WHOLE BRAIN LEARNING SYSTEM

OUTCOME-BASED EDUCATION

SENIOR HIGH SCHOOL GRADE

Applied Economics
11/12

LEARNING QUARTER I

MODULE WEEK
1

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 MODULE IN

APPLIED ECONOMICS

QUARTER I

INTRODUCTION TO APPLIED
ECONOMICS

Development Teams
Writer: Mary Grace L. Santos
Editor: Mary Grace L. Santos Florendo D. Damaso, Jr.
Reviewer: Florendo D. Damaso, Jr. Rhonel S. Bandiola
Mac Alwin Z. Tacang
Illustrator/Layout Artist: Mary Grace L. Santos
Management Team:
Vilma D. Eda Joye D. Madalipay
Lourdes B. Arucan Juanito V. Labao
Imelda Fatima G. Hernaez

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 WHAT I NEED TO KNOW

To some people, the word “economics” means a complicated science made up of

laws, mathematical formulas, hard-to-pronounce terms, and complex theories. However, to
those who study economics, it is an interesting and exciting subject.

When we study economics, we study ourselves at work or at play, at home or at school,

on the job, or after hours. Economics applies to almost everything, and is something that
everyone can understand. While it may seem complex, economics deals with everyday
problems.

This module is a SELF – PACED learning material for you to continue your studies in
the comfort and safety of your home, it will also guide you to develop a holistic perspective of
economics. It contains interesting discussion that will guide you in understanding this
discipline. Activities are found in every lesson to test your understanding and to help you retain
better what you have learned. Have your own journal for your reflections and activities.

Most Essential Learning Competencies (MELC):

Differentiate economics as social and applied science in terms of nature and scope.

What you are expected to learn?

After going through this module, you are expected to:
 Explain scarcity and discuss three basic questions each society must
decide.
 Define economics and identify the key elements within its scope.
 Understand the concepts of economics as a social science.

Important Reminder
Important Reminder
DO NOT WRITE ANYTHING IN THIS MODULE. This module is government
property and other learners will use it again. You may use any clean sheet of paper that is
available in your home for your answers in the given activities. The rubrics and answer key
for the activities are found in the latter page of this module for you to self-check your
answers. This module will be retrieved by the end of the week.

Tip: Use what you have learned in Personal Development and Creative Writing for your
journal writing.

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 WHAT I KNOW

This is to test your knowledge on the given lesson. Copy the incomplete paragraph in
any clean sheet of paper. Use the correct terms to fill in the blanks in the paragraph. Label
this activity as WHAT I KNOW.

opportunity cost factors of production

scarcity hypotheses
wants goods and services
production possibilities values
generalization technology
trade-off economic models

Human _____are unlimited. Consequently, the problem of _____faces even the richest
person on earth, particularly because that person has a limited amount of time on earth. When
_____ are used together to produce _____, human wants can be satisfied. The use of
_____can help us increase the amount of production we get from the resources in our
economy. No matter how many resources we have, though, we always face a _____. The
production of one good always involves giving up the production of some other good or goods.
This is called a(an) _____. The graphic representation of this trade-off is called a _____ curve.
Economists use _____ to represent how the economy works. They set up a _____ that they
test with real-world information. If their test of work well, they come up with a _____, but
economists never can tell us about _____.

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 Lesson
INTRODUCTION TO ECONOMICS
1

Lesson 1 is about what economics is, and how different societies have chosen what
goods and services should be produced and how they should be distributed.

WHAT’S IN

Activity 1.1. You and your choices.

Direction: Show me your budget by writing your answers (bullet form) in any clean sheet of
paper.

PARTICULARS %

WHAT’S NEW
Answer the questions in connection to the given activity. Write your answers
in any clean sheet of paper. Label it as Activity 1.1. Work neat and clean.

1. If you have P2,000 allowance/income per week, what will you do with your money?
2. What did you consider in decision-making?

