Reaction Paper

Topic: Personal/Social Choice, Scarcity and

Economic Problems

BATANGAS CITY

In Partial Fulfillment of the Requirement for the Degree of

MASTER IN BUSINESS ADMINISTRATION

By:

May 2018
 This has reference to the oral presentation/report we presented at Graduate School in

Batangas State University Main Campus and was held February 10, 2018. The said report covered

an overview of our course which is Economic Theories and Policies and its components. The

course is targeted to our classmates and also to give us all some knowledge when it comes to

economics and its components. It aims to enable each of us to learn, to share and tackle different

factors and issues with regards to economics. The first chapter was discussed by yours truly and

with my co-members. Each of us has our own part to explain and discuss further. My topic is about

personal/social choice. How it affects/how economists can consider it for studying economic

standing or behavior of consumers. It also includes the types of economics which are classified as

the ‘Microeconomic’ and Macroeconomic’. As I mention the word economics, each of us has our

own understanding of what economics stands for or what is really economics means.

Microeconomics is a part of economics which is concerned with the single factors and the effects

of individual decisions. So, my topic which is personal/social choice is under microeconomics.

Because decisions made by individuals can be considered as a single factor. Subgroups such as

buyers, sellers and business owners are individual actors in microeconomics. When it comes to

individual choice, there are different principles under it. All societies face the problem of scarcity

and hence have to make decisions like a household does. A society has to decide what and how

much to produce, how to produce and for whom to produce. Such choices usually take the form of

more of one thing and less of another, rather than all of one and none of another. Most goods can

be produced

by a variety of methods. A society must decide on the methods of production to be adopted because

resources are scarce, the real cost of something is what you must give
up to get it and people usually take advantage of opportunities to make themselves better off.

Individual/social choices are necessary because it is a theoretical framework for analyzing

economic issues. While the contrasts of microeconomics are what we called ‘Macroeconomics’.

What is macroeconomics? This is a part of economics concerned with large scale or general

economic factors such as interests’ rates and national productivity. Under macroeconomics is

inflation, unemployment rate and GDP (Gross Domestic Product). So, are we ready to do

economics? Not yet- because most of the interesting things that happen in the economy are the

result not merely of individual choices but of the way in which individual choices interact.