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
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?
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.
12.
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
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
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