Economics as an applied science
- 1. ECONOMICS AS AN APPLIED SCIENCE Marikriz M. Paulino, MBA ECONOMICS
- 2. Applied economics is the application of economic theories and models to the data to solve real-world issues. It involves using models and “common sense” to predict how economic events, such as technological change, inflation, strategic behavior, and regulation, affect economic welfare WHAT IS APPLIED ECONOMICS? ECONOMIC THEORY APPLIED ECONOMICS Theory A Theory B Theory C Applying Theory A Applying Theory B Applying Theory C EskwelaCornerbyKriz
- 3. ECONOMICS AS AN APPLIED SCIENCE Social, economic and business issues arise because of the differences in marginal costs and marginal benefits. These imbalances result in the improper allocation of resources and manifest in various problems and issues in society. These are due to the non recognition as well as the differences in valuing the implicit components of the benefits and costs EskwelaCornerbyKriz
- 4. Scarcity Choices & Decision Making Limited Resources Unlimited Wants EskwelaCornerbyKriz What? To produce How much? How? To produce For whom? To produce BASIC ECONOMIC PROBLEM OF SOCIETY
- 5. Economic Problems Confronting the Dev’t of the Phils. in the 21st Cen. Socio-economic problem Main problem Socio-economic problem Basic Problem NON-INCLUSIVE GROWTH DESPITE OF ECONOMIC GROWTH UNEMPLOYMENT DESPITE OF IMPROVEMENTS POVERTY POPULATION GROWTH CONNECTED WITH THE ISSUE OF SCARCITY Millions of Filipinos are claiming they are experiencing hunger or they still live below the poverty level Unemployment rate: 2nd Quarter of 2015 - Decreased to 6.4 % from 7.0% in the previous year July 2020 estimated at 10%. The number of Filipinos without jobs reached 4.6 million Poverty rate: 2009 - 26.5% 2012 - 25.2% 2014 - 28.8% (1st Quarter) World Bank saw the poverty rate in the Philippines further declining to 19.8 % in 2020 and 18.7% 2021 2010 - 92.3 M 2014 -100 M growing by 2% One of the highest population in Asia. Represents 1.37% of the worlds population Data from trendingeconomics.com EskwelaCornerbyKriz
- 6. References: Raw pictures by Google Image Wikipedia Series of presentation in Economics END OF THE SLIDE EskwelaCornerbyKriz