Rommelyn Joy Bautista

BSIT 3A
1. Site an example on how you can used economics in
real life situation.

-Budget Constraints
The first lesson of economics is the issue of scarcity. We may
have unlimited desires, but resources are limited. We need to use
our budget / resources carefully. We can only spend the money we
have.

2. Relate economics to others social science .

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Antropology

Economics is beneficial for anthropology because it explains the logical

principles that underlie all human society. For example, economics tells us
that labour in co-operation is more productive than labour in isolation. This
basic fact of economics explains the reason why humans form themselves
into societies. If they didn't get any benefit out of it, at the margins of
subsistence, over many long ages, the people who were more social would
have died out out, and the people who were less social would have
prospered. The reason we didn't evolve to be a solitary species like the snow
leopard, but a very highly social species, with the highest degree of division
of labour of any species, and the highest level of material wealth, is
explained by economics.
-

Political Science

Political science and economics are social sciences. Political science is the
study of politics intheory and practice, while economics is the study of how
resources are produced, allocated, and distributed. As well as dealing with
subjects that often relate to one another in everyday life, the two are
commonly seen as sister subjects in academic terms.

- Psychology
Economics is a science which is constantly progressing and interacting
with other sciences. Studies in the economics literature discuss how
people display a behavior in the economic decision- making progress.
Psychology is a science which explains behavior of people and it
cannot be ignored that psychology has a profound effect on
economics. Human psychology and behaviors show complex

structures, stereotyping people as indicating homogeneous behavior is

criticized by many academics and researchers. In this study, it is
examined how human psychology guides people when they make
economic decisions and the purpose of this research is to analyze how
the relationship between economics and psychology has progressed
and to explain behavioral economics in this framework.
-

History

3. Define and explain the methodologies of

economics give an example each.
Economic methodology is the study of methods, especially the scientific
method, in relation to economics, including principles underlying economic
reasoning.[1] In contemporary English, 'methodology' may reference
theoretical or systematic aspects of a method (or several
methods). Philosophy and economics also takes up methodology at the
intersection of the two subjects.

4.Define the following:

-Classical Economics
School of economics thought which stresses that economies function most
efficiency if everyone is allowed to purse his or her self interest in an environment
of free and open completion

-Keynesian Economics
Keynes advocated increased government expenditures and lower taxes to
stimulate demand and pull the global economy out of the Depression.
Subsequently, the term Keynesian economics was used to refer to the
concept that optimal economic performance could be achieved and
economic slumps prevented by influencing aggregate demand through
activist stabilization and economic intervention policies by the
government

-Monetarian Economics
that provides a framework for analyzing money in its functions as a medium of
exchange, store of value, and unit of account. It considers how money, for

example fiat currency, can gain acceptance purely because of its convenience as
a public good.[] It examines the effects of monetary systems, including regulation of
money and associated financial institutions[2] and international aspects.[3]
-New

classical Economics

It is characterized by an extreme form of monetarism which argues that

demand management intervention by government is ineffective even in the
short run, and instead advocates far reaching tax cuts