AE - SOCIAL SCIENCE

• Seeks to understand how choices are made. It is considered a social science that seeks to study humans with empirical tools.
• Scarcity (KAKAPUSAN) means limitedness, which is used in the context of natural resources, that can be reproduced but are still scarce as at a given point in time, the availability is limited.
• Scarcity - The limited availability of a resource, good, or service
• A resource is scarce when quantity is limited relative to the demand for it.
• Choice - Because there is scarcity, people must choose which want to satisfy first.
• Choice - People decide how to allocate their limited resources.
• Utility - The satisfaction or usefulness of the consumption of a good can bring
• utility - One of the considerations when making decisions.
• utility - People make decisions based on their maximum utility.
• WHAT TO PRODUCE - This question asks about the availability of resources, the physical environment, and the culture of the people.
• FOR WHOM TO PRODUCE? 


  This question asks about the distribution of the products or services and the income differences of the people in the market.
• HOW TO PRODUCE - This question asks about the resources to be used, how much labor is necessary (what type of labor?), and the proper combination of the two.
• Tradeoff - Involves a sacrifice that must be made to get a certain product or experience.
• Opportunity Cost - The value of the next best alternative.
• Opportunity Cost - What we give up by choosing something else
• Opportunity Cost - Includes the monetary costs, time, and effort.
• Production Possibility Frontier (PPF) Sometimes called a production possibilities curve
• The PPF Diagram models scarcity, choice, and opportunity cost.
• Microeconomics Subset of economics that focuses on the decisions of smaller agents. It is the field of economics that looks at the economic behaviors of individuals, households, and companies.
• Macroeconomics Subset of economics that focuses on aggregates and groups of agents. This takes a wider view and looks at the economies on a much larger scale— regional, national, continental, or even global.