ABM

Quarter 1 – Module 2:
Examining the Utility and
Application of Applied Economics
to solve Economic Issues and
Problems
ABM – Grade 12
Alternative Delivery Mode
Quarter 1 – Module 1: Examining the Utility and Application of Applied Economics to
solve Economic Issues and Problems
First Edition, 2020

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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Author:Johnny B. Estrada
Editor:Susan B. Pastera
Reviewers:AntoniettaD. Duca
Illustrator: Mark D. Petran
Layout Artist:Mara Jamaica B. Floreno
Management Team: Ma. Gemma M. Ledesma, CESO V
Elena P. Gonzaga
Athea V. Landar, Donald T. Genine
Lorlenie M. Ortillo, CESO VI
May P. Pascual
Susan B. Pastera
Analie J. Lobaton

Printed in the Philippines by ________________________

Department of Education – Region VIWestern Visayas

Office Address: Duran Street, Iloilo Cit

5000 Iloilo
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E-mail Address: region6@deped.gov.ph
 ABM
Quarter 1 – Module 1:
Examining the Utility and
Application of Applied Economics
to solve Economic Issues and
Problems

GOVE
NO
Introductory Message
For the facilitator:

Welcome to the Applied Economics, ABM Grade 12 Alternative Delivery Mode (ADM)
Module on Examining the Utility and Application of Applied Economics to solve
Economic Issues and Problems!

This module was collaboratively designed, developed and reviewed by educators

both from public and private institutions to assist you, the teacher or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration
their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.

ii
For the learner:

Welcome to the Applied Economics, Grade 12 Alternative Delivery Mode (ADM)

Module on Examining the Utility and Application of Applied Economics to solve
Economic Issues and Problems!

The hand is one of the most symbolized parts of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
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competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
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This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
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, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

iii
 What I Have Learned This includes questions or blank
sentence/paragraph to be filled into process
what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or
skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of
the lesson learned. This also tends retention
of learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

iv
 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master the competencies on how to examine the utility and application of applied
economics to solve economic issues and problems. The scope of this module
permits it to be used in many different learning situations. The language used
recognizes the diverse vocabulary level of students. The lessons are arranged to
follow the standard sequence of the course. But the order in which you read them
can be changed to correspond with the textbook you are now using.

The module is divided into four lessons, namely:

• Lesson 1. Examining the utility of applied economics to solve

economic issues and problem.
• Lesson 2. Examining the application of applied economics to
solve economic problems.
After going through this module, you are expected to:
1. examine the utility of applied economics to solve economic issues and
problems; and
2. examine the application of applied economics to solve economic issues and
problems.

1
 What I Know

Choose the letter which corresponds to the correct answer. Write your answer
before the number.

_____1. What is the purpose of applied economics to solve economic issues and
problems? Choose the best answer.
a. simplify the outcome c. ensure the alternative way of using the theory
b. Provide data d. Illustrate various explanation
_____2. Which of the following scenario describe the usefulness of applied
economics in business problems?
a. application of SWOT Analysis
b. employee’s movement
c. manager votes for the Presidential election
d. policy formulation to cope pandemic
_____3. Why do applied economics is significant to solve economic issues and
problems?
a. by application of theory it will analyze potential outcomes
b. by explaining how an economy operates
c. it improves the welfare of the Filipinos
d. it provides a clear picture of the theoretical principles
_____4. Which of the following statements is Not True about applied economics?
a. acts as mechanism can teach
b. can build buildings
c. teach valuable lesson
d. dress up the situation to be better
_____5. Economics: study the theories about business
Applied Economics:_______________
a. discover the basic principle of business
b. having ideas about business
c. helps companies evaluate risks to take action
d. to know the theories of business

2
 Lesson Examining the Utility of Applied

1
Economics to solve Economic Issues
and Problems

You have learned about economic as a social science and applied science in the
past lesson. Now, you will learn how to differentiate economics as social science in
terms of scope.

What’s In

Task: Identification

________1. Economic theory that believed economics as the science that deals only

material wealth.

________ 2. It studies how individuals make choices in allocating scarce resources

to satisfy unlimited wants.

