Assessment

Directions: Kindly choose the letter of the correct answer. Encircle

your answer.
1. The physical effort of the manpower to produce the protective
devices of the frontliners describes which factor of production?
a) Land b) Capital c) Labor d) Entrepreneur
2. The great ideas, concepts and drive of the production managers to
produce something new describe which factor of production?
a) Land b) Capital c) Labor d) Entrepreneur
3. The computers of the production manager in an office are what kind
of goods or products?
a) Consumer goods b) Either consumer goods or capital goods
c) Capital goods d) Economic goods
4. Which best describes economics as a social and an applied science?
a) The study of things we need to survive
b) The study of how people make choices when they are faced with an
unlimited supply of resources
c) The study of human behavior
d) The study of how buyers make choices when there is limited supply
of resources
5. Which of the following are examples of human needs?
a) Water and a place to live like houses
b) Iced caramel macchiato frappuccino
c) Flat screen televisions
d) Laptops and computers

MODULE 1 NATURE AND SCOPE OF ECONOMICS

Let’s say, in conducting your research, you may consider studying
the economic situation of the families in Manila. For example, the GAS
and ABM students may focus on the annual income of families, buying
behaviour in the market, on specific items commonly purchased these
families and many more. The HUMSS might take an overall view on
the entire economic system: what causes the families to limit their
spending capabilities, what environmental factors stresses them from
purchasing their needs and wants; or what makes them satisfied in
their buying behaviour. Both approaches are useful, and both examine
the same, but the viewpoints are different. In a similar way, both
microeconomics and macroeconomics study the same economy, but
each has a different viewpoints.

Whether you are looking at the buying behaviour of the people in

the market or economics, the micro and the macro insights should
blend with each other. In studying the buying behaviour of the people,
the micro insights about particular behaviour and spending habits of
the people help them understand the overall economic situation on
individual matters, while the macro insights about the overall
economic situation on the entire economy which help to explain the
internal and external environments, as a whole.