THE CENTRAL CONCEPT OF ECONOMICS

We studied the definition of economics and the related words to the key
terms used in its definition. We defined economics as a social science that deals
with the efficient allocation of scarce resources to satisfy mans unlimited wants
and needs.

SCARCITY-requires a great need for economics to be studies by

everyone. The choices we make on the use of our scarce resources largely
determine what needs and wants we would be satisfying and how much
satisfaction would we get.

It is claimed that the world is getting smaller, bringing about the so called
global village. Places which used to be remote and very inaccessible have
become like our own neighbourhood due to dynamic and interactive
communications and transactions unrestricted by distance, brought about by
better communication technologies (e.g. fax,24-hour deliveries, mobile and
cellular phones, internet, intranet, satellite-aided communication, etc.).

Human Population through History

(1 A.D. to 2020)

Approximate Time Approximate Human Approximate Number of

Period Population at this Time People Added to the
Population from the Last
Time Period

1 A.D. 150 Million ---

1350 300 Million 150 Million

1700 600 Million 300 Million

1800 900 Million 600 Million

1900 1.6 Billion 700 Million

1950 2.4 Billion 800 Million

1985 5 Billion 2.6 Billion

2020 8 Billion 3 Billion

 This table clearly indicates and simplifies the problem facing all of us
today that of an exponentially growing world population, in a single living and
liveable planet. The question remains: Where do we get the resources to sustain
all these people?

The reality of the matter is that population keeps growing as do human

wants and needs and yet, resources remain limited. How then do we reconcile
something limited with something unlimited? Consider the simple diagram below
to better appreciate scarcity.

Wants Wants Wants Wants Wants

& & & & &
Needs Needs Needs Needs Needs

In In In In In

1 A.D. 1985 2050 20XX 21XX

- supposed that this square represents all resources that planet Earth can
offer.

-suppose that these rectangles represent the amount of resources being

demanded by people in the planet in a given time period.

This diagram may not be realistic, but it points out fact that resources are
scarce, and that needs and wants continues to grow (even if population should
stop growing, as in some countries). There is only a limited amount of resources
that could be offered at this time, while human wants and needs continue to
grow.
Scarcity as an issue does not only pertain to resources that are used to
produce goods and services. It also pertains to other various resources, such as
financial resources (capital) in a business enterprise, the aim of which is to
maximize its resources to make profit. It may also pertain to the daily; weekly or
monthly limited allowances and budgets of students.

Scarcity remains to be a fact of everyday life, making economics a

necessary body of knowledge that everybody should be able to learn. This is why
there is a need to economize whatever resource we have.
 MANAGING SCARCITY

Scarce Key Use(s) of this Substitute Alternative

Resource That Scarce Resource Resource(s) Measures to
Need to be that May be Better Manage
Managed Used the Resource
1) Fossil a) Transportation a) Biogas a) Energy
Fuels b) Manufacturing b) Solar saving
( crude oil, plants energy devices
coal) c) Electric power c) Wind (Power
power Booster)
b) Daylight
saving
time(DST)
c) Energy-
saving
practices
(putting off
lights when
not
needed)

This kind of thing and activities help reduce shortage or SCARCITY.

 SURIGAO DEL SUR STATE UNIVERSITY
Tagbina Campus
Tagbina, Surigao Del Sur

COLLEGE OF AGRICULTURAL SCIENCES AND TECHNOLOGY

THE CENTRAL CONCEPT OF ECONOMICS

Compilation Requirements in

Econ.1

Members:

Bosque, Kate Marbie J.

Veras, Glorialyn P.
BAT 3B

Submitted to:

October 2017