________ 3. A condition where there are insufficient resources to satisfy all the

needs and wants of a population.

________ 4. The concept to use the best foregone alternative as an individual,

business, and even a society to solve this problem.

_________5. The application of econometric theory and econometrics in specific

settings with the goal of analyzing potential income.

_________6. The father of economics.

_________ 7. The first person who used the term applied economics.

_________ 8. It can teach valuable lessons on how to avoid the recurrence of a

negative situation.

_________ 9. The two branches of economics.

_________10. The basic economic problems of society.

3
 What’s New

Applied In solving
Effectivenes
economic issues
Economics s/ Value
& problems.

Figure 1
Question:
What is your understanding about the illustration above?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
Rubrics:

BASIS DESCRIPTION POINTS

The explanation given was precise and
Clear And Precise 10
clear
There Are Some
There are information that are
Information That 7
unanswered
Left Unanswered
Tried to explain what he/she answered
Point For Effort 4
however it is not clear
No Points No explanation given 0

What is It

Revisiting Economic Issues and Problems in the Philippines

Applied economics is essential to help the Philippine economic issues and problems
dissolve. The basic economic problems like scarcity and the basic problem in
society which are What to produce? How to produce? and For whom to produce?
are the focal point of the society. Economic issues like pollution, inflation, poverty,

4
and monopoly are also concerned by the government. Likewise, economic growth,
economic stability, anticipated shifts in commodity and resource costs, and
unemployment is part of the economic issues. The booming population of our
country and the health and safety of individuals; especially this pandemic Covid
19. In this pandemic, the basic economic problem arises from the problem of
scarcity, the fact that consumers have unlimited needs and wants, and we cannot
satisfy all these needs and wants as we have limited resources in foods, medicine
and other products. Economic issues such as the threat of economic recession due
to covid 19.

The Importance of Applied Economics to Economic Issues and Problems

The purpose of applied economics to the economic problems can be stated in many
areas like in business management, economics is often used to present a clear
picture of the theoretical principles on the one hand and the behaviour of the
business firm on the other. With the application of applied economics businesses
examine consumer needs and determine what pushes them to make purchases.
Among the items that should be examined are demographics, population growth
rates, age distribution, attitudes toward work, job market trends, religious and
ethical beliefs, lifestyle changes, educational and environmental issues and health
consciousness. By the time management use this concept businesses becomes
better and bigger profit. These are evident to all successful entities.

In business management, economics is often used to present a clear picture of the

theoretical principles on the one hand and the behavior of the business firm. In
managerial economics, economics principles based on simple assumptions are so
adjusted that one can study the behavior of the firm in real life through such
principles. Many concepts such as profits, costs etc. are understood differently by
economics and accountants. For instance, economists do take into consideration
opportunity costs, whereas accountants only consider what are called explicit
costs. But in managerial economics an effort is made to reconcile the viewpoints of
economists and the accountants so that statistics concerning costs and profits can
be appropriately utilized in taking decisions and in future planning of a business
firm. Business economics applying the application like forecasting as it is
significant for a business firm. We have to take help of several estimates concerning
mutual relationship of economic elements for correct forecasting. The elasticity of
demand, cost output relationship, promotional elasticity and similar other concepts
of economic science are of considerable help in any scheme of forecasting. Various
economic quantities such as profits, demand, prices, capital, investment, savings
etc. are of great significance for a business manager, because he accomplishes his
task of decision-making and future planning on the basis of such statistics.

The concept, such as business cycles, national income, economic policies of the
government etc. are considered most useful for a business manager. He has to
adjust his business operations quite often in context of these macro elements. All
these elements help in making his decision-making process more efficient and
realistic. From what has been stated above we can easily understand the various
acts of the application of economic theory to the several problems. Applied

5
economics help companies, businesses and entire governments evaluate risks to
take the proper measures to ensure stability based on numbers and trends.

Applied economics has a big role particularly the theory of supply and demand; and
the knowledge of efficient pricing and lowering cost. In real world situations
economics is needed to solve the problems in real world scenarios. A solid
understanding can serve as significant tools to help address the country’s economic
problem. As individual we need to understand the existence of scarcity to help us
analyze how to maximize the use of available resources in order to overcome
scarcity. Knowledge of economic theories such as the Law of Supply and Demand
can help in analyzing why prices are high and what the government can do to help
bring down prices. Applied economics can lead to do for steps that can take to
ensure stability in real world.

