problem of having unlimited wants but limited resources

social science that deals that deals with the allocation of scarce resources.

focus on etfectiveness of producing, distributing and consuming products

study of production, distribution, selling and use of goods and services.

came in nature that are used in production. (land, raw materials)

came in nature that are used in production. (land, raw materials)

study how people behaves and influence the world

studies how individuals make choices in allocating scarce resources to satisfy their unlimited wants

etforts of people involved in decisions production. (labor, entrepreneur)

processed materials, equipment, and building.

something we desire. (unimportant)

something you must have to survive

resources limited to meet infinite demand, exemplified by rice shortage due to natural disasters.

supply is limited. supply of goods are naturally limited.

value of the best foregone alternative

choosing one thing over other possibilities.

a need for man to make decision in choosing how to maximize the use of scarce resources.

- resources used to produce goods and services

known as factor of a production

man-made resources used in production (income is interest)

physical and human effort (received wage)

concerned with the behavior and decisions of individual entities. (consumer, producer)

concerned with the overall performance by the entire economy.

CHOOSE WHETHER MACROECONOMICS OR MICROECONOMICS:

how resources move from resource (GNP)

CHOOSE WHETHER MACROECONOMICS OR MICROECONOMICS:

focuses on overall flow of goods and resources

CHOOSE WHETHER MACROECONOMICS OR MICROECONOMICS:

goods and services. (GDP, Inflation, unemployment)

CHOOSE WHETHER MACROECONOMICS OR MICROECONOMICS:

more concerned on how goods flow from the business.

CHOOSE WHETHER MACROECONOMICS OR MICROECONOMICS:

smaller scope

about market for goods. whom will the goods and services be produced?

society must have to decide what good and services should be produced in the economy.

question on how the production method will be used

state or agency of government maybe in charge in the allocation of the resources using political power.

declares authoritative systems in times of calamities, disasters, or national emergencies.

exists in backward and primitive civilization

practiced in indigenous communities

methods are stagnant, not progressive

democratic economic system

people's preferences may reflect on the prizes

-there is an equilibrium price

-basic economic problems are answered

combination of market and command economy

federal government can secure people and markets

conveys value, opinion, and judgement.

-answers “what is” in economics

-done through analysis of data

done through analysis of data principles, theories, and application in real life events

and an attempt to forecast whatever the outcome

method of inquiry from identifying a problem, proposing alternative tentative

answers or hypotheses, testing the tentative answers to question or problem at hand

refers to the purchasing and selling of factors of production

composed of supplier and consumer of a specific product

where we buy consumer goods, market for the output of production

venue for potential employees looking for a job and ready to provide services.

where securities of corporation are traded

indicates the different amount quantity that the consumers are willing to buy at diff erent given prices.

all other factors are held constant except the one that is under study. (price)

aggregate demand of all consumers who buy the goods in the market

price increases the quantity demand for that product decreases

willingness and ability of consumer to buy a certain quantity of goods or service

illustrates the demand schedule graphically price on y-axis, Qd on x-axis

when a price of a good increases or decreases. consumer income, purchasing power change

illustrates how the determinants affect the quantity demanded for a product

when a change in the price of a good changes demand due to alternative consumption

there is direct relationship between of a good and quantity supplied

product increases, price also increases

graphical presentation of supply schedule

shows different quantities the seller is willing to sell at various prices

quantity of goods that a seller is willing to offer for sale

shows the dependence of supply on the various determinants that aff ects it.

value added to raw materials through the process of production

monetary expenses paid to government

raw materials, still going to be processed (wood, oil, stones)

processing or transforming input (money, land, workers)

manner in which factor input is done

the minimum or least price set by the government to protect buyers

maximum price that is charged to the product to protect sellers

venue where consumers and suppliers of goods transact on buying or selling of any items is called market.

price of commodity is an index of cost or sacrifice (for producers) and benefit or satisfaction (for consumers).

Balance between quantity sellers are

willing to sell and buyers are willing to buy for a price.

- a state of balance when demand is equal to supply.

- price increase

- demand increase

- supply decrease.

- - price decrease

- demand decrease

- supply increase