MODULE 1

Economics as Social and Applied Science in Terms of Nature and Scope

WHAT I KNOW – Task 1

1. Scarcity of FOOD - MICRO
2. Scarcity of MONEY - MACRO
3. Scarcity of WATER - MICRO
4. Scarcity of EMPLOYMENT - MACRO
5. Scarcity of INTERNET ACCESS - MICRO
6. Scarcity of SCHOOL SUPPLIES - MICRO
7. Scarcity of MEDICAL SUPPLIES – MACRO

WHAT’S IN – Task 2
A Social Economics As Applied Economics
1. Motorists complain of high gasoline prices 1. Economics students analyze how to
maximize the use of available resources
to
2. overcome scarcity
1. Economics students analyze how to maximize
the use of available resources to overcome
scarcity
2. People have no freedom of choice in arriving at 1. Philippine congress passed the Value Added
decisions on what to buy Tax Law to strengthen the Philippine tax
2. system
2. Philippine congress passed the Value Added Tax
Law to strengthen the Philippine tax system
1. People always complain about having not 3. Business understands Laws of supply and
enough -- not having enough money to pay demand by combining past sales data and
2. one’s debts, not enough food on the table, not 4. marketing research regarding their target
enough income to meet all the family’s market and production decisions
3. needs. 3. Business understands Laws of supply and
4. People always complain about having not demand by combining past sales data and marketing
enough -- not having enough money to pay research regarding their target market and
5. one’s debts, not enough food on the table, not production decisions
enough income to meet all the family’s
6. needs.
7. People always complain about having not
enough -- not having enough money to pay
8. one’s debts, not enough food on the table, not
enough income to meet all the family’s
9. needs.
3. People always complain about having not enough
-- not having enough money to pay one’s debts, not
enough food on the table, not enough income to
meet all the family’s needs.

WHAT’S IN – Task 3
Economics as Social Science Economics as Applied Science
1. the study of society and how people behave and 1. is the application of economic theory and
influence the world around them. econometrics in specific settings with the goal
of analyzing potential outcomes.
1. is the application of economic theory and
econometrics in specific settings with the goal of
analyzing potential outcomes.
2. assesses the relationship between the application of economic principles and theories to
consumption and production of goods and services real situations and trying to predict the
in an environment of finite resources. outcomes.
2. assesses the relationship between the 2. application of economic principles and theories to
consumption and production of goods and services real situations and trying to predict the outcomes.
in an environment of finite resources.

WHAT’S NEW – Task 4

1. Yes, I think there is an economic interaction between the households and firms because households use
goods and services from the firms and the firms is where the production of goods and services take place.
2. In a modern
economy,
businesses
get
economic
resources
such as
labor from
individuals
in exchange
for income,
which is
then used
by households
to purchase
goods and
services
produced
and sold by
business firms.
3. In an economy, households contribute on the factors which firms considered in producing services and
goods, and buy finished goods and services from firms for consumption.
4. In an economy, firms use a variety of production methods in generating goods and services. Employing
individuals to produce goods and services is a part of this. Firms give wages to their hired employees,
resulting in a flow of money to households, which can then be spent on goods and services produced by
different firms.
5. Despite each agent doing their role, I think scarcity is still present in an economy because individuals do
not practice economics. Having no understanding about
economics Micro and Macro economics study leads to poor
decision Microeconomics deal Macroeconomics economy as a whole. It with respect to their
own lives. I with examination of deals with deals on issues like also think that
behavior of individual maximization of unemployment, inflation,
households scarce resources and
and firms do not
markets and is more economic growth, and
apply both enhance the economic theories
concerned with how monetary and fiscal
and evaluation of econometrics to
policy. It is about the
address goods flow from the economic activities to scarcity and be
enhance efficiency nature of economic
able to do business firm to the something about it.
and implement growth, the expansion
consumer and how of productive capacity,
strategies that will
WHAT’S MORE the resources move contribute to the and the growth of – Task 5
1. It is natural from the resource growth of whole national income. to people to have
unlimited owner to the business economy. wants of goods and
services in firm life. However, people have only
limited ability to purchase a good or service because of their income and
power to purchase. Scarcity is one of the major limitations which people experience on purchasing their
wants. Because of the scarcity, people should practice economics because this will provide them better
understanding and lead them to better choice and decision making on how to maximize the use scarce
resources to satisfy their unlimited wants.

2.
3. Econometrics contribute on testing hypotheses, forecasting future trends, and comparing and contrasting
results against real life economic issues. Econometrics also converts economic theories into data that policy
makers can use to make new policies to address economic issues.

4. Assessing the profits of a

certain company. The
result can help the
executives to do some
strategies in order to
boost its sales.

