ECONOMICS
A. INTRODUCTION TO ECONOMICS
Economics - Greek- “oikonomia” -management of household expenditures
-Study of the efficient and effective
... [Show More] allocation of scarce resources in order to satisfy unlimited wants of the people
Other Definitions
Economist
Definition
Adam Smith Father of Economics)
an inquiry about the nature and causes of the wealth of the nations
Paul Samuelson
study of how the society could possibly use and share the limited resources into different items of products and services for all sectors of the society for the present and the future consumption
Paul Wonnacott
study of how man works looks for food and finds material needs
emphasizes problem in production of how to solve or minimize the
problem
Lloyd Reynolds
study of production management, and use of scarce resources
Cristobal Pagoso
concerned with the wise allocation of scarce resources
Roger Le Roy Miller
the situation that needs the decision of how, when, and where the
scarce resources be used
Gerardo Sicat
scientific study that points out how people and society decides
2 Divisions of Economics
1. Microeconomics - study of small unit of the society's (family, household, person) consumption
spending, production, and investment
2. Macroeconomics - study of the large unit of the society (banks, businesses, firms, government.other countries) consumption, spending production, and investment.
-Includes the decision of implementing fiscal and monetary laws for the whole economy
Gross National Product (GNP) - measurement of production, income, and spending
Basic Tools of Economics
1. Logic - science of good and sound reasoning, conclusion must be drawn from good reasoning or logical reasoning
2. Mathematics - answers the economic problems which are best solved with the use of numbers and quantitative description
3. Statistics - based on observation and experimentation [Show Less]