Applied Economics Notes PDF

SUBJECT: APPLIED ECONOMICS INTRODUCTION TO APPLIED ECONOMICS WHAT IS ECONOMICS? Economics is a study of social behavior and relation of human wants, production and distribution, and allocation. ECONOMICS INVOLVES: Examining how individuals, businesses, governments, an...

SUBJECT: APPLIED ECONOMICS INTRODUCTION TO APPLIED ECONOMICS WHAT IS ECONOMICS? Economics is a study of social behavior and relation of human wants, production and distribution, and allocation. ECONOMICS INVOLVES: Examining how individuals, businesses, governments, and societies choose to use scarce resources to satisfy their wants. Organizing, analyzing, and interpreting data about those economic behaviors. Developing theories and economic laws that explain how the economy works and to predict what might happen in the future. WHY STUDY ECONOMICS? Appreciate events in economic history and understand how the present-day system economics came to be. Learn the ways in which economics explain the activities of man through its tools, models, principles, and  Make sure of production and consumption concepts in business endeavors or simply in understanding people's economic behavior. Manage economic and financial affairs; thereby, achieving a good standard Understand government's functions in economics and choose leaders who are  Understand government's functions in economics and choose leaders who are economically sensible. Understand what is happening in the economy of the Philippines and the world and know how nationwide and worldwide economic policies and events affect us all. ECONOMICS AS SOCIAL SCIENCE... It is concerned with using Scarce Resources to obtain the maximum of the unlimited wants of the society. It is the study of how societies use scarce resources to produce commodities and distribute them among different people.  It is the study of production, distribution, selling, and use of goods and services. It is the study of how people use their limited resources to try to satisfy unlimited wants. SCARCITY Is a condition where there are insufficient resources to satisfy all the needs and wants of the population. Relative Scarcity Absolute Scarcity SHORTAGE a state in which there is not enough of something that is needed or temporarily unavailable SURPLUS describes the amount of an asset or resource that exceeds the portion needed and used. OTHER TERMS IN ECONOMICS: Economic resources is the problem of having unlimited wants, but limited resources to satisfy them. Natural Resources came from natures that are used for production including land, raw materials, and natural process.  Capital Resources is the processed materials, equipment, and buildings used in production. Human Resources is the efforts of people involved in production including labor and entrepreneurship.  ECONOMICS AS APPLIED SCIENCE... Applied Economics is it is the study of economics in relation to real world situations. It is the application of economic principles and theories to real situation, and trying to predict what the outcomes might be. THANK YOU