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Summary

Dr. Josephine C. Evangelista introduces the principles of economics, emphasizing the concept of scarcity and the importance of decision-making. She explains that economics studies the production, distribution, and consumption of goods and services, aiming to satisfy unlimited human wants with limited resources. The video touches on the relationship between economics and other social sciences, the scientific method in economic studies, and the use of tools like the production possibility frontier (PPF) to illustrate economic choices and opportunity costs.

Takeaways

• 📚 Economics is a social science that studies the production, distribution, and consumption of goods and services.
• 🌐 Scarcity is a fundamental concept in economics, arising from unlimited human wants and needs contrasted with limited resources.
• 🏡 The term 'economics' originates from 'oikonomikos,' which means household management, emphasizing the household as a basic unit of society.
• 🤔 Economics is about decision-making, helping individuals and entities allocate resources efficiently to satisfy their unlimited wants and needs.
• 🔗 Economics is interconnected with other social sciences such as history, geography, political science, philosophy, and mathematics.
• 📈 The Production Possibility Frontier (PPF) is a tool used in economics to illustrate the concept of opportunity cost and decision-making under scarcity.
• 📊 PPF is a graphical illustration showing the various combinations of goods that can be produced with given resources, highlighting the trade-offs involved.
• 💼 Dr. Josephine C. Evangelista emphasizes that economics is not just a positive science but also an ethical one, concerned with what ought to be in the economic sphere.
• 🧮 Mathematics plays a significant role in economics, with concepts like algebra and calculus used to analyze complex economic models and data.
• 🌐 Economics is a science that follows a systematic approach, including problem identification, hypothesis formulation, data gathering, analysis, and drawing conclusions.

Q & A

What is the main concept introduced by Dr. Josephine C. Evangelista in the beginning of the lecture?

Dr. Evangelista introduces the concept that there is no such thing as abundance, which is why economics is necessary. She emphasizes that economics is about decision-making in a world of scarcity.

How does Dr. Evangelista define economics?

Economics is defined by Dr. Evangelista as a social science that deals with the proper allocation and efficient utilization of scarce productive resources to produce goods and services for the maximum satisfaction of unlimited human wants and needs.

What is the origin of the word 'economics' according to the lecture?

The word 'economics' originates from the Greek word 'oikonomia', which means household management.

Why is economics considered a social science?

Economics is considered a social science because it deals with the study of man's life and how he lives with other people, considering that people have unlimited wants and needs, and that resources are limited.

How does Dr. Evangelista relate economics to other social sciences like history and geography?

Dr. Evangelista relates economics to history by stating that history provides material for economic analysis and has been influenced by economic factors. She relates economics to geography by explaining how a favorable geographic location can affect a place's economy.

What is the role of politics in economics as mentioned by Dr. Evangelista?

Dr. Evangelista mentions that politics and economics come hand in hand, citing John Maynard Keynes, and explains that an economy can be influenced by political decisions and policies.

How does Dr. Evangelista link philosophy to economics?

Dr. Evangelista links philosophy to economics by discussing how philosophers like Karl Marx and Milton Friedman have intertwined economic and philosophical ideas in their works.

What is the significance of mathematics in economics as discussed in the lecture?

Mathematics is significant in economics for various calculations, such as algebraic expressions and calculus, which are used to compute economic indicators like GDP.

What role does ethics play in economics according to Dr. Evangelista?

Ethics plays a role in economics as it is considered a social science of moral conduct. Economists today hold that economics is an ethical science as well as a positive science, concerned with what ought to be in the economic sphere.

What is the significance of scarcity in economics and how does it relate to decision-making?

Scarcity is the main problem in economics, and it forces individuals and entities to make choices. Dr. Evangelista explains that scarcity leads to the concept of opportunity cost, which is the cost of the next best alternative that is foregone when making a decision.

What is the Production Possibility Frontier (PPF) and how does it relate to economic decision-making?

