RCAPADOSA Econom1 Module 1 [Compatibility Mode]

8/13/2019 RCAPADOSA Econom1 Module 1 [Compatibility Mode]

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Eco n om i c s a n d t h e b a s i c e co n om i cEco n om i c s a n d t h e b a s i c e co n om i c

t e r m s t e r m s

B a s i c e co n om i c p r o b l e m s B a s i c e co n om i c p r o b l e m s

Ty p e s o f e co n o m i c sy s t e m s Ty p e s o f e co n o m i c sy s t e m s

To o l s o f Eco n om i cs To o l s o f Eco n om i cs

Ma c r o e c o n o m i cs v s .M a c r o e c o n o m i cs v s .

m i c r o e co n o m i c s m i c r o e co n o m i c s

ECONOM1 Economics 1 Macroeconomics

Module 1 INTRODUCTION



What is yourWhat is your

concept of theconcept of the

termterm

ECONOMICS?ECONOMICS?

Source: google images



Why includeWhy include

economics in theeconomics in thecurriculum?curriculum?



Economic literacy Economic literacy makesmakes

smart and productivesmart and productivecitizenry.citizenry.



What isWhat is

Economics? Economics?



“ECONOMICS“ECONOMICS is

an inquiry into the

nature and causes of the nations.”

Adam Smith(Source: google images)




concerned with theway in which

resources are

allocated among alternative uses to

satisfy human

wants.” Edwin and G. Yoke





concerned with the

production,

distribution and use

of material goods

and services.” Lloyd S. Reynolds

(source: google images)



The Key Economic TermsThe Key Economic Terms



GoodGood



GOODGOOD

Anything used to

satisfy a person’s

wants and desires

May be grouped as: Tangible and IntangibleTangible and Intangible

Consumer and Capital Consumer and Capital

Essentials and Luxury Essentials and Luxury

Economic and Free Economic and Free Manufacturing/Industry Manufacturing/Industry

and and

Agricultural/Producer Agricultural/ProducerSource: google images



TANGIBLETANGIBLE

GOODGOOD – material

commodity

INTANGIBLEINTANGIBLE

GOODGOOD - services

Source: gogle images




CONSUMERCONSUMER

GOODGOOD – yields

satisfaction directly

CAPITALCAPITAL

GOODGOOD – used in the production of other goods





ESSENTIALSESSENTIALS –

satisfy basic needs of man

LUXURYLUXURY

GOODSGOODS – those man may do without but are used to contribute to his comfort and well-being





ECONOMICECONOMIC

GOODGOOD – useful and

scarce

FREE GOODFREE GOOD –

abundant





MANUFACTUMANUFACTU

RING/RING/

INDUSTRYINDUSTRYGOODGOOD – production

takes place in the factory

AGRICULTURALAGRICULTURAL

GOODGOOD – production takes place in the farm





SCARCITY SCARCITY – the limitations that

exist in obtaining all

the goods and

services that people

want;

- gives rise to

economic problems




The InterdependentThe Interdependent Economic Problems Economic Problems

WHAT TO PRODUCEWHAT TO PRODUCEandand HOW MUCH HOW MUCH ??

HOW HOW shall goods be produced?shall goods be produced?

FOR WHOM FOR WHOM shall goods beshall goods be

produced?produced?




On decidingOn deciding WHAT TOWHAT TO

PRODUCE PRODUCE andand HOW HOW

MUCH MUCH are concernedwith resource allocation




THEORY OF VALUETHEORY OF VALUEdeals with the allocation

of resources between

different uses and theirefficient use

The decision on WHAT to

produce depends on what

the consumer WANTS




FACTORS OF FACTORS OF

PRODUCTION PRODUCTION

Things needed to carry

on the production of

goods and services

Consist of:

Land Land

Labor Labor

Capital Capital

Entrepreneur Entrepreneur





LAND LAND is found in

nature; not man-

made (Income

earned: RENT)




LABOR LABOR consists

of human effort

exerted in the

production of goods and services;

(Income earned:

WAGE)




CAPITALCAPITAL consists of man-made

goods used in production (Income

earned: INTEREST)




ENTREPREN ENTREPREN EUR EUR is the person

who combines

economic resources for use in production

(Income earned:

PROFIT)




Are you aware ofAre you aware of

the differentthe differenteconomic systems?economic systems?




The DifferentThe Different

Economic Systems:Economic Systems:

TheThe TRADITIONALTRADITIONAL

ECONOMY ECONOMY

A subsistence economy

(consumes what it produces)

Does not allow for change

Production is carried

through the very

traditional way of doing

thingsSource: google images



The Different Economic Systems:The Different Economic Systems: --

cont’dcont’d

TheThe COMMANDCOMMAND

ECONOMY ECONOMY

Means of production are

owned by the

government Government influences

decision on basic

economic problems




TheThe MARKET ECONOMY MARKET ECONOMY

Resources are privately

owned and decisions are

made by the peoplethemselves

The Different Economic Systems:The Different Economic Systems: --

cont’dcont’d






The Basic EconomicThe Basic EconomicToolsTools


LOGICLOGIC

MATHEMATICSMATHEMATICS

STATISTICSSTATISTICS



MacroeconomicsMacroeconomics(Aggregates)

MicroeconomicsMicroeconomics(Parts)




Do not go where Do not go where the path may lead, the path may lead,

go instead where go instead where

there is no path there is no path and leave a trail. and leave a trail.

-- Ralph Waldo EmersonRalph Waldo Emerson


Documents

RCAPADOSA Econom1 Module 1 [Compatibility Mode]