Department of Education

Region V- Bicol
Schools Division Office of Camarines Sur
JOSE C. PREVOSA SR. NATIONAL HIGH SCHOOL
(Formerly UNION NATIONAL HIGH SCHOOL)
Sto. Domingo, Calabanga,Camarines Sur

LEARNING ACTIVITY SHEET NO. 1

APPLIED ECONOMICS
Quarter 3: Module 1
Name of Learner: ______________________________________________________________
Learning Area-Grade Level: _____________________________________________________
Date: __________________

I. INTRODUCTORY CONCEPTS
What is Economics?
Economics does not teach man how to get rich, nor does it provide magic formulas as to what
business one should venture into, how to get a job and what kind of products he should manufacture.
Economics simply explains why some businesses succeed while others do not and why a particular
economic event occurs. This learning activity sheet will describe economics as a social science, its
relationship to other sciences.

II. LEARNING SKILLS

Differentiate economics as a social science and applied science in terms of nature and scope.
(ABM_AE12-Ia-d-1-2)
Subtasks:
1. Define what economics is
2. Identify the concerns and types of economics
3. Demonstrate understanding about the importance of economics in their daily lives
4. Compare and contrast microeconomics and macroeconomics

III. ACTIVITIES
Activity 1: Arrange Me! Direction: To further check your knowledge with our topic, arrange the
words in column A and refer your answers to the given clues in column B. Write your answers on a
separate sheet of paper.
A B
1. COEONSICM It is a social science that deals with how people organize themselves
to share scarce resources in order to produce goods and services that
satisfy the infinite and multiplying wants and needs of man.
2. YITSACRC This means that there is shortage of supply or has limited resources.
3. ACRMOOCEONSCIM It is a branch of economics that studies the behavior and
performance of an economy as a whole.
4. OICRMOCNEOCISM It is a branch of economics that studies the individuals and
industry’s behavior in decision making and allocation of resources.
5. LAINTEESS OODGS A type of good which satisfy the basic needs of man.

ECONOMICS AS DEFINED

Figure 1: Economics as defined ECONOMICS- is a social science that deals with

how individuals organize themselves in order to distribute scarce resources to create products
and services that meet man's infinite and multiplying desires and needs.
 SCOPE OF ECONOMICS
1. Microeconomics (from the Greek word mikros, meaning “small”)
 Takes a closer view on the behavior of individual markets work. It focuses on
how individual households, firms and industries make their choices, and the
interaction of such decisions in the particular market.
o Example: Determine the price of rice and how much of it is produced
and sold. It would also look at how regulations and taxes affect the price
and supply of rice.
2. Macroeconomics (from the Greek word makros, meaning, “Large”)
 Deals with the problem of the economy as a whole. It looks at the aggregate
prices, production and income.
o Example: The study of the Philippine economy would analyze the gross
national income and total employment

Concerns of Economics
1. Production- is the use of inputs for generating output.
* Inputs are commodities or services that are used to produce goods and services.
* Output are the different goods and services which come out of production process.
*Society have to decide what outputs will be produced and in what quantity
2. Distribution- Distribution is the total product distribution by members of society. It is
linked to the issue of for whom goods and services are to be produced.
3. Consumption- is the use of products or services. Consumption is the final conclusion of
economic operation.
4. Public finance- is concerned with government spending and revenue. Economics studies
how the government collects money by taxes and its borrowing.

Types of Economics
1. Household Economics – the family is the most popular use of economics. At this stage,
someone who knows the economic principles would be able to improve the functioning of the
household.
2. Business Economics – when an individual or a group of people starts to work, they are part
of the business economy system in their workplace. In this form, you're dealing with rent,
salaries, income, and others.
3. National Economics – Economic factors that influence the country as a whole. Deals with
the control of a nation's revenue, spending, wealth or capital.
4. International Economics – The highest stage of economic operation concerning the industry
of one country with other countries such as trade, tourism, exchange rates.

The Economic Agents/Stakeholders:

1. Consumers - are individuals or companies purchasing goods or services. They are
individuals or other economic organizations making use of a good or service. In addition, they
don't sell on the item they purchased
2. Producers- Firms who produce goods and services. They may be individual entrepreneurs
(self-employed) or large multinational companies.
3. Government / the public sectors- Attempt to maximize the well-being of society * The
agents interact in a particular territorial, social, natural and/or cultural framework which
determines their relationships within the market.

