I, OBJECTIVES A. Content Standard: The learner demonstrates an understanding of economics as an applied science and its utility in addressing the economic problems of the country. B. Performance Standard: The learners shall be able to analyze and propose solution/s to the economic problems using the principles of applied economics. C. Most Essential Learning Competencies (MELCs) The learners examine the utility and application of applied economics to solve economic issues and problems. D. Specific Objectives: 1. Identify the basic economic problems. 2. Illustrate how applied economics can be used to solve economic problems. 3. Solve basic economic problems using applied economics. 1. CONTENT LESSON 2: Utility and application of applied economics to solve economic issues and problems Il. PROCEDURES: Before you start studying this learning activity sheet, take this simple test to find out what you already know about the topic. A. Preliminary Activities 1. Pre-TestPart 1 Multiple Choice: Directions: Choose the letter of the best answer tto each of the following questions. Write the letter on your answer sheet. Which of the following are examples of human basic needs? A. laptop and smart phones C. food and shelter B. face mask and face shield D. milktea and Starbucks ABM Enterprise decides to produce more facemask than hand kerchief to supply the growing demands in the market. It solves issues on: A. Whom to produce C. How to produce B. Provision for economic growth —_D. What to produce The fundamental economic problem that must be solved efficiently is : A. Health system C. Corruption B. Covid-19 D. Scarcity on resources What are the two factors that contribute to scarcity in the production of goods and services? A. Unlimited wants and unlimited resources B. Unlimited wants and limited resources C. Limited wants and limited resources D. Limited wants and unlimited resources Which is TRUE in the following statement on economic problem? A. The increasing population growth can solve unemployment. B, Raise the minimum wage can solve quality infrastructure. C. Reduce unemployment can solve poverty. D. Goods and services must be decided by the authority. Part 2 True or False: Directions: Read the following sentences. Write True in your answer sheet if the statement is True otherwise write False. The division of labor allows workers and firms to produce more goods and services. Applied Economics seeks to solve the problems on scarcity. Goods and services must be based on the needs of the authority. How to produce goods and services has something to do with distribution.5. The quantity of the output must come first before the quality. 6. One of the causes of unemployment is the numbegof people entering the job market has been higher than the number of jobs created. 7, The increasing population growth can solve unemployment. 8. Reduce unemployment can solve poverty. 9. Raise the minimum wage can solve quality infrastructure. 10. Reform people’s political culture can solve income inequality 2. Reviewing Previous Lesson Describe the 4 factors of production and give examples. B. Presenting the New Lesson 1. ACTIVITY: Motivation Directions: Using graphic organizer, draw one popular product or services in your neighborhood or locality. Write/ draw the factors of production that you think were used to produce the goods or services. What are the possible issues or problem that you think they have encountered during pandemic? Write your answer on a separate sheet of paper. 2. ANALYSIS Processing questions Directions: In 2-3 sentences, discuss the following in your answer sheet. 1, What are the basic economic problems in your locality? 2. What are the basic economic problems of the country? 3. Give suggestions on how the government can help local entrepreneurs on their economic issues or problems?3. ABSTRACTION (Discussion of the topic) LESSON I: Applied Economics on basic issues,and problems All societies are facing the economic problem on how to make the best use of limited resources. Wants and needs of people are endless but the resources available are not enough to satisfy the needs. To do this, decisions must be made to convert different economic resources into products and services that can satisfy human wants and needs. Applied Economics aim at solving the problems on scarcity. Scarcity happens when all types of resources are limited and could not satisfy the human wants. In our present economy, people earn income through division of labor, specializing in what they produce. They will use that income to purchase the goods they need or want every day . Through division of labor, it allows individuals and firms to produce more. Division and specialization of labor only work when people can purchase what they do not produce in markets. Applied economics can help understand the basic problems facing the world today. It helps you become a well-rounded thinker. And most im- portantly, it prepares you to be a good citizen. (Credit: Nina Hale/Flickr Creative Commons) o=>eé The economic problem is to match limited resources to unlimited wants and needs Limited Resources to produce unlimited wants and needs https://www.economicsonline.co.uk/4 Dominant Basic Economic Problems 1. What to produce? ¥ - the system must determine the desires of the people. - Goods and services must be based on the needs of the consumers. 