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 3. Do you think that every decision you make affects our country’s economy? If Yes,
how? You can give one example.

WHAT IS IT

A. Economics - The Study of Choices

Economics is the study of how individuals and nations

make choices about how to use scarce resources to fulfill their
wants. A resource is anything that people can use to make or
obtain what they want.

As a student, you probably have a small amount of

money- from an allowance or a part-time job- to spend. As a
result, you have to make choices about its use. Whenever you
make such as spending decision, each available choice
competes with every other available choice.

Now, many things in life seem to be “free” when actually, they are not. Unfortunately,
most things in life are not free because someone has to pay for the production in the first
place. The well- known term “there is no such thing as a free lunch” is one of the keys to being
able to understand the fundamental problem of economics, which is scarcity. Scarcity means
that people do not and cannot have enough income, time, or other resources to satisfy their
every desire. Also a condition arises because society doesn’t have enough resources to
produce all the things people would like to have. In this problem, it is the need to make choices
arisen because everything that exists is limited, even though some items may appear to be in
overabundant supply.

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 Source: https://relivingmbadays.wordpress.com/2012/08/25/the-fundamental-economic-problem/

When a society provides for the needs of its people, it answers three basic
economic questions. In so doing, it makes decisions about the way its limited resources
are going to be used. These three choices about WHAT, HOW, and FOR WHOM to
produce are not easy for any society to make. Nevertheless, a society has few options.
It must answer these three basic questions as long as there are enough resources to
produce all the things people want and need.

It is important not to confuse shortage and scarcity. Scarcity always exists,

whereas shortages are always temporary. Shortage often exist after major typhoons,
floods, terrorism that destroy goods and property. Temporary shortages of products
such as gasoline may be caused when imports are dramatically decreased for any
reason.

B. Meaning and Scope of Economics

The term economics comes from the ancient Greek word

oikos (household) and nemein (managea), which in effect meant
managing a household, using limited funds available in the most
economical manner possible.

Economics is the study of human efforts to satisfy what

seems like unlimited and competing wants through the careful use of
relatively scarce resources. Along the way, economics deals with what is produced
and with who gets how much of the concerned with unemployment, inflation,
international trade, the interaction of business and labor, and the effects of government
spending and taxes.

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 Economics does not stop with the description of economic activity. It goes
beyond that to discover why and how people behave as they do in making economic
decisions. Economists build models to explain these data gathered by governments
and international agencies. Economists seek to describe and understand these data
and make predictions about the future.

WHAT’S MORE

Activity 1.2. Short Quiz

Directions: Write your answers in any clean sheet of paper. Label it as Activity 1.2. If the
statement is correct write TRUE, otherwise write FALSE and the reason what makes it false.

1. Your choice of jeans as a consumer determines how many will be produced.

2. When you decide whether to spend your money on a pre-paid cellphone load or a
cheeseburger isn’t considered as economic choice.
3. Shortages are always temporary, scarcity always exists.
4. Business people make decisions daily about what to produce now, later, and what to
stop producing. These decisions in turn affect people’s income& not their ability to buy.
5. The scope of economics is limited to description, analysis, and the explanation of
economics activity.

WHAT I HAVE LEARNED

 Scarcity is the basic problem in economics. Economics is the study of how individuals and
nations make choices about how to use scarce resources to fulfill their wants.
 All societies must face the three basic questions of WHAT, HOW, and FOR WHOM to
produce.
 The huge increase in everyone’s income would not solve the economic problem. Thus,
the problem of scarcity is not due to a shortage of money, but lack of resources needed
to make all the things people want.

WHAT I CAN DO

Activity 1.3. Situation Analysis

Direction: Provide what is being asked. Write your answers in any clean sheet of
paper and label it as Activity 1.3.
1. Cite the economic situation of each of the following:

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 a. Typhoon Yolanda, Leyte
b. Terrorism, Marawi
State the problem and economic solutions applied on each situations.
2. Share your concepts about the current economic situation we are experiencing
with this pandemic COVID-19 worldwide.

