econ

economics

people and choices

oikonomia

household management

economics

social sciencethat deals 3wwith optimum allocation of scarce or limited resources to satisfy he unlimited wants

social science

utilizes  the scientific method of inquiry from identifying the problem, propose alternative  answers or hyphotheses, testing the tentative answers to the question, gathering of data, and answering the question through conclusion.

allocation

alternative solution to scarcity which is the systematic distribution and maximum use  of economic resources according to its use.

resources

it is linked with the  previous definition of economics at the process of wealth creation and wealth utilization

resources

Included are natural resources from marine resources, forest resources, mineral resources, human resources, physical resources.

Human wants

can be described as differentiated or expanded human needs.  

scarcity

Limitation of resources to answer the expanding human wantS

scarcity

a state where limited  resources are not enough to satisfy  the wants of the people in a place at the time when it is actually needed

economic resources

There is economic problem when wants of people are not met. It occurs when there is scarcity of

land labor capital technology

Economic Resources or Factors of Production

allocation

Alternative solution to solve problem in Scarcity.  This is the systematic distribution and maximum use of economic resources according to its needs.

traditional economy

decisions are based on traditions and practices upheld over the years and passed on from generation to generation.

command economy

the authoritative system wherein decision – making is centralized in the government or a planning committee. Decision are imposed on the  people who do not have a say in what goods are to be produced.

market economy

this is the most democratic form of economic system. Decisions are made on what goods and services to produce.

physiological needs

the basic needs for survival.

safety neeeds

people need to be secure once they satisfy their needs.

personal security

efers to living in a community that is free  from crime and violence

financial security

characterized by job security and financial freedom

health security

pertains to being free from sickness and having a healthy body

assurance

in the form of health/life insurance that provides  security

social needs

love and belonging needs.

esteem needs

people need to be respected  and confident about themselves.  The need for accepted by others is important to people.

self actualization

refers to the need for achievement after working hard for something.

engle law

states that as income increases, the greater percentage will spent on non-food items or luxuries.

macroeconomics

division of economics concerned with the overall performance of the entire economy.

economic changge

the shift in the structure of  economic system.

microeconomics

• concerned with the behaviour of individual  entities such as the consumer, the producers, and the resource owner.  

market demand

demand for a product in the market,  it is a product or service measured by its consumption, need and usage rate by the consumer market.

elasticity of demand

It is the demand for a commodity that moves in the contrary direction of its price. 

product price

the cost of production, shortage or excess of the product in the market, import/export duty, etc

market

any set of contact between the buyers and the sellers need not be a definite geographic area.

price

the monetary value per physical unit.

labor theory

the basis was the time spent  in producing and its difficulty to produce. When it takes time to produce a certain product in the past, the higher its value  in exchanging  the commodity.

subjectivist theory

based on individual subject evaluations of the use value of economic goods.

utility theory

the basis in pricing the commodity is the degree of satisfaction derived as the buyer uses the product.

marginal utility

 value an  individual enjoys by purchasing one more item but declines the more you buy.

law of marginal utility

states that as more and more products are consumed, the total satisfaction or total utility increases  at a diminishing rate and decreases after reaching the satisfaction point.

demand

 refers  to the willingness and ability of the buyers to purchase a specific good at different  possible prices over a definite place and time.

law of demand

states that the higher the price the lesser the quantity demanded, and the lower the price, the greater the quantity demanded.

demand schedule

a schedule of various quantities  of a given product that the buyers are  willing  and able to buy at different possible prices over a given place and time.

demand curve

a graph that shows the relationship between the price of a good or service and the quantity demanded within a specified time frame

demand function

mathematical function that describes the relationship between price and quantity demanded. It is used to determine how much of a good or service consumers are willing to purchase at a given price.

normal goods

good that experiences an increase in demand due to an increase in a consumer's income.

inferior goods

• a good whose demand decreases with an increase in the consumer’s income or expansion of the economy.su

substitute goods

• a good  that meet the same requirements or fulfill the same needs as another good.

complimentary goods

a  good consumed or used together.

supply

the willingness and ability of the sellers to offer for sale various quantities of a given product in a given placed and time while other factors are held constant.

law of supply

 The higher the price, the greater the quantity supplied, the lower the price, the lesser the quantity supplied.

equilibrium

a state of balance when demand is equal to supply.  The equality means that the quantity  that sellers are willing to sell is also the quantity that the buyers are willing to buy  for a price. 

ceteris paribus

An increase in price(P ) causes an increase in quantity (Q ) conversely, a decrease in price (Q  )causes a decrease (Q ) also in quantity supplied.

equilibrium

demand is equal to supply

disequilibrium

quantity demand is not equal to quantity supply

surplus

demand is less than supply

shortage

demand is greater than supply

price floor

impose a minimum price on certain goods and services. They are usually put in place to protect vulnerable suppliers.

price ceiling

a limit on the price of a good or service imposed by the government to protect consumers.

price elasticity

measures the degree of responsiveness of the quantity demanded of the buyers or quantity supplied of the sellers to price changes.

elasticity demand

measures the degree of responsiveness of the quantity demanded of the buyers  to price changes.

elasticity demand

measures the degree of responsiveness of the quantity supplied of the sellers  to price changes

elastic demand

%    Qd  > %     P

  /e/ > 1 

elastc supply

 %    Qs  > %     P

          /e/ > 1

inelastic demand

 %   Qd  <  %     P

              /e/ < 1    

inelastic supply

%   Qs  <  %      P

   /e/ < 1    

unitary

 %    Qd  =  %      P

   /e/ = 1 

perfectly elastic

%    Qd  =  %      P

   /e/ = ∞

perfectly inelastic

 /e/ = 0 

elasticity

degree to which individuals, consumers, and producers change their demand or the amount supplied in response to price or income changes.