Applied Economics is Helpful in Three Reasons

a. Helps sweep aside all attempts to dress the situation so that it will appear

to be worse or better than it actually is.

b. Acts as a mechanism to determine what steps can reasonably be taken to

improve the current economic situation.

c. Can teach valuable lessons on how to avoid the recurrence of a negative

situation, or at least minimize the impact.

What’s More

Examine the following scenario. Write WITH if it’s illustrates the effectiveness of

applied economics; Write WITHOUT if not. Provide your answer before the

number. Answer only.

______1. Businessmen have a great chance to succeed when they failed. This

principle was applied in many organization.

______2. Through benchmarking manager can assess and do some strategies in

order to increase profits. Study shows, using this strategies company has

a great chances to succeed.

______3. The theory of law and supply helps businessmen to make strategies when

6
 there is limited supply of resource. According to the economists this

situation is now visible in the society.

______4. Managers apply the idea about specialization of work and task when it

needed in the complex task. This is now mostly used by the different

organization.

______5. To eliminate the pollution government implemented the Republic Act No.

8749, otherwise known as the Philippine Clean Air Act and Republic

Act No.9275; The Philippine Clean Water Act of 2004. Today,

Boracay Island is more attractive than before.

______6. The DRRM subject was been introduced to Senior High Students

after Typhoon Yolanda destroyed some of the resources in Western

Visayas and all over the Visayas region. Nowadays, people are

more knowledgeable when disaster and calamities is concerned.

______7. DepEd plans to use the strategy to pursue the school year 2020-

2021 using a combination of online learning, modular and face to

face modalities. Survey shows, in other countries there was an

increased of positive cases after the opening of the school. Our

government was in good faith after rescheduled the opening of the

classes.

______ 8. People on this pandemic are purchasing disinfectant products in

preventing Covid 19 virus. According to WHO, 90% chances you

can’t affected by the virus.

______9. Countries all over the world made some guidelines and policy as

per advice by the WHO after Covid 19 positive cases goes high in

figures. After it was implemented surveys shows some countries

lessen the gap in terms of the hike of positive cases.

_____10. IATF recommends using motorcycle shield to fight against Covid

19 virus. This implementation was statistically lessen the chances

of transferring the virus to other people according to IATF.

7
 What I Have Learned

Economics as an applied science and its utility in addressing the economic

problems of the country is very essential. Applied economics can be used to solve
economic problems. It analyzes and proposes solution/s to the economic problems
using the principles of applied economics. It is essentials to businesses and other
areas of organization both public and private in solving business issues and
concerns. Applied economics helps sweep aside all attempts to dress the situation
so that it will appear to be worse or better than it actually is. It acts as a
mechanism to determine what steps can reasonably be taken to improve the
current economic situation. And lastly, can teach valuable lessons on how to avoid
the recurrence of a negative situation, or at least minimize the impact.

What I Can Do

Case Study:

Mr. Kent Jeru A. Estrada was a business man. He owns his family business.
Although financially stable, he was not happy for the outcome of his business in
abroad. The cultural orientation and policy of the different nations are negatively
affected to his business in abroad. There are a lot of economic problems existed in
abroad like inflation and discrimination. The behaviour of the individual’s
preferences was change. Conflict due to this, Mr. Estrada had a big problem to
solve. To remedy the situation, your help is badly needed as an economist

Questions:

1. If economics is an art and a science, what principle of economics should Mr.

Estrada will apply to? Explain your answer.

________________________________________________________________________________

________________________________________________________________________________

2. What is the best alternative way in order to cope up the problem of Mr. Estrada?

Explain your answer.

