Republic of the Philippines

Department of Education
REGION VII – CENTRAL VISAYAS
Schools Division of Cebu Province

S.Y. 2020-2021

SELF LEARNING HOME TASK (SLHT)

Subject: APPLIED ECONOMICS Grade Level: 12 Quarter: 3 Week: 1

MELCs: Differentiate economics and social science Competency Code:

and applied science in terms of nature and ABM_AE12-1a-d-1
scope

Name: __________________________Section: ___________ Date: __________

School: __________________________ District: _______________________________

A. Readings/Discussions:

The Study of Economics:

Can I teach economics all on my own? ECONOMICS affects our daily lives in
both obvious and subtle ways. From an individual perspective, Economics frames have
many choices to make about work, leisure, consumption and how much to save.
Economics helps you to think strategically and make decisions to optimize outcomes.
THE NATURE AND SCOPE OF ECONOMICS:

Economics is a study of economic activities of a man. It is only concerned with

the wealth-getting and wealth using activities of a man. Samuelson says that
Economics is “the queen of the social sciences”.
Economics deals with human beings living in a society, i.e., in a large group of
persons with touching interests and problems. It does not deal with problems of solitary
individuals like Robinson Crusoe. In a community of people everybody is influenced
by the actions of the others. Economics deals with the activities of people, living in an
organized community or society, in so far as such activities are related to the earning
and use of wealth or with the problems of scarcity, choice and exchange. Economics
is, therefore, considered to be a branch of sociology which is a study of the history and
nature of society. As a consequence of this we find that economics is closely related
to the other social sciences like Ethics, Political Science, and History etc.

Social Science is concerned with the explanation and production of observed

phenomena in the society.

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BRANCHES OF ECONOMICS
The branches of science (also referred to as “sciences”, “scientific fields”, or
“scientific disciplines” ) are commonly divided into four major groups

 NATURAL SCIENCES. Studies natural phenomena (including fundamental

forces and biological life.
 FORMAL SCIENCES Uses an a priori, as opposed to factual, methodology
(such as mathematics and logic).
 SOCIAL SCIENCES. Studies human behavior and societies.
 APPLIED SCIENCES. Applies existing scientific knowledge to develop more
practical applications, like technology or inventions.

Basic Terms in Applied Economics:

 Macroeconomics-concerned with the whole aggregated economy.

 Microeconomics-concerned with individual markets and small aspects of the
economy.

 Econometrics-is the application of statistical and mathematical theories to

economics for the purpose of testing hypotheses and forecasting future trends.

 Econometrics Example-real life application of econometrics would be to study

the hypothesis that as a person’s income increases, spending increases and
income spending.

 Basic Economic Problems-scarcity of means for satisfying various needs is

the central problem of our economic life and it is scarcity that creates the need
to make a choice. Scarcity and choice go hand in hand.

 Applied Economics is the application of economic theory to determine the likely

put comes associated with various possible courses of action in the real world.
By better understanding the likely consequences of choices made by individuals,
businesses, and policy makers, we can help them better choices.

 Economic’s Theory- theoretical model of how societies function. Economic

Theories try to explain economic phenomena to interpret why and how the
economy behaves and what is the best solution - how to influence or to solve
these economic phenomena. In principle, the approach to economic theory is
divided into positive and normative.

 Applied Economics-the implementation of that model broadly and in a myriad

of specific circumstances.

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 ECONOMICS THEORETICAL MODEL OF HOW SOCIETIES FUNCTION:

 Applying economics to a company, household or a country helps sweep aside

all attempts to dress up a situation so that it will appear worse or better than it
actually is. Applied economics becomes a powerful tool to reveal the true and
complete situation in order to come up with things to do.

 Applied economics acts as a mechanism to determine what steps can

reasonably be taken to improve current economic situation to examine each
aspect, one can strengthen areas where performance is weak.

 Applied economics can teach valuable lessons on how to avoid the recurrence
of a negative situation, or at least minimize the impact to review what steps were
taken to improve and correct similar situations and continue good strategies to
keep the economy flowing in a correct direction.

Basic Economic Concepts

The study of economics can be better appreciated by first having a clear grasp
of the fundamental concepts that are considered building blocks of more advanced
and complex economic theories. The basic economic concepts are scarcity, needs
and wants, among other things.

The study of economics revolves around the concepts of scarcity, needs, and
wants. At its very core, economics means the efficient allocation of available
resources. This definition has two underlying assumptions. First, that people have
limited needs and wants, and these needs and wants drive consumption. Second, is
the concept of scarcity which means resources are limited. This constraint leads to
the allocation of available resources in the most efficient way possible.

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B. Exercises:

Exercise 1

Directions: Complete the “cluster” below to organize your thoughts about the relationship
of economics with social science, applied science, applied economics, and give its
definition.

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Exercise 2

Directions: Differentiate Economics with Social Science, Applied Science and Applied
Economics using the “venn diagram” below.

ECONOMICS

Social Science Applied Science

Applied Economics

Exercise 3

Directions: Using the picture below, cite your own experience wherein you applied
different theory or steps in order to improve current economic situation particularly the
existence of COVID-19 in the country.

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C. Assessment/Application/Outputs (Please refer to DepEd Order No. 31,s. 2020)

Direction: Read the question carefully and answer briefly:

1. Explain the following basic terms.

a. Economics -

b. Applied Economics -

c. Social Sciences -

d. Social -

2. Explain why Economics is:

a. Science -

b. Social Science -

c. Applied Science -

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D. Suggested Enrichment/Reinforcement:

Directions: Write a paragraph with at least ten (10) sentences sharing your ideas or opinion
on “How you can use/apply applied economics in your day-to-day activities”?

OPINION WRITING RUBRIC

INDICATORS 4 3 2 1

All indicators Only three Only two Only one

were met Indicators indicators Indicators
were met were met were met
Organization

*The issue is clearly

stated.

*The supporting details

are specific and clearly
focused on the topic

*The student uses a

variety of simple,
complex, and
compound sentences.

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 Disclaimer: The writer does not claim ownership over any of the words, questions, and answers,
images and graphics used in this self-learning home task (SLHT). All rights belong to respective
copyright owner.

References:

Book: Applied Economics:Diwa Senior High School, Diwa Learning Systems, Inc., 2017

Internet:

www.wikipedia
www.google.org
https://www.google.com/search?q=theoretical+model+of+applied+economics&source=lnms
&tbm=isch&sa=X&ved=2ahUKEwik7-
yrg_HuAhXSUN4KHenxC9UQ_AUoAXoECBYQAw&biw=1366&bih=657#imgrc=avDVa-
5ZZbo1eM

Prepared by: Edited by:

BETHZAIDA G. RONATO IMELDA V. CANOY, Ed. D.

SHS Teacher III Principal IV

Reviewed by:

CLAVEL D. SALINAS, Ed. D.

SHS Div. Coordinator

For the Teacher:

You may give other exercises/reinforcement activities other than the ones provided for
in this SLHT.

For the Learner:

Please carefully read the key points/readings and correctly follow the directions in
accomplishing exercises/tasks

For the Parent/Home Tutor:

Kindly guide the learner/s in accomplishing this home tasks. Should you need assistance,
you may contact the subject teacher to address questions or give clarifications/discussions.