Applied Economics

• Scarcity - Unsufficient resources to satisfy all the needs and wants of population
• Economics - comes from the geek work 'oikonomia' which means household management.
• Economics as Social Science - Study of society and how people behave and influence the world around them.
• Economics - studies how to make choices in allocating scarce resources to satisfy their unlimited wants.
• Trade Offs - Consist of all the options that we give up when you make a choice.
• Opportunity Cost - is the highest valued alternative that must be sacrificed to get something else.
• Macroeconomics - Concern about overall performance of the country.
• Microeconomics - Individual behavior of individual entities such as the consumer, the producer, and the resourcer owner.
• Economic System - is the means through which society determine the answers to the basic economic problems mentioned.
• Traditional Economy -Based on traditions and practices upheld over the years and passed from generation to generation.
• Command Economy - only the government have the authority to decide.
• Command economy - systems wherein decisions-making is centralized in the government.
• Market economy - Based on the workings of demand an supply, decisions are made on what goods and services to produce.
• Labor - it refers to the physical and human effort exerted in production.
• land - the soil and natural resources that are found in nature and are not man-made.
• Owners of lands receive payment knows as Rent.
• Normative economics - Refers to what should be, that which embodies the ideal such as the ideal rate of population growth or the most effective tax system.
• Positive Economics - Things that are actually happenng such as the current inflation rate, the number of employed labors, and the level of the gross national product.
• Capital - Man-made resources are used in the productionof goods and services, which include machinery and equipment.
• Demand - willingness of a consumer to buy a commodity at given price.
• Price - Is what buyer pays to a unit at specific good or service.
• Quantity Demand - a total number of units purchase at that price.
• Demand Schedule - It depicts the different quantities the consumer is willing to buy at numerous prices.
• Law of demand states that other things being equal, if there is an increase in price, quantity demanded will decrease.
• Ceteris Paribus - Law of Demand - Meaning all other things being constant.
• Ceteris Paribus - Law of Demand - The higher the price, the consumer will demand a lower quantity of goods.

  The low price of good influence the consumer to buy more.
• Supply - The total value of a good or service that is available for customer.
• Supply Function - QS = 100 + 5P
• Law of supply - A price increase, the quantity of supplies increase.
• Market Function - In addition to the aforementioned roles of the market, The market has also function.
• Applied Science - is the discipline dealing with the application of scientific knowledge to problems to develop practical solutions.
• Applied Economics - is the study of economics relative to real-life situations by observing how theories work in practice. ( Viray Jr, and Avila Bato, 2018)
• Economic Theory - is a simplication of economic reality used to make predictions about the real world (Mceachern and burrow, 2017)
• Econometrics - Is the application of statistical and mathematical theories to economics for testing hypotheses and future forecasting trends.
• APPLIED ECONOMICS APPLICATION - It is a powerful tool that allows the real and full picture to unfold so that from the current position, it becomes possible to determine what to do and where to go.