APPLIED ECONOMICS
scarce human an non-human.
Economics defined Greek word
OIKOS meaning HOUSEHOLD and
NOMOS meaning
MANAGEMENT = HOUSEHOLD
MANAGEMENT
- Wise production and use of
wealth to the demands of
needs.
PAUL SAMUELSON (Economics)
-how people and society end up
choosing with or w/o use of
money to employ scarce
resources that could have
alternative.
ROGER LE ROY MILLER
(Economics, Today and
Tomorrow) – concern situations
in which choices must be made
about how to use limited
resources.
HALL AND LOEBERMAN (Macro
economics: Principles and
Application)- study of choice
under scarcity.
BERNARDO VILLEGAS (Guide to
Economics for Filipinos) – social
science that studies and allocate
GERARDO SICAT (Economics) –
deals with how individual and
society makes choices.
ECONOMICS- study of social
behavior guiding in the
allocation of scarce resources to
meet unlimited needs and
desires of individual.
WORDS DEFINITION
SCARCITY- something available is
insufficient to satisfy.
RESOURCES- labor, capital, land
and natural resources and
entrepreneurship that are used
to produce goods.
UNLIMITED- w/o limits.
WANTS- desires.
REVISITTING ECONOMICS AS A
SOCIAL SCIENCE
There are three strands in
development of definition of
economics.
1. Wealth
 2. Stresses the decision
making process
3. Concentrated on allocation
process.
ECONOMICS AS A STUDY OF
WEALTH- science of wealth
getting implies motivation of
process of wealth accumulation
for the individual’s satisfaction.
ECONOMICS AS A STUDY OF
MAKING CHOICES – we make
decisions are based on
alternative choise. We have to
consider a major concept in the
study of economics.
ECONOMICS AS A STUDY OF
ALLOCATION – deals with study
of allocation of scarce resources
to answer the unlimited human
wants.
ECONOMICS AS A SOCIAL
SCIENCE- utilizes the scientific
method of inquiry from
identifying the problem,
alternative answer, testing and
conclusion.
- Study of various modes
and aspects of human
interactions.
- Study on how society
creates its material wealth.
- Related to the study of
dimensions of society.
RESOURCES AND THE STUDY OF
ECONOMICS
Resources – second dimension
of definition of economics.
Human wants- third dimension f
economics or it can pertain to
expanded (Human needs).
Scarcity – fourth element in the
definition in the concept. A key
economic problem because of
limitations.
Allocation – fifth element, there
is need for a mechanism of
distributing limited resources to
meet expanding human wants.
Market can be considered not a
place but a state where
transactions made of buyers and
sellers.