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  • EC 102. Basic Economics, Agrarian Reform, and Taxation: Introduction: Basic Concepts & Historical Overview

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    Jessica Olayon Dominguez
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    This document provides an overview and introduction to basic economic concepts and the history of economics. It discusses how economics involves the efficient allocation of scarce resources and uses scientific methods. Economics encompasses fields like microeconomics, which examines individual entities and markets, and macroeconomics, which looks at overall economic performance. The document also defines key economic terms like scarcity, efficiency, and production possibilities frontier. It notes some common fallacies in economic reasoning.

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    Lecture 1

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    This document provides an overview and introduction to basic economic concepts and the history of economics. It discusses how economics involves the efficient allocation of scarce resources and uses scientific methods. Economics encompasses fields like microeconomics, which examines individual entities and markets, and macroeconomics, which looks at overall economic performance. The document also defines key economic terms like scarcity, efficiency, and production possibilities frontier. It notes some common fallacies in economic reasoning.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    13 views2 pages

    EC 102. Basic Economics, Agrarian Reform, and Taxation: Introduction: Basic Concepts & Historical Overview

    Uploaded by

    Jessica Olayon Dominguez
    This document provides an overview and introduction to basic economic concepts and the history of economics. It discusses how economics involves the efficient allocation of scarce resources and uses scientific methods. Economics encompasses fields like microeconomics, which examines individual entities and markets, and macroeconomics, which looks at overall economic performance. The document also defines key economic terms like scarcity, efficiency, and production possibilities frontier. It notes some common fallacies in economic reasoning.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    11/04/2013

    Introduction: Basic Concepts


    & Historical Overview
    •Economics, Queen of Social Sciences
    EC 102. Basic Economics, -Economics encompasses various fields of the
    Agrarian Reform, and Taxation Social Sciences
    -Economics has a certain sophistication by using
    Lecture 1 scientific methods for creation of models and
    analyses as well as the use of data and statistics
    Introduction, Basic Concepts & Historical (i.e. Econometrics)
    Overview
    •Prisoners of the Queen
    -Economics is part of everyday life.
    -People are Rational Economic Beings.
    NAS Cabiles 2
    NAS Cabiles 1

    Introduction: Basic Concepts Introduction: Basic Concepts


    & Historical Overview & Historical Overview
    •Formal Definition: •2 vital points of Economics
    “How societies use scarce resources to a. Scarcity
    produce commodities and distribute -if everything is abundant, the price is zero
    them among different people.” and there is no need for allocation and no
    •Note: The allocation has to be Efficient such a thing as Economic Goods (i.e.
    •Economics is the efficient allocation of scarce Economics becomes useless!)
    resources. b.Efficiency
    -when resources are used in such a way that
    people can get as much as they can get
    NAS Cabiles 3
    (specific to their wants and needs)
    NAS Cabiles 4

    1
    11/04/2013

    Illustration of Scarcity:
    Introduction: Basic Concepts
    Production Possibilities
    & Historical Overview
    Frontier
    Food •PPF Expansion •2 Branches of Economics
    a.Discovery/Increase of a. Microeconomics
    resources -behaviour of individual entities (i.e. firms and
    b.Investment households) and their interactions (markets)
    .F c.Technological
    E
    Advancement b.Macroeconomics
    -overall performance of the economy
    (national income/output, price levels,
    employment)
    Clothing NAS Cabiles 8

    Introduction: Basic Concepts Introduction: Basic Concepts


    & Historical Overview & Historical Overview
    •Fallacies on Economic Reasoning •Fallacies on Economic Reasoning
    a. post hoc fallacy c. fallacy of composition
    -assumes that because one event occurred -assumes that what holds part of the
    before another, the previous one caused system applies for the entire system not all
    the succeeding event not true the time
    b.failure to hold things constant (ceteris paribus
    assumption) always take note to hold
    other things constant
    NAS Cabiles 9

    NAS Cabiles 10

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