SENIOR HIGH SCHOOL

LAS 1:
APPLIED

Econo
mics
Izzy Sherine T. Enriquez

12- St. Agnes of Bohemia

Name:

Grade Level and Section:

ABM
Strand:

1 | APPLIED ECONOMICS
Izzy Sherine T. Enriquez- St. Agnes of Bohemia

LS 1:
Economics as a Social Science and Applied Science
This module was carefully prepared and designed for you to perform at your own pace.
Useful activities on the nature and scope of economics, its fields were provided for you
to accomplish which will allow self-discovery of the concept. These will also help
develop your creativity and critical thinking skills to make decisions independently.

Learning Goals Learning Materials

● I can differentiate economics as ● Textbook: Diwa Applied Economics

social science and applied science
● I can understand the basic terms in ●
applied economics.

WARM UP!

For your first activity in this module you are going to define the word “Economics” in
your own words, write it inside of the thinking cloud.

The study of paucity and its

consequences for the use of goods, the
creation of products and services, the
development of production and welfare
through time, as well as a wide range of
other complicated topics that are
important to society, is known as
economics. Furthermore, it is the
optimal allocation of available
resources.
A Empow

ctivity No. 1.1: Filling the Map!

With the use of your book/ google I want you to explain why Economics is
considered as an Applied Science and as a Social Science by using the map below.

2 | APPLIED ECONOMICS
 ECONOMICS

APPLIED SOCIAL SCIENCE

Economics as an applied science Economics as social science

Economics is regarded as applied science
since it refers to the practical application of
economic ideas and models. It entails
understanding how individual decisions are
influenced by options, as well as how the
availability of factors aids decision-makers in
making effective decisions. Over the years,
economics has attempted to reduce
complicated social phenomena into rules,
frameworks, and models. Today's decision-
makers may use these models as tools to
help them make better and more informed
decisions in order to achieve progress and
long-term growth.
Economics is classified as a
social science because it
uses scientific methods to
develop ideas that can explain
how people, communities, and
businesses behave. When scarce
resources are transferred,
economics seeks to explain the
behavior that results.

Now that you already know why Economics is a social science as well as an applied
social science, it is also important for you to know some of the basic terms in order for
you to understand Economics better.

BASIC TERMS TO UNDERSTAND ECONOMICS

Activity No. 1.2: Jumbled letters
It is essential that you familiarize yourself with the study of economics. This will facilitate
your understanding of economic analysis. Specifically you meet Goods which yields to
your satisfaction. It is anything used to satisfy your wants and needs.
Below are two jumbled letters which you are going to arrange in order to make a word/s.
After you come up with a word/s from those jumbled letters you are now going to define
and cite some examples in the boxes provided on the next page.

3 | APPLIED ECONOMICS
 NATGIELB SOGOD ANIIGELBTN DSOGO

TANGIBLE GOODS is a INTANGIBLE GOODS is

physical thing that can be
touched to perceive such as
album, light stick, CDs and
groceries. The simplest
method to establish whether or
not it is tangible is to ask if a
person could physically touch it
or pick it up.
something that a person cannot
see, feel, or touch and so does
not have any physical presence
such as investment banking,
brokerage, education, health
care, insurance and other product
that can only be perceived
indirectly.

YOU EXPLORE!

Goods may be classified according to use…

CONSUMERS GOODS – goods for the CAPITAL GOODS or INDUSTRIAL GOODS used in
ultimate consumption of the consumers. Ex.: the production
toothpaste, bath soap, etc. of other goods
and services.
Ex.: buildings,
machinery,
equipment.

LUXURY
GOODS –
goods man
may do
without,
ESSENTIAL GOODS- used to satisfy but may
the basic needs of man give comfort and
Example: foods and medicine. satisfaction. Ex., perfume, cakes; chocolates
expensive cars.

4 | APPLIED ECONOMICS
 ECONOMIC GOODS –goods which are useful and
scarce; with value attached to them and a price has
to be paid for their use. If a good so abundant and it
can satisfy
everyone’s needs without anybody paying for it,
then, that good is free. The air is free, but the air
from an aircon is an economic good.

Activity no. 2 : Classification of Goods

Please perform independently. Pick all the goods and classify them
accordingly. Your mother went to the market to shop goods for the family. She
purchased the following goods. Canned goods; bread; sacks of rice; meat;
vegetables; toothpaste; bath soaps; perfumes; wrist watch; aircon to ventilate her
store and coffee maker for her store.

Consumer goods Luxury goods

toothpaste, bath soaps perfumes, wrist watch

Industrial goods Economic goods

coffee maker aircon

Essential Goods
Canned goods, bread, sacks of rice,
meat, vegetables

EXPAND IT!

In the article of Nowaczyk , J (2020) on Identifying the Factors of Production, he

defined economic resources as the factors of production for goods and services. The
factors of production are inputs combinations in the production of goods and services to
make an economic profit for the firms.

5 | APPLIED ECONOMICS
 Activity No. 3.1: Picture Analysis

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

Activity No. 3.2:

Determine which factor of production is needed in the following problem

1. The ABM Manufacturing Co. hired a gardener. He uses a lawn mower

for landscaping. Which factor of production would you consider this
machine?
LABOR

2. The owner of the company withdrew cash for

the salaries of the employees. Which
factor of production would you
consider cash on hand?
CAPITAL

6 | APPLIED ECONOMICS
 3. The top manager of the firm said “the great ideas, concepts and
emotional determination of a person 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

4. The farmers planted pineapple cuttings in the vacant area located in

their locality. Which factor of production would you consider a
pineapple plantation?

LAND

7 | APPLIED ECONOMICS