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    Week 2 - Utility and Application of Applied Economics

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    Christopher Dacatimban
    The document discusses basic economic concepts including: 1. The three basic economic problems societies face are what to produce, how to produce, and for whom to produce in order to cope with constraints. 2. There are three main types of economic systems - traditional, command, and market - that determine how societies answer these basic economic questions. 3. Economics is important because it helps individuals and governments make rational decisions about allocating scarce resources, and helps people understand how the economy functions on a national level.

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    Week 2 - Utility and Application of Applied Economics

    Uploaded by

    Christopher Dacatimban
    38 views23 pages
    The document discusses basic economic concepts including: 1. The three basic economic problems societies face are what to produce, how to produce, and for whom to produce in order to cope with constraints. 2. There are three main types of economic systems - traditional, command, and market - that determine how societies answer these basic economic questions. 3. Economics is important because it helps individuals and governments make rational decisions about allocating scarce resources, and helps people understand how the economy functions on a national level.

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    The document discusses basic economic concepts including: 1. The three basic economic problems societies face are what to produce, how to produce, and for whom to produce in order to cope with constraints. 2. There are three main types of economic systems - traditional, command, and market - that determine how societies answer these basic economic questions. 3. Economics is important because it helps individuals and governments make rational decisions about allocating scarce resources, and helps people understand how the economy functions on a national level.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    38 views23 pages

    Week 2 - Utility and Application of Applied Economics

    Uploaded by

    Christopher Dacatimban
    The document discusses basic economic concepts including: 1. The three basic economic problems societies face are what to produce, how to produce, and for whom to produce in order to cope with constraints. 2. There are three main types of economic systems - traditional, command, and market - that determine how societies answer these basic economic questions. 3. Economics is important because it helps individuals and governments make rational decisions about allocating scarce resources, and helps people understand how the economy functions on a national level.

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    You are on page 1of 23

    APPLIED

    ECONOMICS 12
    Learning Competency from the
    MELC’s

    Examine the utility and application of


    applied economics to solve economic issues
    and problems. (ABM_AE12-Ia-d-3)
    Specific Objectives

    a. List basic economic problems of society.


    Let’s have an
    activity!

    Enumerate Me!
    Enumerate the following general idea:

    1. What are the classification of


    resources?
    2. Who are the agents of economics?
    3. What are the types of economics?
    4. What are the classification of goods?
    Thank you! For your
    answers….
    Let’s have the
    discussion!
    BASIC ECONOMIC
    PROBLEMS OF
    SOCIETY
    All societies are faced with basic questions in
    the economy that must be answered to cope
    with constraints and limitations. These are:

    1. What to produce and how much –


    society must decide what goods and services
    should be produced in the economy. Having
    decided on the nature of goods that will be
    produced, the quantity of these goods should
    also be decided on.
    All societies are faced with basic questions in
    the economy that must be answered to cope
    with constraints and limitations. These are:

    2. How to produce – is a question on the


    production method that will be used to
    produce goods and services. This refers to the
    resource mix and technology that will be
    applied in production.
    All societies are faced with basic questions in
    the economy that must be answered to cope
    with constraints and limitations. These are:

    3. For whom to produce – is about the


    market for goods and services. For whom will
    the goods and services be produced? The
    young or old, the male or female market, the
    low-income or the high-income groups?
    ECONOMIC SYSTEMS
    The economic system is the means through
    which society determines the answers to the
    basic economic problems mentioned. A
    country may be under any of the following
    types or even a combination of the three
    economic systems:
    1. Traditional economy. Decisions are
    based on traditions and practices upheld over
    the years and passed on from generation to
    generation. Methods are stagnant and
    therefore not progressive. Traditional
    societies exist in primitive and backward
    civilizations.
    2. Command economy. This is the
    authoritative system wherein decision-making
    is centralized in the government or a planning
    committee. Decisions are imposed on the
    people who do not have a say in what goods
    are to be produced. This economy holds true
    in dictatorial, socialist, and communist
    nations.
    3. Market economy. This is the most
    democratic form of an economic system.
    Based on the working of demand and supply,
    decisions are made on what goods and
    services to produce. People’s preferences are
    reflected in the prices they are willing to pay
    in the market and are therefore the basis of
    the producers’ decisions on what goods to
    produce.
    WHY IS ECONOMICS
    IMPORTANT?
    For idea how important the subject is, all you
    need to do is read pages of the newspapers to
    see that the most important news is economic
    in nature. Watch the news on TV and for sure,
    economic news always presents important
    issues.
    Economics will help you understand why there
    is a need for everybody, including the
    government, to budget and properly allocate
    the use of whatever resources are available.
    It will help one understand how to make more
    rational decisions in spending money, saving
    part of it, and even investing it.
    On the national level, economics will enable
    you to look on how the economy operate, and
    if leaders are effective in trying to shape up
    the economy.
    Let’s have a group
    activity!
    The Basic Economic Problems of Society
    The Basic Economic Problems of Society
    The Basic Economic Problems of Society

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