Nature of Economics

1. ECONOMICS AS A
SOCIAL SCIENCE
Mrs. Genevieve Serilo Huesca

3. How did these companies
survive?

4. ECONOMICS
• Study of economic activities of a man.
• Concerns with the wealth-getting and
wealth-using activities of man (Prof.
Marshall)

5. Applied Economics
• Study of economic in relation to real world
situations
• Trying to predict what the outcomes might
be

6. Why is it important?
• Applied economics can assess the profits
of a certain company
• The result can help the executives to do
some strategies in order to boost its sales

7. Theoretical
Applied
Econometrics

8. What is the problem?
scarcity

9. Basic economic problems
• What to produce?
• How to produce?
• For whom shall the goods and services be
produced?
• Are the country’s resources being utilized or
some of them are lying idle and
unemployed?
• Is the economy’s capacity to produce goods
growing or remaining the same overtime?

10. unemployment

11. 2, 248.60
• If you were given an amount of Php 2, 248.60,
how would you spend it? Make a budget of
your possible expenses. List down your top 5
spending priorities.

13. Make your own top 5 priority sectors
in proposed 2023 budget
• Explain your top priority in 5 sentences

14. ECONOMICS IN A PROCESS
Unlimited
needs &
wants
Scarcity
Make
Choices

15. “oikanomia”
“households”

16. A social science
It deals with human nature.

17. ECONOMICS
Macroeconomics Microeconomics

18. MACROECONOMICS
• Economic behavior of the whole economy or
its aggregates
Business Government
Households

19. Gross
Domestic
Product
Level of
Employment
National
Income
General level
of prices

20. MICROECONOMICS
• Economic behavior of individual units such as
CONSUMERS FIRMS
LANDOWNERS

21. PRICE OF
RICE
NO. OF
WORKERS
IN A FIRM
INCOME
OF MR. Y
EXPENDITURES
OF PLDT

22. DIVISIONS OF ECONOMICS
Production
Consumption
Exchange
Public Finance
Distribution
• Creating goods
• Factors of production (inputs)
• Goods and services (outputs)
• Activities of government (taxation,
borrowings, expenditures)
• Marketing of goods and services
• Transferring goods and services to a
person in return for something
• Proper utilization of economic goods
• Spending money for goods and services

23. ECONOMIC RESOURCES
Factors of production or inputs
LAND
ENTREPRENEURS
LABOR
CAPITAL
FOREIGN
EXCHANGE

24. ECONOMIC RESOURCES
Factors of production or inputs
LAND
Free gifts of nature – soil, rivers, lakes, oceans,
forests, mountains, mineral resources
It is an economic resource because it has a
price attached to it – rent/lease
Land is a limited resource.
Physical land is a fixed resource.

25. ECONOMIC RESOURCES
Factors of production or inputs
LABOR
All human efforts – mental/physical
Earns an income in forms of wages and
salaries
Flexible factor of production

26. ECONOMIC RESOURCES
Factors of production or inputs
CAPITAL
Monetary resources to purchase natural
resources
Major physical assets individuals and companies
use when producing goods and services

27. ECONOMIC RESOURCES
Factors of production or inputs
ENTREPRENEURS
Organizer and coordinator of other factors of
production: land, labor and capital

28. ECONOMIC RESOURCES
Factors of production or inputs
FOREIGN
EXCHANGE
Dollar and dollar reserves that the economy has
We need foreign currency for international
trading and buying materials from other
countries

29. QUIZ