Economics

- science that deals with the management of scarce resources

- concerned with humanity, encompasses the social relationship in allocating scarce resources
(Richard)
- social science
Free resources - abundant
Economic resources - we buy things we need

How do you create satisfaction?

- once human want is built, you have to plan for your purchases, there comes market demand.

2 divisions/branches:
Microeconomics
- problems and analysis of behavior of individuals or consumers (household) and seller, and
owners of production
- deals with the problems of the whole economy (buyers, sellers, government, etc.)

Human Wants
- goods and services (yield satisfaction) (tangible and intangible) that are needed by human
beings.

Consumer Goods vs Capital Goods

-directly yield satisfaction - goods used to produce other goods

Essential Goods vs Luxury Goods

- goods that are necessary for survival - goods that add prestige to yourself, may add comfort
to your life but you can live without it
Characteristics of Human Wants
- unlimited
- varied
- insatiable (you want to get more of what you actually want)

Origin of Wants
- survival
- dictated by culture
- generated by activity necessary to satisfy other wants

Characteristics of Resources
Resources - factors or inputs of production
David Ricardo - Law of Comparative Advantage - whatever products you have, it will be your
advantage from other countries and vice
versa
Scarce - arises because of the rising population
Classification of Resources
 Land - both water and land forms
 Labor - power or capacity of human beings, both physically (blue-colar job-wage) and
mentally (white-colar job-salary)
 Capital - used to produce other goods and services
 Entrepreneurship - used to acquire land, labor, and capital

Characteristics of Resources
- limited
- versatile (changing)
- it can be combined in varying proportion to produce goods and services

Economic System
- the economic structure
- 3 market models (capitalism, communism, socialism)
Capitalism
- refers to a free enterprise, uses faire economy (laissez-faire/ no government intervention)
- market economy
Communism
- opposite of capitalism, government controls the economy (like china and russia)
- command economy
Socialism
- better economic model, mixture of capitalism and communism
- mixed economy

Characteristics of Communism
1. No profit motive
2. No economic freedom
3. No freedom to compete
4. With state ownership
5. Controlled by the government
6. Absence of religion

Characteristics of Capitalism
1. With profit motive
2. With economic freedom
3. With freedom to compete
4. Private ownership of property
5. Limited role of the government
6. Presence of religion

Characteristic of Socialism
1. The major industries are owned and managed by the state, and the minor industries
 are owned by the private sectors.

Tools used in Economics:

1. Statistics
2. Mathematics

Think of a product suited to your course

- can be in the form of business (service)
- can be an employee (office)
Miniature, made out of cardboard
- make a company name & product
Propose a product
- include processes, labor, cost of material, selling price

When God created Adam, then followed by Eve, they lived prosperously for God gave them all
they need in order to live. But on Genesis 3:17-19 of the Holy Bible, it speaks about the
consequence of Adam and Eve’s betrayal to the Lord’s command, to not eat the fruit from the
forbidden tree. From then, they had to face hardships, to eat food from the plants of the cursed
ground. Adam and Eve’s sin is the beginning of scarcity. As the number of people multiplied over
time, the demand for food became greater and all of us need to work hard in order to survive.
Come to think of it, if Adam and Eve, and our ancestors would not commit any sin, it would feel
like heaven on earth. But I believe this life of us is meaningful and it is up to us if we’ll make our
life fruitful and in God’s will.

October 27, 2023

Reaction Paper
https://www.youtube.com/watch?v=yoZiTCz_wYA

Globalization: Winners and losers in world trade

Every country in the world deserves to be prosperous with their own natural
resources. Thus, Globalization takes place in expanding global markets in a world trade system
for innovation and the improvement of living conditions in every part of the world. But how
come several countries’ economic growth isn’t guaranteed just like the others?

China and the United States of America are two of the biggest countries that are
part of the world trade economy. They are both producers of steel in the world market, but over
time, the production of steel in the US has slowed and several steel mills have closed since the
1990’s. With this, it’s one of the reasons why global competition arised with China and the
United States. In Peru, a country in South America, China has been building a mega port to a
nature reserve for Peru’s fish resources and it affected the people diversely. They are taking
advantage of the country as such chinese fleets are fishing within the Peruvian territorial waters
without authorization.

Globalization in the world seemed not accessible in the same way for big and small
countries. The reason behind this is too much greed for power and national interests that some
big countries possess. Globalization will only be successful if natural resources are focused on
with proper allocation of funds. Just like what America provided the farmers, they have benefits
and subsidies for crop failures, tax relief, and direct payments. This served as a motivation for the
growth of agriculture in the economy. A good government doesn’t exist in every country, thus
people also make the most out of their own resources and capacity in order to survive life. Just
like a woman in Peru who is a fish farmer who invested her 13-year-fund to have a tourism
business due to water pollution. Globalization for economic growth should be for everyone. If
greed would continue to overpower, the poor would remain poor and the rich will remain rich by
stomping other countries’ success.