APPLIED ECONOMICS

Name of Learner: Ganao, Francine Sayra S. Grade Level:

Grade 12 Section: Saint Matthew Date:

01/29/22

LEARNING ACTIVITY SHEET

Economics as an Applied Science and as Social Science
Background Information for Learners
Economics as applied science applies economic theories to predict or provide solutions to the
problems faced by the economy.
On the other hand, economics as social science studies the behavior of individuals
and how they react to the different economic issues like the problem of scarcity.
Learning Competency with Code
Differentiate economics as social science and applied science in terms of nature and scope
ABM_AE12-Ia-1
Activity 1
True or False. Write the word True if the statement is true; write False if the statement is
false.
True 1.) Economics as social science has something to do with our everyday lives.
True 2.) One a man is applying a job to sustain its basic needs shoes is an
example of economics as social science.
True 3.) There two branches of economics the microeconomics and the
macroeconomics.
True 4.) Applied Economics is an application of conclusion from the different
economic theories.
True 5.) Using economic theories, applied economics tries to address the
central problem of economics which is scarcity.
True 6.) The word economics derived from the Greek word” Oikonomus”
meaning household management.
True 7.) Adam Smith is the Father of economics.
True 8.) Economics is applied in in our daily lives.
True 9.) Scarcity is the central economic problem.
True 10.) To address the unlimited needs and wants of the people with the
limited resources is one of the significant concerns in economics.

