1.Economic Concept.ppt New

8/22/2019 1.Economic Concept.ppt New

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PHARMACOECONOMICS

ECONOMICS

HEALTH

HEALTH ECONOMICS

I

N

T

R

O

D

U

C

T

I

O

N


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DEFINE: ECONOMICS

1. study of the proper

allocation and efficient use of

scarce resources.

why?


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DEFINE: ECONOMICS

2.The science of choice


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DEFINE: ECONOMICS

3. Is the study of the

activities that involve

PRODUCTION andEXCHANGE OF GOODS


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DEFINE: ECONOMICS

4.The study of commerce

among nations


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DEFINE: ECONOMICS

5.The study of man and how

he runs the economic

activities.


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Components of Economics

1. Economics is about makingCHOICES.

2. Economics is analyzing thedifferent CHOICES and their

COSTS.3. The choices and their costs will

give an EFFECT ON THE FUTUREof those who make these

decisions, or to the recipients ofthe commodities.


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BRANCHESOF ECONOMICS

1. Microeconomics

2. Macroeconomics


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Microeconomics

Is the study of smaller and

individual entities such as

household and firm with aview to understand decision

making in the face of scarcity

and the consequencesofthese decision


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Microeconomics

HOUSEHOLD:

How household allocateand use their financial

and other resources


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Microeconomics

FIRM:

How the industries pricethe goods, effort,

consumption, saving, andallocation


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Macroeconomics

is the study of the functioning of theeconomy as a WHOLE with a view

to understand interactionsof

economic aggregates such as national

income, employment and inflation.


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Macroeconomics and

Microeconomics

Differentiated

Terms associated withMacroeconomicsGross national ProductGross Domestic ProductAggregate supply

aggregate demandEmployment/unemploymentFiscal policyGovernment and taxationForeign trade/Balance oftradeInflation/DeflationInterest rateForeign exchange

Terms Associated with

Microeconomics

Pricing

Household allocation of

resources

Household spending andsaving

Price and income

elasticities


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METHODOLOGIES

OF ECONOMICS1. POSITIVE

2. NORMATIVE


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METHODOLOGIES

OF ECONOMICS

1. POSITIVE- analysisof economics which

deals with whatactually isorwhat

happened


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POSITIVE

ECONOMICS

Environment Protection

Agency study shows that

exposure to secondhand

smoke causes 3,000 lung

cancer deaths per year in

nonsmokers


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METHODOLOGIESOF ECONOMICS

1. NORMATIVE-

analysis of economics

which seeks toanswer the question,

what ought to be?


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NORMATIVE

ECONOMICS

To prevent people from

having lung cancer and stop

them from smoking, the

government should take rigid

action by increasing tax on

cigarettes


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ECONOMIC

RESOURCES1. Land

2. Labor3. Capital

4. Entrepreneur


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LAND


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LABOR


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CAPITAL


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ENTREPRENEUR


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Non-Economic

Resources/Factors1. Government

2. Religion

3. Education4. Social structure

5. Values6. Culture


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HOW TO ALLOCATERESOURCES

1. Economic system

2. DecisionMaking

System


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Economic System

is responsible for

improving economic

conditions of the people


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Types of Economic

System Traditional

Command

Market

Mixed


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Traditional


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Command


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Free Market


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Mixed System


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Effectiveness of ES is

measured by the following

Criteria Abundance

Stability Security

Economic

freedom

Growth

Efficiency

Justice and

Equality


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ECONOMIC DEVELOPMENT

refers to the sustained,

concerted actions

ofpolicymakers and commu

nities that promote

the standard of living

and economic health of aspecific area.

C it i i Cl if i
http://en.wikipedia.org/wiki/Policymakershttp://en.wikipedia.org/wiki/Communityhttp://en.wikipedia.org/wiki/Communityhttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Economic_expansionhttp://en.wikipedia.org/wiki/Economic_expansionhttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Communityhttp://en.wikipedia.org/wiki/Communityhttp://en.wikipedia.org/wiki/Policymakers


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Criteria in Classifying

Phases of Economic

Development

A. Means Livelihood

1. Hunting and fishing phase2. Pastoral phase

3. Handicraft phase

4. Agricultural phase5. Industrial phase



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Phases of Economic

Development

B. Extent of Economic

Activity

1. Household economy

2. Village economy

3. National economy

4. International economy



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Phases of Economic

Development

C. Medium of Exchange

1. Barter economy2. Money economy

3. Money and credit

economy


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Money

Money is a guarantee that we mayhave what we want in the future.Though we need nothing at the

moment, it ensures the possibility ofsatisfying a new desire when itarises - Aristotle

Money is like a sixth sense, and youcant make use of the other fivewithout it. W. Somerset Maugham
http://rds.yahoo.com/_ylt=A0S020vXP_pKz0gBMD6jzbkF/SIG=1377qmg7v/EXP=1258000727/**http%3A//www.civileconomics.net/common/imagelib/index.htm/3560_550_250_crop_525ab.jpg


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Money


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Purposes of money

Medium of exchange

Unit of account

Store of Value

Standard of deffered payment

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1.Economic Concept.ppt New