APPLIED ECONOMICS

--Ma’am Ade
ECONOMICS

• Economics is a social science that

focuses on the production,
distribution, and consumption of
goods and services, and analyzes the
choices that individuals,
businesses, governments, and nations
make to allocate resources.
SOCIAL SCIENCE

• The study of society and

how people behave
collectively and
influence around us.
• Deals with human
behavior and its social
and cultural aspects.
SCARCITY

• Is the condition of resource insufficiency

to satisfy all the needs and wants of a
population.
• specifically defined as the gap between
limited resources and unlimited wants.
ECONOMIC RESOURCES

• Also known as the factors of production,

are the basic inputs (foundation) used
in the production of goods and services.
FACTORS OF PRODUCTION

Land – natural Labor – human

resources resources

Capital - refers to
Entrepreneurship -
the tools,
combine the other
machinery, and other
factors
physical assets
THE LAW OF SUPPLY AND DEMAND

• It is a concept where the prices are

determined by the relationship
between the supply and demand.
SUPPLY

• It is the quantity of
goods or services that
suppliers are willing
to provide to
customers.
DEMAND

• It is the consumers
desire and
willingness to buy
a product or
services.
Macroeconomics
• Is a division of economics that is concerned
with the collective performance of the
national and global economies.
• It studies the economic system as a whole
rather than the individual economic units that
make up the whole economy.
Microeconomics

• Is concerned with the behavior of

individual entities in the economy such
as the consumer, producer, and resource
owner.
ECONOMIC SYSTEM

• Is the means through which society

determines the answers to the basic
economic problems of a nation.
• It is the system through which
decisions are made regarding the
production and distribution of goods
and the allocation of resources
available to society.
TRADITIONAL ECONOMY

• Is an economy wherein decisions are

based on traditions and practices upheld
over the years and passed on from
generation to generation.
COMMAND ECONOMY

• Is an authoritative system wherein

decision-making is centralized in the
government or a planning committee.
MARKET ECONOMY

• The most democratic economic system, is

where the workings of demand and supply
determine what goods and services to be
produced.
MIXED ECONOMY
• A combination type of economic system.
• It practices a mixture of traditional,
command, and market systems but with the
dominance of one.
GROSS NATIONAL
PRODUCT (GNP)
Is the market
value of final
products produced
by the resources
of the economy in
a given period.
GROSS DOMESTIC PRODUCT (GDP)

• Is the market value of final

products produced by domestic
resources.