Microeconomics

Marcroeconomics
Household economics
Business Economics
National Economics
International Economics
Economics as a science
 Economics as a Social Science

Social Science
A study of society or parts of it by utilizing the scientific method of
observation, hypothesis formulation, testing, and experimentation.

* Economics tries to understand how members of a society behave and

organize themselves to meet their individual and communal material needs
and desires.
Economics
a social science that deals with the study of the allocation of
scarce resources among unlimited and competing uses to satisfy
human needs
Resources
Natural, human, and man-made wealth that can provide satisfaction
through the production of goods and services.

Wealth is an abundance of valuable material possessions or

resources.
Relations of
Economics to
other Sciences
 Categories of Resources
Natural
Forms of wealth derived from nature, including land, forests, mountains, rivers, and
seas.
Human
Human labor is the most basic form of wealth. Brain power is also part of the human
wealth of an economy.
Physical
Man-made things used in the production of commodities and services.
Concept of Scarcity
Scarcity
Means more than limited, for everything in the material world is limited but not
everything is scarce.

The concept of scarcity arises because of certain qualities of resources and human wants.
 Resources are prolific in that they can be substituted for capital in the production of
commodity.
 Human wants are numerous and are multiplying as a result of several factors.
Concept of Economizing and Efficiency

There is a need to choose among the competing uses of resources in order that
each scarce commodity will yield the highest level of satisfaction to the individual
and to society.
This involves the process called allocation.
Allocation
A process of choosing among competing ends which resources are going to be
employed for the production of commodities chosen to satisfy the human wants
that have a higher value in the priority system.
To economize is to choose something with the minimum costs or
to choose that which will give maximum benefit to the individual
and to society.
Efficiency is the proper use of resources to get the maximum
benefit to society.
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