Economics as an Applied

Economics
Applied Economics
John Neville Keynes
- attributed to be the first to use the phrase
“applied economics”
-to designate the application of economic
theory to the interpretation and explanation of
particular economic phenomena.
Applied Economics
 Is the application of economic theory and
econometrics in specific settings with the
goal of analysing potential outcomes.

Econometrics- the branch of economics

concerned with the use of mathematical
methods in describing economic systems.
Applied Economics in Relation to Philippine Economic
Problems

 a solid understanding of economic principles

and how they are applied in real-life
situations can serve as significant tools to
help address the country’s economic
problem.
Examples:
1. Understanding of existence of scarcity-help
Economic students analyze how to
maximize the use of available resources in
order to overcome scarcity.
2. Knowledge of economic theories such as the
Law of Supply and Demand can help in
analyzing why prices are high and what the
government can do to help bring down
prices.
The Philippines’ Basic Economic
Problems
 Unemployment
 Poverty
 Booming population growth
ASEAN ICON
 Lee Kuan Yew (1923-2015)
-born in Singapore on September 16, 1923
-first prime minister of Singapore from 1959-1990
-longest- serving prime minister in world history.
-introduced a five-year plan calling for urban
renewal and construction of new public housing,
greater rights for women, educational reform,
and industrialization.

-in Lee’s guidance, had a per capita income second

only to Japan’s in East Asia and the country had
become a chief financial center of Southeast Asia
envied by many Asian countries including the
Philippines
 Lee brought Singapore from a developing country to one of the most

developed nations in Asia. Lee said that Singapore’s only natural resources
are its people and their strong work ethic.
Some of the Quotes of Lee Kwan Yew:
“If you want to reach your goals and dreams,
you cannot do it without discipline.”

“What I fear is complacency. When things

become better, people tend to want more for
less work.”