2. How to produce? - the system must select the proper combination of economic resources in producing the right amount of output. - the quality of output must come first before the quantity. 3. For whom to produce? - this has something to do with distribution. Once the goods are produced, how shall they be distributed? 4. What provision should be made for economic growth? - Both an individual and a society would not like to use all its scarce resources for current consumption only. Basic Economic Problems of the Country 1. Unemployment Causes: - The number of people entering the job market has been greater than the number of the jobs created. - The rural-urban migration increases due to employment opportunities. What can be done to solve unemployment problem? 1. Proper economic policies for labor-intensive companies.2. Educational system must be improved especially inthe rural areas. e 3. Improvement of economic environment in the rural areas to minimize rural-urban migration. 4. Encourage local and international investment through provision of attractive investment opportunities like tax incentives. 5. Slowing population growth. Philippine economic growth must increase faster than population. 2. Poverty Causes: - Increase in population - Increase in the cost of living | - Unemployment - Income inequality What can be done to solve poverty problem? 1. Reduce unemployment through more job opportunities. 2. Proper policy on labor income. 3, Foster economic growth to improve standard of living. 4. Provision of unemployed benefits for those who will be unemployed due to natural and man-made calamities. 5. Direct government policies to keep the price of essential products low. 6. Increase social services on education, health care and food subsidies.3. Quality of Infrastructure ‘Causes: ' - lesser budget allocation - bottlenecks, quality and timeliness of service - improper planning and coordination - reform key sectors to reduce corruption What can be done to solve quality of infrastructure? 1. The government shall implement fiscal reform program. 2. Increase quality infrastructure investment. 3. Investment in public-private partnership to address bottlenecks. 5. Proper planning and coordination of budget. 4. Income Inequality Causes: - Political culture. "palakasan and utang na loob” systen - Indirect taxes. Paying higher taxes like value added tax - Income taxes. Unequal policy on payment of taxes - financial education What can be done to solve income inequality problem? 1. Reform people's political culture 2. Policies to enforce progressive rates on direct taxation. 3. Encourage profit sharing, raise minimum wage and expand collective bargaining 4. Strict government regulation to keep essential products low . 5. Educate the poor to become entrepreneurs. 8C. INDEPENDENT ACTIVITIES INDEPENDENT ACTIVITY 1: Agree or Disagree: Directions: Let’s analyze the current market situations in your community. You can ask help from your parent or household members if the following statement was being experienced in your locality by writing agree or disagree in your answer sheet. ___1. Everyone has experienced buying a limited supply of commodities. ___2. Everyone has an inadequate supply of hygienic materials. ___3. Prices of commodities suddenly increased. __4. People in your area freely enjoyed traveling from one place to another. __5. Unemployment in the community was sharply experienced. INDEPENDENT ASSESSMENT 1: Directions: Assume that you are given P 500.00 as your weekly allowance. How will you allocate your budget for your whole-week expenses? List your choices and describe the advantages and disadvantages of your choice. Copy the table below on a separate sheet of paper. Choice 2: burger- P200 Choice 3; internet load- P100 Choice 1: Soft drinks— ee: | peso bebeeicsilpscgad 1? Tt ate ‘Nota it satisfies ‘My allow- T can attend online ra | up my thirst | healthy | my crav- | anceisupto | classesand watch | in 2 days drink 2 days only | video lessons using ingsINDEPENDENT ACTIVITY 2 Matching Type: ® Directions: Match column A or basic economic problems to column B or the description of economic issues. Write