About this module

Good Day SPIan! Welcome to Applied Economics (Grade 12) offered by Skill-Power Institute,
Inc,-Antipolo Senior High School.

Embracing and ushering the "new normal" learning approach in this time of pandemic aims to
provide modern and quality education for Filipino learners like you. At this moment, you will
study at your own pace and safety at home while your instructor takes responsibility of
monitoring your progress. This module was developed to provide you with interesting and
meaningful learning experiences.

In order to assure your learning about the Applied Economics, this module is undertaking all
the necessary measures to ensure that your expectation will be discussed within reasonable
time without compromising anyone’s health and safety.

I acknowledge the efforts and/or contributions of Senior High School Department to this work,
but I own all errors, if any. I hope that concepts and ideas of applied economics learned from
this module may enable you to face the challenges that lie in the real world.

COURSE DESCRIPTION: This course deals with the basic principles of applied economics, and
its application to contemporary economic issues facing the Filipino entrepreneur such as prices
of commodities, minimum wage, rent, and taxes. It covers an analysis of industries for
identification of potential business opportunities. The main output of the course is the
preparation of a socioeconomic impact study of a business venture.

Now, it's time to acquire new knowledge, meaning-making and transfer of ideas, SPians!
Padayon!

Features of this module?

It is our pleasure to engage and cater you in your journey as you explore this module's
content-stages.
WHAT I NEED TO This will give you an idea of the skills or competencies you are
KNOW? expected to learn in the module.
WHAT I KNOW? This part incudes an activity that aims to check what you
already know about the lesson to take. If you get all the
answer correct (100%), you may decide to skip this module.
WHAT’S IN? This is a brief drill or review to help you link the current
lesson with the previous one.
WHAT’S NEW? In this portion, the new lesson will be introduced to you in
various ways such as a story, song, poem, problem opener, an
activity or situation.
WHAT IS IT? This part discusses the content of the lesson.

WHAT’S MORE? In this portion, you are given a set of question to help you
digest the lesson you’ve read.
WHAT I HAVE It helps you to generalize/summarize the topic you have
LEARNED? learned.
WHAT I CAN DO? This directs you to the Learners Activity Sheet to apply it into
your day-to-day basis.
ASSESSMENT Test your knowledge by taking this test. This will be evaluated
by your teacher.
ADDITIONAL This gives you extra homework to help you acquire additional
ACTIVITIES. learning.
GLOSSARY Look at this part to search the unfamiliar words and their
meanings
 REFERENCES Otherwise called as bibliography is a list of resources used by
the author to help you understand the lesson.
SUGGESTEDREADINGS/ This provides a list of other books, published or unpublished
WEBSITES studies, journals, links, and website for your references.

LESSON 1: Economics as Social Science and Applied Science

WHAT I NEED TO KNOW?

Intended Learning Outcomes:

At the end of the lesson, you are expected to:
LO1: Differentiate economics as social science and applied science in
terms of nature and scope.
Performance Standards: The learner demonstrate an understanding of
economics as an applied science and its utility in addressing the economic
problem of the country. Performance Standard: The learners shall be able to
analyze and propose solution/s to the economic problems using the principles
of applied economics.

Learning Outcome 1: Differentiate economics as social science

and applied science in terms of nature and scope.
Students often think of economics in many different ways. To some it
deals with the country's economy, on how the government does things to
ensure that the business and economic activities in the country keep on going.
To others, economics is about saving money or using money wisely. These
ideas are true, but as we will learn, economics is more than those concepts. An
ordinary citizen could hardly understand what is happening in the society if he
does not have backgrounds in economics.

WHAT I KNOW?
Let us determine how much you already know about Economics as
Social Science and Applied Science. Encircle the letter of the correct
answer.

Fill in the K-W-H-L Chart Below to assess your prior or initial knowledge and
knowledge of the topic, Understanding of Recreational Outdoor Activity in
Optimizing One's Health.

K-W-H-L

K - What do I W - What do I H - HOW can I L - What did I

KNOW? WANT to find out? find out what I LEARN?
 want to learn?

Skills I expects to
use:

WHAT’S IN?

Quotation Analysis: What comes into your mind when we say the statement
below? Write a 250-300 words essay. You may write your answers to a piece of
paper or type it right away to your chat box and send it to your teacher in any
modalities you may have.)

Take Nothing but Picture….

Leave Nothing but Footprints….
Kill Nothing but Time…
Cherish Nothing but our Memories….

