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which means
“one who manages a
household”
DEFINITIONS OF ECONOMICS
“
Economics is the study
of how society manages
its scarce resources.
G. Mankiw
“
Economics is the study of the
proper allocation and
efficient use of resources
to produce commodities for
the satisfaction of unlimited
needs and wants of man.
Gabay, et al.
“
Economics is the social science
that studies the choices that
individuals, businesses,
governments, and entire
societies make as they cope
with scarcity and the incentives
that influence and reconciles
those choices.
Michael Parkin
Our inability to satisfy all our wants is called
scarcity.
Gabay, B., R. R., Jr., & Uy, E. (2010). Economics: Its Concepts and Principles. Rex Bookstore.
❖ To strengthen economic freedom
Economics
❖ Promote Economic Efficiency
-Stability
means there is no violent ups and
downs in the economy.
Goals of
Economics 13
❖ Promote Economic Security
Principles
How People Make Decision
👪 🌏
MICROECONOMICS MACROECONOMICS
study of how households and study of economy wide
firms make decisions and how phenomena, including inflation,
they interact in the markets unemployment, and economic
growth
deals with the behavior of
individual component deals with the behavior of the
economy as a whole
METHODOLOGIES OF ECONOMICS
NORMATIVE POSITIVE
ECONOMICS ECONOMICS
???
EC ON OMIC SYSTEMS
▪ Traditional Economic System
▪ Command Economy
▪ The Market System/Free
Enterprise
▪ The Mixed economy
▪ Classical School
▪ Neo Classical
▪ New Classical ECONOMICS
▪ Keynesian Economics SCHOOL OF
▪ Monetarist THOUGHTS
▪ New Keynesian
https://www.economicsonline.co.uk/Economic_schools.html