Here are some potential questions I could ask and information I could gather by interviewing my parents about our family's budget: 1. How many people are in our family? 2. How many income earners contribute to our household budget? 3. Approximately how much does our family earn each month from jobs, businesses, investments, etc.? 4. How do you allocate our monthly income across major spending categories like housing, food, utilities, transportation, education, savings, etc.? 5. What do you do if expenses end up being higher than planned one month and we run short on our budget? Do you cut back on some purchases, use savings, or find other ways to make up the difference?

1. Economics,
Scarcity
and
Choices

2. KEY UNDERSTANDING/S:
Scarcity of resources is the
basic economic problem.
Because of scarcity, an
individual in particular (and the
society in general) has to
choose how to utilize the
resources to satisfy the
unlimited wants of people.

3. KEY QUESTION/S:
What is the basic
economic problem and
what is its implication on
the life of each individual

4. Bernardo M. Villegas
“ economics is a social
science that studies and
seeks to allocate scare human
and nonhuman resources
among alternative uses in
order to satisfy unlimited
human wants and desire”

5. DR. TERESO S.
TULLAO JR.,
“ Economics is a social science
that deals with the study of
scarce resources among
unlimited and competing uses
to satisfy human needs”

6. GERARDO P.
SICAT
“ Economics is
the study of
opportunities and
obstacle all of us
must confront as
we seek to
satisfy our
desires and
needs”

7. ROGER LEROY MILLER
“ Economics concerns
situations in which
choices must be made
about how to use limited
resources, when to use
them, and for what
purposes”

8. Ronald Wonnacot Paul Wonnacot
“ Economics is the study of how people make their
living, how they acquire the food , shelter, clothing,
and other material necessities and comforts of this
world. It is the study of the problems they
encounter and of the ways in which these
problems can de reduced”

9. “ Economics is the study of
mankind in the ordinary
business of life”

10. Thomas Hailstone
“ Economics is
a science that
is concerned
with
production,
distribution and
consumption of
goods and
services”.

27. Other alternative uses of a resource given
up in favor of the chosen alternative.
(Trade – Off)

29. The second best
alternative use of a
resource forgone.

32. IF YOU WERE
NICOLE WHAT WILL
YOU PRIORITIZE
TO SATISFY YOUR
NEED?

33. HOW DID SHE
COME UP WITH
HER DECISION?

34. WHAT IS HER
FINAL DECISION?
WHY?

37. If you were in his
situation, what will
you prioritize? Why?

38. In budgeting time,
What do you think
the options of
Joseph to divide his
time between
working and

41. Criteria for Decision
Making
University A University
B
University
C
Name of University
1. Parent’s approval
2. Distance from home
3. Reasonable tuition fee
4. School mission-vision
5. Quality of Education
Total Score

43. What is your
realization of your
analysis?

44. How did apply
trade-off and
Opportunity Cost in
this scenario?

46.  SCARCITY is the fundamental
economic problem.
 RELATIVE SCARCITY – that one
may lack some resources but
could have plenty of others.
 RESOURCE considered scarce if
meets two conditions 1. it must be
useful. 2. the resource must be
limited in supply relative to the
demand for them.

47. THE ECONOMIC PROBLEM OF
CHOICE:
 TRADE OFF – are alternatives given
up in choosing a particular use of
resource.
OPPORTUNITY COST – next best
alternative use of a resource forgone.
All decision bear opportunity cost.

50. CONCERNS OF ECONOMICS:
 WHAT TO PRODUCE – know what
people need. Types of resources to be
used in the production of goods and
services.
 HOW TO PRODUCE - process of
production. Method of production, labor
intensive (manpower) or capital intensive
(use technology)
 HOW MUCH TO PRODUCE – know
particular product to produce. (Surplus

51.  FOR WHOM TO PRODUCE –
consumers, (size of income,
commodities)
 HOW TO PRODUCE MORE OVER
TIME – economic growth is the goal
of every producers. Sustain the
needs of the people, both present
and future generations, needs study,
research and discipline.

64. IMPORTANCE OF STUDYING ECONOMICS
 PEOPLE AQUIRE PROPER SKILLS AND KNOWLEDGE TO DEAL WITH
SACARCITY.
 LEARN TO EXPLORE RESOURCESAND USE THEM IN THE MOST
PRODUCTIVE
WAY.
 SATISFIES THEIR NEEDS ADEQUATELY AND STILL HAVE ENOUGH
RESOURCES FOR
FUTURE GENERATIONS TO USE.
 HELPS PEOPLE BETTER UNDERSTAND THE FUNCTIONS OF ECONOMY AND
THEIR ROLES IN THE WEALTH CREATING PROCESS.
 RECOGNIZE THE IMPORTANCE OF WORKING HARD, PAYING TAXES AND
SPENDING MONEY WISELY.
 PROVIDES PEOPLE WITH COUNTLESS OPPORTUNITIES TO MAKE THEIR
LIVES BETTER AND MORE MEANINGFUL.
 LEARN TO TAKE ADVANTAGE OF TEACHONOLOGIES THAT CAN OPTMIZE
THEIR TIME AND DEVELOP THEIR TALENTS AND SKILLS.
 BROADENS PEOPLE’S PERPECTIVE OF THE SOCIETY.
 RECOGNIZE THE IMPORTANCE OF SHARING RESOURCES AND OF SOLVING
PROBLEMS COLLECTIVELY.

65. Microeconomics
Study of the activities,
behavior, decisions, and
interactions of the small
units of economy
Examines how price
changes in cellular phones
affect the number of cellular
phones produced and sold.
Macroeconomics
Study of economy as a
whole. deals with the
behavior and decisions of
the government, the labor
sector, and other large unit
of economy.
Examines the overall prices,
production and income.
It also covers the effects of
money supply and taxation
on the overall employment
and income of economy.

66. Because it use scientific method in
studying the relationship of different
units of society.
A study of how society decides to
use its scarce resources in order to
satisfy to the unlimited wants and
needs of an individual in the
society.
Identify
the
Proble
m
Make
Assumptio
ns
Gather
Data
Analyze
the
Data
Recomme
nd / Make
Conclusion

67. What is the relationship
between the degree of
necessity of product and the
magnitude of the effect of
price increase on the quantity
demanded of such product?
The greater degree of
necessity of a product, the
less responsive quantity
demanded would is a
price increase.
Interview costumers and
owner of stores.
Determine which goods
and services have quantity
demanded that are more
responsive to price
increase.
Examine the newly
gathered data match the
previously formulated
assumptions
The greater degree of
necessity of a product, the
lesser the effect of a price
increase on the quantity
demanded of such
product.
THE SCIENCTIFIC METHOD

68. Interview your parents or whoever manage your
family’s budget. Use the following guide questions:
1. How many are you in your family?
2. How many are breadwinners?
3. How does your family earn on a monthly basis?
4. How does your family allocate your income?
5. What does your family do when you run short of
budget?
6. What values and skills do your parents teach you
to help you become wise decision - maker?
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