APPLIED ECONOMICS

First Quarter Week 1

Name: _______________________________Year & Section: _______________ Date: _____________

Learning Activity Sheet (LAS)
Lesson 1 Economics as Social and Applied Science
What I Need to Know
At the end of the lesson, the learners will be able to:
1. Differentiate economics as social and applied science (ABM-AE12- in terms of :
a. nature and scope;
b. different applications of economics
2. Apply economics as social and as an applied science in real life situations.

What is It
REVISITING ECONOMICS
There are three strands in the development of the definition of economics.
The first focuses on wealth. The second stresses the decision-making process. The
third concentrates on the allocation process.
Economics as a study of wealth implies wealth utilization for individual’s
satisfaction and society’s welfare. As people produce or consume, whether it is
wealth- getting or wealth-using, they make decisions which are based on
alternative choices. Consistent with the process of making decisions and choices is
the process of allocation.

ECONOMICS AS A SOCIAL SCIENCE

Economics is primarily a social science. As a science it uses scientific
method of inquiry. This systematic or scientific method is being used in the study
of society and its components. Thus, social science can be described as the
Founders of Economics: John Stuart Mill, along with David Ricardo, Jeremy Bentham and other political and
social philosophers of the midnineteenth century are credited with the founding of the socialpolitical
theory that has evolved to be the discipline of economics. 4 study of the various modes and aspects of
human interactions in a group as these people aspire to preserve their group as a social unit, to make it
stable, and to promote its growth, expansion, and development.
As a social science, economics pertains to the study on how society creates its material wealth,
how it makes this wealth available to its people with minimum difficulties, and how it expands its wealth

ECONOMICS AS AN APPLIED SCIENCE

What makes economics an applied science is the formulation of general
theories through testing, mainly using data from the past. In simpler definition,
it is the study of observing how theories work in practice.
Applied economics becomes a powerful tool to reveal the true and
complete situation in order to come up with things to do.
 APPLIED ECONOMICS
First Quarter Week 1

The use of applied economics is designed to analytically review potential outcomes without the
“noise” associated with explanations that are not backed by numbers. Because economics relies on the
interpretation of historical events in its theories, applied economics can lead to “to do” lists for steps that
can be taken to ensure stability in real world.

What I Have Learned

Complete the information on economics as a social and as an applied science by filling in the blanks
with the best answers. Choose the best word/s from the list below:

Economics as Social and Applied Science

Economics is primarily a social science. This systematic or ___________________________is being
used in the study of ___________________________ and its components. Thus, social science can be
described as the study of the various modes and aspects of human interactions in a group as these people
aspire to preserve their group as a social unit, to make it stable, and to promote
its_________________________, expansion, and development.
As a social science, economics pertains to the study on how society creates its material
__________________________, how it makes this wealth available to its _________________________
with minimum difficulties, and how it expands its wealth. People Stability Society Work To do list scientific
method Growth General theories Powerful tool Wealth 11 What makes economics an applied science is
the formulation of __________________________ through testing, mainly using data from the past. In
simpler definition, it is the study of observing how theories _________________________ in practice.
Applied economics becomes a ___________________________ to reveal the true and complete
situation in order to come up with things to do.
The use of applied economics is designed to analytically review potential outcomes without the
“noise” associated with explanations that are not backed by numbers. Because economics relies on the
interpretation of historical events in its theories, applied economics can lead to
____________________________ lists for steps that can be taken to ensure
___________________________ in real world.