Activity 1 IDENTIFICATION

Direction: Identify the following problems that may exist in the local and global economies during production
of goods and services. Choose from the factors below. Just write the letter.

Questions: If the economic problem is focused on

1. C the legalities of the production

2. B the nature of goods to produce
3. A the allocation of the products among members of the society
4. D the method of production of products

A. Whom to produce B. What to produce

C. What provision to implement D. What method or strategy is effective and efficient

Activity 2:

Part I TRUE or FALSE

Directions: Please write TRUE if the statement is correct and FALSE if the statement is incorrect.

TRUE 1. Scarcity in goods and services happens if the resources in the production are inadequate or
scarce.
TRUE 2. Customers must choose among several alternatives if scarcity exists.
TRUE 3. Income inequality is the gap in income that exists between the rich and the poor customers
willing to buy the same products.
FALSE 4. Shortage of goods and services is an economic problem; and shortages are always constant
TRUE 5. The Build Build Build Program by the government aims to help improve the infrastructure
projects and other programs of the country.

Part II :Multiple Choice.

Choose the letter of the correct answer.
a 1.The fundamental economic problem that must be solved efficiently.
a)Scarcity of resources
b)Health system
c)Surplus of demands
d)Export policies

b 2.Economists point out that scarcity must be addressed to protect the

a)The poor but not the rich
b)Both the poor and the rich
c)Neither the poor nor the rich
d)The poor but never the rich

c 3.What two factors contribute to scarcity in the production of goods and services?
a)Unlimited resources and limited wants
b)Unlimited resources and wants
c)Unlimited wants and limited resources
d)Limited resources and wants
|Page SaintCharlesAcademy
Module 1 2 Semester/Week
nd 3-4

a 4.If there is scarcity in public transportation, what should the learners do?
a)Home based learning is an alternative choice for access to education
b)Stop learning while waiting for transportation shortage to be solved
c)The government must import units of car from neighbor countries
d)All choices are applicable

d 5.The economists describe the amount of resources in an economy as:

a)Always constant
b)Can never decrease or increase
c)Unlimited at any moment in time
d)Limited at any moment in time

Activity 3: Independent Activity

Directions: Please read carefully.

Despite the limited resources and scarcity of products for our consumption, today, we still want to
achieve maximum satisfaction. We make use as few resources as possible, allocate our resources where they are
best suited, and use the appropriate technology or materials and produce the right goods and services.
Given the resources below, please select and encircle the most efficient products that could be produced
to maximize production and help the economy. Explain your choices.

Raw material Finished Product/Services Explanation

1.Steel: casino tokens or public cars?
2.Crude oil: gasoline or kerosene?
3.Cars: small cars or SUVs?
4.Flour: cakes or breads?
5.Cloth scraps: doormats or washable masks
6.Fruits: canned juices or fresh fruits?
7.Vegetables: fresh or frozen vegetables?
8.Coconut oil: cooking oil or expensive lotion?
9.Sources of air: electric fans or units of aircon?
10. Imports: PPEs or clothes from Korea? 1. Public transportation is more beneficial for a lot of
people than those tokens that are used for gambling.
2. People preferred using gasoline oil instead of kerosene,
which is more accessible everywhere.
3. The basis of people today in choosing the car to buy is
its quality and size. SUVs have more good quality and
more advance.
4. It is better to produce bread from flour because it is less
expensive and cheaper than cakes.
5. During this pandemic, people need face masks and
much more essential than a doormat.
6. People prefer to buy fresh fruits since it is healthier, so
it is better to produce fresh fruits than canned juices.
9. Air conditioners are not a commodity that everyone can
7. In the market, fresh vegetables sell better since it is less
afford. Therefore, electric fans are more efficient and
cheap than frozen ones.
practical.
8. Cooking oil is more beneficial, and people need more
10. During this time of the pandemic, we need PPEs more
of it.
than those clothes from Korea.

|Page SaintCharlesAcademy