BASIC TERMS TO BETTER UNDERSTAND ECONOMICS

Goods- anything used to satisfy your needs and wants.
*tangible goods- a physical object or product that can be touch
*intangible goods- a product that cannot be touch, like insurance policy

Classification of Goods according to use:

1. Consumer goods- those that yield direct satisfaction to consumers
2. Capital/ industrial goods- are those goods that help to produce other goods that directly or
indirectly meet consumers ' needs.
3. Essential goods- goods that are consumed to satisfy the basic needs of man
4. Economic goods-goods that are useful and scarce; they need to be paid for their use with
value attached to them and a price. If a good is so abundant, and it can meet the needs of
all without anyone paying for it, then that good is free. The air is free, but the air-
conditioned air is an economic good.
 5. Luxury goods- are goods that are not necessary, but are highly valued and linked to
people who are affluent or rich. For several purposes, they are purchased: to encourage
self-worth and status, or for the product's quality and craftsmanship

ECONOMIC RESOURCES
1. Also known as factors of production.
2. Used to produce goods and service.

Classification of Resources:
1. Land- soil and natural resources found in the wild and not man-made. Landowners
get a lease known as rent.
2. Labor-physical human involvement in production E.g. Works in building, machine
operators, and works in manufacturing, nurses, lawyers, doctors etc. *The income
received by labours is referred to as Wage.
3. Capital-man-made commodities that are used to manufacture products and
services. *The capital owner receives an income which is called Interest.
4. Entrepreneurship transforms an idea into a business. In order to add to supply, an
entrepreneur incorporates the other three output factors. Innovation and risk-takers
are the most successful entrepreneurs. Profits are the money entrepreneurs receive.

Characteristics of Resources:
1. Scarcity- is a condition where there is an insufficient amount of what is
accessible to fulfil the demand for it.
There are problems that economics will face in the development of products
and services: for land – insufficient land and natural resources; contaminated
areas; overcrowded spaces; for labor – unqualified workforce; insufficient
workforce; for capital – low equipment/machines; inadequate fund/capital; and
for entrepreneurship –inadequate training of entrepreneurs; inadequate timely
training; limited opportunity; scarcity of great ideas but many competitors in the
market.
2. Multiple Usage- there can be more than one potential use of resources. A plot of
land can be used, for example, to plant coffee or to build a factory.
3. Partially replaceable: in the production of a good or service one resource may
replace another (e.g. replaces manual labor with technology).

Choice and Decision- Making Opportunity Cost

There is a need for a man to make choices in choosing how to optimize the use of
finite resources to fulfill as many wants as possible due to the existence of scarcity. For
instance, a homemaker who has a monthly budget has to determine how to use it to pay the
rent, buy food, pay tuition fees for children, and buy new clothes and shoes. If the budget isn't
adequate, then some of these items have to be given up by the homemaker. She has a decision
to make. If at the beginning of school, she chooses not to buy a new shoe for her kids, then
this is the option she gave up on.
When you hear the phrase "opportunity cost," you hear a fancy word for "tradeoff."
There is a trade-off to consider each time you make a choice. You have to consider what you
get as well as what you might give up. The most fundamental definition of opportunity cost is
the cost of the next best thing you might have done if you hadn't made your first option. The
costs of opportunity include both overt and implicit costs.

Importance of Economics in our daily lives

Both visible and subtle ways, economics impacts our everyday lives. Economics
frames several decisions that we have to make about employment, leisure, consumption and
how much to invest from an individual perspective. Macroeconomic patterns, such as
inflation, interest rates and economic growth, also affect our lives.

Activity 2: Pick me! Direction: Base your answers from our discussion. Pick all the goods and
classify them accordingly. Write your answers in the box below.

Your mother asks you to accompany your father to purchase some goods. You were excited
to ride on the newly purchased limited edition car bought by your dad a month ago. So you went
to the supermarket and buy for the goods needed by your mother. In her lists are the following;
two sacks of rice, assorted vegetables, toothpastes, laundry detergents, bath soaps, shampoo, milk,
 oatmeals, breads, and canned good. She also listed multivitamins and you need to buy it in the
drugstore. Your dad bought a food processor as a surprise to your mother. He also purchased 14
an air condition unit for your guestroom. You are about to go out to the mall when you pass by a
jewelry store. He bought you a necklace as a gift on your birthday.

Lists of goods purchased Classification of goods

Activity 3: Interpret Me! Direction: Interpret the picture below. A rubric will be use to check
your answers. Use separate sheet of paper for your answer.

IV. RUBRICS FOR SCORING

Rubric for picture interpretation

Objective (10pts) Knowledge (5 pts) Interpretation (5 pts)

Makes a complete and detailed
description of the subject matter and/or
elements seen in the picture.
Provides a complete
summary of the situation and
time period shown, and the
people and objects that
appear.
Forms a reasonable hypothesis about
what is viewed in the photograph
and is able to support this with
evidence from the photograph.

V. REFERENCES
Jimenez, Renalyn A. Applied Economics Module 1: Week 1, 2020.
https://drive.google.com/drive/u/1/folders/1VcBbcaWuIzFxOquMN2J86NKZ4Hs75TC7?
fbclid=IwAR0EJ9uJIbWsZKZnehqiLkAgSI03EHRlqlhCOA0EyHzRFWvoZqWyY7BS9-c