Lesson 1 Flashcards
Is the study of what constitutes rational human behavior in the endeavor to fulfill needs and wants
Economics
It comes from the Greek word “ oikanomia “ meaning _____
Household
Management
According to some ECONOMICS are the following:
*Proper allocation
*How societies use scarce resources to produce valuable commodities
*How a man could best allocate and utilize the scarce resources
*Deals with the production, distribution and consumption
Importance of Economics:
*It gives favorable possibilities like it guides us how to make a living, how to use money wisely
*Understand problems facing the citizen, and the family, to help the government promote growth and improve the quality of life
*Analyze fascinating patterns of social behavior.
Nature of Economics
ECONOMICS is a Science classified as a Social Science.
ECONOMICS is a Science classified as a Social Science:
*It deals with the study of man’s life and how he lives with other men.
*It deals with the study of the relations between people during the production, distribution and consumption of wealth in human society
*It also describes all aspects of a country’s economy
Branches of Economics:
*Macroeconomics
*Microeconomics
Deals with the economic behavior of the whole economy or its aggregates such as Government, Business and Household.
Macroeconomics
Examples of Macroeconomics:
Gross National Products, Level of Employment, National Income, General Level of prices and total expenditures.
Deals with the economic behavior of individual units. Such as Consumers, Firms and the Owner of the Factors of Production.
Microeconomics
Example of Microeconomics:
Price of Rice, The number of workers in a certain firm, The Income of Mr X, and the
Expenditures of PLDT.
Division of Economics:
*Production
*Distribution
*Exchange
*Consumption
*Public Finance
Refers to the process of producing and creating goods needed by the household to satisfy their needs.
Production
the factors of production
Inputs
the goods and
services that have been created.
Outputs
Refers to the marketing of goods and services to different economic outlets for allocation to individual consumers
Distribution
Is a process of transferring goods and services to a person and persons in return for something.
Exchange
Refers to the proper utilization of economic goods.
Consumption
Pertains to the activities of the government
regarding taxation, borrowings and expenditures.
Public Finance
Tools for Economics:
*Logic
*Mathematics
*Statistics
Science that deals with sounds thinking and reasoning.
Logic
Science that deals with numbers and their operations.
Mathematics
Branch of mathematics engages with the analysis and interpretation of numerical data.
Statistics
Economic Resources:
*Land
*Labor
*Capital
*Entrepreneurs
*Foreign Exchange
