L2: Basic Economic Problems in the 21st Century

• Scarcity

  • the idea that the demand for a good or service is higher than what is available. We have unlimited wants but limited resources.
• Opportunity Cost

  • things we give up or don’t do because we choose something else.
• Economists

  • evaluates programs, studies human behavior, and explains social phenomena.
  • They can be teachers, advisors, and consultants.
• Agenda 21

  • development of vision and framework for the 21st century been formulated under the long-term philippine development plan (LTPDP), 2000-2025 or plan 21.
• Agenda 21

  • it is a comprehensive plan of action to be taken globally, nationally, and locally by organizations of the united nations systems, governments, and major groups in every area in which human impacts on the environment.
• basic economic problems according to Tullao (2017)

  1. Poverty
  2. Unemployment
  3. Weak Infrastructure
  4. Income Inequality
  5. Demographic Changes and Its Economic Implications
  6. Pursuing Food Security
  7. Slow Adaptation of Modern Technology
  8. Environmental Sustainability and the Country's Development Thrust
• Poverty

  • restriction condition experienced by millions of families that prevent them from attaining the minimum level of consumption necessary for subsistence living..
• Poverty

  • Absolute Poverty
  • Relative Poverty
• Absolute Poverty

  • the lack of income to buy the basic food and necessities for subsistence living
• Absolute Poverty

  • Poverty Threshold
  • Poverty Incidence
• Poverty Threshold

  • is the income needed to purchase this minimum nutritional requirements for daily survival.
• Poverty Incidence

  • proportion of the households in the country with family income lower than the poverty threshold or poverty line.
• Relative Poverty

  • refers to the structure on how the national income is being distributed among households in the economy.
• Unemployment

  • refers to a situation where a person actively searches for employment but is unable to find work.
• Weak Infrastructure

  • physical infrastructure facilities and expands transactions that likewise fuel economic growth.
• Income

  • the money that an individual earned from work or business received from investments.
• Income Inequality

  • refers to the gap in income that exists between rich and the poor.
• Demographic Changes and Its Economic Implications

  • can be connected to the implications issue of scarcity.
• Economic Systems

  • according to Gabay et al. (2012) the economic systems have significant roles in answering the basic problems.
  • set of economic institutions that dominate a given economy with the main objective of solving the basic economic problems.