APPLIED ECONOMICS

Name of Learner :_________________________________Grade Level:_________

Section:______________________________________ Date:_______________

LEARNING ACTIVITY SHEET

Applied Economics in Addressing Economic Issues

Background Information for Learners

We analyze and propose solutions to the several issues and problems confronting
the Philippine economy by applying different theories in economics. The basic
economic problems confronting the Philippines are scarcity, population growth,
unemployment, inflation, high levels of inequality, environmental poverty, weak
infrastructure, and natural disaster.

Applied Economics is about utilizing economic theories to explain economic events,

government actions and recommend courses of actions for business, household and
government. Different application we have to use to solve these issues are trade-
offs, opportunity cost, variations in benefit and cost, proper allocation of resources by
answering the three basic economic questions; what, how and for whom to produce
and other alternative way by the government to solve our economic problems.

Learning Competency
Examine the utility and application of applied economics to solve economics issues
and problems ABM_AE12-Ib-2

Activity 1

Instruction: Application of trade-offs in scarcity of resources. In not more than four

sentences explain the following scenarios.

1. What are some of the trade-offs faced by the Philippine government deciding
whether to establish more national high schools in faraway provinces.
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2. Give at least four example of trade-offs when scarce resources are used.
a. ___________________________________________________________
b. ___________________________________________________________
c. ___________________________________________________________
d. ___________________________________________________________

Activity 2

Instructions: Application of opportunity cost and variations of benefit and

cost.

1. What are the opportunity costs of a student who decide to study college?

2. Show how cost-benefit analysis can be used in explaining the family size
among poor households.

Activity 3

Other application use to solve economic issues and problems

1. With the given economic questions, determine what is being referred to by the
following statements:
a. Consider production possibilities and efficient use of resources
b. Technology, human resources and both
c. Consider distribution of income (rich v. poor)
2. The Pantawid Pamilyang Pilipino Program (4 Ps) is a conditional cash transfer
program that aims to alleviate poverty. What are the positive and negative
sides of the policy?
3. Compose a slogan on the importance of environmental protection.

Rubric
Explanation 4 3 2 1 Points
A complete Good solid Explanation is Mises key

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 response with response with unclear points
a detailed clear
explanation explanation
Demonstrate Shows Shows Response Response
d Knowledge complete substantial shows some shows
understandin understanding understandin complete lack
g of the of the g of the of
questions, questions, questions understandin
ideas and ideas and g
procedures process
Requirements Goes beyond Meet the Hardly meet Does not
the requirement the meet the
requirement requirement requirement
of the
problem
Total

Closure
Write your brief description of your experiences by answering the following
questions.

1. What is the most important thing you learned personally?

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2. How do you feel that the activity relates to the real world situations and problems?

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3. What difficulties you encountered when answering the activities?

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References:

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Carnaje, Gideon. Applied Economics, 1253 G. Araneta Avenue, Quezon City,
Philippines: Vibal Group, Inc., 2016

Tullao, Tereso Jr. Applied Economics for a Progressive Philippines, Quezon City,
Philippines: Phoenix Publishing House, Inc., 2016

Answer Key
Activity 1
Possible answer:
1. Government has limited amount of funds to spend on different levels of education
and various social services. More government spending on high school education
might require less spending on elementary education and college education or might
even require reduced spending on health care and highways.
2. a. Drinking a bottled water instead of a soda
b. Watching movies at home versus watching in movie theater
c. Buy new dress or two new t-shirts
d. Vacation in Baguio or Boracay

Activity 2
1. a. The money you would have earned if you worked instead
b. Lose four or more years of salary while getting your degree
c. Choosing to not go to a party hangout with friends or catch up on much
some needed sleep.

2. The cost-benefit analysis can explain why fertility rate among women in poor
families tend to have large families because they consider additional children
as investments that can assist them in the future. They attach a higher value
on the future contributions of these children on household welfare. The
opportunity cost of having children is low since women in poor households are
usually not working. With low cost and high benefits, there is an incentive to
have more children in these households.

Activity 3
1. a. What to produce?
b. How to produce?
c. For whom to produce?

2. Positive
a. Parents are more optimistic about situation and their children’s future

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 b. Households heads, spouses and other adults are more encouraged to
work and set up their own business
c. Reduction of severe situation among beneficiary children
d. 4Ps beneficiaries consume more rice and cereals than non-beneficiaries
e. Higher gross enrollment rate for beneficiary high school students
f. Households spend more on basis nee such as food, education and
medicine that stimulate the growth of the local economy.
Negative
a. Fewer workers in the agricultural sector
b. The denial of the beneficiaries 4Ps program to commence hard work as
they now get regular financial assistance
c. Gives rise to corruption in poor areas where ATM cards of beneficiaries
are monitored by local government officials
Prepared by:
JONALYN G. GRANADO

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