Economics-from Greek word Production Possibilities Curve-shows
oikonomia (oikos and nemein ), the various possible combinations of
means management of household two goods that the economy can Inductive- specific to general produce given a limited amount of Deductive- general to specific resources and a certain level of 1. Bernardo M. Villegas-human technology and nonhuman resources The Scope of Economics 2. Tereso S. Tullao Jr.-study of Description-definition or meaning scarce resources Analysis-evaluation (why/how) 3. Gerardo P. Sicat-study of Explanation-explain the findings if it is opportunities and obstacles good or bad 4. Roger Le Roy Miller-how to use Prediction-predicting outcomes limited resources The Concerns of Economics 5. Thomas J. Hailstones- What to Produce- producers must production, distribution and know what the people need consumption of goods and How to Produce-process of services production 6. Paul Wonnacott and Ronald Labor-intensive-if society has a Wonnacott-how people make surplus of supply of manpower their living, how they acquire Capital-intensive-if society is rich in material necessities(food, shelter resources and clothes) How Much to Produce-producers 7. Alfred Marshall-business of life must know the amount they should Scarcity-human needs are unlimited produce to avoid wasting resources and resources are limited For Whom to Produce-for consumers Relative Scarcity-one may lack some on the market (rich and poor) resources but could have plenty of How to Produce More Over Time- the others process on how to produce more and The Economic Problem of Choice improve the product to sustain the Trade-off-the alternatives chosen for needs and wants of people a particular use of a resource Economics and Other Disciplines Opportunity Cost- the next/second Economics uses: Mathematics— best alternative use of a resource arithmetic, statistics, geometry and Allocation-the process of choosing algebra(quantitative) among competing ends Principles of philosophy, logic and Alfred Marshall-father of theology—in making logical, moral microeconomics and socially acceptable decisions Politics-government to formulate programs, policies and laws History-to avoid repeating the mistakes of the past Chemistry, physics and biology-for discoveries and inventions (scientific method) The Importance of Studying Economics -people acquire proper skills and knowledge on how to deal with scarcity -helps people understand the functions of economy and their roles in the wealth-creating process -provides people with countless opportunities to make their lives better -broadens the people’s perspective of the society -importance of caring for the environment Divisions of Economics Microeconomics-economic behavior and decisions made by small units of the economy Macroeconomics-activities and decisions made by large economic units John Maynard Keynes- father of macroeconomics; The General Theory of Employment, Interest and money (1936) –Keynesian economics