ECON 1

Social mechanism of distributing limited resources to meet expanding human wants

ALLOCATION

cresources used in the production of goods and services which include machineries and equipment. The owner of capital earns an income called interest.

CAPITAL (Man-made resources: assets or money)

Because of the presence of scarcity, there is a need for man to make decisions in choosing how to maximize the use of the scarce resources to satisfy as many wants as possible.

CHOICE AND DECISION MAKING

This is the authoritative system wherein decision-making is centralized in the government or a planning committee. Decision are imposed on the people who do not have a say in what goods are to be produced. This economy holds true in dictatorial, socialist, and communist nations.

Command Economy

The application of statistical and mathematical theories for the purpose of testing hypothesis and predicting future outcome Some of the common econometrics' models are?

ECONOMETRICS Linear regression Generalized linear models

- the problem of having unlimited wants, but limited resources to satisfy them

ECONOMIC RESOURCES

Used for interpretation and explanation of economic phenomenon.

ECONOMIC THEORY

it is also known as the brain behind business wherein it helps the business to use its resources efficiently and effectively. It is the ability to come the other resources.

ENTREPRENEURSHIP

__________ exist at all levels within a society. are those steps related to the consumption of goods and services and activities in which money is exchanged for a product or service. are performed for the purpose of making money, gaining wealth, and creating and producing items that can be offered to the public for sale. The outcome of economic activities is measured monetarily

Economic activities

The allocation and use of scarce resources to satisfy the unlimited needs and wants of human

Economics

studies the behavior of people towards products and services This are the various modes and aspects of human interactions in a group

Economics As Social science

It is the study of observing how theories work in real situation to come up with actual solutions

Economics as applied science

The application of economic theory and econometrics in specific settings with the goal of analyzing potential outcomes

Economics as applied science

________ is all about thinking things up while ___________ is about trying things out

economic theory applied economics

Is about the market for goods. For whom will the goods and services be produced? The young or old, the male or female market, the low-income or the high-income groups?

For whom to produce

Is a question on the production method that will be used to produced the goods and services. This refers to the resource mix and technology that will be applied in production

How to produce

are differentiated human needs brought about by differences in income, taste, environment, socioeconomic status, etc.

Human wants

Physical and human effort exerted in production. It covers manual workers like construction workers, machine operators and production workers, as well as professionals like nurses, lawyers and doctors.

LABOR (human skills)

Soil and natural resources that are found in nature and are not manmade. Owners of lands receive payment known for rent.

LAND (FREE GIFTS OF NATURE)

Economic resources are?

Land Labor Capital Entrepreneurship

It discuss about employment and income analysis -Gross national product -level of employment -national income -general level of prices

MACROECONOMICS

discuss about price theory -price or rice -number of workers -income of mr fu -expenmditures of pldt

MICROECONOMICS

is a division of economics that is concerned with the overall performance of the entire economy.

Macroeconomics

2 BRANCHES OF ECONOMICS?

Macroeconomics Microeconomics

Studies the decision and choices of the individual units and how these decisions affect the prices of goods in the market. - It also concerned with the process of setting prices of goods that is also known as __________

Microeconomics Price Theory

the essentials of life, such as food and shelter.

Needs

Decisions are based on traditions and practices upheld over the years and passed on from generation to generation. Methods are stagnant and therefore not progressive.

Traditional Economy

Economic Systems are?

Traditional Economy Command Economy market economy

desires for non essential items

WANTS

Society must have to decide what goods and services should be produced in the economy. Having decided on the nature of goods that will be produced, the quantity of these goods should also decide on.

What to produce and how much

is when supply is limited.

absolute scarcity

the processed materials, equipment, and buildings used in production

capital resources

s the activity of making, providing, purchasing, or selling goods or services. Any action that involves producing, distributing, or consuming products or services is an

economic activity

Also known as Factors of Production and They are the resources used to produce goods and services .

economic resources

- the efforts of people involved in production, including labour and entrepreneurship

human resources

This is the most democratic form of economic system. Based on the workings of demand and supply, decisions are made on what goods and services to produce.. People preferences are reflected in the prices they are willing to pay in the market and therefore the basis of the producers' decisions on what goods to produce

market economy

came from nature that are used in production, including land, raw materials, and natural process

natural resources

Refers to the value of the best foregone alternative

opportunity cost

Is when a good is scarce compared to its demand.

relative scarcity

Is a condition where there are insufficient resources to satisfy all the needs and wants of a population.

scarcity

studies how individuals make choices in allocating scarce resources to satisfy their unlimited wants

social science

As a ___________ it needs to prove the theory while in ______________it seeks a solution to the phenomena. They may be using different approaches or procedure but they have the same purpose, and that is how to help the country maximize its limited resources to satisfy all the needs and wants of the population

social science, applied science,

A situation in which humans have to choose between two things that cannot be had at the same time.

trade-off