MODULE 1 - 1.1

• Social science is one field of study that relates to human behavior and society
• Economics was derived from the Greek word "Oikonomos" which means the management of household affairs
• Economics is a social science concerned
• Economics is the study of scarcity and choice
• Scarcity means that there is a finite amount of a good or service (Basically they are limited)
• Goods are tangible items, or products. Services are intangible items.
• Microeconomics

  is the study of small economic units, how individuals, households, and firms
• Macroeconomics

  is the study of the large economy as a whole or in its basic subdivisions
• Scarcity

  →          is the condition in which our wants for goods are greater than the limited resources available to satisfy those wants.
• What are the effects of SCARCITY?

  Choices, Needs for rationing device, and competition
• what are the different economic activities?

  production and distribution
• Production

  is the process of creating goods and services, and the conversion of raw materials
• Distribution

  is the process to allocate or to apportion the different fruits of production to the owners
• What are the factors of production?

  Land or natural resources (renewable and non renewable), labor or human resource, capital, and entrepreneur
• Land or natural resources Which are products used in the production of goods and services, come from the earth.
• Renewable resources

  are resources that can be replenished
• Non-renewable resources

  are resources that cannot be replaced such as coal
• labor or human resource is the physical and mental talents people contribute to the production process
• capital is the term used for the items that are used to create a good or service, the produced goods that can be used as inputs for further production
• entrepreneur The talent that some people have for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things
• fruits of production refers to those benefits received by the owners of the different factors of production every time
• →          Exchange is the delivery of the finished goods from the producer to the end user.
• Consumption refers to the utilization of goods purchased by the buyer to satisfy his demand.
• →          Public finance is the management of the nation's monetary or financial resources by the government.
• what are the classifications of products?

  GOODS

  SERVICES

  CONSUMER GOODS

  CAPITAL GOODS

  LUXURY PRODUCTS

  BASIC PRODUCTS

  ECONOMIC GOODS

  NON-ECONOMIC GOODS

  PUBLIC GOODS

  PRIVATE GOODS
• what are the type of sectors of the economy?

  consumers

  producers

  government

  international market
• Consumers

  →          Individuals who purchase and use the finished products.
• Producers

  →          Manufacturers and sellers of finished products
• Government

  →          Regulates the actions of consumers and producers.
• International Market

  →          Buyer of excess products and seller of limited products
• what are the basic economic problems?

  Poverty

  Unemployment

  →          Frictional Unemployment

  →          Seasonal Unemployment

  →          Structural Unemployment

  →          Cyclical Unemployment

  Population High Growth Rate

  High Cost of Education

  High Cost of Health Care Services

  High Dependence on Remittances

  Graft And Corruption
• POVERTY

  A situation where the people encounter difficulty in satisfying their basic needs on a regular basis.
• Unemployment is a condition where people, physically and mentally qualified, and are willing to work
• what are the four sources or causes of unemployment?

   FRICTIONAL UNEMPLOYMENT

  SEASONAL UNEMPLOYMENT

  STRUCTURAL UNEMPLOYMENT 

  CYCLICAL UNEMPLYMENT
• Frictional unemployment Is the unemployment that arises from normal labor turnover-from people entering and leaving the labor force
• seasonal unemployment This is due to the seasonal changes in the demand for certain kinds of labor.
• structural unemplyment is the unemployment that arises when changes in technology or international competition change the skills needed to perform jobs
• cyclical unemployment The higher-than-normal unemployment at a business cycle trough and the lower than normal unemployment at a business cycle peak.
• POPULATION HIGH GROWTH RATE

  The rate of growth in population is higher than the set rate by the government.
• HIGH COST OF EDUCATION

  →          It is related to the total expenses incurred in earning a degree wherein the cost is beyond the income level capacity of the family.