Applied Economic Quarter 1 Week 2 PDF

APPLIED ECONOMIC QUARTER 1- WEEK 2 TEACHER: GRACE ANN V. BARASI  THE FOUR (4) BASIC PROBLEMS OF AN ECONOMY 1. What to Produce? 2. How to Produce? 3. For whom to Produce? 4. What provision should be made for economic growth?  OPPORTUNITY COST...

APPLIED ECONOMIC QUARTER 1- WEEK 2 TEACHER: GRACE ANN V. BARASI  THE FOUR (4) BASIC PROBLEMS OF AN ECONOMY 1. What to Produce? 2. How to Produce? 3. For whom to Produce? 4. What provision should be made for economic growth?  OPPORTUNITY COST -fundamental concept in economics that refers to the value of the next best alternative forgone when a decision is made to allocate resources (such as time, money, or effort) to one option over another.  OPPORTUNITY COST Imagine you have P1,000, and you have two choices for how to use it: 1. Option A: You can spend the P1,000 on a new video game. 2. Option B: You can use the P1,000 to buy textbooks for a course that will enhance your skills and potentially lead to a higher-paying job.  OPPORTUNITY COST Government Issue: Healthcare Investment VS Military Spending  ECONOMIC SYSTEM A systems regulate the factors of production, including land, capital, labor, and physical resources. An economic system encompasses many institutions, agencies, entities, decision-making processes, and patterns of consumption that comprise the economic structure of a given community TYPES OF ECONOMIC SYSTEM 1. Command economy. This is the authoritative system wherein decision-making is centralized in the government or a planning committee. Decisions are imposed on the people who do not have a say in what goods are to be produced.  TYPES OF ECONOMIC SYSTEM 2. Market economy This is the most democratic form of economic system. Based on the workings of demand and supply, decisions are made on what goods and services to produce. TYPES OF ECONOMIC SYSTEM 3. Mixed Economy A mixed economy is a system that combines characteristics of market, command and traditional economies.  ECONOMIC UTILITY Refers to the satisfaction, happiness, or benefit that individuals derive from consuming goods and services. It's a measure of the usefulness or value that people perceive when they use or consume a product or service.