Ill. Reference (s): ECONOMICS, Taxation & AR by Manapat, p. 3 Applied Economics by Diwa, p. 3-4 Concept Note of 1 A. Introduction to Applied Economics Economics = is a branch of social science that is essential for dealing with two extremes; scarce resources and unlimited human wants. It is a branch of social science that deals with the proper allocation of resources to prevent scarcity and to satisfy the unlimited human wants and needs. It came from the two Greek word: oikos & nomos. Oikos means household, Nomos means ,management There are two kinds of analysis in economics: positive analysis & normative analysis. Adam Smith is the Father of Modern Economics. Supply & Demand affects the market equilibrium. Market Equilibrium Values Integration: Responsible B. Analysis: 1. What decisions have you made since waking up this morning. 2. For instance, did you choose to get up as soon as the alarm went off or to sleep some more? 3. Did you wonder what to do after school today? 4. Define economics in your own words. Explain to the class your definition C. Generalization Economics is the study of management and allocation of scarce resources to satisfy unlimited human wants and needs. IV. Questions/Activity 1. Give the factors of production in the economy & the difference between the needs & wants. 2. Show enthusiastic characteristic in learning the essence of economics