WHAT'S NEW?
Processing questions:
What is the importance of recreational outdoor activity?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
How is recreational outdoor activity related to health-related fitness?
________________________________________________________________________
________________________________________________________________________

WHAT IS IT?

LESSON 1: ECONOMICS AS A SOCIAL SCIENCE AND APPLIED

SCIENCE

Economics is a field of study that has become increasingly relevant in

our globalized, financialized society. The economy is part of our collective
conscious and a buzzword that links personal finances to big business and
international trade deals. Economics deals with individual choice, but also with
money and borrowing, production and consumption, trade and markets,
employment and occupations, asset pricing, taxes and much more. What then
is the definition of economics? One way to think of it is the study of what
constitutes rational human behaviour in the endeavour to fulfil needs and
wants given a world with scarce resources. In other words, economics tries to
explain how and why we get the stuff we want or need to live. How much of it
do we get? Who gets to have more? Who makes all this stuff? How is it made?
These are the questions and decisions that economics concerns itself with.

As an individual, for example, you constantly face the problem of having

limited resources with which to fulfill your wants and needs. As a result, you
must make certain choices with your money – what to spend it on, what not to
spend it on, and how much to save for the future. You'll probably spend part of
your pay check on relative necessities such as rent, electricity, clothing and
food. Then you might use the rest to go to the movies, dine out or buy a
Smartphone. Economists are interested in the choices you make, and
investigate why, for instance, you might choose to spend your money on a new
Xbox instead of replacing your old pair of shoes. They would want to know
whether you would still buy a carton of cigarettes if prices increased by $2 per
pack. The underlying essence of economics is trying to understand how
individuals, companies, and nations as a whole behave in response to certain
material constraints.

Adam Smith (1723 - 1790), is often considered the "father of modern

economics." His book "An Inquiry into the Nature and Causes of the Wealth of
Nations" (1776) was the first fully elaborated attempt to understand why some
nations prospered while others suffered widespread poverty. He famously
argued that individuals working for their own self-interest could nonetheless
create a stable and well-provisioned society through a mechanism he called the
invisible hand of the market.
Smith, however, was not the first to write on economic matters. Other
scholars of what was then known as political economy wrote prior to "The
Wealth of Nations," but Adam Smith was one of the first to identify the unique
economic changes that accompanied the birth of industrialization and
capitalist production. Smith’s work was followed by David Ricardo’s
"Principles of Political Economy and Taxation" (1817) and later by Karl Marx in
"Capital" (1867). Each of these authors sought to explain how capitalism
worked and what it meant for producers and workers in the capitalist system.
th
In the late 19 century, the discipline of economics became its own
distinct field of study. Alfred Marshall, author of "The Principles Of Economics"
(1890) defined economics as a social science that examines people's behavior
according to their
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individual self-interests. He wrote, "Thus it is on one side the study of wealth;
and on the other, and more important side, a part of the study of man." In the
th
early 20 century, however, there was a push toward legitimizing economics as
a rigorous science alongside the physical sciences like chemistry and physics.
As a result, mathematical models and statistical methods were brought to the
forefront along with a number of strong assumptions that are needed to make
those models work. For example, modern mainstream economics makes the
assumption that human beings will always aim to fulfil their individual self-
interests. It also assumes that individuals are rational actors in their efforts to
fulfil their unlimited wants and needs. It also makes the claims that firms exist
to maximize profit and that markets are efficient. This school of economics,
which has come to dominate both the academic field of economics as well as
the practical application of economic theory in policy and business, is known
as neoclassical economics.

Economics, as a social and applied science will explain and help you
understand what is really happening in the economy. Economics is a body of
knowledge that analyzes, explains and even predicts the economic behavior of
people, groups and nation; and involves such concepts as the distribution of
goods and services, level of employment and income of the people, prices and
basic economic issues such as scarcity, wants, needs and allocation. Using a
simpler description, economics may be defined as the science of how people
make effective choices or decisions to satisfy their wants. It is also science that
deals with how society allocates its scarce resources among the people's
unlimited needs. The word economics comes from a Greek words "oikos" and
"nomos" that means household management. Economics deals with the
management of both individual households and the global economic society,
which is the larger household.
Also, economics can be defined two manners of scientific approach which
is social science and applied science. It is a social science because it explains
how and why people have the way they do, as individuals and in groups. It
concerned with the analysis of commercial activities and with how goods and
services are produced. It has general principles such as the Law of Supply and
Demand but these do not apply in every situation. This is because human
beings are unpredictable. In the same way, no person can predict his next
year's income or earnings, but he can use general projections tk come up with
estimates. On the other hand, economics may also be considered as applied
science because of the way it uses a scientific approach to understand the
complex forces that shape individuals and groups; and it is systematic body of
knowledge that conforms to some universal laws. It uses the scientific method
in its explanations, which consists of observing reality and presenting

