AppEcon
MODULE 1: OVERVIEW OF APPLIED ECONOMICS
ECONOMICS - came from the word “Oikonomia” which means “household management”
Applied Economics - the application of economic theories and models in real life.
BASIC ECONOMIC CONCEPTS:
BASIC ECONOMIC PROBLEMS
THREE BASIC ECONOMIC QUESTIONS:
Economic Goods - goods and services that are used extensively in economic discussions
FACTORS OF PRODUCTION
METHODS USED IN ECONOMIC ANALYSIS
Economic Variables - are important in explaining and understanding economic theories or models.
Variables - are used to signify elements in an economic model
Functions - explains the relationship between two or more variables
Economic Equation - is a mathematical expression of an economic thought or concept
Graph - provides a visual representation of the relationship between two or more economic variables.
Economic Theories - these are statements on the relationship of variables
Economic Models - are the representations of economic and social phenomena analyzed using research, observation, and testing
Normative Economics - evaluates economic decisions, policies, or outcomes as good or bad.
Positive Economics - evaluates economic scenarios and policies based on qualitative and quantitative analysis
BRANCHES OF ECONOMICS
MICROECONOMIC CONCEPTS:
Law of Diminishing Marginal Utility - marginal utility of goods and services decreases as quantity increases, ceteris paribus
Indifference Curve - a chart showing combination of two goods in various quantities
Indifference Map - a graphical representation of two or more indifference curves
Budget Line - set of combinations of two goods that can be purchased within a given income and prices
Equilibrium Position - where indifference curve and budget line intersect
Disposable Income - the income after taxes
Discretionary Income - the income left from disposable income after all other necessary expenses have been deducted
MACROECONOMIC CONCEPTS
GDP - “gross domestic product” the estimated market value of all goods and services produced in a particular country
GNP - “gross national product” the value of all products and services produced by a country’s citizen
COMPONENTS OF GDP:
MODULE 2: THE PHILIPPINE ECONOMY AND ITS 21ST CENTURY SOCIO ECONOMIC CHALLENGES
ECONOMIC SYSTEMS - the different ways of managing a nation’s available resources to answer the three economic questions:
MACROECONOMIC GOALS OF A COUNTRY
Economic Growth - is typically measured through GDP
Full Employment - the upward and downward movements in the business cycle that leads to unemployment
Price Stability - is the stable level of prices in the economy, which avoids long periods of inflation or deflation and sustains the value of money over time
THE STATE OF THE PHILIPPINE ECONOMY
THE PHILIPPINES’ 21ST CENTURY SOCIOECONOMIC CHALLENGES
Global Challenges - the continuous integration of economies across the world means that the Philippines is vulnerable to major international issues.
Domestic Issues - in addition to international issues, the Philippines has to deal with internal socioeconomic challenges as well.
MODULE 3: THE LAW OF DEMAND AND SUPPLY AND THE MARKET EQUILIBRIUM
Commodity - pertains to a homogenous good that commands a price
THE MARKET:
DEMAND
The slope is always (-)
DETERMINANTS / FACTORS OF DEMAND CURVE SHIFT
SUPPLY
Supply Curve - a graphic representation of the correlation between the cost of a good or service and the quantity supplied for a given period
Slope of supply is always positive
PRICE ELASTICITY OF SUPPLY (PES or Es) - A measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price.
FACTORS THAT CAUSES THE SUPPLY CURVE SHIFT
Market Equilibrium is an economic state when the demand and supply curves intersect and suppliers produce the exact amount of goods and services consumers are willing and able to consume
SURPLUS, SHORTAGE, AND GOVERNMENT INTERVENTIONS
MODULE 4: APPLICATION OF SUPPLY AND DEMAND
TERMS TO REMEMBER:
Market Structure - refers to the competitive environment in which buyers and sellers operate
Competition - the rivalry among the sellers in the market
Market - a situation of diffused, impersonal competition among sellers who compete to sell their goods and among buyers who use their purchasing power to acquire the available goods in the market.
The Varying Degrees of Competition in The Market Depending on The Following Factors:
COMPETITION AND MARKET STRUCTURES
Perfect Competition:
Imperfect Competition:
Applications of Demand and Supply to The Philippine Labor Market
The Philippine Peso and The Foreign Exchange
Rent and Price Structure - quantity demanded of real estate rises as prices fall, ceteris paribus
MODULE 1: OVERVIEW OF APPLIED ECONOMICS
ECONOMICS - came from the word “Oikonomia” which means “household management”
Applied Economics - the application of economic theories and models in real life.