Lesson
REVISITING ECONOMICS AS A SOCIAL SCIENCE
2
In the previous topic you have learned about Economics as the study of choices. Also
that the fundamental economic problem is scarcity. Now, in this lesson, you’re about to learn
its nature revisiting economics as a social science.

WHAT’S IN

Activity 2.1. Picture Analysis

Observe the pictures and write your insights in connection to our topic: Economics as a
Social Science.

Source:
https://www.google.com/search?q=economics+balance&source

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 2

Source:
https://www.google.com/search?q=economics+balance&source

WHAT’S NEW

Direction: Write your answers for the following question in any clean sheet of paper and label
it as Activity 2.1. How do people agree on something when they believe it is useful or
satisfying?

WHAT IS IT

A. Economics as a Social Science

Economics is a social science. It is a systematic study of the way in

which people cope with scarcity. Economists study, what is, or tends to
be, and how it came to be.

Source:
https://www.google.com/search?q=economics+social+science&tbm=isch
&ved=2ahUKEwiasfng9v3qAhUGDZQKHWgsBiEQ2-
cCegQIABAA&oq=economics+social+science&gs_lcp

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 Economics is classified as a social science because it deals with the study of human’s
life and how he lives with other men.

There are three strands in the development of the definition of economics. The first
focuses on wealth. In previous decades, economics has been defined- as a science of wealth
getting and wealth using. The second stresses the decision-making process. Currently,
economics has been defined a s a science of making choices. The third concentrates on the
allocation process. Many define economics as a social science that deals with the allocation
of scarce resources to meet the unlimited human wants.
As a science it utilizes the scientific method of inquiry from identifying the problem,
proposing alternative tentative answers or hypotheses, testing the tentative answers to the
question or the problem at hand, gathering and treating the data, and answering the question
through the conclusion. As a social science, this systematic or scientific method used in the
study of society and its components.

Thus, social science can be described as the study of the various modes and aspects
of human interactions in a group as these people aspire to preserve their group as a social
unit, to make it stable, and to promote its growth, expansion, and development. Economics
then, pertains to the study on how society creates its material wealth, how it makes this wealth
available to its people with minimum difficulties, and how it expands its wealth.

Individual behavior peoples’ beliefs, and society’s value system are systematically
examined in behavioral sciences including sociology, anthropology, and psychology for the
preservation, stability, and growth of society’s cultural identity. Lastly, the recording and
analysis on how these goals of societal preservation. Stability, and development are achieved
over time are the concerns in the study of history.

B. Resources and the Study of Economics

Source: https://www.google.com/search?q=LAND+LABOR+AND+CAPITAL&tbm=isch&ved

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 The second dimension of the definition of economics is resources. This element is
linked with the previous definition of economics as the process of wealth creation and wealth
utilization. Resources or wealth can be defined as products nature, qualities of individuals,
and man-made things which are used in producing goods and services.

Natural resources like marine resources drawn from the wealth of oceans, timber
obtained from forest resources, agricultural lands that yield grains and other food crops, and
the mineral resources extracted from various mining sites, among others. These various forms
of natural resources can directly provide goods for current consumption used as raw materials
or intermediate inputs for the production of goods.

Human resources, are qualities of human being that may include, labor, intelligence,
creativity, health, education, talents and many more. These various characteristics of people
give them capacity to create value directly through the provision of services and indirectly by
becoming factor inputs of production.
Lastly, we have Physical resources or man-made resources that include various
types of buildings, equipment, technology, bridges, airports, factory, plants, and other physical
infrastructure that can be used to provide present and future satisfaction.

Because of the physical limitation and alternative uses of resources, the concept of
opportunity cost becomes prominent in the study of economics. The choice in the use of
resources in a particular activity should take into consideration the benefits forgone from other
alternatives which were not chosen. Thus, there are sacrifices for the opportunity costs in
everything that we do.