Activity 2
 Differentiate economics as an Applied Science and as a Social Science. Write your
answers inside the circles.
APPLIED
Economics as Applied
Science is the application of
economic theories and
studies to reality or real-life
situations wherein, they
will foresee the possible
consequence or result.
Activity 3 Article/News Review
C SOCIAL SCIENCE
O
Economics as Social Science
N
is the application of scientific
method to the study of some
O
factors of human behavior,
M
such as how communities
arrange themselves to satisfy
I
their necessities.
C
 Answer the following questions. You may use news articles, live/recorded interviews
provided by the TV stations and your opinion in answering the questions. Don’t forget
to write the complete references, website, or TV station where it was lifted.
1. What is the status of the Philippine Economy while in combat with Covid 19
pandemic? What are the impacts of this pandemic in the different sectors of the
economy?
Summary of the Article/interview:
MANILA, December 8, 2020— The multiple shocks that hit the Philippines – the
COVID-19 health crisis, economic activities across the country frozen by quarantine
measures, devastating typhoons in November, and the global recession – will likely
shrink the economy by 8.1 percent in 2020, temporarily reversing gains made in
poverty reduction in recent years. The current economic forecast is a revision from the
-6.9 percent World Bank forecast in October, resulting from the deep contraction in
the third quarter and the extensive damage and losses suffered by the country from the
typhoons and floods in November. “The series of natural disasters that hit the
country while we are battling the pandemic highlights the importance of
mainstreaming disaster risk reduction and climate change adaptation into policy and
planning,” said Ndiame Diop, World Bank Country Director for Brunei, Malaysia,
Thailand and the Philippines. Typhoons Rolly (international name Goni), Siony
(Atsani), and Ulysses (Vamco) that hit the country in November in just a span of two
weeks have brought devastation to a large swath of Luzon, further darkening this
year’s growth outlook.
Prior to these disaster events, the economy had already posted a 10 percent
contraction in the first three quarters, the worst since the 1985 debt crisis, due to a
plunge in private domestic demand, deep contraction in investment activities, and
weak exports. As a result, poverty is estimated to increase from 20.5 percent in 2019
to 22.6 percent in 2020 (measured against the World Bank lower middle-income
poverty line of US$3.2/day). This will help the economy bounce to a 5.9 percent
growth in 2021 and 6.0 percent in 2022. “Speeding up reforms that improve the
business environment, foster competition, and strengthen resilience against natural
disasters will support the economic recovery and boost productivity growth in the
long term.” The PEU’s current forecasts hinge on China’s early recovery, alongside
the expected rebound in the global economy in 2021, which will allow for export
growth to recover, and larger remittance inflows to stimulate domestic demand. Pre-
election activities in the run-up to the national election in 2022 will give an additional
boost to demand as early as in the second half of 2021. It also presents findings from
recent World Bank analyses, situating them in the context of the country’s long-term
development trends and assessing their implications for the country’s medium-term
economic outlook. Since 1945, World Bank Group has mobilized funding, global
knowledge, and partnerships to support the Philippines’ efforts to alleviate poverty,
upgrade infrastructure, improve health, nutrition, and education, strengthen resilience
against climate change and natural disasters, promote peace, and enhance global
competitiveness. The World Bank Group, one of the largest sources of funding and
knowledge for developing countries, is taking broad, fast action to help developing
 countries strengthen their pandemic response. The World Bank Group is making
available up to $160 billion over a 15-month period ending June 2021 to help more
than 100 countries protect the poor and vulnerable, support businesses, and bolster
economic recovery. This includes $50 billion of new IDA resources through grants
and highly concessional loans and $12 billion for developing countries to finance the
purchase and distribution of COVID-19 vaccines.
Reference/s:
https://www.worldbank.org/en/news/press-release/2020/12/08/philippines-while-
battling-the-pandemic-strengthening-disaster-risk-reduction-and-management-needed-
to-aid-recovery
Reaction/Opinion:
Throughout the years, nature helps us by giving us the resources that we need but abusing it
ends with a disaster. Natural disasters are inevitable, and it is the worst enemy of humankind,
but then, they could be prevented to worsen if we know how to handle them quite well. In the
first place, Covid 19 could’ve been prevented if the higher-ups already commenced the order
of travel ban, especially since it was the kind of illness that no one knew the cure of. The
economy rapidly deteriorated because of the sudden attack of an unknown virus that no one
knows how to stop which resulted in ordering people to stay in their homes. But since all those
tragedies and unfortunate events happened, many businesses closed, and many people lost
their jobs which ends up worsening the economy. It almost felt like there’s a chain binding our
feet to the ground, making us unable to do anything because of the sudden damage, which is
the reason why it’s supposed to be the time that everyone is working together, but sadly,
instead of coming up with the cure together, we heard corruptions and losses of money that
should’ve been used for finding solutions and cure on how to stop the pandemic. And because
of that, poverty will also be inescapable for some people. As of today, the pandemic got even
worse because of the spread of the new variant while the other countries are already
recovering. Despite the vaccine, humans and the economy are still in the worst kind of state.
This is not just the natural disaster’s fault anymore nor the people, but those who are in power
who are more concerned about their own greed than making solutions on how to stop it.
2. Applying Economics as a social science, how did the people react to the different
measures done by the government? How this Covid 19 pandemic affected the
lives of the Filipino people?
Summary of the article/interview/news:
The COVID-19 pandemic has led to a dramatic loss of human life worldwide and presents an
unprecedented challenge to public health, food systems and the world of work. The economic
and social disruption caused by the pandemic is devastating: tens of millions of people are at
risk of falling into extreme poverty, while the number of undernourished people, currently
estimated at nearly 690 million, could increase by up to 132 million by the end of the year.
Informal economy workers are particularly vulnerable because the majority lack social
protection and access to quality health care and have lost access to productive assets. Border
closures, trade restrictions and confinement measures have been preventing farmers from
accessing markets, including for buying inputs and selling their produce, and agricultural
workers from harvesting crops, thus disrupting domestic and international food supply chains,
and reducing access to healthy, safe and diverse diets. ... As breadwinners lose jobs, fall ill
and die, the food security and nutrition of millions of women and men are under threat, with
those in low-income countries, particularly the most marginalized populations, which include
small-scale farmers and indigenous peoples, being hardest hit.
Millions of agricultural workers – waged and self-employed – while feeding the world,
regularly face high levels of working poverty, malnutrition, and poor health, and suffer from a
lack of safety and labor protection as well as other types of abuse. With low and irregular
incomes and a lack of social support, many of them are spurred to continue working, often in
unsafe conditions, thus exposing themselves and their families to additional risks. Migrant
agricultural workers are particularly vulnerable, because they face risks in their transport,
working and living conditions and struggle to access support measures put in place by
governments. Guaranteeing the safety and health of all agri-food workers – from primary
producers to those involved in food processing, transport, and retail, including street food
vendors – as well as better incomes and protection, will be critical to saving lives and
protecting public health, people’s livelihoods, and food security. Adhering to workplace safety
and health practices and ensuring access to decent work and the protection of labor rights in all
industries will be crucial in addressing the human dimension of the crisis. ... Different forms
of support are key, including cash transfers, child allowances and healthy school meals, shelter
and food relief initiatives, support for employment retention and recovery, and financial relief
for businesses, including micro, small and medium-sized enterprises.
Only together can we overcome the intertwined health and social and economic impacts of the
pandemic and prevent its escalation into a protracted humanitarian and food security
catastrophe, with the potential loss of already achieved development gains. Priority should be
given to addressing underlying food security and malnutrition challenges, tackling rural
poverty, in particular through more and better jobs in the rural economy, extending social
protection to all, facilitating safe migration pathways and promoting the formalization of the
informal economy. Only then can we protect the health, livelihoods, food security and
nutrition of all people, and ensure that our ‘new normal’ is a better one.
Reference/s:
https://www.who.int/news/item/13-10-2020-impact-of-covid-19-on-people's-livelihoods-their-
health-and-our-food-systems
Reaction/Opinion:
Humans’ natural behavior after learning about the virus was to panic and buy things that will
help lessen the effect. The pandemic was the cause of the fall of the economy for many
businesses had to be shut down, and many lost their own jobs, making people feel devastated
and mad that they even started pointing fingers at other people, which I didn’t know a
necessary thing for I’ve always thought that nothing will be solved by finding someone at
fault. But then of course, for the span of almost two years and nothing still changed, as a
student who dreams of flying felt like my wings have been cut off for it’s not just the economy
that’s been affected but the school, which is the students’ steppingstone towards their dreams,
also shut down. The pandemic proved that we have no power over natural disasters and that
we’re vulnerable and could be broken easily. We suffered losses, the people we cared for got
their sands of time to stop falling, and even the sun that’s high above felt also being consumed
by darkness. The start of the pandemic became the start of people’s darkness. It cost death,
starvation, and darkness to some for not all people have the privilege to be able to be at their
houses and still have food to eat. Not all people could work in a safe place that’s far from
harm. It didn’t just make the economy go down, but the people also went down with it. It
didn’t help that most essential products cost a lot to the point that a thousand pesos could only
buy a few essential things that we need. To be able to survive, people needed to work for them
not to starve and suffer, but it is such a risk for not all people could work in a place far from
harm, and it could even affect the family they live in. If we only work together and stop being
selfish for our own greed, that might be the time when we will be able to overcome the crisis
that’s bestowed upon us.
3. Knowing Applied Economics and embracing the new normal, what are the initial
plans and moves of the government to combat the effects of the pandemic to the
economy?
Summary of the article/interview/news:
MANILA, PHILIPPINES (28 April 2021) — Public spending on infrastructure and social
assistance, better progress in the country’s coronavirus (COVID-19) vaccination drive, and a
steady recovery in the global economy will underpin growth of the Philippine economy this
year and the next, according to a new report from the Asian Development Bank (ADB)
released today.
The Asian Development Outlook (ADO) 2021, ADB’s flagship economic publication,
forecasts the Philippine economy to grow by 4.5% in 2021 and 5.5% in 2022.   Substantial
progress in the country’s vaccination rollout will help restore consumer and business
confidence, though uncertainties over how the pandemic will unfold globally and domestically
can pose risks to growth prospects.
Programs supporting workers and firms impacted by labor market adjustments and reforms to
boost productivity growth and investment will help counter the negative effects of the
pandemic on employment over the medium term.”
The report says government plans to strengthen labor market programs and assist in the
recovery of sectors badly affected by the pandemic, including agriculture and tourism, will
further support a pickup in the economy.  
The Philippines’ COVID-19 vaccine rollout may suffer from global supply shortages in the
short term, and local community quarantines could be extended to curb the spread of COVID-
19.
Reference/s:
https://www.adb.org/news/philippine-economy-seen-recovering-2021-stronger-growth-2022-
adb
Reaction/Opinion:
Being vaccinated will not help people to be unaffected by the virus, but it will certainly lessen
the effects of the virus, which is the reason why spending money on the vaccine and getting all
people vaccinated is a nice idea. Though, it’s only hard because there are actually people who
believe that the virus doesn’t exist and don’t want to get vaccinated because of the fear of the
consequences. Since this pandemic impacted the lives of the people, it would be better if they
are already in a good environment to work with an increase in salaries because it is alarming
that there are professionals in the Philippines that still have low salaries, despite working hard.
Nurses for instance. They have been fighting front line, and it takes more than bravery and
knowledge to face them, but it’s saddening to find out that they are not being paid well.
Strengthening the economy by reviving agriculture is also a good idea for it is where we get
our foods, but the laborers also deserve to be paid well. This time, I hope people will get what
they deserve and also the money that is needed to be spent on the necessary things should be
spent well for there are always greedy people who ignore those who are in need and what
needs to be done for their own gain.

