Applied Econ Lesson2
Applied Econ Lesson2
Applied Econ Lesson2
ECONOMI
CS
LET US RECAP
THE PREVIOUS
LESSON
1. Why is Economics
regarded as Social
Science?
2. Why is Economics
regarded as Applied
Science?
MOST • Examine the utility
ESSENTIAL and application of
LEARNING applied economics to
COMPETENCY solve economic issues
and problems
4 PICS
1WOR
D
L A
____N D
_ _ABOR
L ___
CAPITA
______
L
FOLLOW- • What did you notice
about the
UP pictures/words?
QUESTION • Are they related to
S: Economics? How?
ECONOMIC
RESOURCES
INTRODUCTION
• The matter of scarcity is a central
economic problem in all
countries without exception. This
issue arises since all resources
are limited and have different
uses. The economic dilemma
would most likely not exist if
resources were unlimited.
ECONOMIC
RESOURCES
•Economic resources, also
called factors of
production, are the
resources used to produce
goods and services.
Land
FIVE
Labor
ECONOMI
C Capital
RESOURC Entrepreneur
ES Foreign rate
LAND
• Soil and natural resources that
are found in nature and are not
man-made.
• These resources consist of gifts of
nature which include:
• Soil
• Rivers
• Lakes, oceans
• Forests
• Mountains
• Mineral resources
• Physical and human effort
R
efforts, be it mental or
physical, that help to
produce satisfying goods
and services.
• EXAMPLE (next page)
LABOR
It covers manual workers like, Construction workers, Machine
operators, and Production workers
E? • For example:
-A variety of ways can be used to create a product.
For example, a pandesal. It can be made by kneading
the dough using your hands or by using machine.
But using machine demands more capital asset that
using hands.
• Ask this: can a civilization satisfy all human
desires? The answer…
-Definitely not.
FOR • As a result, it must determine who
IC MARKET ECONOMY
SYSTEMS MIXED ECONOMY
Traditional Economy
• Economy is shaped largely by custom or religion.
• Traditional economies rely on agriculture and
hunting, gathering, or a combination of these
activities. Instead than using money, they use
barter.
• Emerging markets and developing countries are home
to the majority of traditional economies.
Command Economy
• This is a centralized decision-making system in which
the government or a planning committee makes
decisions.
• One person or a group of officials decide WHAT
products are needed. HOW are they produce and FOR
WHOM.
• This economics applies to authoritarian and communist
countries alike.
Market Economy
• This is the most democratic economic system available.
• NO government involvement in economic decisions. Private
firms account for all production.
• Consumers decide WHAT should be produced. They do this
through the purchases they make.
• Businesses determine HOW the products will be produced.
• The people who has more money are the one WHO buys the
product.
Mixed Economy
• A mixed economy is a system that blends market,
command, and traditional economic elements.
• It is by combining traditional, state-run, and private
enterprises.
• Need government intervention – create laws
protecting property rights and enforcing contracts
• Most economies in the world today are mixed.
Reflection Time!
• 1. Cite one (1) situation
where you may have given
up an opportunity in your
life over another
opportunity. State the
reason why you gave up
such choice and choose
the other.
END OF
DISCUSSI
ON