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APPLIED ECONOMICS MODULE

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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 giv... en 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? _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______ 2. Why do we need to study economics? _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______ 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: [Show More]

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