applied economics 1

• 1. Efficiency. It is the productivity and proper allocation of economic resources and the relationship between scarce factor input and output of goods and services.
• 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. Such models and theories aim to explain the behavior of people, groups, and organizations.
• 1. Macroeconomics

  It is the study of the economic behavior of the economy as a whole, especially the national economy.
• 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.
• 1. Distribution. The government primarily addresses it. There must be an appropriate allocation of all resources benefiting all members of society.
• 1. 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.
• 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.
• 1. 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. It helps economists answer concrete problems involving numbers. To arrive at a conclusion, mathematical equations and operations are used.
• 1. Statistics is a branch of mathematics that engages with the analysis and interpretation of numerical data. The method of gathering, tabulating, and analyzing data leads to the validity of specific hypotheses. Someone may be able to accept or dismiss (reject) an assumption made on a particular phenomenon.
• 1. 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. It covers a wide variety of abilities, characteristics, and skills. In a nation, the labor supply depends on its population's growth and the percentage of the population willing to join the labor force. Salary or wage is given to an individual in exchange for the rendered labor.
• 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. Interest is the income that the owner of the capital is earning. Capital signifies the monetary resources businesses use to buy natural resources, land, and other capital goods.
• Entrepreneurship is an economic activity that might earn the entrepreneur a profit or incur a loss. An entrepreneur is an individual that organizes, manages, and assumes business risks, develops a new product or idea, and turns it into a successful business.
• 1. Foreign Exchange is the dollar and the dollar reserves that the economy has. We use foreign currency, mainly dollars, for international trade and the procurement of raw materials from other nations.

   
• Scarcity is a condition facing all societies because insufficient productive resources satisfy people's unlimited wants (McEachern & Burrow, 2017). It is a condition where there are insufficient resources to satisfy a population's needs and wants.
• Opportunity cost is the value of the best-foregone alternative or what is given up when one chooses
• Positive Economics is an economic analysis that considers economic conditions 'as they are' or considers economics 'as it is'. Objective and scientific explanations are used in the study of different transactions in the economy.
• 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. I
• 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
• Econometrics is the application of statistical and mathematical theories to economics for testing hypotheses and future forecasting trends
• Economic System is the set of mechanisms and institutions that resolve questions of what, how, and for whom. It is how society responds to basic economic questions.
• Pure Command Economy is an economic system in which all resources are government-owned, and the central plans of the government direct all production.
• Mixed Economy is an economic system that mixes central planning with competitive markets. It is a mix of a rather free economy, such as a market combined with a planned economy, and avoiding the issues with capitalism and socialist economies
• 1. Transitional Economy is an economic system in the process of shifting from central planning to competitive markets.
• he demand is a relation showing the quantities of a good that consumers are willing and able to buy per period at various prices, other things held constant (ceteris paribus).
• The market demand is the sum of the individual demands of all consumers in the market.
• A demand schedule is a table showing the relationship between prices and the specific quantities demanded at each.
• A demand curve is a curve or line showing the quantities of a particular good demanded at various prices during a given period, other things constant.
• The market demand curve is the sum of the individual demand curves for all consumers in the market.
• The Law of Demand states that the quantity of demanded products per period relates inversely to their price, other things constant (ceteris paribus).
• The substitution effect is felt when a product’s price changes demand due to people buying and consuming other substitute goods.
• he income effect is felt when a product’s price changes a consumer’s real income or purchasing power (the capacity to buy within a given income).
• A supply curve is a curve or line showing the quantities of a particular good supplied at various prices during a given period and other things held constant.
• The market supply curve shows the total quantities of all producers at various prices.
• The Law of Supply states that the quantity of product supplied during a period is usually directly related to its price, other things constant (ceteris paribus).