The Production Possibility Frontier (PPF) is a graphical tool that illustrates the different combinations of goods that can be produced with a given amount of resources. It helps in decision-making by showing the trade-offs between different choices and the opportunity costs involved.

Outlines

00:00

📚 Introduction to Economics

Dr. Josephine C. Evangelista, also known as Dokca, introduces the principles of economics. She emphasizes the scarcity of resources and the need for decision-making in our daily lives. Economics is defined as a social science that studies the production, distribution, and consumption of goods and services, aiming for the efficient allocation of scarce resources to satisfy unlimited human wants and needs. The importance of economics in relation to other social sciences such as history, geography, political science, philosophy, and mathematics is highlighted. The concept of scarcity is introduced as the central problem in economics, and the idea of opportunity cost is mentioned as a tool to address this problem.

05:03

🌐 Economics and Its Interdisciplinary Connections

This paragraph delves into the relationship between economics and other disciplines. It discusses how economics is influenced by and influences history, geography, political science, philosophy, and mathematics. The speaker explains that economic factors have played a significant role in historical events like wars and revolutions. The geographical location of a place can greatly affect its economy, using Pampanga as an example. The influence of politics on economics is also touched upon, referencing John Maynard Keynes. The intertwining of philosophy and economics is illustrated with examples of Karl Marx and Milton Friedman. The importance of mathematics in economics, particularly in calculations and data analysis, is also highlighted.

10:04

📊 The Science of Economics and Decision Making

The paragraph explains the scientific method in economics, which involves formulating hypotheses, gathering data, analyzing, and interpreting to reach conclusions. It emphasizes the recurring theme of scarcity and introduces the concept of the Production Possibilities Frontier (PPF) as a tool for decision-making. The PPF is graphically illustrated to show the trade-offs between two commodities, food and clothes, within a limited resource context. The idea that economics is a science of choice is reinforced, with the concept of opportunity cost being explained through the example of choosing education over a job, which involves a monetary sacrifice.

Keywords

💡Economics

Economics is a social science that studies the production, distribution, and consumption of goods and services. In the video, Dr. Josephine C. Evangelista emphasizes that economics is about the allocation and efficient utilization of scarce resources to satisfy unlimited human wants and needs. The concept is central to understanding the nature and scope of economics, as it deals with decision-making in the face of scarcity.

💡Scarcity

Scarcity refers to the limited availability of resources in relation to the unlimited wants and needs of individuals. In the script, scarcity is highlighted as the fundamental problem in economics, which necessitates decision-making and prioritization. It is the reason why economics exists, as it requires individuals and societies to make choices about how to allocate their limited resources.

💡Opportunity Cost

Opportunity cost is the value of the next best alternative that is foregone when making a decision. The video uses the example of choosing to go to school over a job opportunity, where the opportunity cost is the salary lost by not taking the job. This concept is crucial in economics as it helps individuals and entities understand the trade-offs involved in their choices.

💡Production Possibilities Frontier (PPF)

The PPF is a graphical illustration that shows the various combinations of goods that can be produced with a given level of resources. In the video, Dr. Evangelista uses the PPF to explain decision-making and the concept of scarcity. It demonstrates the trade-offs that must be made between different goods, such as choosing between more clothes or more food.

💡Unlimited Wants

Unlimited wants refer to the endless desires and needs of individuals that can never be fully satisfied due to the scarcity of resources. The video script mentions that despite achieving certain goals, like obtaining a degree, people often find new wants, illustrating the concept of unlimited wants.

💡Economic Decision-Making

Economic decision-making involves choosing between alternative courses of action to allocate resources efficiently. The video emphasizes that economics is about making decisions in the face of scarcity, such as deciding what to study or how to allocate family resources.

💡Social Science

Economics is classified as a social science because it deals with the study of human behavior in society, particularly in relation to the production and consumption of goods and services. The video script highlights this by discussing how economics is intertwined with other social sciences and influences and is influenced by societal factors.

💡Etymology

Etymology is the study of the origin of words and the way in which their meanings have changed throughout history. The video script uses etymology to explain the origin of the word 'economics,' which comes from the Greek 'oikos' meaning household, highlighting the historical context of studying household management.