APPLIED ECONOMICS | ACCOUNTANCY , BUSINESS AND MANAGEMENT

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questions and problems to arrive at the formulation of theories and models. As
an applied science, it follows a systematic procedure to solve issues and
problems of the society.
Applied Economics is the application of economic theory and
econometrics in specific setting with the goal of analyzing potential outcome. It
is typically characterized by the application of the core, referring to economic
theory and econometrics, as a means of dealing with practical issues in fields
that include demographic economics, labor economics, business economics,
monetary economics, economic history, and many others. John Neville
Keynes – is attributed to be the first to use the phrase “applied economics” to
designate the application economic theory to the interpretation and
explanation of particular economic phenomena.
THE TOOLS OF ECONOMICS
As a science, economics uses different methods which compose a
scientific approach to explain many economic phenomena, problems and
issues.
1. Observation - This involves seeing and observing economic phenomena
first that are happening presently and that happened in the past.
Through observation economists can determine the causes and effects of
events to individuals and nations. For example, the effects of inflation in
the present world markets; as well as rising prices.
2. Economic Analysis - Facts and historical events are available to any
person or economist, but they have to see those phenomena in the light
of certain assumptions and then come up with some projections using
logic. An example is raising taxes where public planners try to project the
possible income of the government, as well as the services that will be
benefited by such increase.
3. Statistical Analyses - Economics use statistics to perform their economic
analysis. Statistics include various data and information that are
organized in a systematic manner.
4. Experiments - Previously, economists do few experiments' because it is
very hard to perform controlled experiments in economics, the way they
do in laboratories. However, economist now use subjects in limited
geographical areas to establish control on their experiments, and they
measure. Example is the reactions of people living in that area to certain
economic phenomena.
SCOPE OF ECONOMICS

The study of economics has two major divisions: macroeconomics, which

deals with the functioning of the economy in general, or as a whole; and

APPLIED ECONOMICS | ACCOUNTANCY , BUSINESS AND MANAGEMENT

Module 1
microeconomics, which involves the individual components of the economy
such as businesses, industries, households and even individual consumers.

Macroeconomics is the branch of economics that pertains to the study

of whole economies or systems. It includes, among others, the following
concerns:
a. inflation and unemployment
b. government income and expenses
c. total money supply, investments
d. international finance and economies
e. balance of payments, fiscal policy
Questions such as: Should credit be limited so that consumers will not
spend much? Should taxes be raised? and Should the government join
international trade organizations?, and the likes can be answered through
macroeconomics analysis.
Microeconomics is the division of economics that is concerned with
individuals decisions within an economy; a single consume; a group; a firm; a
country. It pertains to the workings of individual markets. It includes the
following concern: a. prices of goods b. value of land, labor and capital c.
specific markets, food, electronics, energy etcs. d. businesses, monopolies, and
commercial empires e. employees and employers
ECONOMIC SECTORS AND ECONOMICS
Economics plays a major part in the daily lives, business and actions of
these sectors.
a. Individuals - Individuals struggle daily with such economic
situations as employment, wages, and wise spending. Economics
affect each individual differently depending on their values,
culture, or status in life. A rich person, for example, may not have
so much problem with wages or spending as someone who is on a
daily hand-to-mouth existence.
b. Household - Household consist of two or more members, families
or groups of families who cooperate for the purpose of living.
Households can be classified by the level of income, such as that of
those below the poverty line or those earning below or above
certain monthly income. Household are income receivers, which
means that they generate income, usually from the combined
wages, salaries, and earnings of their members. They use this
income to fund household needs and necessities like house, rent,
food, and clothing. In this way, households become spenders too.
Households may also become sources of taxes and savings.