________________________________________________________________________________

________________________________________________________________________________

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Rubrics:

BASIS DESCRIPTION POINTS

The explanation given was precise and
Clear And Precise 10
clear
There are information that are
There Are Some
unanswered and/or the connection
Information That 7
between the products or service is not
Left Unanswered
that clear
Tried to explain what he/she
answered however it is not clear what
Point For Effort 4
is the connection between the given
product
No Points No explanation given 0

Assessment

Below are Assessment tasks on lesson 1 of the module:

Task

What do you think is the value of applied economics to the following words below?

1. Business

2. Government

3. Health

Rubrics:

BASIS DESCRIPTION POINTS

The explanation given was precise and
Clear And Precise 10
clear
There are information that are
There Are Some
unanswered and/or the connection
Information That 7
between the products or service is not
Left Unanswered
that clear
Tried to explain what he/she answered
Point For Effort however it is not clear what is the 4
connection between the given product
No Points No explanation given 0

9
 Additional Activities

Task :

Make a list showing the products/resources you need to buy. Provide at least 10
products/resources. Find out what are insufficient/ limited supplies of resources
at this moment. Provide an alternative solution of each insufficient
products/resources to maximize needs.

Rubrics:

BASIS DESCRIPTION POINTS

The explanation given was precise and
Clear And Precise 10
clear
There are information that are
There Are Some
unanswered and/or the connection
Information That 7
between the products or service is not
Left Unanswered
that clear
Tried to explain what he/she answered
Point For Effort however it is not clear what is the 4
connection between the given product
No Points No explanation given 0

Answer Key

What I Know What’s In What’s More

1. c 1. Classical Economics 1.WITH

2. a 2. Economics 2. WITH

3. a 3. Scarcity 3. WITH

4.b 4. Opportunity Cost 4. WITH

5. c 5. Applied Economics 5. WITH

6. Adam Smith 6. WITH

7. John Neville Keynes 7. WITH

8. Reasons/Purpose of 8. WITH
Applied Economics
9. WITH
9. Macroeconomics &

10
 Microeconomics 10. WITH

10. What to produce and

How much, How to produce,
For whom to produce

What I Can Do Assessment Additional Activities

What I Know

Choose the letter which corresponds to the correct answer. Write your answer
before the number.

_____1. Underemployment means

a. a recession c. the same thing as unemployment

b. slow economic growth d. underderutilization of resources

_____2. GNP Equation[GNP =C+I+G+(X-M)] what is X in the equation?

a. Imports c. products

b. labor d. exports

_____3. Why scarcity do deeply connected to the basic economic problem?

a. Because basic economic problem is related to scarcity in which people

need to use the resources without limitations.

b. Because in economics, the two are important to study about our

economy.

c. Because scarcity and the basic economic problem are part of the

economics.

d. Because scarcity is the cause in which people make a choice and have

to decide in regards to the basic question.

_____4. Which of the following statements is Not True?

a. Poverty is visible in our country.

11
 b. Some areas in Western Visayas are highly affected by water pollution.

c. The Philippines considered as over populated country.

d. Unemployment decreases because of the pandemic.

_____5. Which scenario showing the application of applied economics to solve the

economic issue?

a. Research about economics.

b. The decision-making of the people.

c. The implementation of clean air and water act.

d. The study of supply and demand.

_____6. The following are the application of applied economics EXCEPT.

a. The implementation of Anti-Terror Bill.

d. The study of human behaviour.

c. The use of face mask as ordered by the DOH

d. The use of managerial strategies in an organization by the manager.

_____7. This is the reason why schoolrooms are not enough for students.

a. Corruption.

d. Inflation.

c. Over Population

d. Unemployment.

_____8. What is the tool in analyzing the data of each economic problem?

a. Economic theories and models

b. Rules and Guidelines

d. Scarcity and Unlimited wants

c. Strategies and Implementation

_____9. What do you think is the total population of our country today?

a. 90 million (in prediction)

d. 98 million (in prediction)

c. 106 million (in prediction)

d. 109 million (in prediction)

_____10. How economists use theories and models to understand economic issues?

Choose the best answer.

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 a. Economists provides all the ideas about economics but they don’t give

recommendation and strategies.

b. Economists carry a set of theories and expressed as diagrams, graphs,

or even mathematical equations.

c. Economists did not use diagrams, graphs, or even mathematical

equations. They only use scientific methods.

d. Economists get facts of the said issues through deductive method.