Examining the People practicing

economics and acquiring
purchase of knowledge about better
decision on purchasing to
goods and reduce or prevent scarcity
services A powerful instrument
while satisfying their
unlimited needs.
for revealing the true
and complete situation
in order to come up with
solutions
WHAT I HAVE LEARNED
– Task 6
1. I have learned
that it is important
for us application students to
of applied
study economics Economics
because it Used to examine a
is part of
Teach valuable
our lives variety of aspects
the current economic
of
lessons on how to and it
avoid the recurrence
equip us situation and identify
of a negative valuable
activities that can be
situation, or at least
knowledge performed to improve
minimize the impact to make
it.
everyday life
decisions particularly
on scarcity which I learned that limit us to meet and satisfy our unlimited wants.
2. I realized that Economics is a Social Science because it studies how individuals make choice on allocating
scarce resources to satisfy their unlimited wants and an Applied Science because it helps explain
economic theory and apply it to our everyday lives.
3. I will apply what I have learned in my daily life as a student to have a better choice and decision on my
purchasing behavior despite having the limited allowance and purchasing power. Just like how to properly
utilized my allowance when it comes to personal wants and academic needs.

WHAT I CAN DO – Task 7

1. I think economics is deeply rooted in the concept of scarcity because people can address scarcity with the
use of economics. People have unlimited wants and needs but the scarcity on resources and the
 purchasing power limit people to freely satisfy their unlimited need and wants. This issue can be addressed
by economics because it will help people to understand how to make better choices and decisions to
maximize the use of the scarce resources to satisfy as many wants as possible.
2. Economics is important in our everyday life because we are all involved in economic activities, it starts in
our households, businesses or firms, and government. Because of our limited resources, income, and
purchasing power, we require economics to manage our household needs and wants. Economics is an
important tool in a business or firm's ability to understand supply and demand, as well as how to meet the
wants of customers and the lack of resources that prevents adequate production of goods and services.
Economics aids our government in achieving social welfare. It discusses the issue of poverty, how to
distinguish various types of poverty, the causes and effects of poverty, the people who are most vulnerable
to poverty, and how to alleviate poverty. Because we are continuously confronted with poverty and scarcity,
economics is important in addressing these issues in our daily lives.
3. Economics is a Social Science because, like psychology and sociology, it studies human behavior.
Economics is a social science that investigates how people allocate scarce resources to meet their
unlimited wants. Economics, on the other hand, is an Applied Science since it uses economic theory and
econometrics to analyze potential outcomes in a variety of situations.
4. In my life situation and my family as a whole, Applied Economics help us to determine what steps or
strategies should we do to allocate our limited household budget or allowance to the scarce resources but
still satisfying our unlimited need and wants.
5. Applied economics acts as a mechanism to determine what steps can reasonably be taken to improve the
current economic situation. To consumers, it will help them to determine alternatives and make better
purchasing decisions to meet their wants despite having limited amount of money and purchasing power.
Meanwhile, to producers, it will help them generate plan and strategies to employ to their production to
maintain the their supply to meet the demands of their consumers.
ASSESSMENT
I.
1. MAC
2. MAC
3. MIC
4. MIC
5. MAC
6. MIC
7. MAC
8. MIC
9. MAC
10. MAC
II.
1. A
2. A
3. B
4. C
5. D
III.
“The 3R’s”
If I were given a chance to advise the president on how to cope with the crisis on Pandemic we are
facing today to solve and improve the lives of the Filipino people, firstly, I will advise him to not take a blind
eye. I will tell him that the first thing that he should do is to recognize the poor condition of our society and take
accountable about the kakistocracy of the government. Because the government cannot make an effective
response if they have no clear vision about the situation. Secondly, I will tell him to be relevant in a way that he
should prioritize the current pandemic situation instead of paying attention to unnecessary government
programs that will leads to corruption, incompetency, and injustice which worsen the suffering of our society.
Lastly, I will advise him to respond on the situation by making plans and implementing it properly so that we
can come up with a better solution to handle, deal, and survive this crisis.

ADDITIONAL ACTIVITIES
 Regular Weekly Allowance before Pandemic

During
pre- pandemic I
Lunch Snacks School
have a 70 pesos
daily allowance and it is total of 350 pesos a week because of the Monday to Friday school schedule. I
accordingly budget my allowance to my priorities. Everyday, I spent 20 pesos for my snacks, and it is total of
100 pesos per week or 36% of my weekly allowance. Secondly, I spent only 20 pesos for my lunch because I
always pack rice and I only have to buy ulam and it is total of 100 pesos per week same as 36% of my weekly
allowance. Lastly, the remaining 150 pesos or the 43% of my allowance is what I spent or save for my school
supplies and requirements in a week.
Follow up questions:

1. As a student, have you experienced scarcity? How did you manage it?

As a student I have experienced and still experiencing scarcity because I am still not capable of making my
own money and I have unlimited needs and wants. I managed this situation by wisely thinking and considering
of my priorities before making a decision on spending my limited allowance. I always make budget and make
sure that I follow my budget so that I can maximize my limited allowance yet still satisfying my needs and
wants.

2. How your family able to cope with the insufficiency of the resources in order to survive?

My family is able to cope with the insufficiency of the resources in order to survive by wisely allocating our
budget on what is needed the most. My parents always prioritize our needs first before anything and most of
the time they make alternatives so that we can still enjoy things despite the scarce resources.

3. What were your reaction upon knowing the way that they allocate for your schooling and other basic
expenses for the family?

I am always amazed and grateful the way my parents allocate expenses for our education and basic needs
because they always say “wala na tayong pera” but still we are able to continue our daily life and survive no
matter how hard our situation.