1. What is Economics - 2010

8/9/2019 1. What is Economics - 2010

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SC

ARCITY

PERSONAL

NATIONAL


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` The root problem is SCARCITY.` SCARCITY alone does not explain completely the

economic problem.` Human beings have multiple WANTS and desires

thus resources have alternative uses.` Scarce resources need to be allocated among

different needs.


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Economics is the study of thoseactivities that involve the productionand exchange of good.

It is the science of choice . It studies ho peoplechoose to use scarce or limited productive

resources), to produce various commodities andto distribute these goods to various members of the society for their consumption.


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Study of money,banking, capitaland ealth.

Study of commerceamong nations.


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Social science thatstudies the optimumallocation, over time of scarce human andnon- human resourcesamong their alternativeuses in order to satisfyunlimited ants anddesires.


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Study of ho people and

society end up choosing, ith or ithout the use of money, toemploy scarce but productiveresources that could havealternative uses, to producevarious commodities anddistribute them for consumption,no or in the future, amongvarious persons and groups insociety. It analyzes the costsand the benefits of improvingpatterns in resource allocation.


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Wants / Needs Basic or Created

Factor/sInfluencingThe Need

List down 10 needs / wants, identify whetherthey are basic or created and cite the factors


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What commodities are being produced and inhat quantities?

Ho are these commodities being produced?

Who get these commodities and in hatquantities?Ho efficiently are societys resources being used.

Are these resources being fully utilized?

Is the economys capacity to produce improvingover time?


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` Scarcity and Choice Opportunity cost` Rational Behavior

Human behavior reflects rational self interestIndividuals look for and pursue opportunities to

increase their utility pleasure, happiness,satisfactionThe same person may make different choicesunder different circumstances.

Assumes that choices vary

ay change as costs and benefits changeSelf interest is not the same as selfishness` M arginal analysis cost and benefits


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Science is not confined to the physicalsciences.Social Sciences are systematized bodies of

proved or demonstrated explanations aboutobservable phenomena.It is called social because the interest is manand the society in hich he lives in.It is a science because it is a systematic bodyof kno ledge and utilizes both deduction andinduction in explaining the various events andhappenings in the economy.


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Social science is confronted ithsubject/ issue that is influencedby multiple forces.

Statements are supported byEM PIRICAL EVI ENCE.

Philippines underdevelopment is thedamaged culture.

Inductive and eductiveReasoning


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The use of deductivereasoning:

PHILOSOPHY

deals ithM

AN

IM PORTANT ISTINCTION BETWEENTHE PHYSICAL AN SOCIAL SCIENCE


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In fact there is better understanding today that themere accumulation of goods and services, even for the benefit of the majority, is not enough for therealization of human happiness. Nor, inconsequence, does the availability of the many realbenefits provided in recent times by science andtechnology, including the computer sciences, bringfreedom from every form of slavery. On thecontrary, the experience of recent years sho s thatunless all the considerable body of resources and

potential is guided by the moral understanding, andby an orientation to ards the true good of thehuman race, it easily turns against man to oppresshim.


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` Physical Sciences have increased the resourcesavailable to man.

` Philosophy and Theology philosophical and

theological principles serve as value judgments inchoosing among alternative ays of achievingeconomic goals.

` Other social sciences


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` Economic for citizenship`

Professional andpersonal application


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All men are born ith basic needs and desires.Simple to complexCan pertain to the individual, household, social group,nationalOur ants seek fulfillment and must be satisfied.When ants are not satisfied uneasy and frustratedWants can either be economic or non economicEconomic ants are greatly intert ined ith non

economic ants


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In highly advanced and industrialized countries, basiceconomic needs are adequately satisfied.Ho ever these countries face the more seriousproblems of moral degeneration that an overly-materialistic outlook in life inevitably brings.The Philippines must be seriously concerned not only

ith many material or economic problems but ith non economic problems as ell.

Every economic fact of development has its non economic implications or consequences.


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` Those goods and services hich exist in limitedquantities and can be acquired only at some effortand cost.

` ree goods such as air and sunshine, hich canbe acquired in unlimited quantities are noteconomic goods.


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` D emonstration Effect`

Population ro th` Rising Income` rbanization


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` The tendency of the individual to imitate or follo the actions and mannerisms of other individuals for hom he has certain regard.

` Has good and bad influences


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` 1960 27 million; 1981 50 million` As of M ay 2 000 7 6 .5 million` Projected Population by 2 008 90 .4 million` 2 .3 6 percent average annual gro th rate in the

199 5-2 000 period` If the average annual gro th rate continues, the

population of the Philippines is expected to doublein 2 9 years.