💡Ethics

Ethics is the social science of moral conduct, which asks questions about what ought to be. In the video, Dr. Evangelista discusses how economics is not only a positive science that describes what is but also an ethical science that considers what ought to be in terms of economic behavior and policy.

💡Geography

Geography is the study of the Earth's landscapes, peoples, places, and environments. The video script mentions geography's relevance to economics, such as how a favorable geographic location can impact economic activities, using the example of Pampanga's strategic location near an airport.

💡Philosophy

Philosophy is the study of general and fundamental questions about existence, knowledge, values, reason, mind, and language. The video script connects philosophy with economics through the works of Karl Marx and Milton Friedman, showing how philosophical ideas can influence economic thought and policy.

Highlights

Introduction to the principles of economics by Dr. Josephine C. Evangelista.

Economics is the study of how society manages its scarce resources.

The concept of scarcity is central to understanding economics.

Economics involves decision-making in the face of scarcity.

Economics is derived from 'oikonomikos', meaning household management.

Economics as a social science deals with the allocation and utilization of resources.

The unlimited wants and needs of individuals lead to scarcity.

Economics is related to other social sciences like history, geography, and political science.

Economics and philosophy are intertwined, as seen in the works of Karl Marx and Milton Friedman.

Mathematics plays a crucial role in economics, particularly in calculating economic indicators like GDP.

Ethics in economics asks the question of what ought to be, not just what is.

Economics follows a scientific method, including hypothesis, data gathering, and analysis.

The production possibilities frontier (PPF) is a tool used in decision-making to illustrate opportunity costs.

The PPF curve represents the efficient use of resources to produce different combinations of goods.

Opportunity cost is the value of the next best alternative that is foregone.

Economics is a science of choice, where choices involve trade-offs and sacrifices.

Transcripts

hello my dear students

this is dr josephine c evangelista

or they call me dokca we're here

to study or i'll be here

to teach you the principles of economics

for some students it's the principle of

economics

with taxation and land reform

so to start with let's start let's all

begin with the nature

and scope of economics

there's no such thing as abundance

that's why there is economics

every day in our lives we make decisions

you as a student

you also you're also making decisions

for example i think the greatest

decision that you have made

[Music]

is what stand or what degree you are to

pursue despite of this pandemic

for us adults we have a lot of things to

decide

we have to decide for the family we are

to decide for our careers and a lot more

that's why the question is

why do we need to decide and how to deal

with

in this decision making

for us to answer this question

therefore on economics

has arise okay

let's talk about economics economics

came from the record economy

which means household management

everybody knows that household is the

basic unit of society

it is shared with the etymology of the

field of

ecology economics is a field of study

that studies the production

distribution and consumption

of goods and services

if we are to define economics it's a

social science

that deals with the proper allocation

[Music]

and efficient utilization of scarce

productive resources

to produce goods and services

for the maximum satisfaction

the unlimited technology unlimited

human wants and needs

you know with dear students economics is

a social science

yes it is because it deals with the

study of

man's life and how he lives with other

people

you cannot live without others right

and because of that

people do have unlimited wants

perhaps needs could be satisfied but

once cannot therefore

we have scarcity we have the word

scarcity because of unlimited

needs and wants of people

for example an individual told

himself that after he graduated college

he became satisfied

because he can find work

then after three years he noticed that

being bs degree holder is not enough

to be promoted then he decides to finish

master's degree

after four years this person wants to be

the

ceo or then he decides to take a

doctorate degree from this example

we can notice that people has no

satisfaction

yes

man cannot satisfy unlimited wants and

needs

because he has a limited resources

you know what made their students

economics can be related in

other social sciences like history

a history could be related in economics

in a number of ways

first it provides economic economics

with the material that

economies can then analyze

secondly history itself has been

influenced to a large extent by economic

factors indeed many wars

wars conflicts and revolutions came

about

as a result of economic dispute

likewise in geography

economics could be linked in geography

a favorable geographic location of a

specific place

may greatly affect its economy

[Music]

