Gine Bert Fariñas Palabrica

12 – PISCES
Applied Economics
Quarter 3 – Module 6: Basic Economic Problems in the Philippines

PRETEST
1. D
2. D
3. D
4. C
5. C

RECAP

For example, when we sacrifice one thing to obtain another,

that’s called trade-off. Only have enough cash to buy a ticket for Taylor Swift concert or a ticket for
Black Widow movie? That’s trade-off. Trying to decide whether to take the Fourth of July off to
spend with your family, or go to work and make extra overtime? That’s trade-off.
Trade-offs create opportunity costs, one of the most important concepts in economics.
Whenever you make a trade-off, the thing that you do not choose is your opportunity cost. To butcher
the poet Robert Frost, opportunity cost is the path not taken (and that makes all the difference). You
bought that ticket for Taylor Swift concert? Then the ticket for Black Widow movie is your
opportunity cost. Decided to work on the Fourth of July? Your opportunity cost was a relaxing day
hanging out with the fam at the BBQ. Everything has opportunity costs. If you just bought something,
you could have always chosen to buy something else instead. If you just chose to spend your time in a
particular way, you could have always done something else. “Something else” is your opportunity
cost.

ACTIVITIES

Activity 1: Economic Problem

Economic Problem Effects to Individuals Effects to the Economy

Unemployment  Lack of money  Increase poverty

 Depression
 Lack of Financial Stability
 Will focus on entertaining
themselves by drinking
alcoholic beverages
 The development of the
country would be slower
 Reduce competency

Poverty  Starvation  Productivity will reduce

 Lack of Education  Overall GDP would
 Increase in Crime Rate decline
 People would die
 Malnutrition
Activity 2: My Policy!
Economic Problem What to produce? How to produce? For whom to
produce?
Traffic System in Additional train Hire construction For those who
Metro Manila stations and wider firms and buy transport at Metro
roads additional trains to Manila
have more transport
railing system and to
replace the old LRT
trains.
Housing Problems/ Housing Projects Hire non-corrupt For the Filipino
Informal Settlers construction firms citizens
because construction
of houses will not
finish immediately if
corrupt construction
officials will manage.

WRAP-UP

1. The basic economic problems of the Philippines are

unemployment and poverty.
2. Major Causes of Poverty:
 Corruption
 Education
 Natural and Geographical Characteristics
 Ineffective Governance and Government Policies
3. Major Causes of Unemployment:
 Frictional Unemployment
 Structural Unemployment
 Cyclical Unemployment
 Seasonal Unemployment

VALUING

If I were the President of the Philippines, I would prioritize

solving the unemployment problem. If poverty is an obvious acute problem in our country, it may be
due to the unemployment of the citizens. So, if I were the President, I would give every person the
right job with equal treatment for them so that they can meet the needs of their family. Afterall, if
unemployment is resolved, poverty in the country will likely be eradicated.

POSTTEST
1. Unemployment
2. Poverty
3. Cyclical Unemployment
4. Frictional Unemployment
5. Family Income and Expenditure Survey (FIES)