Lesson Examining the Application of Applied

2
Economics to solve Economic Issues
and Problems

You have learned about the utility of applied economics to solve economics issues
and problems in the past lesson. Now, you will learn how to examine the
application of applied economics to solve economic issues and problems

What’s In

Fill in the blanks with the correct answer.

1. Applied economics, with the use of _________the government can sustain its

development even this pandemic issue.

2. Business _________the needs and wants of the people. Through this action, they

can produce products on their customers preferences.

3. The theory of _____and ______ helps prices lowering down.

4. Applied economics acts as a____________ to determine what steps can reasonably

be taken to improve the current economic situation.

5. Economics is often used to present a clear picture of the _________ principles on

the one hand and the behaviour of the business firm.

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 What’s New

Function In solving economic

Applied
/ issues and problems.
Economics Role

Figure 2
Question:

What is your understanding about the illustration above?

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

Rubrics:

BASIS DESCRIPTION POINTS

The explanation given was precise and
Clear And Precise 10
clear
There Are Some
There are information that are
Information That 7
unanswered
Left Unanswered
Tried to explain what he/she answered
Point For Effort 4
however it is not clear
No Points No explanation given 0

What is It

Application of Applied Economics to Basic Economic Problems

Since scarcity is a fact of economic life, we need to maximize our resources

efficiently. The basic questions that we have to deal with in order aggregate
resources efficiently and effectively.

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 What to produce ? Each and every economy must determine what products and
services, and what volume of each, to produce. In some way, these kinds of
decisions should be coordinated in every society. In a few, the govt decides. In
others, consumers and producers decisions act together to find out what the
society’s scarce resources will be utilized for. In a market economy, this ‘what to
produce?’ choice is made mainly by buyers, acting in their own interests to fulfill
their needs. Their demands are fulfilled by organizations looking for profits. For
instance, sanitation products and facemask are in demand it will pay businesses to
produce and sell these. If no one desires to buy lipsticks for feminine, it is not
worth producing them. In case a manufacturer produces an item which buyers
don’t buy in much quantity, there will likely be inadequate income. The
manufacturer will have to enhance the quality and modify the product to match
buyer tastes. If the item is still not preferred, the producer will most likely halt the
production. In this manner, buyers get the goods they need. Customers rule the
‘what?’ decision. They ‘vote’ for certain products and services by spending money
on those they like especially on this new normal (pandemic crisis). Each and every
manufacturer has to offer what buyers want so that they can compete effectively
against other manufacturers. Government authorities also perform some part in
making ‘what?’ decisions. For example, a law demanding all individuals to wear a
facemask generates demand for facemask, and profit-seeking businesses will
produce them.

How to produce? This basic economic problem is with regards to the mix of
resources to use to create each good and service. In this new normal producer are
finding strategies in behalf of the situation. Producers are now using technology
and machineries in order to provide the needs and wants of the people. Adoption of
online sources is now essential in this pandemic in creating products and services.

For whom to produce? This basic economic question is focused on who receives

what share of the products and services which the economy produces. The portion
of production which each person and family can consume is determined by their
income. Income is distributed in line with the value of resources we have to sell. As
an example, during this pandemic people are now preferred to buy affordable
products than expensive products. As these preferences, producers have to decide
in order to adjust the situation.

Application of Applied Economics to solve Economic Issues and Problems

The concerned about Gross National Product (GNP) and Gross National product
(GDP) is practically monitored by the government and its society. Everybody needs
to know the real scenario of our GNP and GDP. One way to account GNP and GDP
is the expenditure and income approach. It uses formula, graphs, etc. to represents
the outcome. Gross National Prodcut (GNP), is the value of all finised goods and
services owned by a country’s residents over a period time. Gross Domestic
Product (GDP) is the value of a nation’s finished domestic goods and services
during a specific time period www.investopedia.com). GNP is measured by the
expendintures approach while GDP is measured the flow of income approach.
When there is an issue about the outcome the application of applied economics
through ideas is needed in order to solve the issue. GDP posts 6.4% growth in the

15
fourth quarter of 2019; 5.9% for full-year 2019 (www.psa.gov.ph). This was slower
than 6.1 % in the fourth quarter of 2018.

