11 SENIOR HIGH SCHOOL

Disciplines and Ideas

in the Social Sciences
Quarter 1 – Module 8:
PSYCHOANALYSIS

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 What I Need to Know
MOST ESSENTIAL LEARNING COMPETENCY:
▪ Analyze the basic concepts and principles of the major social science ideas:
a. Psychoanalysis
b. Rational Choice
c. Institutionalism
d. Feminist Theory
e. Hermeneutical Phenomenology
f. Human-Environment Systems

Content Standard
The learners demonstrate an understanding of…
▪ The emergence of the Social Sciences and the different disciplines
▪ Key concepts and approaches in the Social Sciences

Performance Standard
The learners shall be able to…
▪ connect the disciplines with their historical and social foundations
▪ interpret personal and social experiences using relevant approaches in the
Social Sciences
▪ evaluate the strengths and weaknesses of the approach

Most Essential Learning Competency

Analyze the basic concepts and principles of the major social science ideas:
▪ Psychoanalysis MELCS-Pages 609-610 DISS (Week 8-10)

Learning Objectives
At the end of the module you should be able to:
1.Explain what is Psychoanalysis?
2.Identify the five stages of Psychosexual Development and the types of
Defense Mechanism;
3.Distinguish the key theorist on psychoanalysis;
4.Analyze and discuss the psychodynamics of a person’s personality in
terms of id, ego and superego

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 What I Know

Lesson 1 PSYCHOANALYSIS

What’s New

Sigmund Freud (1856 – 1939)- was an Austrian

neurologist and is known as the Father of
Psychoanalysis. Freud believed that people could be
cured by making conscious their unconscious
thoughts and motivations, thus gaining "insight". The
aim of Psychoanalysis therapy is to release repressed
emotions and experiences, i.e. make the unconscious
conscious. To bring what exists at the unconscious or
subconscious level up to consciousness.

Psychoanalysis
▪ Psychoanalysis is a type of therapy that aims to release pent-up or
repressed emotions and memories in order to lead the client to catharsis, or
healing (McLeod, 2014).
▪ A theory of the mind and its direct connection to a personality or behavior.
The basic premise of psychoanalysis is that the human mind has an
unconscious state.
▪ A system of psychological theory and therapy investigating the interaction
of conscious and unconscious elements in the mind.
▪ A method for treating depression and anxiety disorders or mental illness
and also a theory which explains human behavior.

Freud believed that the most unconscious desire originates from childhood
experiences that people have long forgotten or repressed. Our childhood has a
great influence on our adult lives, shaping our personality.
Freud developed a personality theory, called psychosexual development of
personality, which posits that at different stages of growth; the individual
derives pleasure from different parts of the body- thus the term psychosexual,
relating to pleasure and the human body. An important term in personality

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theory is called libido, which is defined as the natural mental energy that
operates the mechanism of the mind.

Stages of Psychosexual Development of Personality

1. Oral Stage
- Manifest from birth to approximately 18 months
- The child is totally dependent on others to provide for his/her needs
- Pleasure is derived from the use of the mouth in activities such as
sucking, chewing, and biting.
- Personality developed in this stage is dependence.
2. Anal Stage
- This begins at 18 months and lasts until 3 years when the child is being
toilet trained.
- the child seeks pleasure from the anus (e.g., withholding and expelling
feces)
- The personality developed in this stage is independence, self-control,
orderliness and sense of accomplishment.
3. Phallic Stage
- 3-6 years of age
- During this stage the child develops attraction to their parents of the
opposite sex and sees jealous and rivalrous relationship with his or her
parents of the same sex.
- This is what Freud termed as Oedipus Complex for boy and the Electra
Complex for girls.
- Parents seen as threats
- Wide range of psychological disorders through failure to resolve this
conflict,
(unreasonable anxiety, phobias, & depression)
- Ego developed more, superego starts to develop lately
- the child seeks pleasure from the penis or clitoris (e.g., masturbation);
4. Latent Stage
- 6-12 years of age
- Personality traits developed in this stage are associated with social
skills and social interactions.
- Pleasure is gained through same sex /peer friendship
5. Genital Stage
- 12 years of age onward or from puberty to adulthood.

