ECONOMICS

WEEK 2
 Week 2

Topics:

 Relationship of Economics and other Sciences

 Why study Economics?
 Economics: The Science of Making Choices
 Economist
Deal with human being and human behavior
Human behavior is not always predictable
 The same individual may react to the same
conditions differently at different times; or one
individual may react differently from the way another
individual would react.
 Relationship of Economics to Other
Sciences
Biology
• Economic theory and analysis * Findings from Biological
make use of algebra, calculus, studies greatly influence
and mathematical programming. trends in the market,
• Mathematical process are agricultural production, and
involved in the construction of consumption.
graphs and charts and in the
tabulation of statistical data
 Relationship of Economics to Other Sciences
Sociology
• Economics and Sociology
are allied studies for both deal
with individual’s relation to
society since that society
affects his or her behavior and
way of life.
History
Both History and Economics deal
with how a country struggle and
its progress .
• The study of History involve s
the study of Economics and vice
versa for both are Social Sciences.
 Relationship of Economics to Other Sciences
Ethics
Ethics points out the right and the
wrong conduct in such matters as
wealth, production, consumption,
exchange, wage, profit, strike, labor,
and private property.
• Leveling influence
Civics
Civic problems are interrelated with
Economic problems.
• Civics deals with the problems of the
government in maintaining a well-
ordered society.
• Economics treats these problems
which individuals have to face as they
participate in the affairs of the
community.
 Relationship of Economics to Other
Sciences
Psychology
There is definite relation exists
between Economics and Psychology.
• The mere desire for good is a
psychological fact; but when that
desire is expressed in the purchase of
those goods that psychological fact
becomes economic fact.
Statistics
• The science of learning from
data.
• It is concerned with the
collection, classification,
analysis and interpretation of
numeral facts and data to draw
inferences.
 Relationship of Economics to Other
Sciences
Geography
The study of physical features
of a country as well as its
products and population which
affects the economic activities of
man.
It affects the activities of men.
Physics
The study of matter and energy.
Technology, invention, and
innovation are the outcomes of
scientific studies.
Through the use of modern
technology our economy is able to
develop and sustain.
 Relationship of Economics to Other Sciences
Chemistry Political Science
Focused on the study of The study of government
composition of chemicals for thestructure, functions,
creation of variety of goods. responsibilities, and laws is
vital because all of these
The creation of and production affect and influence our lives
using new technology.
and the economy as a whole.
 Why Study Economics?

Intelligent Decision Making

 Why Study Economics?

To understand why people are so

busy in their struggle to survive.
 Why Study Economics?

Patronizing our own products

 Why Study Economics?

Paying the right amount of tax

Why Study Economics?

Following rules and self discipline

Why Study Economics?
Economics explains Various ideas that
enhance
Attitudes, behavior, and actions Of
people
 Why Economics is regarded as a science?
• It is an organized body of truth, •
Coordinated,
• Arranged, and
• Systematized with reference to
certain general laws and principles
• However, laws and principles of
economics are not as universal as
the laws in physical science
• Law of Diminishing Return
• Law of Supply and Demand
• It is more difficult to formulate
universal laws in economics since
individuals are being dealt with.
• Reactions to a given set of conditions
will vary because of differences in
personality, environment, IQ and other
factors.
 Economics as a Science Economist (same other scientists) also
work in a similar way

1.They used economic theories to explain how

the economy works. 2. He gathers data, compares data
against his hypothesis, validates
• Oftentimes, more people are at the bargain his hypothesis…
counters of department stores compared to
regular counters.
• when departments stores and groceries • concludes that:
conduct a “sale”, people rush to the said
establishment and buy plenty of goods.
“ A DECREASE IN THE PRICE
• Therefore…
OF A PARTICULAR GOOD
“IF THE PRICE OF GOODS FALL, PEOPLE
MAKES CONSUMER WANT TO
WILL WANT TO BUY MORE” PURCHASE
 Economics: The science of making choices

Cost-an amount that has to be paid or spent to buy or obtain something

Benefits-something that produces good or helpful results or effects or

that promotes well-being : ADVANTAGE
 CHOICE AND DECISION

Individual Choice-decisions we make to

satisfy our needs

Social Choice-decision made by the

government to satisfy the needs of the society .
 Opportunity and benefit
Opportunity Cost-refers to the value of alternative given up
to obtain another item.
.

#Opportunity cost means yung product na di mo pinili at

pinagpalit sa bagay na pinili mo.

#Gaya na lang sa love, mas pinili mo yung mahal mo keysa sa

nagmamahal sayo. Binitiwan at ni-let go mo yung nagmamahal
sayo at pinili mo yung minamahal mo. Then opportunity cost is
the one who loves you.
Opportunity and benefit
 Opportunity and benefit
Trade-Off- giving up or sacrificing one
product for another.

Benefit- what you gain from choices.

1. Someone gives up going to see a movie to study for a test in order to get a
good grade.
Opportunity cost: cost of the movie and the enjoyment
Benefit: Study/pass the test

2. At the ice cream parlor, you have to choose between rocky road and
strawberry. When you choose rocky road..
Opportunity cost -enjoyment of the strawberry
Benefit: enjoyment of rocky road
3. A player attends baseball training to be a better player instead of taking a
vacation.
Opportunity cost –vacation
Benefit- become a better player

4. Jill decides to take the bus to work instead of driving. It takes her 60 minutes
to get there on the bus and driving would have been 40,…
Opportunity cost - is 20 minutes.
Benefit: maybe can save fuel
5. This semester you can only have one elective and you want both basket-
weaving and choir. You choose basket weaving .
Opportunity cost -the enjoyment and value you would have received from
choir.
Benefit-develop a weaving skill

6. If you decide not to go to work,..

Opportunity cost - the lost wages.
Benefit-rest / spend time with family
 Ikaw ba ay ipinagpalit at iniwanan?
Dahil Opportunity Cost ka lang!
Peru kung ikaw ay pinili at ipinaglaban n’ya, aba ikaw
ay may benefit sa kanya!

#opportunitycosthugot
Kung sakaling magkita kayo ng X mo sabihin mo goodbye opportunity cost!
At kung sakali si crush ay dadaan sa harap mo,aba ano pa? Benefit na yan!