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Importance & Objectives

of socio-economics
theories
Presented to: Dr. Justo Anaguita,
Instructor

By: Renante D. Deseo


Ph.D. Student
Background /evolution of socioeconomics
 What is Socioeconomics (also known as social
economics) is the social science that studies
how economic activity affects and is shaped by
social processes.

 In general it analyzes how societies progress,


stagnate, or regress because of their local or
regional economy, or the global economy.
Started in human evolution

Social
stratefication
Social mobility

Social mobility is the movement of individuals, families, households,


or other categories of people within or between social strata in a
society. It is a change in social status relative to one's current social
location within a given society.
The working group

The social group consisting of people who are employed for


wages, especially in manual or industrial work.
The lowest social stratum in a country or community, consisting of the
poor and unemployed.
"they are an underclass who lack any stake in popular capitalism and who
are caught in the dependency culture"
White collar class

A white-collar worker is a person who performs professional, managerial, or


administrative work. ... Other types of work are those of a blue-collar worker,
whose job requires manual labor and a pink-collar worker, whose labor is
related to customer interaction, entertainment, sales, or other service-oriented
work.
Bourgeoisie

a sociologically defined class, especially in contemporary times, referring to people with a


certain cultural and financial capital belonging to the middle or upper middle class: the
upper (haute), middle (moyenne), and petty (petite) bourgeoisie (which are collectively
designated "the bourgeoisie"); an affluent and often wealthy stratum of the middle class
who stand opposite the proletariat class.
Is studying socioeconomics important?

 Most important it is often, the pursuit of


the single goal of maximizing income
growth that causes the social problems in
question. ... It may also result in a
deteriorating physical environment and in
a social environment that causes social
unrest that ultimately destroys the fruits
of economic growth.
WHAT IS THEORY?

• a set of principles on which the practice


of an activity is based.

• an idea used to account for a situation or


justify a course of action.
Differentiate theory from postulate.

Postulate is something assumed without


proof as being self-evident or generally
accepted, especially when used as a basis
for an argument while;

Theory is (obsolete) mental conception;


reflection, consideration.
Microeconomics
 analyzes basic elements in the economy,
including individual agents and markets, their
interactions, and the outcomes of interactions.
Individual agents may include, for example,
households, firms, buyers, and seller.
What is Macroeconomics?
• Macro economics deals with total or aggregate
level of output, aggregate level of consumption,
aggregate level of investment, aggregate level of
employment and general price level in economy.
Macroeconomics
Income and Output. One of the most important concepts of
macroeconomics is income and output. ...
Unemploymen Some Basic Concepts of Macroeconomics

Another. important component of macroeconomics is unemployment. ...


Inflation and Deflation. ...
Monetary Policy. ...
Fiscal Policy.
Three of the major concerns of
macroeconomics are:
Unemployment – Inflation – Output growth
1. Unemployment
Unemployment refers to the situation
where the population of a country do
not find work to earn their livelihood.
Unemployment rate of the Phil.
Calendar GMT Actual Previous Consensus TEForecast
2018-06-05 01:00 AM Unemploym 5.5% 5.3% 5.4%
ent Rate
2018-09-05 02:00 AM Unemploym 5.4% 5.5% 5.4%
ent Rate
2018-12-05 01:00 AM Unemploym 5.1% 5.4% 5.3%
ent Rate
2019-03-07 02:00 AM Unemploym 5.2% 5.1% 5%
ent Rate
2019-06-05 02:00 AM Unemploym 5.2% 5.50%
ent Rate
2019-09-05 02:00 AM Unemploym 5.30%
ent Rate
2019-12-05 02:00 AM Unemploym 5.40%
ent Rate
INFLATION AND DEFLATION
Inflation occurs when the prices of goods and
services rise, while deflation occurs when those
prices decrease. The balance between the two
economic conditions, opposite sides of the same
coin, is delicate and an economy can quickly swing
from one condition to the other.
MONETARY POLICY
 Monetary policy is the process by which the
monetary authority of a country, typically
the central bank or currency board, controls either
the cost of very short-term borrowing or
the money supply, often targeting inflation or
the interest rate to ensure price stability and
general trust in the currency.
Monetary policy
Monetary policy is referred to as being either
expansionary or contractionary. Expansionary policy
occurs when a monetary authority uses its tools to
stimulate the economy.
An expansionary policy maintains short-term interest
rates at a lower than usual rate or increases the total
supply of money in the economy more rapidly than
usual. It is traditionally used to try to combat
unemployment in a recession by lowering interest rates
in the hope that less expensive credit will entice
businesses into expanding.
This increases aggregate demand (the overall demand for
all goods and services in an economy), which boosts short-
term growth as measured by gross domestic product (GDP)
growth. Expansionary monetary policy usually diminishes
the value of the currency relative to other currencies (the
exchange rate).[5]
Fiscal Policy

Fiscal policy is the means by which a


government adjusts its spending levels and tax
rates to monitor and influence a nation's
economy. It is the sister strategy to
monetary policy through which a central bank
influences a nation's money supply.
Tools of Fiscal Policy
The two main tools of fiscal policy are
taxes and spending. Taxes influence
the economy by determining how much
money the government has to spend in
certain areas and how much money
individuals should spend.
THE THEORY OF INTERSTELLAR

In Earth's future, a global crop blight and second Dust Bowl


are slowly rendering the planet uninhabitable. Professor
Brand (Michael Caine), a brilliant NASA physicist, is working
on plans to save mankind by transporting Earth's population
to a new home via a wormhole. But first, Brand must send
former NASA pilot Cooper (Matthew McConaughey) and a
team of researchers through the wormhole and across the
galaxy to find out which of three planets could be mankind's
new home.
The interstellar