BASIC ECONOMIC CONCEPTS:
BASIC ECONOMIC PROBLEMS
THREE BASIC ECONOMIC QUESTIONS:
Economic Goods - goods and services that are used extensively in economic discussions
FACTORS OF PRODUCTION
METHODS USED IN ECONOMIC ANALYSIS
Economic Variables - are important in explaining and understanding economic theories or models.
Variables - are used to signify elements in an economic model
Functions - explains the relationship between two or more variables
Economic Equation - is a mathematical expression of an economic thought or concept
Graph - provides a visual representation of the relationship between two or more economic variables.
Economic Theories - these are statements on the relationship of variables
Economic Models - are the representations of economic and social phenomena analyzed using research, observation, and testing
Normative Economics - evaluates economic decisions, policies, or outcomes as good or bad.
Positive Economics - evaluates economic scenarios and policies based on qualitative and quantitative analysis
BRANCHES OF ECONOMICS
MICROECONOMIC CONCEPTS:
Law of Diminishing Marginal Utility - marginal utility of goods and services decreases as quantity increases, ceteris paribus
Indifference Curve - a chart showing combination of two goods in various quantities
Indifference Map - a graphical representation of two or more indifference curves
Budget Line - set of combinations of two goods that can be purchased within a given income and prices
Equilibrium Position - where indifference curve and budget line intersect
Disposable Income - the income after taxes
Discretionary Income - the income left from disposable income after all other necessary expenses have been deducted
MACROECONOMIC CONCEPTS
GDP - “gross domestic product” the estimated market value of all goods and services produced in a particular country
GNP - “gross national product” the value of all products and services produced by a country’s citizen
COMPONENTS OF GDP:
MODULE 2: THE PHILIPPINE ECONOMY AND ITS 21ST CENTURY SOCIO ECONOMIC CHALLENGES
ECONOMIC SYSTEMS - the different ways of managing a nation’s available resources to answer the three economic questions:
MACROECONOMIC GOALS OF A COUNTRY
Economic Growth - is typically measured through GDP
Full Employment - the upward and downward movements in the business cycle that leads to unemployment
Price Stability - is the stable level of prices in the economy, which avoids long periods of inflation or deflation and sustains the value of money over time
THE STATE OF THE PHILIPPINE ECONOMY
THE PHILIPPINES’ 21ST CENTURY SOCIOECONOMIC CHALLENGES
Global Challenges - the continuous integration of economies across the world means that the Philippines is vulnerable to major international issues.
Domestic Issues - in addition to international issues, the Philippines has to deal with internal socioeconomic challenges as well.
MODULE 3: THE LAW OF DEMAND AND SUPPLY AND THE MARKET EQUILIBRIUM
Commodity - pertains to a homogenous good that commands a price
THE MARKET:
DEMAND
The slope is always (-)
DETERMINANTS / FACTORS OF DEMAND CURVE SHIFT
SUPPLY
Supply Curve - a graphic representation of the correlation between the cost of a good or service and the quantity supplied for a given period
Slope of supply is always positive
PRICE ELASTICITY OF SUPPLY (PES or Es) - A measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price.
FACTORS THAT CAUSES THE SUPPLY CURVE SHIFT
Market Equilibrium is an economic state when the demand and supply curves intersect and suppliers produce the exact amount of goods and services consumers are willing and able to consume
SURPLUS, SHORTAGE, AND GOVERNMENT INTERVENTIONS
MODULE 4: APPLICATION OF SUPPLY AND DEMAND
TERMS TO REMEMBER:
Market Structure - refers to the competitive environment in which buyers and sellers operate
Competition - the rivalry among the sellers in the market
Market - a situation of diffused, impersonal competition among sellers who compete to sell their goods and among buyers who use their purchasing power to acquire the available goods in the market.
The Varying Degrees of Competition in The Market Depending on The Following Factors:
COMPETITION AND MARKET STRUCTURES
Perfect Competition:
Imperfect Competition:
Applications of Demand and Supply to The Philippine Labor Market
The Philippine Peso and The Foreign Exchange
Rent and Price Structure - quantity demanded of real estate rises as prices fall, ceteris paribus