Professional Documents
Culture Documents
I. Introduction
A. Terms to Remember
1. Basic needs
2. Capital
3. Economic Resources
4. Economic System
5. Economics
6. Empirical Validation
7. Entrepreneur
8. Free Enterprise System
9. Function
10. Labor
11. Land
12. Luxury Goods
13. Market
14. Right to private property
15. Theory/hypothesis
16. Variable
17. Wants
B. Definition of Economics for Samuelson and Nordhaus
1. Prices
2. Financial Market Behaviour
3. Income Distribution
4. Government
5. Business cycle
6. Trade patterns
7. Economic growth
II. Economic Activity
A. Man’s Basic Economic Activity
B. Three Elements
1. Human Wants
2. Use of Resources
3. Technique of Production
C. Resources and Payment
III. Consumption
A. Players
1. Household
a) Opportunity Cost
2. Business Firms
a) Entrepreneur
B. Some Economic Aspects in Need of Panacea
1. Aim of Societies
2. Problems
a) Unemployment
b) Economic Instability
(1) Fluctuations in Production
c) Not High levels of growth and development
d) Income Distribution Inequality
(1) Pyramidal Structure
e) Determination of Economic System
C. Economic Analysis
1. Tools
a) Logic
(1) Inductive Reasoning
(2) Deductive Reasoning
b) Statistics
c) Mathematics
2. Purposes
D. Economic Policy
E. Economic Theory
1. Construction
a) Specification and definition of its Postulates
(1) Propositions/ Conditions
(2) Consumer Rationality
b) Observation of “facts” concerning the activity about which we want
to theorize
c) Application of the rules of logic to the observed facts
(1) Hypotheses
d) Testing of Hypotheses
(1) Principle
2. Functions
a) Explain the nature of Economic Activity
b) Predict what will happen to the economy as facts change
3. Positive and Normative Economics
a) Economic-policy making
IV. Price Theory
A. Microeconomics
1. Macroeconomics
a) Net National Product
b) National Income
2. Price Index Numbers/ GPL and Price Theory
3. Characteristics (5)
B. Economic Models
1. Competitive Market (Comparative Static Analysis)
2. Expressions
a) Verbal (or logical)
b) Mathematical Notations
c) Graphical
3. Models are abstractions
a) Theories
b) Three types of Theories
4. Dragon
C. Comparative Statics and Dynamic Analysis
1. Statics
2. Equilibrium
D. Partial and General Equilibrium
1. Ceterus Paribus
V. Overview of the Economy
A. Circular Flow of Economic Activity
B. Basic Economic Problems
1. What to produce?
2. How much to produce?
3. How to produce?
4. For whom to produce?
C. Types of Economic System
1. Traditional Economic System
2. Command Economy
3. Market System
a) Free Enterprise System Freedom Range
4. Mixed Economy