Economics is the social science that aims to describe the factors that determine

the production, distribution and consumption of goods and services

Microeconomics is the study of particular markets, and segments of the economy. It

looks at issues such as consumer behaviour, individual labour markets, and the theory
of firms.
Macro economics is the study of the whole economy. It looks at aggregate variables,
such as aggregate demand, national output and inflation.

Land:
Land includes all natural physical resources like gold, iron, silver, oil etc. Some countries
have very rich natural resources and by utilizing these resources they enrich their economy
to the peak. Such as the oil and gas development of North Sea in Norway and Britain or the
very high productivity of vast area of farm lands in the United States and Canada. Some
other developed countries like Japan have smaller economic resources.Japan is the second
largest economy of the world but reliant on imported oil.

Labor:
The human input in the production or manufacturing process is known as labor. Workers
have different work capacity. The work capacity of each worker is based on his own training,
education and work experience. This work capacity is matters in the size and quality of work
force. To achieve the economic growth the raise in the quality and size of workforce is very
essential.

Capital:
To the economist, that money is not investment that someone put into the bank or in a stock
market. In fact, in economics, capital is a term that means investment in the capital goods.
So, that can be used to manufacture other goods and services in future. Following are the
factors of capital: Fixed Capital: It includes new technologies, factories, buildings,
machinery and other equipments. Working Capital: It is the stock of finished goods or
components or semi-finished goods or components. These goods or components will be
utilized in near future. Capital productivity: New features of capital building, machinery or
technology are commonly used to improve the productivity of the labor. Such as the new
ways of farming helps to enhance the productivity of the agriculture sector and give more
valuable jobs in this sector which motivates people to come out for work. Infrastructure: It is
a stock of capital that is used to maintain the whole economic system. Such as roads,
railway tracks, airports etc.

Entrepreneurship:
The Entrepreneurship is person or individual who wants to supply the product to the market
to make profit. Entrepreneurs usually invest their own capital in their business. This
financial capital is generally based on their savings and they take risks linked to their
investments. This risk-taking can be rewarded by the profit of the business. Following are
the factors of Entrepreneurship: Income Wealth Labor and Wages Capital and Interest
Profit and Enterprise
Land natural resources such as iron ore, gold, diamonds, oil, etc.
 Labor human resources such as wage-earning workers
Capital plants and equipment used in the production of final goods, such as assembly lines,
trucks, heavy duty machinery, factories, etc.
Entrepreneurship the marshaller of resources, the person or group that marshals resources in
the production of final goods (Bill Gates, Steve Jobbs, Henry Ford, etc.)

Mainstream modern economics can be broken down into

four schools of economic thought: classical, Marxian,
Keynesian, and the Chicago School.
LEARNING OBJECTIVE[ EDIT ]
Apply the four main schools of modern economic thought.

KEY POINTS[ EDIT ]

Classical economics focuses on the tendency of markets to move towards equilibrium and on
objective theories of value.
As the original form of mainstream economics of the 18th and 19th centuries, classical
economics served as the basis for many other schools of economic thought, including
neoclassical economics.
Marxism focuses on the labor theory of value and what Marx considered to be the exploitation
of labor by capital.
Keynesian economics derives from John Maynard Keynes, in particular his book, The General
Theory of Employment, Interest and Money (1936), which ushered in contemporary
macroeconomics as a distinct field.
The Chicago School of economics is best known for its free market advocacy and monetarist
ideas.

TERMS[ EDIT ]
mainstream economics
Mainstream economics is a term used to refer to widely-accepted economics as it is
taught across prominent universities, and in contrast to heterodox economics.
School of thought
A school of thought is a collection or group of people who share common
characteristics of opinion or outlook regarding a philosophy, discipline, belief, social
movement, cultural movement, or art movement.
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FULL TEXT[ EDIT ]
Throughout the history of economic theory, several methods for approaching

the topic are noteworthy enough, and different enough from one another, to

be distinguished as particular 'schools of economic thought. ' While

economists do not always fit into particular schools, especially in modern

times, classifying economists into a particularschool of thought is common.

