APPLIED ECONOMICS MODULE
Sources: Applied Economics by Roman D. Leano Jr. and Applied Economics by DIWA
Prepared by: Ms. Jocel Rose B. Ngabit
INSTRUCTIONS: Read and analyze the following topics given below and provide
...
APPLIED ECONOMICS MODULE
Sources: Applied Economics by Roman D. Leano Jr. and Applied Economics by DIWA
Prepared by: Ms. Jocel Rose B. Ngabit
INSTRUCTIONS: Read and analyze the following topics given below and provide the
needed answer on the space provided.
Economics
- Came from the greek words, oikos which means household and nomus which
means management or oikonomus/oikonomia which means household
management.
- It is the study of how we make decisions in a world where resources are limited
- It is the social science that studies the human behaviour of people in the society
on how they make their choices
Basic terms in economics:
Needs - the things that we need for survival
Wants - the things that we would like to have
Scarcity – it is a commodity or service being in short supply
Goods – anything that yields satisfaction to someone
Economic Resources- inputs used in the production of goods and services
Importance of studying economics:
1. Economics analysis provides us with guidelines to wise action and behaviour
2. To prudently evaluate our choices before making a decision
3. To understand why there is a need to save and invest
4. To understand why government work hand-in-hand with the private sector
Applied Economics/Economics as an applied science
- It is the application of economics theories and models in real life. It consist of learning
how choices effect individual decision-making and how the availability of factors aid
decision workers craft sound judgment.
Concepts of studying economics:
A. Problems of scarcity
Limited Resources Unlimited wants and needs
ScarcityB. Economics
Limited Resources Unlimited wants and needs
Allocation
Questions:
1. What is your understanding about the two illustration above?
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2. Why do we need to study economics?
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Important Economic Terms:
Wealth – refers to anything that has a functional value which can be traded for goods and
services
Economic goods – cover goods, services, products and the like that have price and are
sold in a market
Exchange – this is the process of trading goods and/or services for money and/or its
equivalent.
Branches of Economics:
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