MODULE 1

• economics came from oikanomia or oikonomus, a Greek word meaning household management
• economics - is the study of what constitutes rational human behavior in the endeavor to fulfill needs and wants or the study that attempts to explain how an economy operates and how the consumer attempts to maximize his/her wants within limited needs (Leaño Jr., 2016).
• economics - It studies how people use scarce resources to satisfy their unlimited wants (McEachern & Burrow, 2017)
• economics - It is the efficient allocation of scarce means of production toward satisfying human needs and wants and the science that deals with managing scarce resources (Viray Jr. & Avila-Bato, 2018).
• Efficiency. It is the productivity and proper allocation of economic resources and the relationship between scarce factor input and output of goods and services.
• Effectiveness. It is the attainment of goals and objectives.
• Equity. It refers to justice and fairness
• Social Science - is the study or discipline that aims to explain human behavior. Economics, like social science, uses the scientific method in formulating models based on theories to help address arising issues because of human interactions
• Economics - is a social science because it studies human behavior and how people make decisions to satisfy their unlimited wants by allocating limited resources (Dinio & Villasis, 2017)
• Macroeconomics - It is the study of the economic behavior of the economy as a whole, especially the national economy. It focuses on the aggregate flow of goods and resources
• Macroeconomics - it is known as the analysis of employment and income
• Microeconomics - It is the study of economic behavior in particular markets, such as the market for computers or unskilled labor. It focuses on the economic behavior of people and businesses, deciding what to buy and sell, how much to work and play, and how much to borrow and save.
• Microeconomics - It focuses on the behavior of individual entities – the consumer, the producer, and the resource owner. It is also more focused on how products move from the business to the customer and how resources flow from the resource owner to the business.
• Microeconomics - It is known as the Price Theory – concerned with the process of setting prices of goods
• Consumption. It is a problem that people have to deal with in their day-to-day activities. Having their individual wants, people decide the types of products and services they want to use or consume and the corresponding amount that they should use and buy
• . Production. Producers are generally concerned about the production of goods and services. They determine the consumers' needs, wants, and demands and also decide how to distribute their resources to meet customer demands
• Distribution. The government primarily addresses it. There must be an appropriate allocation of all resources benefiting all members of society.
• Growth over Time. As societies grow in number, they continue to live on. The problems of choice, consumption, production, and distribution must be perceived in the context of how they will affect future events.
• Logic - is a science that deals with sound thinking and reasoning. Facts and evidence should be provided; otherwise, uncertainty will cloud the logic. One could come up with a conclusion with a wise application of logic.
• Mathematics - is a science that deals with numbers and operations
• Statistics - is a branch of mathematics that engages with the analysis and interpretation of numerical data.
• Economic/production - resources are the resources or inputs used to produce the goods and services that people want.
• Land - is categorized as fixed resources – finite, exhaustible, and depletable. It is all that nature freely provides. Rent serves as payment to landowners.
• Labor - is the exerted effort of individuals when producing goods and services.
• According to Leaño, Jr. (2016), labor is also known as human resources.
• Human capital - comprises all able-bodied people capable of working in the nation's economy and offering other individuals or businesses different services.
• Capital - is the man-made goods (resources) used when producing other goods and services. It is a form of an asset used mainly as a medium of exchange
• Monetary resources - move a nation's economy as people purchase and sell resources to people and businesses.
• Savings - is part of the person or economy's income, not spent on consumption
• Entrepreneurship - is an economic activity that might earn the entrepreneur a profit or incur a loss
• Foreign Exchange - is the dollar and the dollar reserves that the economy has
• Scarcity - is a condition facing all societies because insufficient productive resources satisfy people's unlimited wants (McEachern & Burrow, 2017).
• Opportunity cost - is the value of the best-foregone alternative or what is given up when one chooses (Viray Jr. & Avila-Bato, 2018).
• Positive Economics - is an economic analysis that considers economic conditions 'as they are' or considers economics 'as it is'
• Normative Economics - is an economic analysis that judges economic conditions 'as these should be'. It also focuses on policymaking to achieve the ideal situation (Dinio & Villasis, 2017).
• Ceteris Paribus - a Greek term meaning all other things held constant or all else equal, is an assumption used in analyzing the relationship between two variables as the other factors are unchanged.
• Applied Science - deals with applying 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
• Applied Economics - is the application of economic theory and econometrics in specific settings to analyze potential outcomes
• Economic Theory (Economic Model) - simplifies economic reality used to make predictions about the real world (McEachern & Burrow, 2017).