Economics Notes PDF

Economics - study about how people and societies decide to use their limited money, time, and resources to get the things they want and need. In Economics, there are 5 fundamental questions that are important to answer: Ex. (studying at home) For whom to produce? For me What to produce? Time How to...

Economics - study about how people and societies decide to use their limited money, time, and resources to get the things they want and need. In Economics, there are 5 fundamental questions that are important to answer: Ex. (studying at home) For whom to produce? For me What to produce? Time How to produce? Revising my schedule and allocating time for it How much to produce? 1 hour How to produce over time? After dinner from Monday to Friday Oikonomia - means “Management of the Household” Microeconomics - studies the small units of the economy Macroeconomics- studies the economy as a whole Economics - helps us in managing our limited resources through decision making Trade-off - refers to the choice made for one thing for another Opportunity Cost - is the loss of potential gain from other alternatives when one alternative is chosen. - In study and in practice, economics utilizes laws, theories, and principles in other sciences and disciplines. Economic Resources - are the different factors of production used to produce all goods and services in the economy. Land or natural resources - materials or substances from earth Labor - human activity Capital - wealth in the form of money owned by a person Entrepreneurship - capacity to provide a good or service to the market Challenges with Land - Issues of land ownership and utilization Challenges with Labor - Issues with underemployment, skills gaps, and labor migration Challenges with Capital - Issues with underemployment, skills gaps, and labor migration Challenges with Entrepreneurship - Access to financing, and supportive policies to foster innovation and growth Scarcity - fundamental problem of economics and it exists in every country and in the lives of people and a long-term problem that plagues mankind. Shortage - lack of supply of goods and a temporary condition and can be resolved immediately. Relative Scarcity - pertains to a particular economic resource that is scarce compared to others Allocation - refers to the process of distributing resources, goods, or services Production - is the process of using economic resources to produce goods and services. Consumer Goods - Products sold directly to the public. Producer Goods - Products which are used to produce other goods. Distribution Problems - issues that arise in the process of producing and/or delivering goods or services Key Distribution Problems: Infrastructure and Transportation Problems Logistical Challenges Natural Disasters Needs - material and non-material things that satisfy man’s total well-being. Material Needs - Resources that are tangible and needed for survival. Non-material Needs - Resources that are tangible and needed for survival. Wants - desires for specific goods or services Economic Wants - Desires for things that require spending money or using resources. Non-Economic Wants - Desires that don’t involve spending money or using up resources.  Maslow’s Hierarchy of Needs Physiological Needs - most basic, essential needs required for survival. Safety Needs - Once physiological needs are met, individuals seek security and stability. Love and Belongingness - people desire social connections and relationships. Esteem Needs - self-esteem and recognition from others. Self-Actualization Needs - involves realizing one’s full potential and pursuing personal growth and self-fulfillment. Consumption - It is the use of goods and services - works together with production to circulate money in the economy Economic Activity - refers to the processes and operations used to produce goods and services - More production means more things for people to consume. - High consumption leads to more production. Reasons why each country’s consumption and production are different: Availability of Natural Resources Costs and Budget Skills and Expertise Government Policies and Regulations Factors of Consumption - refers to the various elements that influence an individual’s or household's consumption decisions. Factors Affecting Consumption - Economic Factor - Psychological Factor - Social Factor - Environmental Factor - Technological Factor - Political and Legal Factor VAT - A kind of tax added to the price of most goods and services you buy. It’s a percentage of the price Tariffs – A kind of tax for goods that are imported or exported. Laws to Protect Consumers Consumer Act of the Philippines (Republic Act No. 7394) - This law aims to protect consumers from dangerous products and unfair business practices. Electronic Commerce Act (Republic Act No. 8792) - This law regulates electronic transactions including electronic contracts and signatures Price Act (Republic Act No. 7581) - This law regulates the prices of essential goods, especially during emergencies, to prevent unfair price hikes Expanded Senior Citizens Act (Republic Act No. 9994) - It enhances benefits for senior citizens, including discounts on various goods and services Clean Air Act (Republic Act No. 8749) - aims to improve air quality and control pollution