apecon

• Economics


  Effective management of scarce resources to satisfy unlimited human wants and needs
• Social science


  Study of human behavior and society
• Societies produce, distribute, and consume products
• Produce


  • Farmers
  • Zalora
• Distribute


  • Middleman
  • Shopee
• Consumer


  • People
  • Fashionable People
• Why we study Applied Economics: Society is based on interdependence among people, Interconnection is the movement of goods and service in relation to the needs and wants of people
• Scarcity


  A condition where there are insufficient resources to satisfy all the needs and wants of a population
• Types of scarcity


  • Relative scarcity
  • Absolute scarcity
• Needs


  Things that are desired which are essential for human survival
• Wants


  Things that are desired but are not essential
• Economic resources and factors of production

  • Land
  • Labor
  • Capital
  • Entrepreneurship
• Land


  All natural resources that exist without man's intervention, Payment for land is called rent
• Labor


  Human inputs such as manpower, skills that are used in transforming resources into different products that meet our need, Payment for labor is called wages and salaries
• Capital


  Man-made factor of production used to create another product, Payment for capital is interest
• Opportunity cost


  The cost of giving up an alternative by selecting the second-best choice
• Applied economics


  The study of economics in relation to real life situations
• Malthus proposed a principle that population growth proceeds at an exponential or geometric rate while food production increases at an arithmetical rate
• Increase in the price of fuel: it increases the price of transportation thus impacts the consumers, impacts businesses, higher cost of logistics means higher cost of product/services = inflation, leads to economic slow down, unemployment
• China's GDP problem - manufacturers are moving out of china due to low labor cost, government support, china strong technology sector, unreliable government, rising labor cost, geopolitics, copyright issue
• Major Companies that are moving away from China

  • Intel
  • Microsoft
  • Nike
  • Dell
• In countries like Japan and Europe, there are more old people than young people. Philippines needs to build more classrooms, while schools in Japan are closing down
• Deaths have outplaced births in Japan for more than a decade, Japan has now a ballooning elderly population and a shrinking workforce
• Japanese government's effort to solve the population crisis: Double spending on childcare over the next seven (7) years, Raise cash payouts to families with children and provide homes for eligible parents
• Demand

  Indicates how much of a product consumers are both willing and able to buy at each price during a given time period