Apostolic Vicariate of Tabuk Catholic Schools System, Inc.

St. William’s Academy Bulanao, Inc.

9 Senior High School Department

Bulanao, Tabuk City, Kalinga, 3800 Philippines
School Year 2020 – 2021

LEARNING MODULE DISCIPLINES AND IDEAS IN SOCIAL SCIENCES

Name: Score:
Grade and Section:

MODULE NO.2 CONCEPT MODULE

TOPIC: The Discipline of Economics
Date:September 14, 2020
Dear Parents;

In this time of health pandemic, we would be glad if you could help us facilitate this lesson to our learners to be able to
continue his/her the holistic development. Thank you and we will heal and journey as one.

School Administration
I. LEARNING TARGETS:
1. Define Economic;
2. identify the fields, areas of inquiry and methods of Economics.
3. Interpret Geography,
4. identify the fields, areas of inquiry and methods of Geography.
II. LESSON PROPER:
ECONOMICS
• Greek words:
oikos “home” nomos “management”

• Economics is the study of the efficient allocation of scarce resources in order to satisfy unlimited human needs and
wants.
• Factors of Production – Economic resources that can be used to produce goods and services.
*Land *Labor *Capital *Entrepreneurship

FACTORS OF PRODUCTION

• Land – anything that comes from nature and which gives life and support to all living creatures. Ex. timber resources,
clean air, water.
- also refers to immovable properties where industries are built.

• Labor – refers to any human effort exerted during the production process which includes physical exertion, application
of skills or talent or exercise of intellectual faculties.

• Capital – refers to anything that can be used to create or manufacture goods and services.

Examples of capital goods are buildings, infrastructures, machines and other tools used in the production
process.

• Entrepreneurship – refers to the ability to organize all the other factors of production in order to carry out effectively the
production process.
-This skill involves ability to organize, take risk, introduce a new product, and generally create something
of value.
TWO BRANCHES OF ECONOMICS

• Microeconomics – “study of the choices made by economics actors such as households, companies, and individual
markets”
-Focuses on how individual consumers and firm make decisions; these individuals can be a single person, a
household, business/organization or a government agency.
-Microeconomics focuses on supply and demand, and other forces that determine price level, making it a
bottom-up approach.
-It also studies firms that produce the goods and services, and the industries from which the firms operate.

MICROECONOMIC PRINCIPLES

• Supply and Demand

- Market Supply refers to the total amount of a certain good or service available on the market to consumers.
 - Market Demand refers to the total demand for the good or service.
- The interplay of supply and demand helps determine prices for a product or service, with higher demand and
limited supply typically making for higher prices
.
• Law of Demand
- If all other factors remain equal (Ceteris Paribus), the higher the price of a good, the less people will demand
for that good.
- Factors Affecting Demand: Number of available substitutes, consumer preferences, the shifts in the price of
complementary products.

• Law of Supply
- The higher the price, the higher the quantity supplied.
- Factors Affecting Supply: Production capacity, production cost, number of competitors

• Macroeconomics – “examines the behavior of entire economies” (Pennigton 1999, 3) Studies the overall economy on
both national and international level.
-Macroeconomics takes a top-down approach and looks at the economy as a whole, trying to determine
what the economy should look like.
-It focuses on changes in the price level across all markets.
• Foreign Trade • Government Fiscal And Monetary Policy • Unemployment Rates • Inflation
• Interest Rate • Gross Domestic Product • Business Cycles

MACROECONOMIC PRINCIPLES

• Inflation – the study of how the cost of goods and services rises as time goes on.
- It is a complex area of economics but the consensus among leading modern economists is that it’s desirable
for inflation to be kept at a low or steady rate as near to zero as possible.

• Economic Output – The study of goods and services which a national economy produces.

• International Trade – The area of macroeconomics that looks at the trade that occurs between nations in terms of goods,
services, and raw materials.

ADAM SMITH
–renowned as the Father Of Modern Economics and a major proponent of laissez-faire.
*Also known as the Father of Capitalism

-His famous work An Inquiry into the Nature and Causes of the Wealth of Nations (1776) contributed to
the theory of price formation, the relationship of market outcomes and public interest, the role of state in the economy,
and the sources of economic growth.

- Laissez-faire – “leave alone” – the market equilibrium is reached when buyers and sellers are free to
move on their own without the intervention of the government.

METHODS OF RESEARCH

OBSERVATION-is a method by means of which the researcher chooses, challenges, registers and codifies, according to
certain rules, behaviors, facts, events or happenings specific to the community observed in compliance with the research
goal and objectives.

INTERVIEW- interview is one of the most elementary forms of data collection which involves asking people questions
and receiving answers from them. It is a mode of communication used in various domains.

FOCUS-GROUP DISCUSSION- aims to get as minutely as possible the attitudes, beliefs, feelings, experiences and
reactions of respondents in a way less specific to the qualitative methods be it observation or interview.

DOCUMENTARY ANALYSIS -represents the most used source of information for researchers especially due to resource
saving reasons: time, money etc. The documentary analysis can contain the analysis of certain reports, yearly books and
all the details related to a project.

CONTENT ANALYSIS- involves systematic classification and counting of text units to distil a large amount of material
into a short description of some of its features (Bauer, 2000).
 Activity: Use the back portion or you may use a bond paper.

Make your own budget plan for this week.

Write your total weekly allowance and itemize your daily expenses.

Guide Question:

1. Is your weekly allowance enough for your expenses? Why or why not?
2. Do you consider yourself a wise consumer when it comes to spending money?
3. To which category does your expenses fall: needs or wants?

Sample of weekly Budget Plan

Income
Allowance from Parents PhP500
Work PhP300
Total PhP 800.00
Fixed Expenses
Load 100
Loan 100
Total 200
Flexible Expenses
Groceries 200
Eating Out 200
Total 400
Savings PhP200

Prepared by: Lyka Francess S. Balunggay

Parent’ Signature: ______________________________Date: ___________________