C. Human Wants and Economic Analysis

A need is a basic requirement for survival. The basic needs such as food, shelter, and
clothing. People also have higher level needs, such as communication, love, acceptance,
knowledge, hope, and accomplishment. These needs are part of the makeup of each person.
A want is a means of expressing a need. To satisfy this need, a person may “want” a pizza,
hamburger, potato chips, or any favorite food. That is, there are nay number of foods that will
satisfy the basic need for food.

This makes the third dimension of economics pertains to human wants. Resources are
used to answer the human needs and human wants of the society. Because of marked
differences between human wants and human needs, people tend to view human wants as
luxury or unnecessary compared with human needs. These differences are brought by

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differentiating factors on the consumption habits of people by taste, income, environment,
socioeconomic status, and other factors among consumers.

Since the factors can be influenced intrinsically and externally, it is possible that human
wants can expand and multiply. This expansion and multiplication of human wants is one of
the key reasons why we have an economic problem. Society has to response to this ever
expanding and multiplying human wants in light of the limited wealth of society.

Entrepreneurship and technology rises as economists added to the list of resources.

Entrepreneurship which refers to the ability to start a new businesses, to introduce new
products and techniques and to improve management techniques. However, technology
usually describes the use of science to develop new products and new methods for producing
and distributing goods and services.

WHAT’S MORE

Activity 2.2: Journal Reflection

Write your reflection about the statement from Aristotle in any clean
sheet of paper and label your reflection as Activity 2.2.

“Now, as there are many actions, arts, and sciences, their ends also are many; the end of
the medical art is health, that of shipbuilding a vessel, that fo strategy victory, that of
economics wealth.” - Aristotle

WHAT I HAVE LEARNED

 Economics is a social science that examines the way in which people try to
satisfy seemingly unlimited wants and needs with relatively scarce
resources.
 The scope of economics is limited to description, analysis, and the
explanation of economic activity.
 All people have basic needs that become from the desire to survive, and
higher level needs such as success and love.
 Needs and wants become demands when people in the marketplace are
willing and able to buy something.
 The study of economics deals with those goods and services that are useful,
relatively scarce, and transferable to others.
 Wealth has monetary value and includes natural resources, consumer
goods, and capital goods.
 Entrepreneurship and technology are considered by economists as part of
the growing economic resources.

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 WHAT I CAN DO

Activity 2.3. Interview an Entrepreneur.

Directions:
 Tap or call someone who is running a simple business-
it may be your nearest Sari-Sari store owner or business
owner relatives and/or friends available online for a short
talk.

 Ask about his/her strategic management or experiences

in his business: (1) Management (2) Finance (3) Production
and (4) Marketing including some reviews from his/her
customers regarding business performance (a reflection
from his/her community).

 After the interviews, identify the central issues: Tell why

entrepreneurship is considered a factor of production. Write
them in any clean sheet of paper and label it as Activity 2.3.

Congratulations! You are done with Module 1.

I hope you had fun learning new things that
broaden your understanding in Applied Economics
.

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For your Week 1 Output, refer to the holistic rubrics for your rating.

Holistic Rubrics for Assessment

Point Description

4 points The learner

 Demonstrates a thorough understanding of the concepts of the lessons
embodied in the task.
 Indicates that the learner has completed the task correctly and on time.
 Contains clear, complete explanations and/or adequate work when
required.
3 points The learner
 Demonstrates a partial understanding of the concepts of the lessons
embodied in the task.
 Addresses most aspects of the task but not all.
 Used an incorrect procedure in completing the task.
 May reflect minimal misunderstanding of the underlying concepts and/or
procedures
2 points The learner
 Demonstrates only a limited understanding of the concepts of the lessons
embodied in the task.
 Addresses some elements of the task but reaches on inadequate output
and/or provides reasoning that is faulty or incomplete.
 Exhibits multiple flaws related to a misunderstanding of important aspects
of the task, and using of improper procedures.
 Reflects a lack of essential understanding of the underlying concepts.
1 point A one-point grade is completely incorrect, irrelevant or incoherent, or a
correct output that was arrived at using an obviously incorrect procedure.

