APPLIED ECONOMICS

Prepared by: MARILYN C. PAPINA

Definition of Economics

• ECONOMICS IS THE STUDY OF SCARCE

RESOURCES AND HOW IT AFFECTS THE USE
OF RESOURCES, THE PRODUCTION OF GOODS
AND SERVICES, THE GROWTH OF
PRODUCTION AND WELL-BEING OVER TIME
AND MANY OTHER IMPORTANT AND
COMPLICATED ISSUE THAT AFFECT SOCIETY.
ECONOMICS AS A SOCIAL SCIENCE

• CONCERNED WITH THE EXPLANATION AND

PREDICTION OF OBSERVED PHENOMENA IN THE
SOCIETY
• STUDIES THE WAY IN THE SOCIETIES SOLVE THE
FUNDAMENTAL PROBLEMS OF RECONCILING THE
UNLIMITED DESIRES OF INDIVIDUALS WITH
SCARCITY OF RESOURCES, SUSCEPTIBLE TO
NUMEROUS ALTERNATIVE USES
 ECONOMICS AS APPLIED SCIENCE

• USES THE SCIENTIFIC METHOD IN THE

EXPLANATIONS, WHICH CONSISTS OF OBSERVING
REALITY AND PRESENTING QUESTIONS ND
PROBLEMS TO ARRIVE AT THE FORMULATION OF
THEORIES AND MODELS
• AS A SCIENCE, IT FOLLOWS A SYSTEMATIC
PROCEDURE TO SOLVE ISSUES AND PROBLEMS OF
THE SOCIETY
GROUP ACTIVITY

CREATE AN ACRONYM OF THE WORD

“ECONOMICS” APPLYING WHAT YOU
HAVE LEARNED ABOUT ITS DEFINITION
AND HOW ECONOMICS IS AS A SOCIAL
SCIENCE AND APPLIED SCIENCE