Eco1 Mod1 1of2

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.