Economics

A Reaction Paper

Economics is a powerful force that has shaped countries and empires as far back as history records. Economic trends have had diverse affects, helping cause World War Two, the collapse of the Soviet Economy and the deomcratisation of South Korea and Japanamong many others. In recent times the importance of economic power may have even increased. Generally, there are goals of economics such: (1) Economic growth. It may be defined as the rate of increase in the Gross National Product (GNP), which is the increase in the economys productive capacity. Gross National Product is an indicator of overall economic welfare and performance. This refers to the market value of the total output of goods and services produced by the nation within a given period of time usually a year. Overseas earnings plus the Gross Domestic Product (taken from local taxes and local industries) constitute GNP. Economic growth can be seen in the society, when it acquires greater productive capacity that can be used for consumption or investment. Consumption may be private consumption or government. Private consumption refers to the spending for almost all types of personal consumption like clothing, footwear, etc., while government consumption refers to investment of the government using budgetary allocation for durable equipment. Here are some of the sources of economic growth: agricultural; fishery; forestry; services sector like transportation, communication or trade; industry sector like electricity, gas, manufacturing of paper, paper products, transportation equipment, electrical machinery, non-electrical machinery, tobacco, petroleum products; exports (major contributor to growth). (2) Full employment. This means that qualified people who seek jobs at prevailing rates can find them in productive activities without considerable delay. (3) Price stability. It refers to the absence of any marked trend or sharp, short-term movements in the general level of prices. (4) Economic freedom. This means the freedom of people to use or invest their money in productive activities subject to some moral limitations, and it should not be contrary to law. (5)Equitable distribution of wealth and income. Needlessness to state, people in Asia like their ancestors is serfs in a feudal system. Most land is owned by a few. The great masses of peasants are tenants, receiving meager shares of the crops they raise and they are eternally in debt to Casey Clark G. Sumalinog B-2A | 04:00-05:30 TTh, 0151, 34

landlords on loans at exorbitant interest. In the Philippines, legislators created some measures, enacted laws and implement the same to attain a society where equality of opportunity is more than a slogan. As citizens and human beings, we need to understand the social mechanism underlying the distribution of income and how reasonable and just they are. (6) Economic security. Financial crisis has become increasingly common with the spread and growth of global capital flows. Economic security may become evident when output growth, payment balances, interest rates and inflation are returning to normal. From the explanations above, I can generalize that Economics really works for our convenience and for a wealthy living, also for an economic balance and stability. Economic development of the country will be attained when these are realized. Poverty as well might be eradicated and financial crisis may be lessened. Economics has two branches: microeconomics and macroeconomics.

Microeconomics is the branch of economics that deals with the personal decisions of consumers and entrepreneurs. Its primary concern is to help consumers and investors make their lives better by increasing their earnings and satisfying their needs despite limited resources. Also included in its study are the consumers' decisions on what products to buy and how the cost of commodities is determined. Microeconomics is the branch of economics that deals with the personal decisions of consumers and entrepreneurs. Its primary concern is to help consumers and investors make their lives better by increasing their earnings and satisfying their needs despite limited resources. Also included in its study are the consumers' decisions on what products to buy and how the cost of commodities is determined. Fundamentally, the main importance of economics is helping society decide on the optimal allocation of our limited resources. The fundamental problem of economic is said to be scarcity - the idea that wants (demand) is greater than the resources we have. Frequently we face choices on: What to produce, how to produce and for whom to Produce, Economics helps to decide on questions like this. More specifically economics is important in these areas. Economics is important for many areas of society. It can help improve living standards and make society a better place. Economics is like science in that it can be used to improve living standards and also to make things worse. It partly depends on the priorities of society and what we consider most important.

Casey Clark G. Sumalinog B-2A | 04:00-05:30 TTh, 0151, 34

Bibliography
http://www.youtube.com/watch?v=ir7PZXS8CDk&feature=player_embedded, Importance of Economics, Date retrieved: Jan. 01, 2012 16:40 http://simple.wikipedia.org/wiki/Economics#History Economics Date retrieved: Dec. 31, 2011 18:40 http://www.ehow.com/info_7882727_branches-economics.html What Are the Branches of Economics? By Raleigh Kung, eHow Contributor, updated February 02, 2011, Date retrieved: Jan. 01, 2012 18:30 http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=economic+goals ECONOMIC GOALS

Casey Clark G. Sumalinog B-2A | 04:00-05:30 TTh, 0151, 34