comparative econimic planning topic 1 and 2
- 1. SS328 COMPARATIVE ECONOMIC PLANNING TOPIC 1 & 2 Introduction and Review of Related Concepts
- 3. Tracing from history… OIKONOMIA –Ancient Greek “Oiko” as Household and “Nomia” as Management
- 4. HOUSEHOLD Provides the factors of production: •Land •Labor •Capital •Entrepreneurs
- 5. MANAGEMENT Behind the word “management” are four component words; •Man •Age •Men •T (for Time)
- 6. IMPLICATIONS As population grows, the economic entities (household, firms, market and government) and economic sector (agriculture, industry, trade, commerce, and service), must ADEQUATELY and EFFECIENTLY provide growing needs for varied good and services.
- 7. Nature and Importance Why is Economics important? Economics, as a study of livelihood activities has a number of importance. Practically, it guides people to perform and participate to the following; (Leano & Corpuz, 2008) •Making a living and running a business •Using scarce available resources wisely by means of proper distribution
- 8. Nature and Importance Why is Economics important? Economics, as a study of livelihood activities has a number of importance. Practically, it guides people to perform and participate to the following; (Leano & Corpuz, 2008) • Maximizing profits and consumer satisfaction • Understanding problems facing humanity • Providing growth and development to achieve the highest quality of human life
- 9. Economics as a Study of Choice and Scarcity Economics is a study of choice under conditions of scarcity. (Marc Lieberman & Robert Hall, 2008)
- 10. Economics as a Study of Choice and Scarcity Economics is a study of choice under conditions of scarcity. (Marc Lieberman & Robert Hall, 2008)
- 11. Economics as a Study of Choice and Scarcity Choice – the ability to select the best possible option from what is available. Scarcity- a condition in which available resources are not enough to satisfy human needs and wants.
- 12. IMPLICATIONS The essential concern of Economics is to look on how scarcity in resources can be avoided through selecting a best possible option.
- 13. Economics as a Social Science Discipline Economics is categorically regarded as a Social Science discipline. Its prime area of concern is focused on scientific and systematic understanding of social interactions of people as they strive to attain common goal for prosperous living, peaceful environment, and sustainable growth and development.
- 14. Economics as a Social Science Research Economics is also a Social Science research since it is a phenomenal inquiry into the problematic socio-economic conditions which employs scientific procedures in the investigation process.
- 15. Economics as a Social Science Research Economics expands its bounds into studying the choices that individuals, business entities, and government make as they tend to cope with wise use of resources for better standard of living.
- 17. Branches of Economics “Micro-Economics” Studies the smallest units of the society particularly the producing and consuming entities and how they interact and respond based on personal interests.
- 18. Branches of Economics “Macro-Economics” Deals with the aggregate performance of the economic entities which stimulates the activities of major economic sector. Studies trends in growth and development through economic and non-economic
- 19. Economic Growth Indicators •Gross Domestic Product (GDP) •Gross National Product (GNP) •Consumption Expenditure Rate •Inflation Rate •Underemployment Rate •Unemployment Rate •Net Export
- 20. Economic Development Indicators •Crime Incidence •Poverty Rate •Mortality Rate •Morbidity Rate •Per Capita Income
- 21. Non-Economic Indicator •Good governance Good laws, fair justice system, serious implementation of sound economic policies as well as healthy political will of authorities are regarded as vital factors of long term economic growth and development.
- 22. Other Related Economic Concepts •Deficit- Expenditure>Tax Collected •Surplus- Expenditure<Tax Collected •Underemployment- underpaid •Unemployment- job vacancies are not readily available •Poverty Threshold- min. level of income deemed adequate
- 23. Thank You! -End of presentation-