INTRODUCTION TO APPLIED

ECONOMICS
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SEIPRENRTE
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ANDL
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BRLAO
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APITLCA
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 • Is a social science concerned with using
scarce resources to obtain the maximum of the

What is unlimited wants of society

• Is the study of production, distribution,

Economics
selling, and use of goods and services
• Is the study of how people use their limited
resources to try to satisfy unlimited wants
 ⚬ Scarcity refers to the fundamental economic problem where
resources are limited, while human wants and needs are
virtually limitless.

Is a condition where there are insufficient resources to

satisfy all the needs and wants of a population

⚬ Economic Resources the problem of having unlimited wants,

but limited resources to satisfy them

⚬ Natural Resources came from the nature that are used in

production, inluding land, raw materials, and natural process

Capital Resources the process materials, equipment, and

buildings used in production
 Human Resources the efforts of people involved in production,
including labour

Needs the essential of life, such as food and shelter

⚬ Wants desire for non essentials items

⚬ Relative Scarcity is when a good is scarce compared to its

demand

Absolute Scarcity is when supply is limited

Choice and decision making because of the presence of scarcity, there is

a need for ma to make decisions in choosing how to maximize the use of
the scarce resources to sa satisfy as many as want

⚬ Opportunity cost refers to the value of the best foregone

alternative
 ECONOMIC RESOURCES

LAND
Soil and natural resources that are found in nature and are
not manmade. Owners of lands receive payment know for
rent

LABOR
Physical and human effort exerted in production, It covers manual
workers like construction workers, machine operators and production
worker,, as well as proffessional like nurses, lawyers, and doctors

CAPITAL
Man-made resources used in the production of goods and services
which include machineries and equipment. The owner of capital earns
an income called interest
 2 branches of economics

Macroeconomics
Microeconomiscs