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Table A. Population Distribution by Region: 2000

RegionTotal Population Percent

Philippines 7 6 ,5 0 4, 0 77 100 .00

NCR 9 ,9 32 ,5 60 1 2 .98

CAR 1 ,3 6 5,4 1 2 1 .7 8

I - Ilocos 4, 2 00 ,4 7 8 5.4 9

II - Cagayan Valley 2 ,81 3, 1 59 3. 68

III - Central Luzon 8 ,0 30 ,9 45 10 .5 0IV - Southern Tagalog 11 ,7 9 3, 6 55 1 5.4 2

V - Bicol 4, 686 ,669 6 .1 3

VI - Western Visayas 6 ,2 11 ,0 38 8 .1 2

VII - Central Visayas 5, 7 06 ,9 53 7 .4 6

VIII - Eastern Visayas 3, 610 ,355 4. 72

IX - Western M indanao 3, 091 ,2 08 4. 0 4

X - Northern M indanao 2 ,7 47 ,5 8 5 3.5 9

XI - Southern M indanao 5, 189 ,335 6 .7 8

XII - Central M indanao 2 ,5 98 ,2 10 3.4 0

XIII - Caraga 2 ,09 5,3 6 7 2 .7 4

AR MM 2 ,4 1 2 ,1 59 3. 1 5

Source: NSO, Various Censuses of Population and Housing


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Tab l B. Top Ten rov ince sit M o re Than One Million opu la tion :

R ank Province Population

1 Pangasinan 2 ,434, 086

2 Cebu* 2 ,3 77 ,5 88

3 Bulacan 2 ,2 34, 088

4 Negros Occidental* 2 ,1 36 ,6 47

5 Cavite 2 ,06 3, 161

6 Laguna 1 ,96 5, 8 72

7 Batangas 1 ,90 5,34 8

8 Rizal 1 ,7 0 7 ,2 18

9 Nueva Ecija 1 ,6 59 ,88 3

10Pampanga*

1,61

4,168


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` Q uezon City ( 2 .1 7 million)` M anila ( 1 .5 8 million)

` Caloocan City ( 1 .18 million).


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` H alf of the population were below 21 yearsThe Philippine population had a median age of 21years, same as the median age five years ago. Thismeant that half of the population were below 21 yearsold.

` S ex ratio was 101.43O f the total population in 2000, about 38.5 million or 50.36 percent were males while 38.0 million or 49.64percent were females.Males outnumbered their female counterparts with sexratio of 101.43 males for every 100 females. S ex ratio in1995 was recorded at 101.4. There were more malesthan females in the age groups 0-19 and 25-54 years.O n the other hand, females dominated in the rest of theage groups.


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` D ependency ratio down to 69.04` The age structure of Philippine population was a

typical broad base at the bottom consisting of large numbers of children and a narrow top madeup of relatively small number of elderly. Youngdependents belonging to age group 0 to 14 yearscomprised 37.01 percent. The old dependents (65years and over) accounted for 3.83 percent, while59.16 percent comprised the economically activepopulation (15 to 64 years).

` The 2000 dependency ratio was 69.04. This meant

that for every 100 persons in the working agegroup (15-64 years), they had to support about 63young dependents and about 6 old dependents. .


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` With the growing population, there is greater need for more food, clothes, shelter,education, health services etc.

` Need to plan to successfully meet the presentand future needs.

` D epends on how we view population growthPositiveNegative


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` As e increase our income, our needsincrease.

` Engels La (Ernst Engel)Relationship bet een income and the demand for certain productsAs income increases, the percentage of incomespent on food decreases hile the percentage spenton non food items increases.

The applicability depends on the income bracket tohich one belongs.


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` Case No. 1 = Assuming a family earns 10 ,000 monthly.

5, 000 / 5 0% is allocated to foodIf family income increases to 1 2K , it need notallocate more pesos to food expenditures.

A slight increase in in food budget 5,5 00

` Case No. 2 = Assuming a family earns 5 K /m2 500 /50% to food but not enough

If income increases to 6 K , budget for food becomes3,5 00 .


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Rural and urban communitiesIn 2 000 , 4 0% of the orkers are in agriculture.They contribute only some 2 0% of the nationalincome.Lo productivity of farm orkers.National consumption patterns are graduallybeing affected by the tendency of persons totroop to the cities.When people migrate to the urban areas, theyrequire a ne set of ants and demands.


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` Public ants refer to the needs of the populationhich cannot be effectively be satisfied by private

business firms.`

Public ants compete ith the private antshich are normally satisfied through theproduction of goods and services by the privatesector.

Documents

1. What is Economics - 2010