ACTIVITY 1

CLASSIFICATION
OF GOODS

Directions:
Pick all the goods and classify them accordingly. Your mother went to the market to shop
various goods for the family. She purchased the following: canned goods; loaf of bread; sacks of
rice; kilos of meat: vegetables; packs of toothpaste; bath soaps; perfumes; wrist watches, unit
of aircon to ventilate her store and units of coffee maker for her store

Essential Goods Consumer Goods Industrial Goods Luxury Goods Economic Goods

*Canned goods *Packs of *Units of coffee *Wrist Watches *Unit of aircon

*Loaf of bread toothpaste maker *Perfumes
*Sacks of rice *Bath soaps
*Kilos of meat
*Vegetables
ASSESSMENT: PICTURE ANALYSIS
DIRECTIONS: Still, please do this independently. The picture shows the different factors in the
production of goods. This will help you become creative in your analysis on the application of
resources you need in the production of goods that are most needed in the society. Please
determine the resources.

Land

Capital
Labor

Entrepreneurship
• Economics has two fields: micro and macroeconomics. Microeconomics study of markets
of good and services and focuses on the behaviour of individual on products and services
in the market while Macroeconomics deals with the study of the economy as a whole and
focuses on aggregate indicators such as productions, standard of living, employment and
inflation.

• The Classification of goods:

Consumer Goods, Industrial or Capital Goods, Essential Goods, Luxury Goods

• There are four factors of production or the resources needed to produce products and
services:
Capital, Entrepreneurship, Land, Labor

• Needs and wants are unlimited while resources are limited.

• There are other issues and problems on the production of goods and services related to
resources. Scarcity
WHAT I CAN DO: ACTIVITY 1
Directions: This chart represents the economic resources in the production of goods and services by the ABM
Computer Shop located in Manila. 1) Kindly recognize each resource. 2) Give one example of each resource that
the computer shop needs for the production of its services. Choices are provided below.

All natural resources, which are given by and found in 1. Land

nature, and are, therefore, not manmade. 2. Space

Any form of human effort exerted in the production of 1. Labor

goods and services. 2. Manpower

Man-made goods used in the production of goods and services.

1. Capital
It does not only include money, it also includes building,
machineries, equipment's, raw materials used in production
2. Computer

Development of an idea into a business. An

1. Entrepreneurship
entrepreneur combines the other three factors of
2. Great idea
production to add to supply
ACTIVITY 2 : IDENTIFICATION
DIRECTIONS: Read the statements carefully and identify the ff:

a) The ABM Manufacturing Co. hired a gardener. He uses a lawn mower for landscaping. Which
factor of production would you consider this machine?
-Capital

b) The owner of the company withdrew cash for the salaries of the employees. Which factor of
production would you consider cash on hand?
-Capital

c) The top manager of the firm said "the great ideas and emotional determination", a person has to
produce something that consumers want to buy" is very important for the company. What factor
of production describes the ability to create great ideas?
-Entrepreneurship

d) The farmers planted pineapple cuttings in the vacant area located in their locality. Which factor
of production would you consider a pineapple plantation?
-Land
ACTIVITY 2
Directions: Categorize the characteristics of microeconomics and macroeconomics using the diagram below.

The Economy

Microeconomics Macroeconomics

*Focuses of the behaviour of *Studies the economy as a whole

individual in the market
*Focuses on goals like productions
*Studies the behavior of individual standard of living, unemployment
economic units; and inflation
*Focuses on parts of the economy: *Policies are focused on monetary
individuals, firms, and industries; policy and fiscal policy.

*Studies of markets of good and

services