Economics as defined by authors of

Economics books
Paul Samuelson (Economics)
the study of how people and society end up choosing,
with or without use of money, to employ scarce
resources that could have alternative uses to produce
various commodities among various persons and groups
in society.
Roger Le Roy Miller (Economics,Today and
Tomorrow)
Economics concerns situations in which choices must
be made about how to use limited resources, when to
use them and for what purposes. Resources can be
defined as the things people use to make the
commodities they want.
 Hall and Loeberman (Macroeconomics: Principles
and Applications)
The study of choice under the condition of scarcity

Bernardo Villegas (Guide to Economics for

Filipinos)
A social science that studies and seeks to allocate scarce
human and non-human resources among alternatives in
order to satisfy unlimited human wants and desires.

Gerardo Sicat (Economics)

a scientific study which deals with how individuals and
society make choices,
 WHAT ARE THE COMMON TERMS
THAT YOU OBSERVED/ NOTICED ON
THE DEFINITION PRESENTED ?
 SCARCE/ SCARCITY
 RESOURCES
 UNLIMITED
 WANTS
Common words among definitions

Scarcity- a situation wherein the amount

of something available is insufficient to
satisfy the desire for it.
Resources-The labor, capital, land and
natural resources and entrepreneurship
that are used to produce goods and
services.
Unlimited without limits, infinite
Wants desires
Finally:

HOW CAN WE DEFINE

ECONOMICS?
 We can define ECONOMICS as the
study of the proper allocation and
efficient use of scarce resources to
produce commodities for the
maximum satisfaction of unlimited
human needs wants.
Concerns of Economics
Economics is concerned with PRODUCTION
Production is the use of inputs to produce outputs.
Inputs are commodities or services that are used to produce
goods and services.
Outputs are the different goods and services which come out of
production process.

Society have to decide what outputs will be produced

and in what quantity
 Economics is concerned with DISTRIBUTION
Distribution is the allocation of the total product among
members of society. It is related to the problem of for whom
goods and services are to be produced.
Economics is concerned with CONSUMPTION
Consumption is the use of a good or service. Consumption is
the ultimate end of economic activity. WHEN THERE IS NO
CONSUMPTION, THERE WILL BE NO NEED FOR
PRODUCTION AND DISTRIBUTION.
Economics deals with PUBLIC FINANCE
Public Finance is concerned with government expenditures
and revenues. Economics studies how the government raises
money through taxation and borrowing.
 Economic Theory is all about thinking
things up, while Applied Economics is
about trying things out.
 Applied economics is the study of
economics in relation to real world
situations, as opposed to the theory of
economics.

It is the application of economic

principles and theories to real situations,
and trying to predict what the outcomes
might be.
 Is Economics a science?
Explain why if yes or why not if
no
 Economics as a Science

It is a social science because the subject matter of

economics is people or societies and their behavior,
unpredictable in nature.

is a social science that deals with how people organize

themselves in order to allocate scarce resources in
order to produce goods and services that will satisfy
the unlimited and multiplying wants and needs of man.
 The Three Basic
Economic Problems
Basic Economic Problems..

1. Whatgoods and services

should be produced and
in what quantities?
Basic Economic Problems..

2. How should these goods

and services be produced
Basic Economic Problems..

3. For whom should these

goods and services be
produced?
If we analyze the three
basic economic problems,
what did you think are
the focus of the basic
economic problem?
 If
we analyze the 3 economic
problems of economics, these
merely focus on the limitation of
resources/ the factors of production.
Factors of production

LAND.
LABOR.
CAPITAL.
ENTREPRENEURSHIP.
Activity:
If you were going to produce a
product if all resources is
limited/scarce, what kind of product
is it?
How will you produced that product?

Who will be your target?

Assignment:

Answer the following using ten (10)

sentences.

How do you apply economics in

your household?