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Basic Concepts of Economics Explained

The document discusses basic economic concepts including the definition of economics as the study of how society uses limited resources to meet unlimited wants and needs. It also covers the differences between relative and absolute scarcity and defines economics as both a social science and applied science.

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Reynald Antaso
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6K views13 pages

Basic Concepts of Economics Explained

The document discusses basic economic concepts including the definition of economics as the study of how society uses limited resources to meet unlimited wants and needs. It also covers the differences between relative and absolute scarcity and defines economics as both a social science and applied science.

Uploaded by

Reynald Antaso
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
  • Basic Concepts of Economics
  • Needs and Wants
  • What is Economics?
  • Relative and Absolute Scarcity
  • Scarcity
  • Economics as a Social Science
  • Economics as an Applied Science
  • What is Economic Problem?
  • Economic Resources
  • Branches of Economics
  • Basic Economic Problems of Society
  • Importance of Studying Economics
  • Conclusion

BASIC CONCEPTS

OF ECONOMICS
APPLIED ECONOMICS
GRADE 12-FORTITUDE
PREPARED BY: SIR YNAD M. ANTASO
What is economics?
In its most simple and concise definition,
economics is the study of how society uses its
limited resources. It is the use or allocation
of scarce resources to meet man’s unlimited
needs and wants.

UNLIMITED NEEDS AND WANTS


LIMITED RESOURCES
Relative scarcity is when a
good is scarce compare to its
demand. It occurs not because
the good is scarce and is difficult
to obtain but because the supply
is not sufficient enough to meet
the needs of the people.

On the other hand, absolute


scarcity is when the supply is
limited and hard to obtain.
ECONOMICS AS A SOCIAL SCIENCE

Social Science- the study of society


and how people behave and
influence the worlds around them.

As a social science, economics


studies how individuals make
choices in allocating scarce
resources to satisfy their unlimited
wants.
ECONOMICS AS A APPLIED SCIENCE

Economics is an applied science it


follows a systematic procedure to
solve issues and problems of the
society.

Applied Economics- is the study of


economics in relation to real world
situations.
What is Economic Problem?
Economic problem‘ is a term that
economists use. It states that the finite
resources of an economy are not
enough to satisfy all our wants and
needs. The main question we ask
when considering ‘the economic
problem’ is: “How do we satisfy
unlimited wants with limited
resources?”
ECONOMIC RESOURCES
1. Land- soil and natural
resources that are found in
nature and are not man-
made.
2. Labor- physical and human
effort exerted in production.
3. Capital- man-made resources
used in the production of
goods and services.
BRANCHES OF ECONOMICS
 Macroeconomics- is a division
of economics that is concerned
with the overall performance of
the entire economy.
 Microeconomics- on the other
hand, is concerned with the
behavior of individual entities
such as the consumer, producer,
and the resource of owner.
BASIC ECONOMIC PROBLEMS OF SOCIETY
WHY DO YOU THINK IT IS IMPORTANT
TO STUDY ECONOMICS?
Thank you!

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