BASIC MICECONOMICS

Course No. : BAC 1

Course Title : BASIC MICROECONOMICS
Credits : 3 UNITS
Economics as Defined
Origin of Economics
Microeconomics as Defined
Concept of Microeconomics
Central problem of Economics
Types of Economics
- the production, distribution, and
consumption of goods and services.
Oikos – household
Nomus- system management

Oikonomia or Oikonomus –
“MANAGEMENT OF HOUSEHOLD”
MICROECONOMICS
Concerned with
individual decision
making. (management
of household)
- Efficient allocation of
the scarce means of
production toward the
satisfaction of human
needs and wants.
CONCEPTS OF ECONOMICS
SCARCITY SATISFACTION
commodity or the act of
service being in
short supply, satisfying a
relative to its need or
demand.
(kapur1997)
desire.
CENTRAL PROBLEM OF ECONOICS

Limited Unlimited Limited Unlimited

Resources Wants Resources Wants

SCARCITY ALLOCATION

Interaction of limited resources available & Economics comes to play in order to effectively &
unlimited wants of the society. efficiently allocate resources(making proper choices,
allocation and utilization of economic resources.)
TRADITIONAL ECONOMY
- family produces goods only
for its own consumption.
COMMAND ECONOMY
-the government decides on
what, how, how much, and for
whom to produce.
MARKET ECONOMY/CAPITALISM
- the resources are privately owned, and that the
people themselves make decisions.
- people are free to produce goods and services
to meet the demand of consumers.

SOCIALISM
- generally the state is responsible for the
production and distribution of important goods.
- the main emphasis is on equitable distribution of
income and wealth.
MIXED ECONOMY
- mixture of market system and
the command system.
- Philippine economy is
described as a mixed economy
since it applies a mixture of three
forms of decision-making .
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7-10. In your own
words define
microeconomics
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Based on your personal
observation, make a short
discussion of the current status of
the Philippine Economy.
Guidelines:
Government System and its performance
Various Social Unrest and Crimes
Environmental Status