• All of us make decisions in life, whether individually or in groups, and

our decision may result to either good or bad. More often than not,
the results of our decision has an effect or direct relation to the
economic process of our lives.
ECONOMICS (Definition)

• In Social Science, Economics is viewed as the examination of human

behavior and practices TO EFFICIENTLY USE THE SCARCE RESOURCES TO
SUPPLY THE UNLIMITED NEEDS OF MAN in order to achieve his or her
satisfaction.
• Comes from the Latin word OIKOS which means HOUSE and NOMOS
which means HOUSEHOLD MANAGEMENT
GOODS THAT SUPPLIES MAN’s
NEEDS

ECONOMIC GOODS FREE GOODS

 Things that do  Things that man
have VALUE OR can acquire for
PRICE like food, free such as air
clothing and water, sunlight.
shelter.  This are goods
 Money is that man
needed in order acquire in
to acquire these natural form
things.
 Francios
Quesnay
XENOPHON PLATO ARISTOTLE Mercantilist and
Physiocrats

OECONMICUS The Republic Tropics and Rhetoric  The ultimate  Believe in the
 Talks about  a blueprint for  viewed goal is TO importance of
EFFICIENT an economy exchange as a ACCUMULATE nature and wise
MANAGEMENT where cities are way to satisfy SILVER AND use of natural
and LEADERSHIP founded on KEY individual and GOLD by SELLING resources.
OF THE PRINCIPLES OF collective wants finish products of
HOUSEHOLD SPECIALIZATION agriculture. TABLUE
and DIVISION OF ECONOMIQUE
LABOR  Illustrated the
circular flow of
goods and
services in the
economy
ECONOMIST AND THEIR PRINCIPLES
ADAM SMITH
• FATHER OF MODERN ECONOMICS
• Proponent of the Laissez Faire or the LET
ALONE POLICY
• The Laissez fair stressed that the
GOVERNMENT SHOULD NOT INTERFERE WITH
THE ACTIVITIES OF MAN TOWARDS FREE
MARKET. They should instead concentrate on
maintaining peace and order in the country.
• He wrote the book, “AN INQUIRY INTO THE
NATURE AND CAUSE OF THE WEALTH AND
NATION”
• Pointed out the importance of specialization in
achieving the industrialization of the economy.
• Specialization – is CONCENTRATING in ONE
PARTICULAR WORK according to one’s skills
and activities.
ECONOMIST AND THEIR PRINCIPLES
DAVID RICARDO
• Known for his brilliant idea about the
EFFECT OF NATURAL RESOURCES IN THE
DEVELOPMENT OF THE ECONOMY.
• Proponent of the law he identified as
the LAW OF DIMINISHING MARGINAL
RETURNS
• Law of Diminishing Marginal Returns – is
defined as the increasing number of
people will DRIVE MAN TO CULTIVATE
EVEN IN IDLE LANDS to support his
necessities of life. This will happened
due to the depletion of fertile lands.
• Law of Comparative Advantage – it is
the principle that explained that a
COUNTRY BENEFITS MORE IN
PRODUCING THE PRODUCTS WITH LESS
PRODUCTION COST THAN ANY
COUNTRY.
THE CEBU I.T PARK WAS
ONCE A PLAY GROUND FOR
CHILDREN BEFORE IT WAS
CONVERTED INTO AN
ECONOMIC HUB
ECONOMIST AND THEIR PRINCIPLE
THOMAS ROBERT MALTHUS
• Proponent of the Malthusian
Theory
• Malthusian theory – states
that, IF POPULATION
INCREASES RAPIDLY THAN
FOOD SUPPLY, IT CAN CAUSE
FAMINE AND WILL AFFECT THE
ECONOMIC ACTIVITIES OF
MAN.
ECONOMIST AND THEIR PRINCIPLE
John Maynard Keynes
• Known as the FATHER OF
MACROECONOMICS
• Proponent of the LAW OF SUPPLY
AND DEMANS
• According to Keynes, the
government plays a significant
role in MAINTANING
EQUILIBRIUM in the economy
through public spending and
keeping the balance among
demand, supply and the market
prices.
ECONOMIST AND THEIR PRINCIPLE
Karl Marx
• The FATHER OF COMMUNISM
• Believed that the poverty of the
WORKING CLASS is CAUSE BY ABUSIVE
PRACTICES OF RICH CAPITALIST THAT
SAFEGUARD THEIR OWN INTEREST and
THEIR accumulation of wealth.
• According to Marx, all industries and
source of wealth should be
NATIONALIZED so as to achieve
EQUALITY AMONG PEOPLE.
• Wrote the book DOS KAPITAL – a book
that contains TEACHING OF
COMMUNISM.
ECONOMICS AND
OTHER FORMS OF
SCIENCES
Economic and Sociology
• Sociology is the study of the COMPOSITION OF THE SOCIETY,
SOCIAL RELATIONSHIPS and SOCIAL INSTITUTIONS.
• Economic conditions affect the actions, relationship, living
conditions and foresight of people in a society.
Economics and Political Science
• Political science is the STUDY OF GOVENRMENT
STRUCTURE, FUNCTION, RESPONSIBILITIES and LAWS.
• Political issues and debates such as Tax reforms, agrarian
reforms, budget deficits, government spending, electoral
reforms, political dynasty and form of government
requires understanding of economics.
Economics and History
• History is the RECORDED STRUGGLE of and PROGRESS MADE by man
from PAST TO THE PRESENT.
• History has brought important lessons in both local and world
economies and how economic events form our world today.
Economic and Ethics
• Ethics talks about the MORALS OF INDIVIDUAL and
DOING WHAT IS RIGHT IN LIFE.
• The knowledge of what is right and wrong in any
activity will guide citizens who are partners of the
government in the development of the economy.
ECONOMICS AND PSYCHOLOGY
• Psychology is the SCIENTIFIC STUDY OF THE
MIND and how it influences HUMAN BEHAVIOR.
• Human behavior affects economic activities of
man.
Economics and Geography
• Geography is the study of PHYSICAL FEATURES OF A COUNTRY
as well as its PRODUCTS and POPULATION which affects the
economic activities of man.
• Economic activities vary with geography. The economy and
product output of a certain place varies because of Geography
Economics and Chemistry
• Chemistry is focused in the study of COMPOSITION OF
CHEMICALS FOR a CREATION OF VARIETY OF GOODS.
• The creation of and production of new chemical compounds
support or boost efficiency and production for products or
services, essential to be competitive in global market and
economy.
 Economics and Physics
• Physics is the study of MATTER and ENERGY
• Technology, invention and innovation are the
outcome of scientific study – through the use of
modern technology, the economy is able to
sustain and provide the needs of the people. It
shows how important physics is to our lives and
economy.
Economics and Biology
• Biology is the study of LIVING THINGS like humans,
animals and plants.
• This living things are necessary in development of the
economy.
Economics and Mathematics
• Mathematics is the science of NUMBERS and ITS
OPERATIONS.
• The study of economics is facilitated by the use of
number, statistics and mathematical equations,
formulas and graphs.
• Statistics it is the science of LEARNING FROM DATA.