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 - Seeks marriage partner, preparation for adult life.
- The personality developed in this stage is sexual maturity.

Key Concepts in Psychoanalysis

According to Freud the id, ego, and superego

all operate across three levels of awareness in the
human mind. They are the conscious,
unconscious, and preconscious.
Freud used the analogy of an iceberg to
describe the three levels of the mind. The tip
is the conscious level, the part below the sea
line is the preconscious and the major portion
beneath the sea is the unconscious.

▪ Conscious: This is where our current

thoughts, feelings, and focus live; the level of the mind is the accessible
information, memories and thoughts that the individual has. The conscious
consists of what someone is aware of at any particular point in time. It
includes what you are thinking about right now, whether it is in the front
of you mind or the back. If you are aware of it then it is in the conscious
mind.

▪ Preconscious (sometimes called the subconscious): This is the home of

everything we can recall or retrieve from our memory; the level where
accessible and retrievable information are situated. The preconscious
contains information that is just below the surface of awareness.

▪ Unconscious: contains thoughts, emotions, feelings, memories and desire

that are inaccessible. It resides in the deepest level of our minds that
influence our behavior. Even though we are not aware of their existence,
they exert great influence on our behavior.

PSYCHODYNAMICS OF A PERSON’S PERSONALITY

Freud used the Id, Ego, and Superego to try to explain how the mind
functions and how a personality is shaped

1. The ID
- Occupies the unconscious level.

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 - The primitive and instinctive component of personality.
- It is the immature component of personality; it only seeks pleasure and
demands gratification.
- When the Id has a desire for something, that desire needs to be satisfied
at once. It does not take reality into account as it only demands what it
wants without reason or logic.
- Operates on the “Pleasure Principle” and strives for all urges to be
met immediately
- Id is the selfish side and is the one whom solely cares about themselves
and no one else
- Lustful, impulsive, fun and ignores consequences

2. The EGO
- Resides in the conscious and preconscious level of the mind.
- The ego is the moderator between the id and the superego
- Operates on the “Reality Principle” – tries to satisfy id but in
accordance with the real world. It considers social realities, norms,
etiquette, rules, and customs when it makes a decision on how to
behave.
- Considered as the center of logic and reasoning
- The decision maker, it makes the decisions that dictate behavior.
- Conscious part of the mind (Rational Self). Decides what action to take
for positive means and what to do base on what is believed to be the
right thing to do. Aware of reality.

3. The SUPEREGO
- Resides in all three levels of the mind.
- The superego is the portion of the mind in which morality and higher
principles reside, encouraging us to act in socially and morally
acceptable ways (McLeod, 2013).
- It is our morals, ethics and social aspect of personality. It is considered
as a person’s conscience.
- It guides us on what is right and wrong.
- Responsible for society’s rules of behavior (moral standards). Feels
guilty if rules are disobeyed
- Base on the morality principle, must follow moral standards and rules
and breaking them causes guilt.

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Defense Mechanisms

Freud believed that these three parts of the mind are in constant conflict
because each part has a different primary goal. When the conflict is too much
for a person to handle, his or her ego may engage in one or many defense
mechanisms to protect the individual.

Defense Mechanism
- Refers to processes of self-deception, that protects people from anxious
thoughts or feelings.
- Are thought to safeguard the mind against feelings and thoughts that are
too difficult for the conscious mind to cope with.
- Operate at an unconscious level and help ward off unpleasant feelings
(i.e., anxiety) or make good things feel better for the individual.
- A tactic developed by the ego to protect against anxiety.
We use defense mechanisms to protect ourselves from feelings of anxiety or
guilt, which arise because we feel threatened, or because our id or superego
becomes too demanding.

Major defense mechanisms include:

1. Denial – is often used to describe situations in which people seem unable

to face reality or admit an obvious truth. (He’s in denial).
- The ego blocks upsetting or overwhelming experiences from awareness,
causing the individual to refuse to acknowledge or believe what is
happening
- Is an outright refusal to admit or recognize that something has occurred
or is currently occurring.
- Refusing to organize or acknowledge real facts or experiences that
would lead to anxiety.

