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LESSON 1 - Intro - Types of Economic System

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November Joy Quinano
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31 views

LESSON 1 - Intro - Types of Economic System

Uploaded by

November Joy Quinano
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© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 37

APPLIED ECONOMICS

Prepared by:
NOVEMBER JOY V. QUIÑANO
At the end of the discussion the
students should be able to:

1. Differentiate economics as social


science and applied science in terms OBJECTIVES
of nature and scope.

. Examine the utility and applications


of applied economics to solve
economic issues and problems.
Activity

• Direction: Read carefully the situations and answer the


questions below.
1. You won P 50,000.00 prize in quiz bee. You have an
option to spend the money now or deposit for a year in a
bank account that will earn 5% interest per year. What is
the benefit forgone in spending the P 50,000.00 now?
Explain
GLIMPSE OF THE PHILIPPINE ECONOMY TODAY

6.2%, 2021

6.1 % 2020

5.8%, 2019
ECONOMICS
• Is the study of the ways that individuals and societies allocate their
limited resources to satisfy their unlimited wants.

SCARCITY – is the limited availability of a commodity


which may be in demand in the market. Also includes
an individual’s lack of resources to buy commodities.
NEEDS VS. WANTS

NEEDS
- It is something VS.
that you must have WANTS
in order to survive - something that we
desire but unimportant in
daily life.
TYPES OF SCARCITY

• 1. RELATIVES SCARCITY – resource that are limited to


satisfy infinite demand

• 2. ABSOLUTE SCARCITY – when resources are short in


supply.
Refers to the foregone benefit or
value that would have been obtained
by choosing an alternative over
another. Sometimes called trade-
off.
OPPORTUNITY
COST Trade-off refers to the situation
where you have to make a decision
over another to have more beneficial
result.
ECONOMIC RESOURCES
• Refer to the resources consumed in production in order to make products
and services

1. Land – real state and property comprises geographic land.


- natural resources they are not manmade.

2. Labor – Physical and human effort exerted to be used in making the


product or providing services.
- compensation receive from the service provided is called wage.

3. Capital – consist of human–created assets utilized in producing


commodities.
- The owner of the capital earns an income called interest.
Economics
as an Applied Science
and
as Social Science
SOCIAL SCIENCE
- Study of people in the
organization or society
and how people behave
and influence the world
Economics that surrounds them

as Social
Studies How individuals
Science make choices in
allocating scare
resources to satisfy
their unlimited wants
based on their social
behavior.
APPLIED SCIENCE
-is the use of scientific method and
knowledge in order to achieve practical
Economics and effective result to be used in decision
as an making
Applied Refers to the use of economic concepts
and theories and their application in real-
Science life scenarios and conditions.
EXPLORE YOUR
KNOWLEDGE
LET’S FIND OUT
SOCIAL

SOCIAL

APPLIED

SOCIAL

APPLIED
SCARCE

ABUNDANT

ABUNDANT

SCARCE

SCARCE

ABUNDANT

ABUNDANT
Basic Economic Problems

What to produce? For whom to produce?

How to produce?
Unemployment

Basic Poverty
Economic Quality of Infrastructure
Problem
Income inequality
Unemployment

Unemployment rate in 17.7%-7.3 million


while in April 2019, it
January 2020 was 5.3 unemployed Filipinos
was recorded at 5.1%.
percent April 2020

Unemployment Rate Reference


psa.gov.ph › People ›
in June 2021 is Number: 2021-306
Labor and Employment
Estimated at 7.7 Release Date: Tuesday,
› Labor Force
percent August 3, 2021
• As a result of the updating, the 2018 poverty
incidence among population, or the proportion
of poor Filipinos whose per capita income is
insufficient to meet their basic food and non-
food needs, is now estimated at 16.7 percent
(from 16.6/P percent). 

Poverty • This translates to about 17.7 million Filipinos


living in poverty in 2018 (from 17.6/P million
Filipinos). 

• Source: https://psa.gov.ph/poverty-press-
releases
• As portion of economic output, capital outlays would
account for 4% of gross product , up from the original
forecast of 3.8%, but still down from 5.4% achieved last
year.
• From P4.1 trillion budget, which was nearly unchanged
for this year, next year’s outlay is pegged at P 4.34
trillion, accounting for higher infrastructure agencies,
Quality the public works and transportation departments.
Infrastructure
• Source: https://ppp.gov.ph/ in the news/2020-govt-
infrastructure-spending-seen-higher-than-originality-
thought.
Income
Inequality

• Source:
https://businessmirror.c
om.ph/2020/04/20/inequ
ality-to-worsen-in-3-mo-
ecq-study/
ECONOMIC SYSTEM

This is how society responds to the basic


economic problems.
They regulate the factors of production,
including land, capital, labor and physical
resources.
TYPES OF ECONOMIC SYSTEM

• 1. Traditional Economy
 this is a system where tradition is the
model for executing economic choices.
Influenced by traditions and beliefs.
TYPES OF ECONOMIC SYSTEM

• 2. Command Economy
There is a dominant centralized authority.
The economic problems (what,how, for
whom to produce) weighed on the shoulder
of the government.
TYPES OF ECONOMIC SYSTEM

• 3. Market Economy
. are based on the concept of free markets.
regulation comes from the people and the
relationship between supply and demand.
ANY
QUESTION?
WHAT HAVE YOU LEARNED?
INSTRUCTION
• BIRD BOX RECITATION
A. James Smith
Who is the
father of
economics?
B. Adam Smith

C. Aristotle
Give one Basic Problem
Economic Problem in the
Philippines
What is Economics?
It is called as the limited
availability of a commodity
which may be in demand in
the market.
This refers to a situation
when a person who is
actively searching for
employment is unable
to find work.
This is one of the basic problem of the
economy which refers to not having enough
money to meet basic needs including food,
clothing and shelter

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