Updated ABM APEC Week 3 Session 1 Nature & Scope PDF

UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL APPLIED ECONOMICS Week 3. Session 1. Nature & Scope of Economics FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  13th Century Dominican Ble...

UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL APPLIED ECONOMICS Week 3. Session 1. Nature & Scope of Economics FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  13th Century Dominican Blessing May GOD THE FATHER bless us, May GOD THE SON heal us, May GOD THE HOLY SPIRIT enlighten us, Give us the eyes to see with, And ears to hear with, Hands to do God’s work with, Feet to walk with and mouth To preach the word of salvation with; And may the Angel of peace watch over us And lead us at last, by the Lord’s gift to the Kingdom. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE. AMEN  Objectives Students are expected to: 1. Demonstrate understanding of economics as a social science and applied science and the utility of applied economics; 2. Reflect on the value of economics and economic way of thinking as a significant part of human daily lives; and, 3. Prepare a Venn diagram of the differences and similarities of economics as a social science and an applied science. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Lesson 1.1: Nature of Economics and Applied Economics FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Nature of Economics What is Economics? studies demand and supply. studies the three economic process - consumption, production and distribution of goods and services. etymologically, comes from the term “oikonomia,” which means “household” and “nemein” means “management” FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Nature of Economics What is Economics? is the study of how society manages its scarce resources (Mankiw, 2024). is a social science that deals with the efficient allocation of the society’s scarce resources with alternative uses in meeting the unlimited human demands (Robbins, 1935). FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Nature of Economics What is Science? is a systematic way of understanding the structure and behavior of the physical and natural world through unbiased observation and experimentation. In general, science is the pursuit of knowledge. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Nature of Economics What makes Economics a Science? FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE. https://www.verywellmind.com/steps-of-the-scientific-method-2795782  Nature of Economics What is Social Science? In its broadest sense, it is the study of society and the manner in which people behave and influence the world around us. What makes Economics a Social Science? It is a social science because it deals with people and their behavior FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Nature of Economics Mankiw is a prolific writer and a regular participant in academic and policy debates. His research includes work on price adjustment, consumer behavior, financial markets, monetary and fiscal policy, and economic growth. https://gregmankiw.blogspot.com/ Gregory Mankiw FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Nature of Economics Economics as a Social Science: Mankiw’s Ten Principles of Economics How do people make their decisions? 1. People face trade-offs 2. The cost of an item is what we sacrifice to get it 3. Rational people look to maximize their utility 4. People respond to incentives How people interact with each other? 5. Trade makes everyone better off 6. Markets are a good way of organizing economic activity 7. Governments can sometimes improve market outcomes. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Nature of Economics Economics as a Social Science: Mankiw’s Ten Principles of Economics How the entire economy works? 8. A country's standard of living depends on its ability to produce goods and services. 9. Growth of money leads to inflation. 10. Society faces a short-run tradeoff between Inflation and unemployment. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Nature of Applied Economics What is Applied Science? is a discipline that deals with applying existing scientific knowledge based on scientific studies and developing a practical application of science - such as technology, methodology, inventions. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  What is Applied Economics? problematizes the means to utilize economic theories, concepts, laws, and methods to real-life situations. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Why is Economics an Applied Science? Economics is like a tool kit for solving real- world problems. Understanding the problem: Economists study how people make choices about money, work, and buying things. This helps them understand why things like unemployment or inflation happen. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Why is Economics an Applied Science? Economics is like a tool kit for solving real- world problems. Finding solutions: Using what they've learned, economists suggest ways to fix these problems. For example, they might say that lowering taxes could help businesses grow and create jobs. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Why is Economics an Applied Science? Economics is like a tool kit for solving real- world problems. Testing ideas: Economists often test their ideas by looking at real-world data. This helps them see if their solutions actually work. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE. Lesson 1.1: Nature of Economics and Applied Economics FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Economics: A Blend of Social and Applied Science Economics is a fascinating discipline that connects the line between social and applied science. Let's delve into how it embodies both aspects: FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Economics as a Social Science Study of Human Behavior Economics delves into the motivations, preferences, and choices people make in economic contexts. It examines how cultural, social, and psychological factors influence economic decisions. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Economics as a Social Science Social Interactions Economics analyzes how individuals interact in markets, the impact of institutions on economic outcomes, and the distribution of wealth and income within societies. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Economics as a Social Science Qualitative and Quantitative Methods It also relies on qualitative research, such as surveys, interviews, and case studies, to understand social and cultural dimensions. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Economics as an Applied Science Problem-Solving Economists analyze economic issues, such as poverty, unemployment, inflation, and economic growth, and develop strategies to address them. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Economics as an Applied Science Policy Formulation Economic research informs government policies related to taxation, trade, and social welfare programs. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Economics as an Applied Science Business Decision Making Economists help businesses make informed decisions about production, pricing, marketing, and investment. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Lesson 1.2: Scope of Economics and Applied Economics FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Scope of Economics Microeconomics is a branch of economics that studies a particular unit of the economy. Units of the economy – individuals, households, firms, or the government Macroeconomics is a branch of economics that deals with how the economy works as a whole. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Microeconomics Focus: Individual economic units (individuals, households, firms) Scope: Market behavior, supply and demand, pricing, production, and consumption decisions. Key concepts: Elasticity, market structure, consumer choice, producer theory. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Macroeconomics Focus: Economy as a whole Scope: Aggregate economic indicators like GDP, inflation, unemployment, economic growth, and business cycles. Key concepts: Fiscal policy, monetary policy, aggregate demand, aggregate supply. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Scope of Economics https://businessandfinance.expertscolumn.com/microeconomics-vs-macroeconomics-which-is-important-why FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Scope of Applied Economics real-life real-life situations situations https://businessandfinance.expertscolumn.com/microeconomics-vs-macroeconomics-which-is-important-why FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Microeconomics vs. Macroeconomics Microeconomics Macroeconomics FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  ACTIVITY: VENN DIAGRAM OF ECONOMICS & APPLIED ECONOMICS FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.  Management Definition Application Economics as a Economics as an Social Science Applied Science Scarce resources (or in General) Allocation Human demands Economic Laws Real-life situations Alternative Uses Methodology Total: 20 pts (2 pts each) FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE. Ten Principles of Economics  References Bello, A. L., Catelo, M. O., Cuevas, A. C., Zapata, N. R. (2023). Applied economics for senior high school. C&E. Boado, S. A. T. (2019). Applied economics. DIWA. Cherry, K. (2023, February 8). Scientific method steps in psychology research. Verywell Mind. https://www.verywellmind.com/steps-of-the-scientific-method-2795782 Dinio, R. & Villasis, G. (2021). Applied economics. Rex. Kumar, V. (n.d.). Microeconomics vs macroeconomics - which one is important & why?. Business and Finance Experts Column. https://businessandfinance.expertscolumn.com/microeconomics-vs- macroeconomics-which-is-important-why Khumalo, B. (2016). Why economics is a science: Information, the grand unifier. Modern Economy, 7, 183-193. http://dx.doi.org/10.4236/me.2016.72020 Mankiw, N. G. (2024). Principles of microeconomics (10th edition). Cengage. Robbins, L. (1935). An essay on the nature and significance of economic science. MacMillan and Co. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE. FOR THOMASIAN STUDENTS ONLY, DO NOT REPRODUCE.