Activity:

Philippine
Economic
Issues
 Jean-Baptiste
Say &
Applied John Stuart
Mill
Economics • study of
economics in
relation to real
world situations
 Applied
Economics
Application
• sweeps aside all attempts to dress up the
situation so that it will appear to be worse or
better than it actually is
• determines what steps can reasonably be
taken to improve the current economic
situation
• teaches valuable lessons on how to avoid the
recurrence of a negative situation, or at least
minimize the impact
Econometri
cs Definition Categories

application of statistical and

mathematical theories to Theoretical
economics for the purpose and
of testing hypotheses and Applied
forecasting future trends
 Scarcity
the tension between our limited resources
and our unlimited wants and needs
 Basic
Economic
Problems
1 2 3

For whom shall goods

What to produce? How to produce? and services be
produced?
 Basic
Economic
Problems
4 5
Is the economy's
Are the country's capacity to produce
resources being goods growing or
utilized? remaining the same
over time?
We cannot solve
economic
problems by
making
economic
solutions alone.
 Assignment
Make a table about the four commonly used
economic systems.
Economic System Characteristics

1. Traditional

2. Market Economy

3. Planned

4. Mixed