced in each
period by a country’s residents. It is commonly calculated by
taking the sum of personal consumption expenditures, private
domestic investment, government expenditure, net exports, and
any income earned by residents from overseas investments,
minus income earned within the domestic economy by foreign
residents. Net exports represent the difference between what a
country exports minus imports of goods and services.
15. GNP vs. GDP
The gross national product (GNP) is
defined as the total value of income earned
by residents of a country regardless of where
the income came from.
GDP, on the other hand, is the total value
of production realized by resident producers
in an economic territory.
16. FORMULA FOR GNP
GNP=C+I+G+(X-M)
Where:
C = personal consumption expenditures
I = private domestic investment
G = government expenditure on goods and services including labor
X = net exports and any income earned by residents from overseas investments
M = imports or income earned within the domestic economy by foreign residents
17. BASIC ECONOMIC PROBLEMS
1. What to produce and how much. Society must
decide which goods and services should be produced,
including the nature and quantity of these goods and
services.
2. How to produce. This is a question on the
production method in producing goods and services.
This refers to the resources to be used and the
technology that will be applied in production.
18. BASIC ECONOMIC PROBLEMS
3. For whom to produce. This refers to the market of the
goods and services. It refers to the end-users or the
consumers of the goods and services produced.
4. Economic provision. This refers to the power of the
government in the proper use of resources. Government
set provisions on proper use of resources that are
available. These provisions are stated in the 1987
Philippine Constitution Article 7, section 1 and 2.
19. THE PHILIPPINES' BASIC ECONOMIC
PROBLEMS
1. Poverty
2. Unemployment
3. Booming Population Growth
23. Effective delivery techniques
This is a powerful tool in public
speaking. It involves varying pitch, tone,
and volume to convey emotion,
emphasize points, and maintain interest:
• Pitch variation
• Tone inflection
• Volume control
Effective body language enhances your
message, making it more impactful and
memorable:
• Meaningful eye contact
• Purposeful gestures
• Maintain good posture
• Control your expressions
24. Navigating Q&A sessions
Know your material in advance
Anticipate common questions
Rehearse your responses
Maintaining composure during the Q&A session is
essential for projecting confidence and authority.
Consider the following tips for staying composed:
• Stay calm
• Actively listen
• Pause and reflect
• Maintain eye contact
25. Speaking impact
Your ability to communicate effectively will
leave a lasting impact on your audience
Effectively communicating involves not only
delivering a message but also resonating with
the experiences, values, and emotions of those
listening
26. Dynamic delivery
Learn to infuse energy into your
delivery to leave a lasting
impression
One of the goals of effective
communication is to motivate
your audience
Metric Measurement Target Actual
Audience
attendance
# of attendees 150 120
Engagement
duration
Minutes 60 75
Q&A
interaction
# of questions 10 15
Positive
feedback
Percentage (%) 90 95
Rate of
information
retention
Percentage (%) 80 85
27. Final tips & takeaways
Consistent rehearsal
• Strengthen your familiarity
Refine delivery style
• Pacing, tone, and emphasis
Timing and transitions
• Aim for seamless, professional delivery
Practice audience
• Enlist colleagues to listen & provide feedback
Seek feedback
Reflect on performance
Explore new techniques
Set personal goals
Iterate and adapt
