m ..| '1\" 233: 0 GM]: In 9:29 X open discussion topics 0' Open with Google Docs v 6 INTRODUCTION TO ECONOMICS ECONOMICS ECONOMICS Scarce resources are used to satisfy competing ends The study and exercise of choice How individuals and society generally make choices Concerned with humanity'swellbeing or welfare HUI Page 2 l 25 Q + ITS Q J; 0 (C) E VOLTE 2.7 .Ill ir K/S OXI 68 9:29 X topics to debate O PDF Open with Google Docs . .. HUMAN NEEDS AND WANTS NEEDS pertain to basic necessities or essentials that an individual must have in order to survive. These may include food, water, warmth, shelter. and clothing. WANTS pertain to the desires that an individual is yearning and longing. Examples may include a luxurious car. jewelleries. and newly launched phones. HUMAN NEEDS AND WANTS CHARACTERISTICS Unlimited Varied Insatiable HUMAN NEEDS AND WANTS ORIGIN Survival Dictated by Culture Generated by Activity Necessary to Satisfy Other Needs and Wants Page 5 / 25 +VOLTE 59.6 K/S N OXI 68 9:29 X a panel discussion O PDF Open with Google Docs . .. GOODS AND SERVICES GOODS and SERVICES are those that yield direct satisfaction. It may tangible (with physical form) or intangible (without physical form). GOODS AND SERVICES CLASSIFICATION Consumer Goods Capital Goods Essential Goods Luxury Goods RESOURCES RESOURCES or MATERIALS are necessary and vital as these are needed to make goods and services through production. In economics, these resources are considered to be the FACTORS or INPUTS OF PRODUCTION Page 8 / 25 + RESOURCES LoVOLTE 68.9 " K/S OXI 68 9:29 X temas de debate O K PDF Open with Google Docs .. . RESOURCES CHARACTERISTICS Limited Scarce Versatile RESOURCES CLASSIFICATION Land Labor Capital Entrepreneurship RESOURCES FACTORS OF PRODUCTION LAND CAPITAL LABOR ENTREP RENT INTEREST SALARY PROFIT INCOME Page 11 / 25 + EVOLTE 68.9 " K/S OXI 68 9:29 X up for discussion O INCOME PDF Open with Google Docs .. . ECONOMIC CONCERNS FIRST The society as a whole has unlimited needs and wants. SECOND The resources, in general, are limited or scarce. ECONOMIC CONCERNS ECONOMICS is considered one of the tools to decide the "best" way of providing one to the other. There is a great need to study how man behaves, particularly on how he or she decides given several choices. ECONOMIC PROBLEMS FIRST What goods and services should be produced? SECOND How should goods and services be produced? THIRD How much goods and services will be produced? FOURTH For whom shall goods and services should be produced? Page 14 / 25 +VOLTE 57.4 in K/S OXI 68 9:30 X round of discussions O PDF Open with Google Docs .. . MARKET PRODUCTS OR SERVICES MARKET SELLERS BUYERS BUSINESS FIRMS CONSUMERS ECONOMIC SYSTEMS Traditional Economy Command Economy Market Economy Mixed Economy ECONOMIC SYSTEMS Traditional Economy This pertains to an economic system in which economic decisions are based on customs and beliefs. People will make what they always did and will do the same work their parents did. Page 17 / 25 + EVOLTE 95.6 " K/S OXI 68 9:30 X s subject of discussion O PDF Open with Google Docs . . . ECONOMIC SYSTEMS Command Economy This is an economy where the government makes all economic decisions and owns most of the property. Governmental planning groups determine the prices of the goods and services as well as the wages of workers. ECONOMIC SYSTEMS Market Economy This deals with an economic system in which economic decisions are guided by the changes in prices that occur as individual buyers and sellers interact in the market place. Most of the resources are owned by private citizens. Likewise, economic decisions are based on free enterprise (or competition between companies). ECONOMIC SYSTEMS Mixed Economy All modern economies exhibit characteristics of both systems and are often referred to as mixed economies (market plus command). Most economies are closer to one type of economic system than another. Businesses own most resources and determine what and how to produce, but the government regulates certain industries. Page 20 / 25 + ECONOMIC ACTIVITIES Lo Ewrite a reflection about economics and the two of the widely used terms in economics "efficient and effective" based on the given lesson. 1. impact of economics 2. efficient and effective