GOOD MORNING!!!

BSBA- 1D

YOUR GROUP 1 REPORTER

LEADER: BACUDO, ARCIE MAY

MEMBERS: MANIQUIZ, HARVEY ANDREI MANIQUIZ

PABLO, CHRISTINE JOY

SANTOS, ELVIE

CABRERA , JEREMAY POLLOSCO

DOMINGO ,KRISTINA DALNGIN

 SCARCITY AND CHOICE
Scarcity refers to the finite nature and availability of resources while
choice refers to people’s disicions about sharing and using those
resoucers.

Important of scarcity and choice –the scarcity of resourcers means

that there are never enough resources available to satisfy human
desires.An aconomy must allocate its scare resourcers in such away
that it fufills the demands of the majority of the people in it.

Example: to exemplify,a farmer has 10 acres of land he has a choice to

either grow wheat or cotton on it.
- The limited land is, a scarcity of the resouce
- One product can only be consumed by giving up something
exchange.
 PRODUCTION POSSIBILITY
CURVE
The Production possibilities curve (PPC) is a graph that
shows all of the differrent cominations of output that can be
produced given current resources and technology.

Importance of production posibility curve – the

production possibility curve is important because it can help
demonstrate the maximum possible output of goods given a
set amount of resources.

Example: a farmer is optimal use of resources might lie at

50 tomatoes and 25 cucumber.
 GENERAL EQUILIBRIUM ANALYSIS
AND PARTIAL EQULIBRIUM ANALYSIS
●General equilibrium analysis is the branch of economics concerned
with the simultaneous determination of prices and quantities in
multiple inter-connected markets.

●It contrasts with partial equilibrium analysis – models that consider

only a single sector.

●The key characteristic of general equilibrium models is that they

are
economy-wide – constraints apply at both the individual and the
system level.

●It is used extensively in many branches of economics, most notably

in macroeconomics and in international trade theory.
 Why is General Equilibrium Analysis
Important?

Often a change in an economic system will have repercussions far

beyond the sector in which the change occurs.

General equilibrium models are designed to help us understand those

repercussions. Thinking in general equilibrium terms helps us to see
the full consequences of policy changes.

Thought Experiment: What is the effect of a increase in the import tari ff

applied to steel?
Examples include technology changes or endowment growth, and
changes in taxes, or trade policies. Data, theory, and shocks are the three
basic elements of a CGE study, and combined they determine the results.
 What is Partial Equilibrium Analysis?

Partial equilibrium is just the technical terms for

demand and supply analysis. Partial equilibrium
models consider only one market at a time, ignoring
potential interactions across markets.
Partial equilibrium analysis examines the effects
of policy action only for one good at a time. Thus, it
might look at the effect of a price ceiling for luxury
automobiles without looking at the effect of that
automobile price ceiling on the demand for bicycles,
which would be analyzed separately.
 ECONOMICS AND BUSINESS
Economics: Economics is a social science that studies how
individuals, businesses, and societies allocate resources and make
decisions regarding the production, distribution, and consumption of
goods and services. It examines how individuals and organizations
interact in markets, how they respond to incentives, and how scarce
resources are managed to fulfill unlimited human wants and needs.

Business: Business refers to the activities involved in the

production, exchange, and distribution of goods and services in
order to earn a profit. It encompasses various functions such as
management, marketing, finance, operations, and entrepreneurship.
Businesses can be classified into different types, including sole
proprietorships, partnerships, corporations, and nonprofit
organizations, each with its own unique goals and legal structures.
 IMPORTANCE OF ECONOMICS AND BUSINESS

-Allocation of Resources: Economics provides frameworks and tools to

understand how resources, including natural, human, and financial capital,
should be allocated efficiently to maximize societal welfare and promote
sustainable development. It helps in optimizing resource allocation in
different sectors, thereby ensuring optimal utilization and minimizing waste.
-Economic Growth and Development: Economics plays a crucial role in
promoting economic growth and development at regional, national, and global
levels. By analyzing factors that influence economic growth, such as
investment, innovation, technology, and trade, economics guides policymakers
and businesses to make informed decisions that foster economic prosperity
and improve living standards
-Market Dynamics: Economics offers insights into market dynamics,
including the behavior of buyers and sellers, the impact of prices on demand
and supply, market competition, and market structures. Understanding these
dynamics is vital for businesses to devise effective marketing strategies,
pricing policies, and production plans to attract consumers, efficiently
allocate resources, and maximize profits.
Thank You!!!