Mainstream modern economics can be broken down into four schools of

economic thought:

Classical economics, also called classical political economy, was the original

form of mainstream economics in the 18th and 19th centuries. Classical

economics focuses on both the tendency of markets to move towards

equilibrium and on objective theories of value. Neo-classical economics

derives from this school, but differs because it is utilitarian in its value theory

and because it uses marginal theory as the basis of its models and equations.

Anders Chydenius (17291803) was the leading classical liberalof Nordic

history. A Finnish priest and member of parliament, he published a book

called The National Gain in 1765, in which he proposed ideas about the

freedom of trade and industry, explored the relationship between the economy

and society, and laid out the principles of liberalism. All of this happened

eleven years before Adam Smith published a similar and more comprehensive

book, The Wealth of Nations. According to Chydenius, democracy, equality and

a respect for human rights formed the only path towards progress and

happiness for the whole of society.

Marxian economics descends directly from the work of Karl Marx and

Friedrich Engels. This school focuses on the labor theory of value and what

Marx considers to be the exploitation of labor by capital. Thus, in this school

of economic thought, the labor theory of value is a method for measuring the

degree to which labor is exploited in a capitalist society, rather than simply a

method for calculating price.

Marxism

The Marxist school of economic thought comes from the work of German economist Karl Marx.

Keynesian economics derives from John Maynard Keynes, and in particular

his book, The General Theory of Employment, Interest and Money (1936),

which ushered in contemporary macroeconomics as a distinct field. The book

analyzed the determinants of national income, in the short run, during a

period of time when prices are relatively inflexible. Keynes attempted to

explain, in broad theoretical detail, why high labor-market unemployment

might not be self-correcting due to low "effective demand," and why neither

price flexibility nor monetary policy could be counted on to remedy the

situation. Because of its impact on economic analysis, this book is often called

"revolutionary. "

Keynesian Economics

John Maynard Keynes (right), was a key theorist in economics.

A final school of economic thought, the Chicago School of economics, is best

known for its free market advocacy and monetarist ideas. According to Milton

Friedman and monetarists, market economies are inherently stable so long as

the money supply does not greatly expand or contract. Ben Bernanke, current

Chairman of the Federal Reserve, is among the significant public economists

today that generally accepts Friedman's analysis of the causes of the Great

Depression.
Metro Manila (CNN Philippines) It has been a big week for the
Philippines with over 7,000 delegates from all over the world converging
here in Manila for the Asia-Pacific Economic Cooperation (APEC) Economic
Leaders' Meeting.

Now that the important event is finally over, the entire country can
somehow breathe a sigh of relief.

Still, Filipinos have a lot of questions on their minds. What were discussed
during the meeting? How will the Philippines benefit from it? Was hosting
the event worth it?

The effects of APEC

To ensure the safety of the economic leaders and delegates in Manila, tight
security was enforced. This included road closures and rerouting schemes
of major thoroughfares
such as EDSA and Roxas
Boulevard that resulted
in traffic disruptions in The
APEC lane along EDSA extension
in Pasay City.the
metro. Most
motorists and commuters
complained of the traffic
schemes adjustments,
which forced them to walk
to their destination.
Several airlines canceled their flights to make way for the arrival and
departures of the APEC participants. Philippine Airlines said it lost an
estimated P870 million, while Cebu Pacific lost around P400 million.

A number of people also took to the streets and staged protests, denouncing
the APEC and the leaders of its 21 member economies.
Quiz: Can you recognize these world leaders?

Was the summit a success?

The Philippines reportedly allotted P10 billion to stage the week-
long APEC activities.

Ambassador Marciano Paynor Jr., director general of the APEC National

Organizing Council, said the expenses in hosting the event was an
investment. He added that the traffic and inconvenience the summit caused
is "a little sacrifice compared to the benefits that we will gain out of our
membership from APEC."

