Applied Economics Past Paper PDF

APPLIED ECONOMICS NATURE AND SCOPE OF ECONOMICS QUARTER 1 MODULE 1 PRESENTED BY ANDREA A. VILLA  1 Define economics. 2 Identify the concerns and types of economics LEARNING Demonstrate understanding OBJECTIVES 3 about th...

APPLIED ECONOMICS NATURE AND SCOPE OF ECONOMICS QUARTER 1 MODULE 1 PRESENTED BY ANDREA A. VILLA  1 Define economics. 2 Identify the concerns and types of economics LEARNING Demonstrate understanding OBJECTIVES 3 about the importance of economics in their daily lives  WHAT ARE THE APPLICATIONS OF ECONOMICS IN DAILY LIFE? 03  Economics is trying to understand how people behave and how they interact within society. (Carnaje, 2016) Economics is the study of how individuals, business firms, governments, and societies as a whole make choices under conditions of scarcity. 04  OIKOS - household NOMOS - management = household management ECONOMICS the wise production and use of wealth to meet demands or needs of the people 04  ECONOMICS is a social science that deals with how individuals organize themselves in order to distribute scarce resources to create products and services that meet man's infinite and multiplying desires and needs. 04 04 SCOPE OF ECONOMICS 03 03 03 MICROECONOMICS & MACROECONOMICS  if annual inflation continues at a rate of 7.5%, the prices of goods in the economy in general will double in just less than 10 years. 1.A firm is trying to determine how many units of its product they should produce if the goal is to maximize profits. MICROECONOMICS 05 2.A government's economic advisors are trying to determine the impact of a fiscal stimulus package on the unemployment rate. MACROECONOMICS 05 3. The overall price level is determined by the interaction between aggregate supply and aggregate demand. MACROECONOMICS 05 4. When businesses invest more in capital goods, the overall production level in an economy increases over time. MACROECONOMICS 05 5. An employer is trying to determine the impact of a new payroll tax on their overall profit level. MICROECONOMICS 05 TEST YOUR KNOWLEDGE! CONCERNS OF ECONOMICS PRODUCTION DISTRIBUTION CONSUMPTION PUBLIC FINANCE -the use of inputs for - the total product -the USE of -concerned with generating output. distribution by government spending products or and revenue. A. Inputs - commodities or members of services. services that are used to society. It is linked Consumption is produce goods and Economics studies services. to the issue of FOR the final how the government B. Output - different goods WHOM goods and collects money by and services which come conclusion of services are to be taxes and its out of production process. economic produced. borrowing. operation 05 TYPES OF ECONOMICS HOUSEHOLD BUSINESS ECONOMICS ECONOMICS NATIONAL INTERNATIONAL ECONOMICS ECONOMICS TYPES OF ECONOMICS HOUSEHOLD BUSINESS ECONOMICS ECONOMICS the family is the most when an individual or a popular use of economics. group of people starts to work, they are part of the At this stage, someone who business economy system knows the economic in their workplace. In this principles would be able to form, you're dealing with improve the functioning of rent, salaries, income, and the household. others. TYPES OF ECONOMICS NATIONAL ECONOMICS INTERNATIONAL ECONOMICS Economic factors that The highest stage of influence the country economic operation as a whole. Deals with concerning the industry the control of a nation's of one country with revenue, spending, other countries such as trade, tourism, exchange wealth or capital. rates THE ECONOMIC AGENTS/STAKEHOLDERS 05 THE ECONOMIC AGENTS/STAKEHOLDERS CONSUMERS 05 THE ECONOMIC AGENTS/STAKEHOLDERS 05 THE ECONOMIC AGENTS/STAKEHOLDERS PRODUCERS 05 THE ECONOMIC AGENTS/STAKEHOLDERS 05 THE ECONOMIC AGENTS/STAKEHOLDERS GOVERNMENT 05 THE ECONOMIC AGENTS/STAKEHOLDERS GOVERNMENT / THE CONSUMERS PRODUCERS PUBLIC SECTORS -individuals or Firms who produce Attempt to maximize companies purchasing goods and services. the well-being of society. goods or services. They may be The agents interact in a -individuals or other individual particular territorial, economic organizations entrepreneurs (self- making use of a good or social, natural and/or service. employed) or large cultural framework multinational which determines their THEY DON'T SELL ON companies. relationships within the THE ITEM THEY market PURCHASED. 