BAUTISTA, IRISH C.
08/19/2019
BSA 2-8 | A166
 ECONOMICS
- It is a social science concerned with
the production, distribution, and
consumption of goods and services.
- It studies how individuals, businesses,
governments, and nations make
choices on allocating resources to
satisfy their wants and needs, trying to
determine how these groups should
organize and coordinate efforts to
achieve maximum output.
- Concerned with efficiency in
production and exchange and uses
models and assumptions to understand
how to create incentives and policies
that will maximize efficiency.
 TYPES OF ECONOMICS
 Macroeconomics
- Studies overall economies on a
regional, national, or international
scale.
 Microeconomics
- Focuses on the behavior of individual
consumers and producers.
 ECONOMIC INDICATORS
 Gross Domestic Product (GDP)
- Considered by many to be the
broadest measure of a country's
economic performance.
- Represents the total market value of
all finished goods and services
produced in a country in a given year
or another period
 Consumer Price Index (CPI)
Mrs. Melaida Resuello
- Measures the level of retail price
changes (the costs that consumers
pay).
- Benchmark for measuring inflation.
 ECONOMIC SYSTEMS
 Capitalism
- system of production whereby
business owners (capitalists) produce
goods for sale in order to make a
profit and not for personal
consumption.
 Socialism
- system of production whereby
workers collectively own the
business, the tools of production, the
finished product, and share the profits
 Communism
- system of production where private
property ceases to exist and the people
of a society collectively own the tools
of production.
 IMPORTANCE OF STUDYING
ECONOMICS
 Helps to conquer poverty
 Economics teaches the knowledge of
economic systems
 Economics teaches modern methods
of production
 Helps in proper budgeting
 Helps to increase national wealth
 Helps to formulate budget
BAUTISTA, IRISH C. 08/19/2019
BSA 2-8 | A166 Mrs. Melaida Resuello

 Helps to frame law

SOURCES:
https://www.investopedia.com/terms/e/econ
omics.asp
https://accountlearning.com/importance-
significance-study-economics/