Example:

1. What to produce and how much- Face

mask- to all people- During this pandemic
one of the new normal requirements is
wearing a mask so the producer of these
goods will be high in demand during
Simple economic problem (pandemic) and all
people need this product
Activities: 17 – 2. How to produce- in producing face mask

18 the producer need to consider the raw

materials (Cotton Weave Fabric, Sewing
Thread, and Ribbons) in making the
Title of the Activity: product and what method and technology
(Sewing Machines and Sewing Kits) to use
Basic Economic to supply the needs of the society during a
pandemic.
Problems of Society
3. From whom to produce- since the face
mask is a requirement in the new normal;
Most Essential Learning
all people need the face mask.
Competency: Examine the utility What to produce:
and application of applied 1.
economics to solve economic MODULE
issues and problems.
2
WEEK 2
Directions: In the given
explanations above on the
basic economic problems of How to produce:
society. Give two (2) 1.
examples and explain each
basic economic problem. Use 2.
the space provided in the
activity.
 Most Essential Learning
Competency: Examine the
utility and application of
applied economics to solve
economic issues and problems.

Traditional economy: Decisions are

based on traditions and practices upheld
Directions: Describe the type of economic system
over the years and passed on from
characterized in each of the following sentences. Use
generation to generation. Methods are the space provided.
For whom to stagnant and therefore not progressive.
produce: Traditional societies exist in primitive _____________1. Prices are based on demand and supply.
and backward civilizations.
1 Command economy: This is the _____________2. The government decides what goods should be
authoritative system wherein decision- produced.
making is centralized in the
_____________3. Ancient methods are used in deciding what
government or planning committee.
2 goods to produce.
Decisions are imposed on the people who
do not have a say in what goods are to be _____________4. People enjoy the freedom of choice in arriving
produced. This economy holds true in
Moderate dictatorial, socialist, and communist
at decisions on what to buy.

nations.
Activities: 19 – 20 _____________5. People have no freedom of choice in arriving at
Market economy: This is the most decisions on what to buy.
democratic form of economic system.
Title of the Based on the workings of demand and
_____________6. The economy is stagnant, making use of
practices in the olden times.
supply, decisions are made on what
Activity: Learn the goods and services to produce. People’s _____________7. The economy is backward because no new

Economic System preferences are reflected in the prices
they are willing to pay in the market and
are therefore the basis of the producers’
decisions on what goods to produce.
technology or production methods are introduced.
_____________8. It is the most democratic form of an economic
system.
_____________9. People's preferences are reflected in the prices
they are willing to pay in the market.
_____________10. It exists in primitive and backward
civilizations.