APPLIED ECONOMICS | ACCOUNTANCY , BUSINESS AND MANAGEMENT

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Household may also provide labor in the form of workers and
entrepreneurial abilities as seen in small neighborhood stores. 3.
c. Businesses - While the main focus of individuals and households
is consumption, the main objective of business firms is to satisfy
the wants and needs of individuals and households, through the
production of goods and services. Businesses are usually
categorized as single proprietorship, partnerships and
corporations.
d. Government - This is the sector, composed of the leaders and
prime movrts of a country, which sets its political and economic
policies. Government as an economic sector is 'visible hand' that
directs the movement of the economy itself.
e. International Sector - It refers to trade and business activities thag
happen between and among nations. Production and consumption
vary among different countries of the world.
THE USES OF ECONOMICS
Economics is both science and art, it can make factual statements as
well as judgment or evaluations of situation. These are known as the uses of
economics. The first deals with descriptions of the economic situation, while
the second is about prescribing to economic problems.
Positive Economics is about facts and existing situations regarding the
economy. It deals with the following questions:
1. What is the minimum wage for city workers?
2. How will new taxes affects the spending power of consumers?
3. In what ways is Singapore ahead of the Philippines in terms of foreign
investment?
Normative Economics is about norms, values, judges, and ethical concern
regarding the economy and various economic situations. Normative economics
answers with questions such as the following:
1. Should government provide Social Amelioration Program (SAP) to
professional workers, owner of grocery store, and government employee?
2. Should government patronize COVID-19 vaccine which are expensive
but are of low efficacy rate like Sinovac?
3. What percentage of the budget should families spend for their food? The
questions could not be answered by a simple reference to facts.
The answer should depend on the type of analysis made and on the point
of view, inclinations and even biases of the one making the analysis. There
would be no single "correct" answer for these questions and no one answer can
be adjudged as "wrong." Thus, economists disagree more on the normative field
of economics than in the domain of positive economics. It is easier to agree on

APPLIED ECONOMICS | ACCOUNTANCY , BUSINESS AND MANAGEMENT

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concepts when looking at facts than dealing with opinions and personal
assessments.

WHAT’S MORE?
ESSAY. Answer briefly the following:

Differentiate economics as social science and applied science

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

RUBRICS:
Content: 10 pts
Organization: 5 ptS
Relevance 5 pts

Total 20 pts

WHAT I HAVE LEARNED?

Try to recall the lesson by answering the following questions:
1. Define dance
2. What are the elements of dance?
3. What are the types of dance?
4. What are the health-related fitness to dance?
5. What are F.I.T.T.?

WHAT I CAN DO?

1. Compose a short poem about how one's lifestyle can while self-assessing
health-related fitness and sets FITT goals based on training principles to
achieve and/or maintain health-related fitness to dance.

2. Cut out different types of dances and create a collage out of the cut outs in
your journal or notebook.

3. Make a brochure, multimedia presentation, a Facebook page, or a web page

that contains information on the history and nature of dance, elements and
types of dances found in the CALABARZON region.

APPLIED ECONOMICS | ACCOUNTANCY , BUSINESS AND MANAGEMENT

Module 1
Video clips on how to use the different recreational outdoor equipment.

How to pitch a camping tent

How to use orienteering compass

How to use climbing ropes

How to use gaggles, snorkels and dive mask

ASSESSMENT
LET'S ORGANIZE

Objectives: Identify the types of dances and explain the different dances.
Procedures: Make a graphic organizer and give the description and examples to
complete the entire concept.

RUBRICS:
Content: 10 pts
Organization: 5 ptS
Creativity 5 pts

Total 20 pts

ADDITIONAL ACTIVITIES

1. Create a vlog on dance while self-assessing health-related fitness (HRF)

status, barriers to physical activity assessment participation and one's diet.

RUBRICS:
Content: 10 pts
Organization/Creativity: 5 ptS
Relevance 5 pts
Total 20 pts

2. Make a mulimedia presentation on how to sets FITT goals based on training

principles to achieve and/or maintain health-related fitness to dance.

RUBRICS:
Content: 10 pts
Organization: 5 ptS

APPLIED ECONOMICS | ACCOUNTANCY , BUSINESS AND MANAGEMENT

Module 1
Relevance 5 pts
Total 20 pts

GLOSSARY
Dance - the collection of interrelated condition on which something occurs.
FITT -  principle helps you create a workout plan that will be more effective in
reaching your fitness goals. F.I.T.T. stands for frequency, intensity, time, and
type of exercise. These are the four elements you need to think about to create
workouts that fit your goals and fitness level.
Health-related fitness- is theoretically defined as a multidimensional construct
containing the components cardiorespiratory endurance, muscular strength,
muscular endurance, flexibility and body composition

REFERENCES

Tiamson, Juan Alvin B. (2007). Economics Concepts and Trends. Manila:

St. Augustine Publications, Inc., 1-11

https://oacltd.co.uk/definitions-and-the-history-of-outdoor-and-adventure-recreation/

SUGGESTED READINGS/WEBSITES

APPLIED ECONOMICS | ACCOUNTANCY , BUSINESS AND MANAGEMENT