Significance of Economics

soc Sci

economics

We cannot separate ourselves with _________ since our existence depends on understanding it. 

consumption, production

Economics is highly dependent on the major economic activities like _________ & _________. 

True

True or False?

Our country also relies on these economic activities, conditions, and policies of other countries.

Adam Smith

Considered as the father of economics, author of famous economic book “The Wealth of Nations” & stated that economics is “an inquiry into the nature and causes of wealth of the nations.”

Scarce

It is the heart of the study of economics which guided us in making our daily decisions in life. Because of this, we are compelled into making choices.

scarce resource & unlimited human wants

Economics deals with two extremes:

oikonomia / oikonomos

It is a Greek word which means "management of a household".

Psychology

This field is very important to economics because it studies the society from the viewpoint of individual or groups and helps economists explain the decisions made by these people and propose proper policies and programs for them.

Psychology

Identify the Social Branch

• the scientific study of the behavior of living organisms with special attention to human behavior

• studies the society from the viewpoint of individual or groups

• related to economics through mid-conditioning that influences an individual’s perception & decision

• concentrates on process mind in terms of human perception, attitudes, values, and influences on others in the society where he/she belongs

• can help in the study of economics by explaining the decision made by people & propose proper policies & programs for them

Economics

It is the study of the proper allocation and efficient use of scarce resources to produce commodities for the maximum satisfaction of unlimited human needs and wants.

History

It is a social science that focuses on the study of past events and is very important in studying economics not only through a systematic recording of the past events, but because it includes the comprehensive and detailed explanation of the causes and effects of these past events on the lives of the people.

History

Identify the Social Branch

• systematic recording of past events (comprehensive & detailed explanation of the causes & effects of these past events on lives of people)

• compare things that happened in past with the present time (can able to solve present problems that happened in the past)

• promote economic and social welfare of people

• relevant in getting the perception or point of view of people, ideas, social movements, and the recurrences of these events in our society that can influence the mind-set of the people

Sociology

A social science that analyzes social patterns that results from numerous individual interactions in the community. In economics, it focuses on social processes.

Sociology

Identify the Social Branch

• analyzes social patterns that results from numerous individual interactions in the community 

• focuses on social processes

• deals with various social issues & problems (ethnic relations, family, social mobility & accessibility of people in society)

• economic activities are closely connected with social relationships (vice versa)

• implementing programs & policies for a positive socio-economic impact

Political Science

A social science that is concerned with the systematic study of the state and government and the decision of its actors have great influence in economic development.

Political Science

Identify the Social Branch

• concerned with systematic study of the state & government 

• politics has great influence on economic development

• political structures (what degree that system's economy will be regulated)

Anthropology

Identify the Social Branch

• scientific study of the biological, psychological, social, and cultural aspects of human life

• in relation to economics it looks into an explanation of human actions

• explains the logical principles that underlie all human society

Microeconomics

A division of economics which deals with the economic problems of the individual, the firm, and the industry.

Microeconomics

Identify the Division of Economics

• deals with economic problems of the individual, firm & industry

• activities are presented and discussed in detail

• motivates the individual to spend or to save

• applies to principles of supply & demand (how the price of the product is determined, different market structures, studies the factors that determine the prices and employment of productive resources)

Macroeconomics

A division of economics which is concerned with the aggregates which includes total production, total employment, and general price level.

Macroeconomics

Identify the Division of Economics

• concerned with the aggregates of economics (total production, total employment & general price level)

• aggregate (composed of individual units)

• provide a profile of the economy as a whole

• analyzes the problem of the economy as one instead of individually

• suggests ways and means of obtaining high level of employment

• formulation of monetary & fiscal policies (mga tungkol sa pera especially the total amount of money in the country & yung gamit ng government sa pagspend ng tax in order to influence the economy)

• effects of interest rates and taxes on the economy