1934 2363 66ceca2ebc046 MODULE 1 LESSON 1.pdf

MODULES IN GENERAL ECONOMICS ANGELA LOURAIN A. DIGAO INSTRUCTOR School Year 2024-2025 MODULE 1 INTRODUCTION TO ECONOMICS  MODULE 1 INTRODUCTION TO ECONOMICS TOPICS Lesson 1: NATURE AND SCOPE OF ECONOMICS Lesson 2: THE RELATION OF ECONOMICS TO OTHER SOCIAL...

MODULES IN GENERAL ECONOMICS ANGELA LOURAIN A. DIGAO INSTRUCTOR School Year 2024-2025 MODULE 1 INTRODUCTION TO ECONOMICS  MODULE 1 INTRODUCTION TO ECONOMICS TOPICS Lesson 1: NATURE AND SCOPE OF ECONOMICS Lesson 2: THE RELATION OF ECONOMICS TO OTHER SOCIAL SCIENCES Lesson 3: ECONOMICS AS A SCIENCE ACTIVITY 1 Direction: Determine whether the words or phrases being enumerated are concern of microeconomics or macroeconomics. Answer MIC if it is concern of microeconomics and MAC if it is concern of macroeconomics. ____1. Unemployment ____2. Price of Rice ____3. Number of goods produced by Uniliver ____4. Politics ____5. Price of Fuel LESSON 1 NATURE AND SCOPE OF ECONOMICS WHAT ECONOMICS IS ALL ABOUT? Economics came from the Greek words "oikos" which means home or household and "nemein" which means management. Therefore, economics means management of the household. This is the basic unit of society of Greece. It shared with the etymology of the field of ecology. WHAT ECONOMICS IS ALL ABOUT? If we are going to define economics, it is a social science that deals with the proper allocation of scarce resources to satisfy the unlimited needs and wants of the society. It is also called as the art and science of decision making. WHAT ECONOMICS IS ALL ABOUT? Economics is a social science because it deals with the interaction of business and consumer. We study the taste and preferences and the behavior of people towards a certain product. Economics is proper allocation of scarce resources. WHAT ECONOMICS IS ALL ABOUT? Definitely we need to allocate because there is scarcity. Scarcity is the basic problem of economics. Scarcity is the limitation that exists when people obtain the goods and the services that they need. Economics will not exist unless there is scarcity. Scarcity is the situation in which the resources available are not enough to meet its objective. WHAT ECONOMICS IS ALL ABOUT? Definitely we need to allocate because there is scarcity. Scarcity is the basic problem of economics. Scarcity is the limitation that exists when people obtain the goods and the services that they need. Economics will not exist unless there is scarcity. Scarcity is the situation in which the resources available are not enough to meet its objective. Why do we have scarcity? We have scarcity because of unlimited needs and wants of the people. Our satisfaction for goods and services is unsatiable, meaning once people are satisfied, he will still look for another thing that can satisfy him again. Why do we have scarcity? For example, an individual told himself that after he graduated in college, he will become satisfied if he will find a work. After three years, he noticed that being a BS degree holder is not enough to be promoted then he decides to finish Masters' degree. After four years, this person wants to be the CEO so he decided to take up Doctorate Degree. From this example, we can notice that people has no satisfaction. What people want today may not be wanted tomorrow. Therefore, what satisfies a person today may not satisfy a person in the future. ACTIVITY 2 Describe a personal experience where you faced scarcity. What choices did you have to make? How does scarcity affect businesses in making decisions about production? Explain the role of opportunity cost in relation to scarcity.