05  GOODS anything used to satisfy your needs and wants. TANGIBLE & INTANGIBLE GOODS 05 CLASSIFICATION OF GOODS ACCORDING TO USE CAPITAL/ ESSENTIAL ECONOMIC LUXURY GOODS INDUSTRIAL GOODS GOODS GOODS 05 ESSENTIAL GOODS 07 CAPITAL/INDUSTRIAL GOODS 07 ECONOMIC GOODS 07 ECONOMIC GOODS 07 LUXURY GOODS 07 WRITTEN TASK 1  Pick 10 goods that were mentioned in the story and classify them accordingly. Your mother asks you to accompany your father to purchase some goods. You were excited to ride on the newly purchased limited edition car bought by your dad a month ago. So you went to the supermarket and buy for the goods needed by your mother. In her lists are the following; two sacks of rice, assorted vegetables, toothpastes, laundry detergents, bath soaps, shampoo, milk, oatmeals, breads, and canned good. She also listed multivitamins and you need to buy it in the drugstore. Your dad bought a food processor as a surprise to your mother. He also purchased an air condition unit for your guestroom. You are about to go out to the mall when you pass by a jewelry store. He bought you a necklace as a gift on your birthday. ECONOMIC RESOURCES also known as FACTORS of production and used to produce goods and services 05 CLASSIFICATION OF RESOURCES LAND LABOR CAPITAL ENTREPRENEURSHIP 05 LAND 07 LABOR 07 CAPITAL 07 ENTREPRENEURSHIP 07 CHARACTERISTICS OF RESOURCES MULTIPLE PARTIALLY SCARCITY REPLACEABLE USAGE 05 SCARCITY 07 MULTIPLE USAGE 07 PARTIALLY REPLACEABLE 07 WHY IS ECONOMICS IMPORTANT? 03 "TRADE OFF" 08 08 09 END OF MODULE 1 REVIEW 07 WHY WE MUST STUDY ECONOMICS? 03 If you are the president of our country, what will you do when your society is caught on a pandemic situation like the CoViD-19? WHAT TO PRODUCE HOW TO FOR WHOM TO AND HOW PRODUCE PRODUCE MUCH  APPLIED ECONOMICS UTILITY AND APPLICATION OF APPLIED ECONOMICS QUARTER 1 MODULE 2 PRESENTED BY ANDREA A. VILLA  Determine basic economic 1 problems of society. LEARNING OBJECTIVES 2 Examine the utility and application of applied economics to solve the Philippines’s basic economic issues and problems BASIC ECONOMIC PROBLEMS OF SOCIETY WHAT TO PRODUCE HOW TO FOR WHOM TO AND HOW PRODUCE PRODUCE MUCH 05 WHAT TO PRODUCE AND HOW MUCH? 07 HOW TO PRODUCE? 07 FOR WHOM TO PRODUCE? 07 ECONOMIC SYSTEMS TRADITIONAL COMMAND MARKET ECONOMY ECONOMY ECONOMY 05 TRADITIONAL ECONOMY 07 7 07 COMMAND ECONOMY 7 MARKET ECONOMY MIXED ECONOMY  POSITIVE NORMATIVE ECONOMICS VS ECONOMICS “WHAT IS” "WHAT - things that are happening such SHOULD BE" as the current inflation rate, the – that which embodies the number of employed laborers, ideal rate of population and the level of the Gross National Product (GNP). growth or the most effective tax system. In other words, it Positive economics is an overview focuses on policy formulation of what is happening in the economy that is possibly far from that will help to attain the what is ideal. ideal situation.  The unemployment rate in the Philippines is forecast to 5.08% in 2024. UNEMPLOYMENT The unemployed people in the Philippines is forecast to 4.85m in 2024. THE PHILIPPINES' The Philippines' poverty rate dropped to 22.4%, or 25.24 million people, in POVERTY the first half of 2023, the BASIC government's statistics agency said on Friday, from 23.7% in the same period ECONOMIC in 2021. PROBLEMS The current population of the BOOMING Philippines is 118,381,163 as of Saturday, February 3, POPULATION 2024, based on Worldometer elaboration of the latest United Nations data.  UNEMPLOYMENT THE PHILIPPINES' The unemployment rate in BASIC the Philippines is forecast ECONOMIC to 5.08% in 2024. PROBLEMS The unemployed people in the Philippines is forecast to 4.85m in 2024.  POVERTY THE PHILIPPINES' The Philippines' poverty rate dropped to 22.4%, or 25.24 BASIC million people, in the first half ECONOMIC of 2023, the government's PROBLEMS statistics agency said on Friday, from 23.7% in the same period in 2021.  POVERTY THE PHILIPPINES' Poverty Threshold BASIC A family with five members ECONOMIC needed at least PhP 13,873 per PROBLEMS month to meet their minimum basic food and non-food needs in 2023.  POVERTY THE Poverty Incidence PHILIPPINES' BASIC The national poverty incidence ECONOMIC among families in 2023 was PROBLEMS recorded at 10.9 percent. This is equivalent to 2.99 million Filipino families without enough income to meet their basic food and non- food needs. THE PHILIPPINES' BASIC ECONOMIC PROBLEMS  BOOMING THE POPULATION PHILIPPINES' The current population of BASIC the Philippines is 116,265,794 ECONOMIC as of Thursday, December 12, PROBLEMS 2024, based on Worldometer's elaboration of the latest United Nations data. THE PHILIPPINES' BASIC ECONOMIC PROBLEMS MEASURING THE ECONOMY  Gross Domestic Product (GDP) -the total monetary or market value of all the finished products produced with a MEASURING country’s borders within a period. THE Gross National Product (GNP) - an ECONOMY estimate of total value of all the final products and services turned out in each period by means of production owned by a country’s residents.  GDP GNP THE TOTAL VALUE THE TOTAL OF INCOME MEASURING VALUE OF PRODUCTION EARNED BY ACOUNTRY’S REALIZED BY THE RESIDENT PRODUCERS IN RESIDENTS REGARDLESS OF ECONOMY AN ECONOMIC TERRITORY. WHERE THE INCOME CAME FROM. MADE IN THE PHILIPPINES MADE BY FILIPINOS MEASURING THE ECONOMY  GDP = W + I + R + P MEASURING Wage = the number of money people THE earned from their jobs Interest Income = Money earned from bank ECONOMY deposits Rent = Money earned from renting properties Profits = (revenue - cost), the amount of money made by a business MEASURING THE ECONOMY MEASURING THE ECONOMY MEASURING THE ECONOMY  Economics is everywhere. Understanding economics can help you make better decisions and lead a happier life. -Tyler Cowen 09 END OF MODULE 2 THANK YOU!