2. Displacement- redirecting an emotional reaction from the rightful

recipient to another person altogether.
- Involves taking out our frustrations, feelings and impulses on people or
objects that are less threatening.
- Displaced aggression- is a common example of defense mechanism.
- Example: a manager screams at his/her employee, the employee
doesn't scream back- but the employee may yell at her partner later at

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 night. (e.g., releasing frustration directed toward your boss on your
spouse instead)

3. Repression –acts to keep information out of conscious awareness.

However, these memories don’t just disappear: they continue to influence
our behavior. - The ego pushes disturbing or threatening thoughts out of
one’s consciousness

4. Sublimation – Similar to displacement, this defense mechanism involves

satisfying an impulse by acting on a substitute but in a socially acceptable
way. It allows us to act on unacceptable impulses by converting these
behaviors into more acceptable forms.
Example: a person experiencing extreme anger might take up kick-boxing
as a means of venting frustration or channeling energy into work or a
constructive hobby.
Freud believed that sublimation was a sign of maturity that allows
people to function normally in socially acceptable ways.

5. Projection – is a defense mechanism that involves taking our own

unacceptable qualities or feelings and ascribing them to other people.
Attributing one’s unacceptable feelings or desires to someone else.
Example: if you have a strong dislike for someone, you might instead
believe that he or she does not like you.

6. Regression – As a defense mechanism, the individual moves backward in

development in order to cope with stress (e.g., an overwhelmed adult
acting like a child)

Important Theorists
Sigmund Freud was an Austrian neurologist known as the Father of
Psychoanalysis.
Freud’s theory states that behavior and personality are driven by past
events, which are mostly inaccessible to an individual’s consciousness.
Psychoanalysis involves methods through which an
individual is guided to understand himself or herself.
Through a treatment called Psychotherapy, the originating
event or circumstance which hinders an individual to live a
healthy life is brought to the surface of consciousness. The
method of Psychotherapy is mostly interpretative. One
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technique used in psychotherapy is called free association, a technique that
allows the patient to have an inner dialogue with one’s self by saying freely the
words that he or she associates with a thing, person and an event. Freud relates
free association to what is now known as Freudian slip or slip of the tongue.
When an individual commits a Freudian slip (or intentionally saying something
as opposed to what he or she wanted to actually say), he or she reveals his or her
innermost thoughts.

Carl Gustuv Jung (1875–1961) was a Swiss Psychiatrist

and Psychoanalyst who founded Analytical Psychology. It
is distinguished by a focus on the role of symbolic
experiences in human life, taking a prospective approach
to the issues presented in therapy. For Jung, a healthy
mental
life is achieved through a balanced and a well-understood
personality. Jung’s theory of personality has been
modified and changed over time, but his concepts of https://upload.wikimedia.org/wik
ipedia/commons/thumb/0/00/C
introversion and extroversion survive over the years. GJung.jpg/220px-CGJung.jpg
Popular culture describes an extrovert as a person who goes to parties or who is
more adventurous while an introvert is a person who chooses to stay at home,
alone and quiet. In Jungian Psychology, extroversion is the personality which is
motivated by outside stimuli or factors. An extrovert relies on statistical data to
come up with analysis and conclusion. While introversion, on the other hand is
the personality which is motivated by inner necessity. The focus of the
individual tends towards the self. The introvert person derives analysis and
conclusion upon how statistical data makes an impression upon his or her
thoughts and ideas.

Jacques Lacan (1901–1981) was a Parisian Psychiatrist who was born in 1901
and who died in 1981. He gained an international reputation as an original
interpreter of Sigmund Freud’s work. Lacan’s Psychoanalytic theory centered
on language. He believes that Psychotherapy requires a
communication between the patients and the specialist
because the medium by which Psychoanalysis operates is
through language. Lacan’s first major paper in a
Psychoanalytic conference talked about what he called
“mirror stage”. The mirror stage can be associated with
Freud’s development of the super ego and the phallic stage
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of development. This mirror could be theoretical: it could be either an actual
mirror or a person, usually the mother. What the child sees in the mirror is a
fully formed self, a body, something whole and complete. However, the child
still feels incomplete-having no ability to control his or her own body and still
struggling to stand, walk around and eat. The child then imagines himself or
herself to be whole and complete, and able to move his or her body with
complete control. This image represents an ideal child or what we call ego
ideal; what is formed in this relationship with the image is what Lacan calls
divided subject.

