Economics as Social and Applied

Science in Terms of Nature and Scope

Task 1: Let’s check your prior knowledge…
The activity aims to give you a clear understanding of the
reason why people have to practice economics.

Directions: Identify what scarce resource is represented in

each picture. Analyze the supporting sentence of each item
and write MICRO if it belongs to microeconomics and
MACRO if it is macroeconomics. Jumbled word is provided
to guide you identify the scarce resource asked. Write your
answers in your activity notebook.
Task 2: Let’s classify…

Directions: Evaluate the following situations and classify if the

situation considers economics as Social Science or Applied
Science. You will be given a hint of what is meant by social and
applied. Copy the given format in your activity notebook.
Social – explain how a particular social group or socioeconomic
class behaves within a society, including their actions as
consumers. Applied - application of economic theory to determine
the likely outcomes associated with various possible courses of
action in the real world
Assignment:
Answer may vary…
Possible answer:

1. Yes, households and firms interacts in two markets: the market for
goods and services and the market for factors of production.
2. Households supply economic resources , such as labor, to business in
exchange for income and households use their incomes to buy goods
and services produced and sold by business firms.
3. They provide firms with factor services in production and buy
finished goods from firms for consumption.
Answer may vary…
Possible answer:

4. Firms employ different factors of production. This includes employing

workers (labor) to produce goods and services. By employing labor,
firms pay wages creating a flow of income to households which
ultimately can be spent by households on goods produced by different
firms.
5. Answer may vary.