EKONOMIKS IV PDF

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Embeds 0 No embeds. No notes for slide. What is yourinterpretation regarding the pictures??.. Principles of Economics 4. There were no ideas andphilosophies that explains economics back then. All studies were focused on the political scenarioof the time. Later on, the study of economics wasgiven attention. Different theories, researches,ideas, and points of view hat concerned theactivities of man in the society were developed.

Hedescribed the Greek economy as a premarketwhere products were neither uniform nor tradedon organized exchange or analyzed for theirown sake. They emphasized human contractthrough the practical nature of leadership andpolicy. In contrast to these, Plato in hisRepublic presented a blueprint for aneconomy where cities are founded onkey principles of specialization anddivision of labor that creates mutualinterdependence and further leads toreciprocal exchange.

He defended private property for all classes and not just for the established leaders. In his Topics and Rhetoric, Aristotle viewed exchange as a way o satisfy individual and collective wants and not as a means for the state to accumulate wealth.

This process of accumulation of wealth became thepreoccupation of the mercantilists. They emphasized the utilizationof all available lands for agriculture, mining, or manufacturing. Theystressed that all raw materials should be used for domesticproduction because finished products have higher price than rawmaterials. Their ultimate goal is to accumulate silver and gold byselling their finished products and keeping domestic money in localcirculation.

The failure of mercantilism in keeping agricultural outputfrom declining and taxes from increasing paved the way for thephysiocrats. Francois Quesnay and his group who werecalled Physiocrats believed in the importance ofnature in the economic development of acountry. They strongly agreed that man shoulduse natural resources wisely and properly oattain the maximum advantages from it. Aside from this principle, Quesnay becamepopular in his Tableau Economique, whichillustrated the flow of the factors of production,goods, and services in the different sectors ofthe economy.

According to him, inorder to haveequilibrium in the economy, it is necessary touse the natural resources wisely to attaindevelopment. These differences in principlesbetween the physiocrats and themercantilists paved the way for therecognition of another group calledClassicists.

David Ricardo was known for hisbrilliant ideas about the effects of naturalsources like land in the development ofeconomy. According to his principle the Lawof Diminishing Marginal Returns, increasingnumber of people will drive man to cultivateeven the idle lands to support theirnecessities in life. Thomas Robert Malthus, on the otherhand, discussed the effects of the rapidincrease of population. His theory is knownas the Malthusian Theory. It was written inhis book, An Essay on the Principles ofPopulation.

It stated that if populationincreases rapidly than the supply food, it cancause famine and will affect the economicactivities of man. According to Keynes, thegovernment plays a significant role inmaintaining equilibrium in theeconomy through public spending andkeeping the balance among demand,supply, and the market prices.

Hewrote the book General Theory ofEmployment, Interest, and money. Marx believedthat poverty of theproletariat or workingclass is caused byabusive practices ofthe rich capitalists thatsafeguard their ownselfish interests andtheir accumulation ofwealth. Social Science- The study is about society - Society is a group ofpeople that has common objectives, race, goals, and interest. Research and evaluation are needed in order to achieve thetruth when stating certain problems of society.

This is the reason why mancontinues his struggle for survival. Hewants to have so many things in his life. His desire for varietyof good makes living complicated and more challenging.

Any Question?? Answer the following He is considered as the leader of the physiocrats. David Ricardo4. He wrote Topics and Rhetoric. He is known as the Father of Communism. Karl Marx Why is man and society the center of study in economics? If you were an economist, how will you define economics? Do you agree hat man has no satisfaction?

Economics and other Sciences Economics as a social science: Economics — is a social science becausethe center of its study is the people and society. As a science, the scientific method is used inanalyzing certain problems related to andaffecting the economy. Economics and other sciences —many disciplines of study are relatedto economics. It shows the importanceof the discipline to our lives andeconomy. History and economics — historyrecords how the tools of early mangave to present way of life.

Oneexample is the history of our economicprinciples and policies during thedifferent periods of time. This resultedin the present condition of oureconomy. Ethics and economics —Themorality of man is one of the mostimportant elements in the progress ofa country.

Political Science- The study of governmentstructure, functions, responsibilities, and law set arevital because all of these and influence our lives andthe economy as a whole. Chemistry and Economics- the types ofchemicals used in agriculture as fertilizers andpesticides in producing the goods are necessaryconsideration for setting and market price of theproduct. Physics and Economics- Technology, inventionand innovation are the outcome of scientific studies.

Biology and Economics- it is the study ofprocesses and characteristics of plants and animals. Mathematics and Economics- The study ofeconomics is facilitated by the use of numbers,statistics, mathematical equation, formula, graph,which are learned in mathematics. Economics isalways part of our life and whatever we make Identification: write the answer on the blank.

Political Science 1. The study of government structure and policies. Biology 2. Study of plants and animals. Scientific Method 3. The application of science in economics. History 4. The recorded struggle of man from the past to the present Mathematics 5. It concerns the use of graph and statistics.

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