the letter of the best answer in your answer sheet. Column A Column B 1. What to produce? A. decisions for economic growth 2. How to produce? B. Techniques on production 3. Whom to produce? C. goods/services to be produced 4. What provisions should be D. Entrepreneurship made for economic growth? E. distribution among buyers/ members of the society INDEPENDENT ASSESSMENT 2: Application: Directions: Assume that you are an entrepreneur and you are tasks to help the government in solving the problems of scarcity. Using the following format, copy the table in your answer sheet and write three (3) in demand products or ser- vices in your community. Fill up the table with your own suggestions or answer to the basic economic problems. Use the given example as a guide. 10What provisions should bé made fo; economic growth? Whom to produce? Produce? Produce good Monitor strict com- Example: Personal quality mate- pliance on good Protective tials that can | quality of materials equipment be bought lo- and its price, INDEPENDENT ACTIVITY 3: True or False: Directions: Read the following sentences. Write True in your answer sheet if the statement is True otherwise write False. 1. Income inequality is the gap in income that exists between the rich and the poor. 2. The rural-urban migration increases due to insufficient job opportunities in the rural areas. |3. One of the major causes of income inequality in the country is the “Palakasan” and “utang na loob” system. 2. Poverty is constant even to those who work hard. Illegal logging can help solve economic problems. 11INDEPENDENT ASSESSMENT 3: Directions: As a grade 12 students, you can tontribute to the economic growth of our country by thinking of five (5) limited resources and how you can help to have provision for its sus- tainability. Copy the table below on your answer sheet and pro- vide details on suggested alternatives and solutions to the prob- lems of scarcity, Use the given example as a guide. ‘What provisions should be made for economic growth Example: Do outdoor/indoor activities other | Conserve electricity by than watching turning off lights or youtube or Netflix | oadgets when not in that consume more electricity 12REFLECTION: Directions: Complete the following sentences below. Write your answer in a separate sheet of paper. Today I have learned the four dominant basic economic problems which are... The four basic economic problem of the country are... 2. 13IV. ASSESSMENT Post Test : Part 1 Multiple Choice: Directions: Choose the letter of the best answer to each of the following questions. Write the letter on your answer sheet. 1. Which of the following are examples of human basic needs? A. laptop and smart phones C. face mask and face shield B. food and shelter D. milktea and Starbucks 2. ABM Enterprise decided to produce more facemask than han d kerchief to supply the growing demands in the market. It solves issues on: A. What to produce C. How to produce B. Provision for economic growth __D. Whom to produce 3, The fundamental economic problem that must be solved, efficiently is A. Health system C. Corruption B. Covid-19 D. Scarcity on resources 4. What are the two factors that contribute to scarcity in the production of goods and services? A. Unlimited wants and unlimited resources B. Limited wants and limited resources C. Unlimited wants and limited resources D. Limited wants and unlimited resources 5. Which is TRUE in the following statement on economic problem? A. The increasing population growth can solve unemployment. B. Raise the minimum wage can solve quality infrastructure. C. Reduce unemployment can solve poverty. D. Goods and services must be decided by the authority. 14BS ae eS Oe i) Part 2 True or False: Directions: Read the following sentences. Write True in your answer sheet if the statement is True otherwise write False. How to produce goods and services has something to do with distribution, Applied Economics seeks to solve the problems on scarcity. Goods and services must be based on the needs of the authority. ‘The increasing population growth can solve unemployment. Reduce unemployment can solve poverty. Raise the minimum wage can solve quality infrastructure. Reform people's political culture can solve income inequality ‘The division of labor allows workers and firms to produce more goods and services. ‘The quantity of the output must come first before the quality. One of the causes of unemployment is the number of people entering the job market has been higher than the number of jobs created Enrichment Activities Directions: Reading the solutions to the basic economic problems of the Philippines, as a grade 12 students, add at least one solution for the different economic problems. Write in a separate answer sheet.