economics

PROPER ALLOCATION AND

EFFICIENT USE OF
AVAILABLE RESOURCES FOR
THE MAXIMUM
SATISFACTION OF HUMAN
WANTS.

THE NEED TO STUDY

economics
- it attempts to prepare students
to face a manifold of roles as
citizens of the country
- familiarize students on the facts
relating to Economics
- Understand on the use of
economics not only on your

THE NEED TO STUDY

economics
- foster awareness of the
relevance of the agricultural
sector to our economy because
we have a strong agricultural
sector
- importance of taxation in nation

NATURE OF
economics

- Economics is a science.
- A social science

Interdependent
with SOCIAL
other sciences.

1. Psychology
Science

4. Political

Economics has
more advantage
as a science.
Economic motives
of
.

humans may be more

regular and therefore
persistent and they can be
more predictable.

Economics has
more advantage
as a science.
There is more factual
.
information in the form of
statistics This gives
substantial basis for the
verification and formation
of alternative economic


Branches of
Economics
1.Macroeconomics deals with
the economic behavior of the
whole economy or its
aggregates.
2. MicroEconomics deals with
the economic behaviors of
individual.


Branches of
Economics
1. MacroEconomics
expenditure of the whole
banking industry, aggregate
consumers.
2. MicroEconomics
expenditure of BPI, individual
consumers


Branches of
Economics
However, what is true in
Microeconomics may not
be true in
Macroeconomics.


Approaches to
Economics
1.Positive Analysis /
Economics
2. Normative Analysis /
Economics


Positive
Economics /
Analysis

- strives to describe what exists

and how things work
- objective (without making
judgments)
Descriptive economics, which
involves the compilation of data
that describe phenomena and
facts.


Positive
Economics /
Analysis
Economic theory, which involves
building models of behavior.
An economic theory is a general
statement of cause and effect,
action and reaction.


Normative
Economics /
Analysis
-

looks at the outcome of

economic behaviour
through judgements and
prescriptions for cause of
action
simply add an expression of
opinion or value


Normative
Economics /
Analysis
- looks at the outcome of economic behaviour

through judgements and prescriptions for cause of action

simply add an expression of opinion or value
Also called policy economics, analyzes outcomes of
economic behavior, evaluates them as good or bad, and
may prescribe courses of action.


Divisions of
Economics
1.
2.
3.
4.
5.

Production
Distribution
Exchange
Consumption
Public Finance

Production

Refers to the process of

producing or creating
goods needed by
households to satisfy
their needs.

Production
INPUTS - Factors of
productions. What is used
in production.
OUTPUTS - End product.

DISTRIBUTION
Refers to the marketing
of goods and services to
different economic
outlets for allocation to
individual consumers.

EXCHANGE
Process of transferring goods
and services to a person or a
person in return for something.
Medium of exchange is money
We exchange our money with
goods and services.

CONSUMPTION
Proper utilization of economic
goods. However they cannot be
utilized unless you pay for it.
We can also say that
consumptions is spending
money for goods and services in
order to yield direct satisfaction.

Public finance
Activities of the government regarding
taxation, borrowings and expenditures.
Deals with the efficient use and fair
distribution of public resources in order to
achieve maximum social benefits.
This means government programs and
projects which are funded by taxes and
loans are properly implemented and
managed to generate maximum benefits
for all members of the society.