INTRODUCTION TO
ECONOMICS
BY: MARLON D. SALIOT
TEACHER I
JHS KITUBO NATIONAL HIGH SCHOOL

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SEIPRENRTE

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ANDL

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RBOLA

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APITLCA

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YTCARCIS

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NOCOCIMSE

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TEKRAM

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ARECCS

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CESRERSOU

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UTLARNA

LEARNING OBJECTIVES
• 1. Identify basic economics problems of the country
• 2. Discuss the economic problems affecting the economic stability of
the country.
• 3. Analyze and explain the root cause of the economic problems of the
country
• ABM_AE12-Ia-d-1

WHAT IS ECONOMICS
• Is a social science concerned with using scarce resources to obtain the
maximum of the unlimited wants of society.
• Is the study of how societies use scarce resources to produce
commodities and distribute them among different people.
• Is the study of production, distribution, selling ang use of goods and
service.
• Is the study of how people use their limited resources to try to satisfy
unlimited wants.

• Scarcity- the limited nature of resources, which underlies the
basic economic problem.
• Economic Resources- the problem of having unlimited wants,
but limited resources to satisfy them.
• Natural Resources- came from nature that are used in
production, including land, raw materials, and natural process.
• Capital Resources- the processed materials, equipment, and
buildings used in production.

•Human Resources- the efforts of people
involved in production, including labor and
entrepreneurship.
•Needs – the essentials of life, such as food
and shelter .
•Wants –desires for non-essential items.

SCARCITY
• Is a condition where there are insufficient resources to satisfy
all the needs and wants of a population.
• Scarcity- is the reason why people have to practice
economics.
• Economics- as a study, is the social science that
involves the use of scarce resources to satisfy
unlimited wants.

ALFRED MARSHALL
•Described economics as study of mankind in the
ordinary business life.
•It examines part of the individual and social
action that is most connected with the attainment
and use of material requisites of well-being.

TWO TYPES OF SCARCITY
• Relative Scarcity- is when a good is scarce compared
to its demand.
• Absolute Scarcity- is when supply is limited

CHOICE AND DECISION MAKING
• Because of the presence of scarcity, there is a need
for man to make decisions in choosing how to
maximize the use of the scarce resources to satisfy as
many wants as possible.
• Opportunity cost –Refers to the value of the best
foregone alternative.

ECONOMIC RESOURCES
•Land
•Labor
•Capital

ECONOMIC RESOURCES
• Land –Soil and natural resources that are found in nature and are not
manmade. Owners of lands receive payment known for rent.
• Labor – Physical and human efforts exerted in production. It covers manual
workers like construction workers, machine operators and production
workers, as well as professionals like nurses, lawyers and doctors.
• Capital –Man-made resources used in the production of goods and services
which include machineries and equipment. The owner of capital earns an
income called interest.

ECONOMIC AS SOCIAL SCIENCE
• As a social science, economics studies how individual
make choices in allocating scarce resources to satisfy
their unlimited wants.

TWO BRANCHES OF ECONOMICS
•Macroeconomics
•Microeconomics

TWO BRANCHES OF ECONOMICS
• Macroeconomics – is a division of economics that is concerned with
the overall performance of the entire economy
• Microeconomics –studies the decision and choices of the individual
units and how these decisions affect the prices of goods in the
market.
• It also concerned with the process of setting prices of goods that is also
know as Price Theory.

BASIC ECONOMIC PROBLEMS OF SOCIETY
•What to produce and how much
•How to produce
•For whom to produce

BASIC ECONOMIC PROBLEMS OF SOCIETY
•Society must have to decide what goods and
services should be produced in the economy.
Having decided on the nature of goods that will
be produced, the quality of these goods should
also decided on.
WHAT TO PRODUCE AND HOW MUCH

BASIC ECONOMIC PROBLEMS OF SOCIETY
•Is a question on the production method that will
be used to produced the goods and services. This
refers to the resource mix and technology that
will be applied in production.
HOW TO PRODUCE

BASIC ECONOMIC PROBLEMS OF SOCIETY
•Is about the market for goods. For whom will the
goods and services be produced? The young or
old, the male or female market, the low-income
or the high income groups?
FOR WHOM TO PRODUCE