take for example pompanga pompanga is

geographically located in a favorable

place within centralism

airport which provides a very good

ambiance for the economic activities of

the

kapampangans

next is the political science politics

and economics come hand in hand

that's what john maynard keynes have has

mentioned he's a favorite

famous economist by the way practical

men

who believe themselves to be quiet

except

from any intellectual influence

are usually the slaves of some defunct

economist

see

an economy could be also influenced by

politics

next philosophy

philosophy and economics are closely

intertwined

for example such as karl marx

on his writings kendica digresses both

economic

and philosophical works another example

is milton friedman

he is primarily regarded as an economist

a distinct libertarian philosophy

plays a central role in his ideas

another is mathematics in economics

there are a lot of competitions

algebraic expressions calculus where to

complete gdp or the gross

domestic products and the like therefore

made their students repair

calculators and be familiar with your

calculators

another is ethics

ethics is a social science of moral

conduct

it asks the question what ought to be

there was a time when economists had

that economics was concerned only with

the question

what is and not with the question what

ought to be

but today practically all economies hold

the economics that

is an ethical science as well as well as

a positive science

that is it is concerned with what ought

to be in the economic sphere

as well as what what what

is

my dear students economics is a science

why science because

science follows us economics like

science it follows steps

first if you in the economic problem you

are to determine the formula first

then we are to make a wise guess or what

we call hypothesis

what's next we have to gather data

after gathering the data we are to

analyze and interpret it

for us to have a final conclusion and

generalization for our

findings

my dear students

the word economics and scarcity could be

mentioned so many times

in our course

you know what as we all know scarcity is

the main problem

in economics and to address this problem

economists formulate a simple tool to

determine

the opportunity cost of certain economic

activities

one of the simplest tool is the

ppe no it's not a vp it's a ppf

ppe could be for the avoidance of

kovid 19 but ppf or the production

possibilities furniture could be used

or the best tool in decision

making okay let me give you

a glimpse of what a ppf

looks like you know what my dear

students

in economics there could be a lot of

illustrations

specifically graphical illustrations

okay to give you a sample of this

this one

this is an example of a graphical

illustration

i'm making it a ppf take note this is a

p

p f okay this is a ppf

okay if you could notice we have here

clothes

and foods we have here the line

any combination within those line

could be under the badge

okay and this line can serve as short

budget

any combination for example you have

here

one two three clothes

can you see it and then one

two of food any combination

between those ppf

could be within your budget imagine in

this situation there are only two

commodities

and these commodities are food and

clothes

clothes ppf curve balls within the

origin

what i'm trying to say is that any point

along the ppf curve utilizes the same

number of resources

the higher the ppf curve the higher the

level of resources

available in the economy

okay on this example

this is my example is limited only in

two goods the

clothings and food but in reality there

are a lot of

choices okay

as soon as i mentioned there's a word

choice

economics as a science of choice white

choice

i have a lot of choices

since economics is a science then it

helps an individual

and entity to make choices as we all

know when you make choices you need to

sacrifice

for example you pick letter a you are to

sacrifice letter

b for example in your case

you opted to go to school you sacrifice

for example there's a job opportunity

you sacrificed

that job in exchange of your schooling

and the sacrifice you make is what we

call the opportunity

cost why opportunity costs for example

there is a job offering for you

salary is 10 000 per month but you opted

to go to school

therefore you're losing 10 000 monthly

because you are here studying

therefore you are losing 10 000 per

and that is what they call the

opportunity costs

you lost 10 000 in exchange of this

schooling

okay usually opportunity cost is a

combination of

both the implicit cost and the explicit

cost the explicit cost is the value

of alternative work on in terms of

monetary law it's the actual money

that you are getting out of your pocket

an example implicit cost is the cost

incurred without monetary

implicit cost is worth ten thousand

within my example because you're losing

10 000

because of your schooling instead you're

into a job