The document provides an introduction to economics, defining it as the social science focused on the use of scarce resources to meet unlimited societal wants, while outlining fundamental concepts such as scarcity, economic resources, and the two branches of economics: macroeconomics and microeconomics. It discusses the basic economic problems of society, including decisions on what to produce, how to produce, and for whom to produce, along with the different economic systems: traditional, command, and market economies. Additionally, it includes learning objectives and an activity to engage learners in understanding economic terminologies and problems.

1. INTRODUCTION TO
ECONOMICS

2. WHAT IS ECONOMICS
■ Is a social science concerned with using scarce
resources to obtain the maximum of the unlimited
wants of society.
■ Is the study of how societies use scarce resources
to produce commodities and distribute them among
different people
■ Is the study of production, distribution, selling and
use of goods and services
■ Is the study of how people use their limited
resources to try to satisfy unlimited wants.

3. “FIXED ME I AM CRUMBLED”
Instruction: Fixed the following rumbled letters:
Correct Answer:
SEIPRENRTE

4. “FIXED ME I AM CRUMBLED”
Instruction: Fixed the following rumbled letters:
Correct Answer:
ANDL

5. “FIXED ME I AM CRUMBLED”
Instruction: Fixed the following rumbled letters:
Correct Answer:
RBOLA

6. “FIXED ME I AM CRUMBLED”
Instruction: Fixed the following rumbled letters:
Correct Answer:
APITLCA

7. Learning Objectives
■ 1. Identify basic economics problems of
the country
■ 2. Discuss the economic problems
affecting the economic stability of the
country
■ 3. Analyze and explain the root cause
of the economic problems of the
country
■ ABM_AE12-Ia-d-1

8. ■ Scarcity - the limited nature of resources,
which underlies the basic economic problem
■ Economic Resources - the problem of having
unlimited wants, but limited resources to
satisfy them
■ Natural Resources – came from nature that are
used in production, including land, raw
materials, and natural process
■ Capital Resources - the processed materials,
equipment, and buildings used in production

9. ■Human Resources - the efforts of
people involved in production,
including labour and
entrepreneurship
■Needs - the essentials of life,
such as food and shelter
■Wants - desires for non-essential
items

10. Scarcity
■Is a condition where there
are insufficient resources to
satisfy all the needs and
wants of a population.

11. ■Scarcity is the reason why
people have to practice
economics. Economics, as a
study, is the social science that
involves the use of scarce
resources to satisfy unlimited
wants

12. Alfred Marshall described
economics as study of mankind in the
ordinary business life. It examines
part of the individual and social
action that is most connected with
the attainment and use of material
requisites of well-being.

13. Relative Scarcity-Is when a
good is scarce compared to its
demand.
Absolute Scarcity- is when
supply is limited.

14. Choice and decision making
■ Because of the presence of scarcity,
there is a need for man to make
decisions in choosing how to maximize
the use of the scarce resources to
satisfy as many wants as possible.

15. Opportunity cost
■ Refers to the value of the best
foregone alternative.

16. Economic resources
■Land
■Labor
■Capital

17. Land
■Soil and natural resources that are
found in nature and are not
manmade. Owners of lands receive
payment known for rent.

18. Labor
■ Physical and human effort exerted in
production. It covers manual workers like
construction workers, machine operators
and production workers, as well as
professionals like nurses, lawyers and
doctors.

19. capital
■ Man-made resources used in the production
of goods and services which include
machineries and equipment. The owner of
capital earns an income called interest.

20. Economic as social science
■ As a social science, economics studies
how individuals make choices in
allocating scarce resources to satisfy
their unlimited wants

21. 2 branches of economics
■Macroeconomics
■Microeconomics

22. ■Macroeconomics is a division of
economics that is concerned with
the overall performance of the
entire economy.

23. Microeconomics
■ Studies the decision and choices of the
individual units and how these
decisions affect the prices of goods in
the market.
■ It also concerned with the process of
setting prices of goods that is also
known as Price Theory.

24. Basic economic problems of society
■What to produce and how much
■How to produce
■For whom to produce

25. What to produce and how much
■ Society must have to decide what goods
and services should be produced in the
economy. Having decided on the nature of
goods that will be produced, the quantity
of these goods should also decided on.

26. How to produce
■Is a question on the production
method that will be used to
produced the goods and services.
This refers to the resource mix and
technology that will be applied in
production.

27. For whom to produce
■ Is about the market for goods. For
whom will the goods and services be
produced? The young or old, the male
or female market, the low-income or
the high income groups?

28. Economic systems
■ Traditional economy
■ Command economy
■ Market economy

29. Traditional economy
■ Decisions are based on traditions and
practices upheld over the years and
passed on from generation to
generation. Methods are stagnant and
therefore not progressive.

30. Command economy
■ This is the authoritative system wherein
decision-making is centralized in the
government or a planning committee.
Decision 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.

31. Market economy
■ This is the most democratic form of
economic system. Based on the workings of
demand and supply, decisions are made on
what goods and services to produce..
People preferences are reflected in the
prices they are willing to pay in the market
and therefore the basis of the producers
decisions on what goods to produce.

32. ■
■ Activity Sheet
■ “JUMBLED PROBLEMS”
■ Mechanics:
■ Learners will be divided into six groups and prepare a
sheet of paper and a pen.
■ Members must assign a leader who will write their
answers.
■ Jumbled words representing economic problems below
will be shown to the class
■ After you form the “jumbled problems” each group
must Explain each jumbled letters.

33. ECONOMIC PROBLEM
1. CARSCITY
2. CIMNOCOE ERSOUSECR
3. ALURATN ORSECESUR
4. ACTALPI ERSOECSRU
5. MANHU SOURCERES
6. SDEEN
7. STAWN

35. 1. It is the limited nature of
resources, which underlies
the basic economic problem?
2. Is the study of how societies
use scarce resources to
produce commodities and
distribute them among
different people?

36. 3. It is came from nature that
are used in production,
including land, raw materials,
and natural process?
4. It is the processed materials,
equipment, and buildings used
in production?

37. 5. It is the problem of having
unlimited wants, but limited
resources to satisfy them?
6. It is the efforts of people
involved in production,
including labour and
entrepreneurship?

38. 7. It is the desires for non-
essential items ?
8. It is the essentials of life,
such as food and shelter?

39. 9. ________when a good is
scarce compared to its demand.
10. ___________is when supply
is limited.

40. 11-13.) What are the 3 Economic
Resources?
14. It Refers to the value of the
best foregone alternative?

41. 15. -16.) What are the 2 branches of
Economics?
17. This is the most democratic form of
economic system. Based on the
workings of demand and supply,
decisions are made on what goods and
services to produce.. People
preferences are reflected in the prices
they are willing to pay in the market
and therefore the basis of the
producers decisions on what goods to
produce.

42. 18. This is the authoritative system
wherein decision-making is
centralized in the government or a
planning committee. Decision 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?

43. 19. Decisions are based on
traditions and practices upheld
over the years and passed on from
generation to generation. Methods
are stagnant and therefore not
progressive.?

44. 20. It is the combination of
market and command economy?

45. 21-30
According to Alfred Marshall
what is economics?