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 ANSWER KEY

WHAT I KNOW

1. Wants 7. trade-off
2. Scarcity 8. possibilities
3. Factors of production 9. economic models
4. Goods and services 10. hypotheses
5. Technology 11. generalization
6. Opportunity cost 12. values

WHAT’S NEW

Economics is about you. It is about how you make choices. It is about how you interact with
other people. It is about the work you do and how you spend your leisure time. It is about the
money you have in your pocket and how you choose to spend it. Because economics is
about your choices plus everyone else’s that moves economic status of our country.
Some disposable income is discretionary and does not have to be spent on necessities. A
wiser consumer considers many factors before making a purchase/ final decision.

WHAT’S MORE

1. Yes
2. No
3. Yes
4. No
5.Yes

WHAT I CAN DO

1. The long-term risks of Typhoon Yolanda include a rise in unemployment and

underemployment, increased poverty levels, and deteriorations in human capital indicators.
An additional 1 million people could have been pushed into poverty. - www.worldbank.com.

2. The evolution of the terrorist threat in the region emphasizes the importance of a
productive, cooperative security relationship between the two countries- USA and
Philippines. Accordingly, this commentary outlines six policy recommendations for how the
United States should adapt its security cooperation with the Philippines to address the
region’s changing security and counter terrorism needs. vents of the past few months—in
particular, the prolonged standoff in Marawi, Mindanao—have significantly increased
concerns about terrorist activity in the southern Philippines, and in Southeast Asia more
broadly. -www.brookings.edu

3. The Global Economic Outlook During the COVID-19 Pandemic: A ... subdued capital
flows, and tight financial conditions amid mounting debt. The June 2020 Global Economic
Prospects describes both the immediate and near-term outlook for the impact of the

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pandemic and the long-term damage it has dealt to prospects for growth. The baseline
forecast envisions a 5.2 percent contraction in global GDP in 2020, using market exchange
rate weights—the deepest global recession in decades, despite the extraordinary efforts of
governments to counter the downturn with fiscal and monetary policy support. Over the
longer horizon, the deep recessions triggered by the pandemic are expected to leave lasting
scars through lower investment, an erosion of human capital through lost work and
schooling, and fragmentation of global trade and supply linkages. -www.worldbank.com

WHAT’S NEW

Scarcity does not mean that only a little of something is available, we could produce more
goods and services and satisfy more of our wants considering what’s necessary in living.
This will reduce scarcity and give us more satisfaction (more good and services) and
innovative.

Instructions on submission: Submit your portfolio to your

Barangay’s Dropbox to be picked up on Monday next week.

For any questions and concerns, feel free to reach me

via:
o Messenger Account: gracees loreto santos
o DepEd e-mail:
marygrace.santos0100@deped.gov.ph
o Contact Number: 09158553323 (Globe)

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 REFERENCES:

 Tullao, Tereso Jr. S. (2016). Applied Economics for a progressive Philippines.Quezon

City: PHOENIX Publishing House, Inc.
 Mankiw, Gregory N. (2009). Ten Principles of Economics: Principles of
Microeconomics. South Western: Cengage Learning
 https://www.adb.org/news/philippine-gdp-growth-slide-2020-due-covid-19-strong-
rebound-seen-2021-adb
 https://saylordotorg.github.io/text_economics-theory-through-applications/s04-
preface.html

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 For inquiries or feedback, please write or call:

Department of Education – Schools Division of Laoag City

Curriculum Implementation Division
Brgy. 23 San Matias, Laoag City, 2900
Contact Number: (077)-771-3678
Email Address: laoag.city@deped.gov.ph

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