1 Eco with TLR

Introduction to Economics with TLRCOURSE DESCRIPTIONThisisanintroductorycoursetothestudyof Economics.Itpresentstheeconomic foundationofourpresentorderandemploys economicconcepts,principles,practices, applicationsandcurrentissuesoneconomic, agrarianreformandtaxationastoolsfor decisionmaking.Itencompassesthe developmentofbasiseconomictheories,the hilippineseconomicsystem,thetheorieson economic and product behavior as well as the economics of market competition.BASES OF THE STUDY OF ECONOMICS!orethanever,economicsis relevantbecauseitispartof everybody"slife#thepoor,therich, theyoungandtheold.$obodycan ignoretheimportantroleitplaysin our everyday life.!anisaneconomicbeing%hislife, his material well&being depends on it.ECONOMICSItisastudyoftheproper allocationande'cientuse ofscarceresourcesto produce commodities for the maximumsatisfactionof unlimitedhumanneedsand wants.NEEDSTheseareessentialfor humansurvivallikefood, clothing, and shelter.THREE KINDS OF NEEDS(asic needsEssentialneedsfor descent)comfortable living$eeds for luxury goodsWANTSThesearegoodsthatgive more satisfaction and make life morepleasantandworth living.Theyrefertoaperson"sdesire and preference to speci*c ways of satisfying a basic need.TWO KINDS OF WANTSublic wantsrivate wantsECONOMIZEhow to get the most out o wh!t we h!"e#CONSUMERSThese are the *nal users of theproducedgoodsand servicesforthe satisfactionoftheirneeds and wants.TO ECONOMIZE$%o&sume wh!t the' (es)*e !&( %!& !+o*(#PRODUCERSTheseusevariousresources inordertoproduce*nal goods and services.Theyhavetoproduce particulargoodsandservices thathavedemandfrom consumers.SI,NIFICANCE- AD.ANTA,ES OF ECONOMICSTHEORETICA/ AD.ANTA,ES0)&%*e!se )& 1&ow2e(ge0(e"e2o3)&g !&!2't)%!2 !tt)tu(eSI,NIFICANCE- AD.ANTA,ES OF ECONOMICSPRACTICA/ AD.ANTA,ES0s)g&)4%!&%e o* the %o&sume*s0s)g&)4%!&%e o* the 3*o(u%e*s0s)g&)4%!&%e o* 3o2)t)%)!&s0s)g&)4%!&%e o* wo*1e*s0s)g&)4%!&%e o* !%!(emes0s)g&)4%!&%e o* !(m)&)st*!to*s0e+e%t)"e m!&3owe* 32!&&)&g0he23u2 )& 45)&g 3*)%e0so2")&g ()st*)6ut)o& 3*o62ems+hat is the relationship between Economics and scarcity,-./R.IT0Itisthebasicandcentraleconomic problem confronting every society.Itistheheartofthestudyofeconomics and the reason behind its establishment.Itisacommodityorservicebeingin short supply, relative its demand12apur, 34456whichimpliesaconstant availabilityofacommodityoreconomic resourcerelativetothedemandfor them.-./R.IT0Insimpleterms,scarcitypertainsto thelimitedavailabilityofeconomic resourcesrelativetosociety"s unlimiteddemandforgoodsand services.Limited ResourcesUnlimited WantsScarcityP*o62em o S%!*%)t'To some, in means s!")&g money.To othe*s, it is s3e&()&g money for basic needs and luxurious items.Tohus6!&(s,itise!*&)&galiving for their family.Tohousew)"es,itimplies househo2(m!&!geme&tand 6u(get)&g.ToADAMSMITH17atherof Economics6, it is an in8uiry about the natureandcausesofwealthofthe nations.ToFE/ICIANOR7FA8ARDO,itisa sciencethatdealswiththe managementofscarceresources.It is also described as a scienti*c study onhowindividualsandthesociety generally make choices.ToCRISTOBA/M7PA,OSO!&( h)s %o0!utho*s, it is a discipline that concerns production, distribution and use of material goods and services.To TEOFISTA .I.AR9 et !27, it is thestudyoftheprinciplesand policieswhichdeterminethe volumeofoutputofgoodsand services,levelofemployment andincome,andthemannerin which the price system functions and income is distributed.Limited ResourcesUnlimited WantsAllocationECONOMICSThetwo9reekrootsofthe wordeconomicsareo)1os #meaninghouseho2(& and&omus#meaning s'stem o* m!&!geme&t7 Oikonomiao* oikonomustherefore means the m!&!geme&t o househo2(7#st!te m!&!geme&t#,OA/S OF ECONOMICSTo strengthen economic freedomromote economic e'ciencyromote economic stabilityTo improve economic security/ttainingahighlevelofgrowth in the economyECONOMICS AS RE/ATED TO OTHER SOCIA/ SCIENCESANTHROPO/O,YPO/ITICA/ SCIENCESOCIO/O,YPSYCHO/O,YHISTORYOthe* So%)!2 S%)e&%esANTHROPO/O,Y is a branch of sciencethatstudiesthe biological,psychological,social, andculturalaspectsofhuman life.Italsostudieseveryaspect of human society including social structure,aesthetic,language, and the system as well.Othe* So%)!2 S%)e&%esPO/ITICA/SCIENCEisasystematic studyofthestateandgovernment.It alsostudiesthemechanicsofthe distributionofpower,anditsprimary concernisto*ndouttherelationship betweentheauthorityandthe masses.Italsogivesinformationon themainroleortaskofpeople occupyingdi:erentpositionsinthe government.Othe* So%)!2 S%)e&%esSOCIO/O,Ystudiesthe society by means of analy;ing humangroups,institutions, anditssocialrelationships.It analy;esthesocialpatterns thatresultfromnumerous individual interactions. Othe* So%)!2 S%)e&%esPSYCHO/O,Yisthe scienti*cstudyofthe behavior and living organisms withspecialattentionto human behavior. It studies the societyfromtheviewpointof individuals and groups.Othe* So%)!2 S%)e&%esHISTORYisasocialscience thatfocusesonthestudyof past events.BRANCHES OF ECONOMICSMICROECONOMICSdeals withthebehaviorof individualcomponentssuch ashouseho2(94*m9and )&()")(u!2ow&e*o 3*o(u%t)o&7 BRANCHES OF ECONOMICSMACROECONOMICSdealswith thebehaviorofeconomyasa wholewiththeviewof understandingtheinteraction betweeneconomicaggregates suchasem32o'me&t, )&:!t)o&,and&!t)o&!2 )&%ome7METHODO/O,IES OF ECONOMICSpositivenormativeMETHODO/O,IES OF ECONOMICSPOSITI.EECONOMICSrelatesto what is. Itisaneconomicanalysisthat explainswhathappensinthe economyandwhy,withoutmaking anyrecommendationstoeconomic policy. Itdealswithhowtheeconomy works.METHODO/O,IES OF ECONOMICSNORMATI.EECONOMICSis concerned with what should be. Itisaneconomicstatementthat makesrecommendationsto economic policy. Itisusedtomake136 expansioninresourcesavailablefor producing goods and services is increasing% and 1?6 improved skills and technology