1. INTRODUCTION TO ECONOMICS
- Is the social science that involves
the use of scare resources to
satisfy unlimited wants.
- Scarcity is a condition where
there are insufficient resources to
satisfy all the needs and wants of
2. - AS A SOCIAL SCIENCE, ECONOMICS
STUDIES HOW INDIVIDUALS MAKE
CHOICES IN ALLOCATING SCARE
RESOURCES TO SATISFY THEIR
Relative scarcity – is when a good is
scare compared to its demand.
example: coconuts are abundant in the
Philippines since the plant easily grows in
our soil and climate. However, coconuts
become scare when the supply is not
sufficient to meet the needs of the people.
-Because of circumstances
4. ABSOLUTE SCARCITY – IS WHEN SUPPLY
OIL IS ABSOLUTELY SCARE IN THE
COUNTRY SINCE WE HAVE NO OIL WELLS
FROM WHICH WE CAN SOURCE OUR
PETROLEUM NEEDS, SO WE RELY
HEAVILY ON IMPORTS FROM OIL-
PRODUCING COUNTRIES LIKE IRAN AND
OTHER MIDDLE EASTERN COUNTRIES.
6. Land – soil and natural resources
that are found in nature and are
made. Receive a payment known
Labor – physical and human effort
exerted in production.
Capital – man-made resources
used in the production of goods and
services, which include machineries
7. TWO BRANCHES OF ECONOMICS
Macroeconomics is a division of
economics that is concerned with the
overall performance of the entire
- Overflow of goods and resources
- Flow of money
- Economic growth
- National income
10. WHY ECONOMICS IS IMPORTANT
Will help the students understand why there
is a need for everybody, including the
government, to budget and properly allocate
the use of whatever resources are available.
It will help one understand how to make
rational decisions in spending money, saving
part of it, and even investing some of it.
11. Enable to take a look on how the
economy operates and to decide
for themselves if the government
officials and leaders are effective
in trying to shape up the
economy and formulate policies
for the good of the nation.