Professional Documents
Culture Documents
Resource Utilization AND Economics: Timothy O. Atayde BAMA203
Resource Utilization AND Economics: Timothy O. Atayde BAMA203
Resource Utilization AND Economics: Timothy O. Atayde BAMA203
AND
ECONOMICS
Timothy O. Atayde
BAMA203
RESOURCE UTILIZATION AND ECONOMICS
ECONOMICS
• Efficient allocation of the scarce means of
production toward satisfaction of human needs
and wants.
• Came from two Greek words: “oikos” (household)
and “nomus” (system or management).
• “Oikonomia” or “oikonomus” therefore means the
management of household.
RESOURCE UTILIZATION AND ECONOMICS
SCARCITY
• Limitedness of resources.
• The limited availability of economic resources
relative to man’s or society’s unlimited demand
for goods and services.
• The basic and central economic problem
confronting every man and society.
RESOURCE UTILIZATION AND ECONOMICS
FACTORS OF PRODUCTION
• LAND – The soil or the ground surface together with all the
natural resources; the compensation for use of landis called
rent.
• LABOR – Any form of human effort exerted in the production
of goods and services. The compensation for labor
rendered is called salary (annual basis) or wage (hourly
compensation).
• CAPITAL - Man-made goods used in production of other
goods and services.
• ENTREPRENEURSHIP – The person who manages all the
factors of production.
RESOURCE UTILIZATION AND ECONOMICS
RESOURCE MARKET
•SELL RESOURCE
•BUY RESOURCE •GOODS AND SERVICES •BUY PRODUCTS
•SELL PRODUCTS
PRODUCT MARKET
OPPORTUNITY COST
• Refers to the foregone value of the next best
alternative.
• Expressed in relative price. This means that the
price of one item should be relative to the price
of another.
RESOURCE UTILIZATION AND ECONOMICS
3E’S IN ECONOMICS
• EFFICIENCY- refers to productivity and proper
allocation of economic resources.
• EFFECTIVENESS – Attainment of goals and
objectives.
• EQUITY- Justice and fairness.
RESOURCE UTILIZATION AND ECONOMICS
BRANCHES OF ECONOMICS
•MICROECONOMICS – Individual decision, focuses
on two main players – the buyer and the seller.
•MACROECONOMICS – It seeks to understand the
behavior of the economy as a whole.
RESOURCE UTILIZATION AND ECONOMICS