AP 9 QA NOTES FIRST GRADING.docx

LESSON 1\ \ Adam smith\ Scottish economist founder of classical economics\ \ David recardo\ utiliratain economist\ \ John stauart mill\ symbol for utilitarianism\ \ Alfred Marshall\ one of the founder of neoclassical economics\ \ Marie Espirt Leon Walras\ french mathematician economist\ \ Karl Marx\...

LESSON 1\ \ Adam smith\ Scottish economist founder of classical economics\ \ David recardo\ utiliratain economist\ \ John stauart mill\ symbol for utilitarianism\ \ Alfred Marshall\ one of the founder of neoclassical economics\ \ Marie Espirt Leon Walras\ french mathematician economist\ \ Karl Marx\ father of comunisim\ \ John maynard Keyness\ know for keymesian economics\ \ micro-small\ macro-big\ \ **Positive Economics**: - Focuses on objective, fact-based statements about the economy. - Describes \"what is\" without making value judgments. - Example: \"An increase in taxes will reduce consumer spending.\" **Normative Economics**: - Involves subjective, value-based judgments about what the economy should be. - Describes \"what ought to be,\" incorporating ethical or moral perspectives. - Example: \"The government should increase taxes to reduce inequality.\" Positive economics deals with facts and observable outcomes, while normative economics is opinion-based and involves policy recommendations.\ \ The word \"economic\" originates from the Ancient Greek word **\"oikonomikos\"** (οἰκονομικός), which means \"skilled in household management.\" It comes from **\"oikonomia\"** (οἰκονομία), where: - **\"oikos\"** (οἶκος) means \"house\" or \"household,\" and - **\"nomos\"** (νόμος) means \"law\" or \"management.\" Originally, it referred to the management of household affairs but later evolved to cover broader topics related to wealth, resources, and production, eventually forming the basis of modern economics. LESSON 2\ Kakapusan\ problem where resources are limited and cannot meet all human wants and needs.\ Example: There is a limited amount of fresh water available for consumption, leading to scarcity.\ \ Kakulangan\ Refers to a situation where the demand for a good or service exceeds its supply at a specific price level.\ Example: A sudden spike in the demand for a product, like face masks during a pandemic, can create a shortage if production does not keep pace.\ \ Likas na yaman\ TUBIG\ LUPA\ MENIRAL\ ENERHIYA\ TAO\ \ blue collar is phisical work\ white collar is mental work\ \ **Allocating** refers to the process of distributing resources, goods, or services among various parties or for specific purposes.\ ANO\ PAANO\ GAANO\ KANINO\ \ LESSON 3\ Pagkonsumo-using of product and services\ durable goods --long lasting\ nondurable goods sort lasting\ \ PSA\ Philipine Statistic Authority\ \ **Utility** in economics refers to the satisfaction or pleasure derived from consuming goods and services.\ **Total Utility**: The overall satisfaction obtained from consuming a total quantity of a good or service.\ **Marginal Utility**: The additional satisfaction gained from consuming one more unit of a good or service.\ \ THE LAW OF DIMINISHING MU\ "The total utility increases as you consume more pieces of the burger while the marginal utility decreases illustrating the law of diminishing marginal utility"