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ECONOMICS: DEFINED
Technique of Production
Why economic problems arise:
Human beings have many wants that
can be satisfied only at the sacrifice of
other wants or resources
There is a price for obtaining or
satisfying those wants: giving up some
other resource
X √
Developed Low-income
Terms of
Underdeveloped development Middle-income
Backward High-income
√
Review of commonly-used terms:
Basic needs – required for survival
Luxury goods – goods that man can do
without
Economic resources – inputs used in
production of goods and services
Land – natural resources, not man-
made; including forests, minerals and
animals
Review of commonly-used terms:
Labor – human effort expended in
production
Capital – materials used in the
production of goods and services,
including money
Variable – a factor subject to change of
variations
Review of commonly-used terms:
Macroeconomics – the branch of
economics that studies the economy as
a whole, aka National income analysis
Microeconomics – the branch of
economics that deals with parts of the
economy such as the household and
the business firm, aka the Price theory
References:
Gerardo Sicat, The Nature of Economics, Economics,
National Bookstore
Pagoso, Cruz, Naybe, Why Study Economics,
Philippine Economics (Micro Approach), Nelson
Publication