ECONOMICS  THE PUBLIC SECTORS -

ATTEMPT TO MAXIMIZE THE

 SOCIAL SCIENCE – WELL BEING OF SOCIETY
ALTERNATIVE
BASIC TERMS TO UNDERSTAND
 APPLIED SCIENCE – A ECONOMICS
SYSTEMATIC PROCEDURE TO
SOLVE ISSUES AND PROBLEMS TANGIBLE GOODS – MATERIAL
GOODS OR COMMODITIES.
OF THE SOCIETY
INTANGIBLE GOODS – FORM OF
SERVICES RENDERED BY
DOCTORS, ENGINEER DOCTORS
AND OTHER PROFESSIONALS
FIELD OF ECONOMICS CONSUMER GOODS – ULTIMATE
CONSUMPTION OF THE
 MICROECONOMIC – FOCUSES CONSUMERS
ON THE BEHAVIOUR OF CAPITAL GOODS/ INDUSTRIAL
INDIVIDIUAL ECONOMIC GOODS – USED IN PRODUCTION
UNITS OF THE GOODS AND SERVICES

 MACROECONOMICS – ESSENTIAL GOODS- USED TO

STUDIES THE FUNCTIONING OF SATISFY THE BASIC NEEDS OF
ECONOMICS AS AN; MAN
LUXURY GOODS – COMFORT
 AGGREGATE
AND SATISFICATION
 MACROECONOMICS HAS TWO ECONOMIC GOODS - GOODS
TYPES OF POLICIES FPOR WHICH ARE USEFUL AND
PURSUING GOALS: SCARCE; WITH VALUE
 MONETARY POLICY ATTACHED TO THEM
 FISCAL POLICY
ECONOMIC RESOURCES OR
FACTORS
MICROECONOMICS
 ECONOMIC RESOURCES
 STUDIES OF MARKETS OF DEFINED AS THE FACTORS OF
PRODUCTION FOR GOODS
GOODS AND SERVICES
AND PRODUCTION
MACROECONOMICS
THE 4 FACTORS OF PRODUCTION
 STUDIES THE ECONOMY AS A
WHOLE  LAND – RAW MATERIALS
THAT COMES FROM
THE ECONOMIC GROUND OR NATURAL
AGENTS/STAKEHOLDERS RESOURCES
 LABOR – THE WORK DONE
 CONSUMERS – THEY CONSUME BY PEOPLE; WORK FORCE
GOODS AND SERVICES RECEIVCES WAFES FOR HIS
 PRODUCERS – PRODUCE LABOR
GOODS/DEMAND PRODUCTIVE  CAPITAL – FACTOR OF THE
FACTORS PRODUCTION
  ENTREPRENUERSHIP –
DEVELOP AN IDEA INTO A
BUSINESS
ENTREPRENUER ARE RISK TAKERS.
THE INCOME ENTREPRENUER EARN
IS PROFITS.
ADAM SMITH – FATHER OF
ECONOMICS “WEALTH OF THE
NATION”
APPLIED ECONOMICS – THE STUDY
OF ECONOMICS IN RELATION TO
WORLD SITUATIONS. THE
APPLICATION OF ECONOMIC
PRINCIPLES AND THEORIES TO REAL
SITUATIONS.
ECONOMIC THEORY - THE IDEAS
AND PRINCIPLES THAT AIM TO
DESCRIBE HOW AN ECONOMY
WORKS.
ECONOMETRICS – THE
APPLICATION OF STATISTICAL AND
MATHEMATICAL THEORIES IN
ECONOMIC FOR THE PURPOSE IN
TESTING HYPOTHESES AND
FORECASTING FUTURE TRENDS.
JOHN NEVILLE KEYNES
 ATTRIBUTED TO USE THE
PHRASE “APPLIED
ECONOMICS” TO DESIGNATE
THE APPLICATION OF
ECONOMIC THEORY.
THE ECONOMIC PROBLEM
- WHAT
- HOW
- FOR WHOM
- SCARCITY – HAPPENS WHEN
HUMAN WANTS FOR GOOD
AND SERVICES EXCEED THE
AVAILABLE SUPPLY
- limited opportunity; scarcity of
great ideas but many competitors
in the market.
OPPORTUNITY COST
- INSUFFICIENT RESOURCES TO
SUPPLY ALL THE DESIRES AND
NEEDS OF INDIVIDUAL.
RELATIVE SCARCITY
- WHEN GOOD IS COMPARED
TO ITS DEMAND
ABSOLUTE SCARCITY
- WHEN SUPPLY IS LIMITED
PARTIALLY REPLACEABLE
- ONE RESOURCE CAN REPLACE
ANOTHER IN THE PRODUCTION
OF A GOOD OR SERVICE
TRADE OFF – GIVING UP ONE THING IN
RETURN FOR ANOTHER.
• Economics can be a tool to solve
economic problems on the
production of goods and services.
• Production is the process by
which resources are transformed
into useful forms.
• and reduce expectations –
reducing wants
• The basic economic problems on
production includes: what to
produce, whom to produce, how to
produce and what provisions on
production for economic growth
• · Resources are things provided by
nature that can be used directly or
indirectly to satisfy human needs.
• · Strategic options/decisions to
economize the problems include:
economic growth – ability to
produce goods and services;
reduce expectation- reduce our
wants –
• lessening consumption; improve
the use of resources - use our
existing resources wisely; don't
waste the limited resources;
productive efficiency; allocate
efficiency; full employment and
equity of resources; and reduce
expectations – reducing wants