Introduction to

Economics with Land

Reform and Taxation
Prepared by: Anne Lauriz C. Aclan
For the National College of Science and Technology
1st semester 2012-2013

Origin of Economics
The termeconomicscomes from the
Ancient Greek (oikonomia,
"management of a household,
administration") from (oikos,
"house") + (nomos, "custom"
or "law"), hence "rules of the
house(hold).

Introduction to Economics with Land Reform and

ADAM SMITH

Considered as the Father of Economics

His book entitled Wealth of Nations
published in 1776 became the
reference book of different authors in
solving problems
Introduction to Economics with Land Reform and

JOHN MAYNARD KEYNES

The Father of Modern Economics

Suggested that the government should
allocate a large amount of money
purposely for solving problems of
depression
Introduction to Economics with Land Reform and

What is Economics?
Definitions of Economics as given by different writers:
A social science concerned with using scarce resources to
obtain the maximum satisfaction of the unlimited material
wants of the society (Bingham et al)
The science that deals with the activities of man in obtaining
wealth for the satisfaction of his wants (Castillo)
The science that deals with the efficient use of scarce
resources in order to satisfy the needs and wants of the
people (Guzman)
Scientific study which deals with how individuals and society
generally make choices (Sicat)
An inquiry about the nature and causes of the wealth of
nations (Smith)
Introduction to Economics with Land Reform and

Economics as a Science
It is a science because it is a body of
systematic and organized knowledge
Economics is concerned with the
classification and logical
arrangement of economic
phenomena

Introduction to Economics with Land Reform and

Economics as A Social Science

It is a social science because it is the
study of social behavior guiding in the
allocation ofscarce resourcesto meet
the unlimited needs and desires of the
individual members of a given society.
Economics seeks to understand how those
individuals interact within the social
structure to address key questions about
the production and exchange of goods and
services.
Introduction to Economics with Land Reform and

Concepts of Economics
Wealth refers to any property and asset of a
person that have a useful value such as real estate,
money, stocks and the likes
Product the creation of raw materials into finished
products to satisfy human wants
Exchange the process of trading goods and services
for money
Distribution deals with the allocation of the social or
national income among the different factors of
production
Consumption refers to the utilization of goods and
services by any individual to satisfy human wants
Introduction to Economics with Land Reform and

Division of Economics
Microeconomics the study of
economics which deals with the behavior
and activities of individuals in specific
units such as entrepreneurs, firms,
manufacturers as well as consumers
Macroeconomics the study of the entire
behavior of the economy and the factors
and forces, which cause depression,
inflation and recession.
Introduction to Economics with Land Reform and

Four Economic Resources

Land includes natural resources as
well as the ground in which these
resources are found
Labor the work and time for which
employees are paid
Capital man made goods used to
produce other goods or services
Entrepreneurial ability
Introduction to Economics with Land Reform and

Basic Economic Problems

What are the goods and services to
be produced
How are the goods and services
produced
How much goods and services are to
be produced
For whom are the goods and services
to be produced
Introduction to Economics with Land Reform and