Activity 3 Rubric:

Exemplary Above average Adequat Inadequate

e (15) (13)
(18
(20) )

Organization Writing shows high Writing is Writing is Writing

degree of coherence coherent coherent lacks
and logical and and logical, logical
reasoning. organized but some organization
logically. points are
missing
Content Content shows in Content shows Content is Content is
synthesis of good points of good acceptable but
but with
limited

ideas. It ideas. It provides ideas. ideas are

excellentl sufficient answer underdeveloped
y to the question.
addresses
the
question.
 Grammar Essay is Essay is Essay is Errors are
free from grammatically grammatically frequent
errors correct with correct with
minimal errors few errors

Reflection:
Complete the statement below.
In this activity, I learned that economy impacts the lives of people for the Corona Virus affected
the economy so much that led to humans’ downfall. Not all people are privileged to get the
things they need especially in this kind of pandemic wherein it doesn’t seem to stop, which also
costs the education of many students out there because not all people can easily get to adapt to
the new normal, which is having to learn online wherein you need to spend a lot of money to be
able to afford it. People are now struggling for lack of jobs as well as salaries because of the
economy going down. The end of the economy could also end people’s lives.

References:
Viray, Edilberto B.,Jr. and Jesusa Avila-Bato, Applied Economics, Anvil Publishing, 2018 
Dinio, Rosemary R. and George A. Villasis, Applied Economics, Rex Bookstore, Manila, 2017