The year 2020 started off with a higher national headline inflation rate of 2.9%.
This is the highest inflation recorded since 2019, in which inflation was posted at
2.7%. If we look at the previous year 2010- 4.11%, 2014- 3.6% and 2018- 5.1% it
seems our country improving (psa.gov.ph). In this year 2020 the stability of our
inflation rate was been affected by this pandemic.

Amidst rising global uncertainty and inflationary pressures, the Philippine economy
is poised remain strong and is projected to grow at 6.5% in 2018, 6.7% in 2019,
and 6.6% in 2020 (www.worldbank.org).

Unemployment rate is increasing as pandemic burst out. This is one of the main
problems of the Philippines. Unemployment rate has increased because of the
repatriation of our OFW in abroad. Today, as of January 2020 unemployment was
estimated at 5.3 %. The same unemployment rate registered in January 2019
(www.psa.gov.ph.) around 5.7 million unemployed people.(see table 1 below)

Results from the January 2019 Labor Force Survey (LFS)

Philippines 2019 2018

Population 15 years and over ( in 000) 72.931 70.897
Labor Force Participation Rate (%) 61.3 62.2
Employment Rate (%) 94.8 94.7
Unemployment Rate (%) 5.3 5.2
Underemployment Rate (%) 15.6 18.0
Table 1 Sources:
psa.gov.ph

Poverty rate in our country is also increasing. Today Filipinos are claiming they
experience hunger because of the pandemic. Proportion of poor Filipinos registered
at 21.0% in the first semester of 2018 (psa.gov.ph). A family of five needed no less
than Php 7,337.00, on average, to meet the family’s basic food threshold. Although
it was decreased during Duterte’s administration when 2014 registered 28.8%. But
today when pandemic started this year it was a horrible as we observed many were
hungry and seek for food.

The booming population growth in the Philippines is very alarming and it is

connected of scarcity. When population increase, economic resources may no
longer be enough to support the growing population. According to the 2015 census
(psa.gov.ph) the Philippine population had a total of 100,981,437 persons.
According to (tradingeconomics.com) from their latest census figures and
projections the Philippines in the year 2019 had a total estimated at 108.8 million.
Philippine population went up by almost 8% growth rate or 8 million people. We are
now surpassing the midyear 2020 and in our own projections may be we surpassed
the 109 million. This is apparently the reason why government hospitals are
crowded and not enough to accommodate them in the midst of pandemic. As of
April 2020, there were about 13.5 hospital beds per 10,000 populations within
national capital region of the Philippines (www.statista.com).

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In the Philippines, air pollution has become one of the biggest health emergencies,
recording a total of 45.3 deaths for every 100,000 people due to air pollution-the
third highest in the world, based on the 2018 WHO study
(www.bignewsnetwork.com). To get rid of air pollution the government implemented
the Republic Act No. 8749, otherwise known as the Philippine Clean Air Act, is a
comprehensive air quality management policy and program which aims to achieve
and maintain healthy air for all Filipinos. On the other hand, our country had an
issue on water pollution particularly in Boracay. There is a law which protect the
water. But this law was not effectively implemented. The Philippine Clean Water Act
of 2004; Republic Act No.9275 aims to protect the country’s water bodies from
pollution from land-based sources. On April 4, 2018, the Boracay was closed to the
public.

As an economist and a citizen we can lead to overcome the country’s basic

economic problems and move toward economic growth. Using the principles,
different ideas, and theory of economics we can apply that knowledge to make
strategies to minimize and eliminate the economic issues and problems of our
country.

What’s More

Issues, problems and concerned of society may fall in the following classification;
the Microeconomics and Macroeconomics. Classify the following scenario. Write
MIC if falls under Microeconomics; MAC, if it falls under Macroeconomics.

_______1. Unemployment rate has increased because of Covid 19.

_______2. The inflation rate in the Philippines in 2019 was 2.7% the highest rate so

far for the Duterte Administartion.

