Applied Economics

Alfred Marshall

Alfred Marshall

Who defined economics as a study of mankind in ordinary business life?

Economics

What examines part of the individual and social action that is most closely connected with the attainment and use of material requires of well-being as restated by Dinio & Villasis (2017)?

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.

it focuses on wealth, it is the process of making decision and lastly, it focuses on the allocation process.

According to Tullao (2017), there are three development definition of economics. What are they?

Oekonomia

What word “economics” was derived from which is interpreted as the “management of household”.

Macroeconomic

This is a major branch in the field of economics that deals with the behavior of economy as a whole with the view to understand the interaction between economic aggregates such as employment, inflation, and national income/ country’s gross national product (GNP).

This is a major branch in the field of economics that deals with the behavior of individual components as an economic agent such as household, worker, firm, and individual owner of production (producer). It also refers to the study of choices by individuals, like how someone decides on the budget and prices.

Positive economics

An analysis in economics by value judgments that Simply decribes what exists and how things work. It is more objective and fact-based. Additionally, it does not concern itself with right or wrong statement, so long as it proves to exist.

Normative economics

An analysis in economics by value judgments that is concerned with what should be. It looks at the outcome of economic behavior through judgments and prescriptions for courses of actions. Commonly, the statements are opinion and subjective, make recommendation and suggestion about something.

Applied economics

is the application of economic theory and econometrics in specific

settings with goal of analyzing potential outcomes.

Applied economics

It is designed to analytically review potential outcomes without the noise associated with explanations that are not backed by numbers.

John Neville Keynes

Who is is attributed to be the first to use the phrase “applied economics” to designate the application of economic theory to the interpretation and explanation of particular economic phenomena.

Gabay et al. (2012)

There are the four economic systems or categories according to _____

Traditional economics, command economy, free market economy, and mixed economy

What are the four economic systems or categories according to Gabay et al. (2012):

Traditional economy

An economic system whose economic decisions are made with great influence from the past.

Command economy

An economic system that decisions in answering the basic economic problems are planned and directed by the government.

Free market economy

An economic system that individual consumers and businesses interact to solve the economic problem

Mixed economy

An economic systemic that elements of traditional, command and free market. Both private and public institutions exercise economic control. The means of production are owned by the private sectors as well as the government. The people decide on economic activities within the economy.

Demographic Changes and its economic implications; Pursuing Food Security; Slow Adoption of Modern Technology; Weak Infrastructure; Environmental Sustainability and the country’s development thrust; Poverty and Unequal distribution of Income

According to Tullao (2017), the following are the Philippine Basic Economic Problems:

Absolute poverty is the lack of income to buy the basic food and necessities for subsistence living. Whereas, Relative poverty refers to the structure on how the national income is being distributed among households in the economy.

The two categories differ from each other through

Demand

is the schedule of various quantities of commodities which buyers are willing and able to purchase at a given time, price and place (Fajardo, 1995).

Demand curve

a graphical representation of the demand schedule.

Income effect

With the same amount of money or income, one can buy more goods when prices are lower, but lesser goods when the prices are higher.

Substitutes effect

consumers tend to buy goods with lower prices

Law of demand states that there is an inverse relationship between the price of goods and the quantity buyers are willing to purchase in a defined time period.

What does the law of demand state?