Topic #2:

Based from the definition of Economics:

 ECONOMICS is a science concerned with man’s problem of issuing scarce resources to satisfy man’s
unlimited wants.

Scarcity vs Shortage
A study of economics most critical problems results from the fact that there are not enough resources in
the world to satisfy the wants and needs of all people. Scarcity limits the total output possible from the
economy. The economic problem at any point in time therefore becomes one of choosing what goods and
service to produce, how they should be produced, who should get them, and when they should be produced
given the limited means of production.
Scarcity however, does not imply that the amount of resources or the state of the technology is fixed. In
time, as the means of production changes, corresponding changes in the economic output occur.

SCARCITY
 It embodies the basic economic truism that economic resources are limited. It is an economic
phenomenon which is permanent in nature.
SHORTAGE
 It is only temporary situation. It occurs when the supply of goods and services runs low resulting from a
greater demand on the part of the consumer. An example of which would be the usual shortage of rice
supply in the market.

Scarcity exists in varying degrees and depends on the time, the place, the environment and the users of
such scarce goods. If economic resources were not scarce, perhaps man would have very little work to do in
satisfying his needs.
If scarcity exists and there is no way of escaping from it, we have to first of all understand the
consequences that it brings.
In summary, shortage is no less than a temporary economic phenomenon which can be remedied given
the proper formula, the solution of which is oftentimes initiated by the government. Scarcity is a permanent
economic condition.

Take note: economic resource may be scarce in one part of the country but abundant in another part.

One solution of Scarcity: Importation and exportation. (Exchange of product)

RESOURCES
 Today, we have 5 types of resources (5M’s)
 Man, Money, Material, Management, Machine
 The Philippines is in the threshold of becoming a newly industrialized country (NIC) by the 21 st century.
Foreign observers agree that our country has made enough progress to wipe out our reputation.
 Development is dependent on a complex of factors: natural, physical and human resources.
 The Philippines is a rich country. It is well- endowed with natural resources which are the products and
features of the Earth that support life and satisfy people’s need. Look around and you will see wider
roads, flyovers, long bridges, skyways, skycrapers, heavy equipment and machinery.

Different Resources
1. Forest Resources
 Five broad types of forest: Dipterocarp, Molave, Pine, Mangrove, Beach and Mid- Mountain and Mossy
Type
 Forest Products
 o Timber (lauan, apitong, guijo, yakal, legumes and dipterocarps
o Cutch and tanbarks, firewoods and charcoal, ferns, resins, oils, soap substitutes, medicianal
plants, orchids

 PROBLEMS of our forest resources:

 The rapid denudation of Philippine Forests has resulted in the siltation, sedimentation of
rivers, lakes and coastal areas as well as public infrastructure projects like dams and
irrigation canals.
 Destructions of our watershed areas has reportedly disturbed the hydrologic cycle, thus
frequently occurrence of flashfloods and droughts.
 Many birds, reptiles and mammals became endangered and threatened of extinction because
of deforestation.
 The Upland populations have increased tremendously and are residing within forest lands.
The flux of upland migrants who are in search of available lands has resulted in the
uncontrollable conversion of forest land into other use such as agriculture (kaingin farming)
and human settlement thereby decreasing the forest capacity to regenerate.
 SOLUTION:
 Log Ban/ Logging Moratorium
 Drive against illegal logging
 Modernization of the Forest Protection Program (DENR)
o Utilized air drone and air machines (helicopter) to detect illegal logging activities
 Reforestation Program
 Equitable Access to forest resources

2. Fisheries and Aquatic Resources

 Fish species available in the Philippines
 Round scad (galunggong) sardines (tamban, tunsoy) frigate tunas (tulingan), anchovies (dilis),
slipmouth (sapsap), yellow fish (albacore), big eyed scad (matang baka), threadfin bream
(bisugo), round herring (tulis) and skip- jack (gulayasan).
 Other: bangus, tilapia, catfish, kanduli
 Shrimps, prawns, crabs and mussels
 Fish Production
o Commercial fisheries (sardines, anchovies)
o Aquaculture (bangus, prawns, crabs for brackish water fishpens, tilapia and carp for fishponds
and sea weed culture for marine operations
o Municipal fisheries
 PROBLEMS:
 Siltation has resulted to death of fish and marine products.
 Overfishing in the shallow coastal waters depletes the fish resources in these areas.
 Illegal fishing activities and using of dynamites, poisonous substances, electric stunning, trawl
fishing and use of fish nets.
 Pollution of fish habitats with industrial and chemical wastes.
 SOLUTIONS:
 Conservation of our Fish Resources through:
o Implementation of close season. This prohibits the catching of certain species of fish or
aquatic life.
o Creating fish sanctuaries where fishing is not allowed.
o Cooperatives were formed to assist small and medium fishermen’s to try fishery culture
operations (fish pens, fishponds, brackish water fish pens
  Government Agencies Concerned with Conservation of Fish Resources
BFAR (Bureau of fisheries and aquatic resources)
DOST (Department of Science and Technology)
SEAFDEC ( Southeast Asian Fisheries Development Center)

3. Natural and Sources of Minerals

Importance of Minerals
Minerals are foundation stones of economic progress. They make possible the building and
maintenance of industries. In times of conflicts, they supply the means of ward off aggressions.
 Metallic Minerals
o Gold and silver, platinum, iron and nickel, copper, chromite, manganese
 Nonmetallic
o Coal, sand, gravel, salt, asbestos, gypsum etc.,
 PROBLEMS:
 The government lacks capital to establish more iron and steel industries which are very
necessary for the country to become fully industrialized.
 The fluctuation of prices of gold and silver in the world market results in the decrease in the
volume of production of these metals
 The lax compliance of mining companies to environmental control measures has resulted in the
pollution of the environment
 Lack of incentive for small- scale mining is very important
 SOLUTIONS:
 Mineral resource management and conservation
o The DENR (department of Natural Resources) is responsible in the conservation,
management, development and proper use of the country’s mineral resources.
o Geological surveys and mineral exploration
o Mine land surveys and management
o Adopt a tree, adopt a mining forest movement
o Philippine mineral resources development plan
o
4. Human Resources
 PROBLEMS:
 Malnutrition
 Lack of education
 Job mismatch
 Most Filipinos are not equipped with enough competitive technical knowledge
 Most of us do not possess enough skills, competencies, trainings and qualifications that will
enable us to compete in a global economy
 Lack of investment on human pooling and human capital
 We are a little bit behind in terms of technical skills, decision making and advancement of
training in using machines and equipment’s
 We are conservatives
 SOLUTIONS:
 Better nutrition for better health and better education
 Better utilization of manpower
 K-12 and investment of government in upgrading our students in terms of technical skills
and competencies
 Additional school facilities (laboratories) given by the government and investing in
modern technologies
5. PHYSICAL RESOURCES
 Infrastructures such as building, roads, bridges, power plants, irrigation plants, water
supply plants, flyovers, elevated highways, skyways, airports, piers and commercial and
industrial machineries and equipment
 Public Works and Highways
 Transportation and communications
 PROBLEMS:
 Using substandard materials by the (illegal) contractors and subcontractors

 SOLUTIONS:

6. ENERGY RESOURCES
 Energy Consumptions and demand
 Petroleum
 Solar energy
 PROBLEMS:
 SOLUTIONS:

7. SKILLS/ MANAGEMENT