Macroeconomics Concepts and Analysis

Economics comes from the Greek word Oikonomia which means "household management" from the Greek word: ________

Economics is the study of how people and society end up choosing, with or without the use of money, to employ scarce or limited resources that could be used in the production of goods and services to satisfy ________ wants.

Economics is a science of making choices, in the present and over time. Economics is a scientific study concerned with ________ behavior.

Economics is interdependent with other sciences like sociology, political science, history, geography, physics and even ________.

Economics is an inquiry into the nature and causes of the wealth of ________.

The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce ________.

Physical resources are forms of wealth derived from ______

Land includes food grains, vegetables, and ______

Brain power includes talents, skills, knowledge, and ______

A healthy worker has a greater potential of producing goods and services than a sickly or ______ worker

It is important to remember that the human wealth of a nation is measured not only by the number of individuals but by the ______ of these individuals

A healthy, educated, and well-nourished citizenry is the basis of a strong and productive ______

Macroeconomics looks at the economy as a whole and analyzes aggregate ______, production, and income.

A macroeconomic study of the Philippine economy would analyze gross national income and total ______.

Rational self-interest individuals select the choices that make them happiest, given the information available at the time of a decision.self-interest vs.______.

Positive economics attempt to describe how the economy functions and relies on ______ hypotheses.

Three Es in Economics Efficiency means productivity and proper allocation of economic resources.It also refers to the relationship between scarce factor inputs and outputs of good and services.Can be measured in: Physical term – technological efficiency Cost Term – economic ______.

Three Es in Economics Equity means ______ and fairness.Technological advancement may increase production, -> however this can also bear disadvantages to employment of workers.

Dependent variables are those whose values changes when the value of another variable changes. Independent variables are those whose changes will cause the dependent variable to change. In short, independent variable is the ______, and dependent variable shows the ______.

The slope of a straight line is the ratio of the vertical change to the corresponding horizontal change as we move to the right along the line, or as it is often said, the ratio of the “rise” over the ______.

Slope indicates how much the line ______s per unit of movement from left to right, or falls. Slope = Vertical Movement or B - A or F - E or ∆Y Horizontal Movement A-C D-F ∆X where ∆ indicates change (new value minus old value) 1.What are the slope for Fig. 1a and Fig 1b? Slope = Vertical Movement or B - A or F - E or ∆Y Horizontal Movement A-C D-F ∆X where ∆ indicates change (new value minus old value 1.What are the slope for Fig. 1a and Fig 1b?

Fig 1a slope = (10-5)/(13-3) slope = ______ or 1/2

Fig 1b slope = (7-10)/(13-3) slope = -3/______

Different Types of Slope of a Straightline Graph: Figure 2a Figure 2b Y slope < 0 Y slope > 0 Negative ______

Figure 2c Y slope = ______ Positive Slope

Figure 2d slope = ______ Infinite Zero Slope

The art in scientific thinking is deciding which assumptions to make. Economists use different assumptions to answer different questions. Economic Models Economists use models to simplify reality in order to improve our understanding of the world Two of the most basic economic models include: The Circular Flow Diagram The ______ ______ Frontier