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b. David Hume Quantity Theory of Money he a Scottishphilosopher and also a economist who was a contemporary of Adam

Smith. This theory is about money prices as opposed to realquantities and relative prices. It aims to tell us what determines

;how much dollars an average person will earn for an hours work, or

how much pesos you will have to pay for a cell phone and the

money cost to have a holiday in Boracay. The quantity theory of

money is also used to understand what determines the inflation.

3. Define Economics.the study of the proper allocation and efficient use of scarce resources

to produce commodities for the maximum satisfaction of unlimited

human needs and wants.

Is a social science that analyses the production, distribution andconsumption of goods and services.

Why is Economics considered as science?

Economics is to be considered as a science because it applies scientificmethods to study behaviors.

4.Explain the relationship of Economics to 2 social Sciences.History - history is very important to economics. Through history, we

are able to compare the things that happened in the past and

correlate. them with what is happening at the present time.

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Political Science the relationship between them is because thegovernment has the ability to control the economic status of its

country, or it depends on how the government functions. For example,

North Korea is a communist country. Their leader only prioritizes theMilitary equipment of their soldiers such as tanks, battle ships and

even nuclear weapons, even though their people starves to death or

suffer the old fashioned way of living. And they dont allow products

imported from other countries and its forbidden to use internet,

computers or even cell phones, and thats why they dont progress.

Unlike the Philippines, our government prioritizes the economic growth

instead of the militaries. Thats why we dont have much weapons like

them, because we are not the type of country that is being attacked

everyday so we need to spend the whole fund making bombs even if

the masses die.