COME HOLY SPIRIT

Come Holy Spirit

Fill the hearts of your faithful
And kindle them the fire of your love
Send forth your Spirit, O Lord

That the face of the earth be renewed

O God, who by the light of the Holy Spirit

Instruct the hearts of your faithful.
Grant that by the same Spirit, we may ever
Know what is right and ever rejoice in His
Consolation through Christ, our Lord. Amen
 Analyze each item in the first and second column. Decide what you
will choose between Option A and Option B. Write your decision in the
third column and your reason in the fourth column.
OPTION A OPTION B DECISION REASON

1. Continuing College
Working after high school
Education

Riding a Jeep or Tricycle going

2. Walk going to school
to school

3. Playing at the park Entering the class

4. Research at the library Going to Park

5. Chatting with neighbors Doing homework

 INTRODUCTION TO
APPLIED ECONOMICS
ECONOMICS
- It deals with individual choice, also with money and borrowing
production and consumption, trade and markets, employment and
occupations, pricing, taxes and much more.
ADAM SMITH

- He is the father of “modern

economics”
Economics is the social science that involves the use of
scarce resources to satisfy unlimited wants

Scarcity is the reason why people have to practice

economics.
ALFRED MARSHALL

He described economics as a study

of mankind in the ordinary business
of life.
It is a condition where there are insufficient
resources to satisfy all the needs and wants at a
population.

Scarcity maybe relative or absolute.

 RELATIVE SCARCITY

It is when a good is scarce compared to

its demand.
ABSOLUTE SCARCITY

It is when supply is limited.

 Because of the presence of scarcity, there is a
need for man to make decision in choosing how
to maximize the use of the scarce resources to
satisfy as many wants as possible.
 OPPPORTUNITY COST

It refers to the value of the forgone alternative.

- Without scarcity, a person does not need to make

choices since he/she can have everything he/she wants.
 What are Economic Resources?
Economic Resources also known as factors of production,
are the resources used to produce goods and services. These
resources are, by nature, limited and therefore command a
payment which then becomes the income of the resource
owner.

Accordingly, the economic resources include the land,

labor and capital.
 LAND
Refers to the soil and natural resources that are found
in the nature and are not man-made.
 LABOR
• Refers to the physical and human effort exerted in
production.

• The income received by labor is called wage.

 CAPITAL
• Refers to man-made resources used in the production of goods
and services, which includes machineries and equipment.

• The owner of capital earns an income called interest.

What are the Branches of
economics?
 It is the division of economics that is
concerned with the overall performance
of the entire economy.
 On the other hand, is concerned with the
behavior of individual entities such as
consumer, the producer, and the resource
owner.
 The term “Applied Economics” is
believed to have started 200 years ago in
Jean-Baptiste Say writings of two economist.

Applied Economics is the study

economics in relation to real world
situations.

John Stuart Mill

All societies are forced with the basic questions in
the economy that have to be answered in order to
cope with constraints and limitations and these are:

1.What to produce and how much?

2.How to produce?
3.For whom to produce?
1.Traditional Economy
2. Command Economy
3. Market economy
• Poverty
• Population growth
• Unemployment
Why is the study of
Economics
important?
EXERCISES:
1. He is the father of “modern economics”
- ADAM SMITH

2. It is when a good is scarce compared to its demand.

- RELATIVE SCARCITY

3. Refers to the soil and natural resources that are found in the
nature and are not man-made.
- LAND
EXERCISES:
4. It deals with individual choice, but also with money and borrowing
production and consumption, trade and markets, employment and
occupations, pricing, taxes and much more.
- ECONOMICS

5. It is the division of economics that is concerned with the overall

performance of the entire economy.
- MACROECONOMICS
EXERCISES:
6. Refers to man-made resources used in the production of goods and
services, which includes machineries and equipment.
- CAPITAL

7. Refers to the physical and human effort exerted in production.

- LABOR

8. It is a condition where there are insufficient resources to satisfy all

the needs and wants at a population.
- SCARCITY
EXERCISES:
9. It is when supply is limited.
- ABSOLUTE SCARCITY

10. It is the study economics in relation to real world situations.

- APPLIED ECONOMICS
GUESS WHO:

JEAN- ADAM ALFRED

JOHN MARSHALL
BAPTISTE SMITH
STUART
SAY
1.What are the three economic resources?

2. What are the branches of economics?

3. What are the three economic system?