Nature and Scope of

Economics

By Engr. Ma. Nerissa P. Sangalang, RCE,LPT,MBA

 Objectives

09/07/2020 Microeconomics module by Engr. N. Sangalang 2

ECONOMICS AS
A FIELD OF STUDY
 Economics

• Derived from the Greek word

“oikonomia” or “oikonomos”
• Oiko meaning household
• Nomia/Nomos meaning management
• Economics = Household Management

09/07/2020 Microeconomics module by Engr. N. Sangalang 4

 Economics is a branch of
social science that deals
with efficient allocation of
scarce resources for the
satisfaction of unlimited
human needs and wants.
 Economics

Social Science
• uses a scientific approach to study
human behavior
• considered as the queen of the social
sciences
• utilizes mathematical method
– specificity, accuracy, and precision
09/07/2020 Microeconomics module by Engr. N. Sangalang 6
 Economics

Efficient Allocation of Scarce Resources

• this is the primary and most important
reason for studying economics
• resources are used to produce good and
services but these are not unlimited
• It is important that these resources are
used efficiently to create the most
benefit to society
09/07/2020 Microeconomics module by Engr. N. Sangalang 7
 Economics

Unlimited Needs and Wants

when will our needs and wants be unlimited?
5 Basic Needs
1. Food +Education
2. Shelter +Load
3. Clothing +Gadgets
4. Water +Internet
5. Love and Care +Transportation

09/07/2020 Microeconomics module by Engr. N. Sangalang 8

 Economics

Unlimited Needs and Wants

Why are our needs and wants unlimited?
Because of…
• Technological Breakthroughs
• Ads and Commercials – demonstration
effect
• Production – from raw materials to final
goods
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Praise and glorify God
always!
END