_______3. The prices of a disinfectant products have risen during this pandemic.

_______4. Philippines in the year 2019 had a total estimated at 108.8 million.

_______5. GDP posts 6.4% growth in the fourth quarter of 2019.

_______6. Landowners could not force to pay monthly payment for the

occupant/tenant during this pandemic.

_______7. The working hours of both private and public employees was lessen

due to pandemic.

_______8. The government implemented the Republic Act No. 8749, otherwise

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 known as the Philippine Clean Air Act, is a comprehensive air quality

management policy and program.

_______9. In this pandemic, online business is the fastest selling strategy in the

market.

______10. Proportion of poor Filipinos registered at 21.0% in the first semester of

2018.

What I Have Learned

Applied economics solves economic problems by providing information as to how

people, business, and governments behave. This can enable economic actors to
make better decisions and solve problems. The basic principles of applied
economics, and its application to contemporary economic issues can be a source to
identify the potential opportunities to cope up the said economic issues and
problems. Application of economics can help us understand the origins of serious
social problems such as: unemployment, hunger, poverty, disease, child abuse,
drug addiction, violent crime. It will also explain why previous efforts to solve these
problems have failed, and help us to design new, more effective solutions. Students
may now have an idea in the preparation of a socioeconomic impact study of a

business venture. Economics has long been a popular college major for individuals
who are intending to work in business. But it has also been popular among those
planning careers in politics, international relations, law, medicines, engineering,
etc. This is for good reason because practitioners in each of these fields often find
themselves confronting economic issues.

What I Can Do

Task:
If you were as the President of the Philippines, what are your strategies to cope
with the issue on our health system?
_______________________________________________________________________________

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________________________________________________________________________________
Rubrics:

BASIS DESCRIPTION POINTS

The explanation given was precise and
Clear And Precise 10
clear
There are information that are
There Are Some
unanswered and/or the connection
Information That 7
between the products or service is not
Left Unanswered
that clear
Tried to explain what he/she answered
Point For Effort however it is not clear what is the 4
connection between the given product
No Points No explanation given 0

Assessment

Questions:

In what way do applied economics help to solve the economic issues and problems
in our country? Particularly;

1. Unemployment

2. Poverty

3. Over Population

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

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Rubrics:

BASIS DESCRIPTION POINTS

The explanation given was precise and
Clear And Precise 10
clear
There are information that are
There Are Some
unanswered and/or the connection
Information That 7
between the products or service is not
Left Unanswered
that clear
Tried to explain what he/she answered
Point For Effort however it is not clear what is the 4
connection between the given product
No Points No explanation given 0

Additional Activities

Task:

Cut out a news item that is related to any economic issue and problems within
your locality. As a student; an economist in nature list down and decide what the
ideas are need to solve the situation?

Rubrics:

BASIS DESCRIPTION POINTS

The explanation given was precise and
Clear And Precise 10
clear
There are information that are
There Are Some
unanswered and/or the connection
Information That 7
between the products or service is not
Left Unanswered
that clear
Tried to explain what he/she answered
Point For Effort however it is not clear what is the 4
connection between the given product
No Points No explanation given 0

Answer Key

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 What I Know What’s In What’s More

1. c 6. b 1. examine 1.MAC 6. MIC

2. d 7. c 2. economic theory 2. MAC 7. MIC

3. d 8. a 3. supply and demand 3. MIC 8. MAC

4. d 9. d 4. mechanism 4. MAC 9. MIC

5. c 10. b 5. theoretical 5. MAC 10. MAC

What I Can Do Assessment Additional Activities

References

Dinio, Villasis (2017) Applied Economics First Edition, Rex Bookstore Inc.
RE Backhouse (2000) The Concept of Applied Economics, read.dukepress.edu
Applied Economics Definition, www.investopedia.com
www.bignewsnetwork.com
www.psa.gov.ph

For inquiries or feedback, please write or call:

Department of Education - Bureau of Learning Resources (DepEd-BLR)

Ground Floor, Bonifacio Bldg., DepEd Complex

Meralco Avenue, Pasig City, Philippines 1600

Telefax: (632) 8634-1072; 8634-1054; 8631-4985

Email Address: blr.lrqad@deped.gov.ph * blr.lrpd@deped.gov.ph

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