Related: APEC gains not quantified, says economists

But former Budget Secretary Benjamin Diokno said the P10 billion the
government spent was too much. He said that it could have been cheaper if
the APEC leaders' meeting was held outside Metro Manila.

"Our job is hosting the annual meeting, make the leaders as comfortable as
possible and make them secure. That's all. We don't have to spend billions
of dollars for APEC," said Diokno. "There are other disruptions like the
cancellation of airlines, the suspension of classes, suspension of office
work. So there are disruptions also in the economy. So that's where
probably the additional economic costs would come in."

Related: The lighter side of APEC 2015

He added that the Philippines may benefit from the APEC hosting, but the
gains would only be realized during the next administration.

On the other hand, Economics professor George Manzano believes hosting

the APEC summit was worth it. He added that the country and its fellow
member economies have much to gain, especially if the economic leaders
sustain open trade and investments.
"It doesn't come about overnight. It has to be sustained or there should be
continuous effort and that continuous effort is reflected in the different
countries hosting the talks because you need to gather consensus as you
go through the whole process," Manzano said on Thursday (November 19)
on CNN Philippines' Network News.

Related: APEC leaders' spouses tour 'old Manila'

The APEC CEO Summit

If the leaders' meeting was the main course, the APEC CEO Summit was
the appetizer.

The highlight of the APEC CEO Summit came on Wednesday (November

18) the dialogue between U.S. President Barack Obama, Jack Ma of the
Alibaba Group, and
Filipina engineer Aisa
Mijeno.

Obama talked about

the climate change issue and
how countries and leaders
should act on it now. Jack
Ma, meanwhile, called for
the support and
empowerment of the more
than 10 million small businesses in the world.
Mijeno, the founder of a company who makes ecological lamps that run on
salt and water, discussed the challenges she faces with regards to support
from the private sectors and the government. She emphasized that "climate
change is real," even likening it to cancer.
Chinese President Xi Jinping, in his speech, assured partners and
investors that China will get back on track, while Russian Prime Minister
Dmitry Medvedev hinted of a "joint answer"in the fight against ISIS.

What did the leaders talk about?

The APEC economic leaders met for two days and people are wondering
what they accomplished in that period.

Normally, trade and economic issues are discussed at the annual meeting.
But following the recent attacks in France, the APEC leaders welcomed
efforts to fight terrorism.

Related: APEC leaders tackle terrorism, development issues

In a statement they issued, the leaders collectively said they strongly

condemn terrorism and called for international cooperation in the fight
against terrorist activities. They added that economic growth and
opportunity were among the "most powerful tools to address the root
causes of terrorism and
radicalization."

President Benigno Aquino

IIIPresidentBenigno
Aquino III said factors
outside trade will
undeniably affect
economic growth and that
"our discussions must be
able to identify and define
the foundations for sustained and quality growth beyond 2020."
Related: Medvedev hints of 'joint answer' vs. ISIS

New economic strategies were also discussed:

 Building inclusive economies
Fostering the participation of micro, small and medium enterprises
Building sustainable and resilient communities
Enhancing the regional economic integration agenda

