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    Revisiting Economics As A Social Science

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    Seung Batumbakal
    This document discusses economics as a social science that uses scientific methods to study how scarce resources are allocated to meet unlimited human wants. It defines the basic economic problem of matching limited resources to unlimited wants. Resources are limited both in physical quantity and use. The four factors of production are land, labor, capital, and entrepreneurship. Economics is related to other social sciences that study different dimensions of society, such as political science, sociology, anthropology, and psychology. Applied economics involves understanding the concepts of choice and opportunity cost. The basic economic problems are what, how, and for whom to produce goods and services. Markets are where buyers and sellers exchange goods and services. Demand is affected by consumer behavior while supply is affected

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    Revisiting Economics As A Social Science

    Uploaded by

    Seung Batumbakal
    36 views4 pages
    This document discusses economics as a social science that uses scientific methods to study how scarce resources are allocated to meet unlimited human wants. It defines the basic economic problem of matching limited resources to unlimited wants. Resources are limited both in physical quantity and use. The four factors of production are land, labor, capital, and entrepreneurship. Economics is related to other social sciences that study different dimensions of society, such as political science, sociology, anthropology, and psychology. Applied economics involves understanding the concepts of choice and opportunity cost. The basic economic problems are what, how, and for whom to produce goods and services. Markets are where buyers and sellers exchange goods and services. Demand is affected by consumer behavior while supply is affected

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    This document discusses economics as a social science that uses scientific methods to study how scarce resources are allocated to meet unlimited human wants. It defines the basic economic problem of matching limited resources to unlimited wants. Resources are limited both in physical quantity and use. The four factors of production are land, labor, capital, and entrepreneurship. Economics is related to other social sciences that study different dimensions of society, such as political science, sociology, anthropology, and psychology. Applied economics involves understanding the concepts of choice and opportunity cost. The basic economic problems are what, how, and for whom to produce goods and services. Markets are where buyers and sellers exchange goods and services. Demand is affected by consumer behavior while supply is affected

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    36 views4 pages

    Revisiting Economics As A Social Science

    Uploaded by

    Seung Batumbakal
    This document discusses economics as a social science that uses scientific methods to study how scarce resources are allocated to meet unlimited human wants. It defines the basic economic problem of matching limited resources to unlimited wants. Resources are limited both in physical quantity and use. The four factors of production are land, labor, capital, and entrepreneurship. Economics is related to other social sciences that study different dimensions of society, such as political science, sociology, anthropology, and psychology. Applied economics involves understanding the concepts of choice and opportunity cost. The basic economic problems are what, how, and for whom to produce goods and services. Markets are where buyers and sellers exchange goods and services. Demand is affected by consumer behavior while supply is affected

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    © All Rights Reserved
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    of 4

    REVISITING ECONOMICS AS A SOCIAL SCIENCE

    -uses a scientific method in the study of allocation of scarce resources to answer to the unlimited human
    wants

    “The economic problem is to match limited resources to unlimited wants and needs

    Resources are limited based on its physical quantity and its use.

    1. Limited in physical quantity


    -As in the case of land, which has a finite quantity.
    2. Limited in use- As in the case of labor and machinery, which can only be used for one purpose at any
    one time.

    Factors of Production
    Land
    acreage and raw materials
    Labor
    unskilled, semiskilled, professional
    Capital
    machines, factories, transportation equipment, and infrastructure
    Entrepreneurship
    organizing the other factors of production and risk-taking

    social science

    economics is related to other social sciences that studies other dimension of a society

    political science

    it is the study of how the creation and utilization of power is being studied for the preservation,
    stability, and growth of a society as a political unit

    behavioral sciences such as sociology, anthropology, and psychology systematically examine behavior,
    people’s beliefs, and society’s value system

    ECONOMICS AS AN APPLIED SCIENCE

     Applied Economics, it is essential to know that there are two fundamental concepts in economics, these
    are choice and opportunity cost. 
    CHOICE

             - All economic decisions involve making choices.


             - This is the best option you’ve chosen.

    OPPORTUNITY COST
            - The loss of the next best option / next best alternative.
            - Represents the real sacrifice.
    BASIC ECONOMIC PROBLEMS AND THE PHILIPPINE SOCIOECONOMIC DEVELOPMENT IN THE 21ST
    CENTURY
    What to produce?
    - Each and every economy must determine what products and services, and what volume of each,
    to produce
    How to produce?
    - Societies decide on the mix of resources to use to create the desired output of goods and services.
    From whom to produce?
    - Finally, all societies need to decide who will get the output from the country’s economic activity,
    and how much they will get.
    Week 3
    CHAPTER II: APPLIED ECONOMICS
    THE MARKET
     
    Demand is generally affected by the behavior of consumers while supply is usually affected by the
    conduct of producers - foundation of economic activity
    Market
     It is where buyers and sellers meet.
     It is the place where they both trade or exchange goods or services  in other words,It is where their
    transactions take place
    Types of Markets
    1.Wet Market
     is where people usually buy vegetables, meat, etc.
    2.Dry Market
     is where people buy shoes, clothes, or other dry goods
    DEMAND
    “Ceteris Paribus”
    economic term which means “other things held constant”.
    Quantity of a good and service that people are ready to buy at a given price within a time period
    IMPLIES:
    Desire to possess a thing
    The ability to pay for it
    Willingness to utilize it
    Law of Demand
    The Law of Demand states that if price goes up, the quantity demanded will go down. Conversely, if
    price goes down, the quantity demanded will go up (ceteris paribus)
    Demand Schedule
    A demand schedule is a table that shows the relationship of prices and the specific quantities demanded
    are each of these prices.
    the quantity changes whenever the price changes meaning any change in the demand schedule affects
    us as consumers
    Demand Curve
    is a graphical representation showing the relationship between price and quantities demanded per
    time period. has a negative slope; thus it slopes downward from left to right.
    1. Change in Quantity Demanded vs Change in Demand
    demand schedule - situations are arranged chronologically with the corresponding prices and quantities.
    is an equal increment in the respective axis
    There is a Change in Quantity Demanded if the movement is along the same demand curve. 
    A change in the quantity demanded is brought about by an increase (decrease) in the product’s price
    Increase (decrease) in demand is brought by factors other than the price of the good itself

    Forces that Cause the Demand Curve to Change


    1. Taste or Preference
    2. Income
    3. Occasional Products
    4. Population
    5. Substitute Goods
    6. Expectations of Future Prices

    Price Elasticity of Demand


    Price Elasticity refers to the type of elasticity that deals with the degree of responsiveness of people
    when there are changes in prices.
     
    Elastic
    greater change in quantity demanded or supplied
    sensitive to economic changes.
    Always greater than one
     Inelastic
    a lesser change in quantity demanded or supplied.
    does not usually change in relation to economic changes.
    always less than one
    Unit Elastic
    equal change
    proportionately changes in relation to economic changes.
    Equal to one

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