ECONOMICS

Introduction and Overview

Defining Economics

SUMMER BREAK
Sleep

???

Extreme
Sports

Binge
watch
Travel

Study
Pursue
hobbies

Summer
Camp
Shop

Help
family

Play
video
games

Hangout

Work
Go to
concerts

Driving

Exercise/
Diet

Read
books
Enroll in
non-acad
wokshops/
classes

Surf the
internet

What now?
Weigh the pros and cons. Check resources. Evaluate satisfaction level.

SUMMER BREAK
Sleep

???

Extreme
Sports

Binge
watch
Travel

Study
Pursue
hobbies

Summer
Camp
Shop

Help
family

Play
video
games

Hangout

Work
Go to
concerts

Driving

Exercise/
Diet

Read
books
Enroll in
non-acad
wokshops/
classes

Surf the
internet

Why give up some

options?
Because of LIMITED resources.

Everything has a cost. You gain some, you lose some.

What you give up becomes available to others.

What is the consequence

of your decision?

J K L

Group Definition of Eco

You have to give up a certain thing (less: important stuff, beneficial,
people; time; sleep) in order to gain/achieve something (priorities;
more beneficial).
Maximization of scarce resources because there are unlimited
desires but limited resources. Though there are many options, the
decisions that we choose must be beneficial to us and will give us
the best satisfaction. There would always be a trade-off; there are
times that require us to let go of something in order to attain the
goal/s we want to get.
Being presented options and choosing the best one that complies
with the amount of sources one has.
Economics is a social science that deals with how people allocate
scarce resources to satisfy unlimited wants and needs.
C37

Group Definition of Eco

Economics plainly revolves about the aftermath or outcome of
ones decisions everyday. Moreover, it is defined as something
where a person weighs and chooses the best option among all
provided choices making sure that he/she was able to fulfill his/her
own satisfaction and wants.
Economics is proper allocation of resources in order to achieve set
goals and plans.
Economics is weighing the pros and cons.
Economics is weighing your options to achieve the highest
satisfaction and attain the desired outcome.
Economics is the wise use of ones resources TIME, MONEY, EFFORT
and being able to turn them into something that exceeds their
individual value. The group also agreed to include the 2 branches of
Economics mainly Macroeconomics and Microeconomics.
A52

Group Definition of Eco

Considering more options to gain more opportunities.
Economics is a decision-making process. It is also a social science
because it focuses and describes the behavior of individuals as they
decide the products in distinguishing their wants and needs which
they will consume.
Economics is related in making decisions based on available
resources like money, time, and people. So basically, the activities
we did during summer break connects and relates with economics.
Economics is the result of decision-making and is concerned with
how we maximize the things we have with the kind of satisfaction
we are looking for.

A54

Based on the first journal activity, we can define

ECONOMICS
as

the process of making efficient, rational and

satisfying decisions within ones means in an
environment with limited resources.

How society manages its

limited resources
efficiently

How people
make decisions

ECONOMICS

is a social science
that studies

Forces and trends that

affect the economy as
a whole

How people
interact with one
another

The Economy

Households

Firms

Government

HUMAN RESOURCES & INSTITUTION = SOCIETY

Economic Systems

COMMAND

MARKET

MIXED

Government

Private sector

Both

Activity:
Creation of goods and
services from the available
resources and utilization of
the wealth of the economy

Activity:
Allocation and division of
goods, services and resources
to the members of the society
to live and prosper materially

Main Goals
Sustainable growth and development
Stable inflation
Full employment

10 Economic Principles

1. People face
.
2. The cost of something is what you give
up to get something
There aint no thing as a free lunch.
Get something
Give up one thing

the value of what youre giving up

(not just monetary terms)
Thoughts to ponder:

1. Why will you not study if you know that studying helps you perform
better?
2. Why will a guy not ask a girl he likes on a date?
3. Why will a hotdog vendor lower its price in the afternoon?
4. Why do poor families send their children to work instead of school?

people think at the margin.

Systematically and purposefully do the
best they can to achieve their objectives
given the available opportunities
Margin
Edge

EXISTING PLAN OF ACTION

Edge

3.

Margin

Marginal changes small additional adjustments

Marginal Benefits
Marginal Costs

EVALUATE: To Pursue or Not?

people think at the margin.

Systematically and purposefully do the
best they can to achieve their objectives
given the available opportunities
TAKE A POST-GRADUATE DEGREE?
Margin
Edge

STUDY
UNTIL
COLLEGE
Margin

Higher wages throughout life;

sheer joy of learning
Tuition;
Forgone Wages

Edge

3.

4. People respond to
Whats in it for you?
You will not do something that will not benefit you.

5.

can make everyone better off.

Ill plant.
and
harvest...
Ill
build.
.

Ill
create
...
Ill
sew...

Ill do
everything on
my own!

Ill plant.
and
harvest...

V
S
Ill
sew...

Ill
ate
e
r
c
...

Ill
build.
.

DO WHAT YOU
SPECIALIZE IN AND
TRADE WITH OTHERS

6.

are usually a good way to

organize economic activity.

PRICE
Buyers

Sellers

7.

can sometimes improve

market outcomes.

Make sure that the society pay the price to promote

and
address

to

8. A countrys standard of living depends

on its ability to produce goods and
services.

9. Prices rise when the government prints

too much money.

Increase in the prices of goods and services

10. Society faces a short-run tradeoff

between inflation and unemployment.

10 Economic Principles
HOW PEOPLE MAKE
DECISIONS

1. People Face
2. The Cost of Something Is What You
Give Up to Get It
3.
People Think at the Margin
4. People Respond to

Microeconomics
5.
6.

HOW PEOPLE INTERACT

Can Make Everyone Better Off

Are Usually a Good Way to
Organize Economic Activity
7.
Can Sometimes Improve
Market Outcomes

Microeconomics

HOW THE ECONOMY

AS A WHOLE WORKS
Macroeconomics

8. A Countrys Standard of Living

Depends on Its Ability to Produce
Goods and Services
9. Prices Rise When the Government
Prints Too Much Money
10. Society Faces a Short-Run Tradeoff
between Inflation and
Unemployment

Branches
micro
economics

MACRO
economics

individual persons and firms

economy as a whole

Production

individual output

national output

Prices

prices of individual goods

and services

overall price level

Income

wages in a each firm/industry

total income

Employment

jobs in a firm/industry

employment status of the

labor force

How Economists Think

as a
o uses scientific method/systematic action, an orderly flow of
components of a system toward the attainment of an objective

as a
o recommends policies to improve economic outcomes