In summary, Aquino said the main challenge for the economic leaders is
"finding a way to sustain and strengthen quality growth, particularly by
considering policy responses that promote inclusivity, while addressing the
current domestic and external challenges to APEC's growth."
CERTAINLY there is more to the APEC Summit 2015 than the horrendous traffic and inconvenience, the
Imeldific sweeping-under-the-rug of everything that is considered to be an eye sore by the alta sociedad
government, the utter and absolute disregard for what it is that Metro Manilas working populace will go
through given already horrid road infrastructure and public transport now magnified by the need to pretend that
things are fine.
We have been told by government: stay home, dont add to traffic. They have told us: cooperate and
understand. I get that. I get the sacrifices we have to make. And I understand that the whining has got to stop,
if only so we can sit and listen and read about what it is they are getting us into with this years APEC Summit.
Yet its also clear that the complaints about traffic and inconvenience are at the heart of what is wrong with the
APEC, given this government and what it sells about us as nation.
The numbers and Asias New Darling
Listen to the way foreign businessmen and experts speak about the Philippines. They talk about us the way
the President speaks about us. They talk about our credit ratings, about numbers that meets targets, numbers
that mean a new and improved Philippines. Poverty is at an all-time low, hunger has been almost eradicated,
growth and development have been inclusive.
And yet all it takes is not even a whole different set of numbers which exist by the way. What it takes is to
look honestly at nation with eyes wide open. How many of us feel the eradication of poverty? Are there less
street children, less vagrants, less beggars where we live? Are there less informal settlements on the roads we
ply each day?
Government celebrates the decrease in unemployment numbers. Yet that doesnt mean that people are not
underemployed working in jobs that do not match their skills because theres nothing else. Those
employment numbers arent a measure of how many of our workers are contractually employed, with no job
security or health benefits, with low wages beyond the control of government.
In his November 16 speech for the APEC CEO Summit, the President talked about inclusive growth using the
Philippines as a prime example of what can be done in the region. He said that our growth numbers have
everything to do with inclusivity, which transformed the Philippines from being known as the Sick Man of
Asia to becoming Asias New Darling.
But Asias New Darling is merely a label thats useful for outsiders and foreign investors just like those
numbers are for guests and visitors who we entice to come to the country. These are only true in press releases
and propaganda, only true in the minds of government officials removed from and in denial about the fact of
poverty and hunger, need, and injustice.
According to the President, the Philippines is a prime example of how inclusive development has worked.
Now, children are going to school because the conditional cash transfer program requires that they do so; not
only are they encouraged to go to school, their families also have cash to spend for basic needs. Its a beautiful
cycle that empowers the poor and lifts them from poverty. The President said: The initial results of our
Department of Social Welfare and Developments most recent assessment reveal that at least 1.09 million
households have been lifted from poverty, which is roughly equivalent to 5.45 million Filipinos.
Numbers, numbers. Rule #1 in the handbook of hospitality, Philippines-style: pretend the numbers and labels
translate to reality.
Words, and inclusivity Rule #2? Spin spin spin.
According to the President, proof of inclusive growth is the changed attitude of Filipinos. He said: <> from
being apathetic to perhaps being a little too demanding, which we believe to be healthy in a democracy, since it
gives government motivation to be even more efficient. Perhaps our peoples increased participation is not too
surprising, given that they have likewise seen this transformation in their lives.
In one fell swoop or one paragraph the President gave guests reason to dismiss all complaints, all criticism,
all demands from the populace as proof that this government has done its job well. In one fell swoop,
everything we complain about, from debilitating traffic to contractualization, low wages to high taxes, is swept
under the rug of welcome to a healthy democracy! and nothing else.
Its all actually pretty convenient and I dare say, quite well done. Because in this speech alone, the President
does not only paint a beautiful picture of a nation changed in the past six years. He also already gives guests
the words to dismiss us with. We complain about the traffic? Ah, thats a measure of development. We
complain about four days when we cannot get to work on time, and therefore get less pay at the end of the
month? Ah, that is a small sacrifice compared to the great benefits that we have reaped from inclusive growth.
We complain about the APEC? Ah, thats Philippine democracy for you! Bravo!
Hospitality on overdrive
Our hospitality is legendary albeit a stereotype created for us by colonial masters. Look at these Filipinos,
offering the last of their food, the best bed in their homes, when they already have so little.
But this governments hospitality program for APEC 2015 is something else. It is sacrificing the people our
wages, our time, our energies in order to make sure that the few guests and the powers-that-be are
transported on time, are safe and sound. This hospitality program blames us for the traffic, because we did not
stay at home, because we decided to go to work and earn our keep.
This hospitality program decided that we needed to hide the poor, paint our roads, plant some trees. It decided
that the Lumad are an eye sore and should be hidden from view, and kept captive in one space. It decided that
there should be no people on Roxas Boulevard, on the roads that lead to and from the hotels where the leaders
are staying, its the only way to keep them safe.
Rule #3 on the handbook of hospitality: fake it til you make it.