Erich Fromm (1900–1980) was a German Sociologist,

Psychologist and Psychoanalyst. He developed a distinct
type of Psychoanalysis which he called Humanistic
Psychoanalysis. This type of psychoanalysis uses
historical, anthropological, and psychological
perspective to approach an individual. Fromm’s
Psychoanalytic theory assumes that humans have lost
their ties with nature and are now left with no instincts
capable to adapt to the ever-changing world. But since
humans developed the ability to reason, they can
rationalize their isolated existence or condition. From called this rationalization
human dilemma. A dilemma is a problem. The human dilemma is the problem
of reuniting with nature, in a manner similar to the union of our prehistoric
ancestors and their relationship with the environment. Fromm’s
Psychotherapy helps the individual realize how to achieve human needs and to
be productive members of society.

Louis Althusser (1918–1990) was a French Marxist

Philosopher which used Psychoanalytic theory to form and
support his philosophy. Central to Althusser’s philosophy is
his reinvention of what Marx termed as ideology. In a
Marxist perspective, ideology is the false consciousness
perpetuated by capital industrialists to further control the
working class. For Althusser, ideology is a reflection or
misrepresentation of our already imaginary understanding
of the world, the reality, society and culture. What he
created in his philosophy is the idea that an individual is
turned into a subject and a member of society through ideology. Ideology is
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constitutive of the self, or in other terms, the self is an ideological concept in
and of itself.

What’s More
Discuss the relationship of the three
psychodynamics of a person’s personality using the
Venn diagram below.

What I Can Do
Activity 1: PICTURE ANALYSIS
Direction: Study the pictures below, and answer the questions that follow.

1.

1. What are your interpretations of the two pictures?

2. How can you relate this to your daily life?
3. What are the three structures of personality shown in the pictures?

Assessment
Directions: Read and analyze each item carefully. Choose the best
answer and write the letter of your answer in your notebook.
1. A technique used in Psychotherapy that allows the patient to have an inner
dialogue with one’s self by saying freely the words that he or she associates
with a thing, person or an event.
a. Free association c. Analytic Psychology
b. Freudian slip d. Humanistic Psychoanalysis
2. He was an Austrian neurologist and is known as the Father of
Psychoanalysis.

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 a. Carl Jung c. Sigmund Freud
b. Jacques Lacan d. Eric Fromm

3. A system of Psychological theory and therapy investigating the interaction of

conscious and unconscious elements in the mind.
a. Defense mechanism c. Analytic theory
b. Rational choice theory d. Psychoanalysis
4. Refers to the processes of self-deception that protect people from anxious
thoughts or feelings.
a. Defense mechanism c. Analytic theory
b. Rational choice theory d. Psychoanalysis
5. This personality type tries to meet the desires of the id in a way that is
socially acceptable in the world. It deals with the reality.
a. Superego c. Id
b. Ego d. Conscious level
6. After breaking up with your boyfriend or girlfriend, you still keep his/her
belongings because you are hoping that he/she will come back is an example
of which defense mechanism?
a. Displacement c. Denial
b. Sublimation d. Regression
7. During this stage, children may develop strong sexual attachments to the
parent of the other gender and begin to view the parent of the same gender as
a rival for the other parent’s affections.
a. Oral stage c. Phallic stage
b. Genital stage d. Anal stage
8. Maria knew that she could steal the supplies from work, and no one would
know about it. However, she knew that stealing was wrong, so she decided
not to take anything, even though she would probably never get caught.
What is this an example of?
a. Dishonesty c. Ego
b. Id d. Superego
9. The part of your subconscious that operates on the morality principle is
called ____.
a. Superego c. Ego
b. Self d. Id
10.Ana yells at her little sister when she is actually angry with her mom. This
defense mechanism is called?
a. Regression c. Displacement
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 b. Denial d. Repression
11.Ideas that are not in your awareness now, but you can recall them easily
would be found in which level of consciousness?
a. Preconscious level c. Conscious level
b. Unconscious level d. Nonconscious level
12.Sucking and biting give the child sexual gratification as well as nourishment.
a. Anal stage c. Genital stage
b. Oral stage d. Phallic stage
13.The part of the subconscious which operates on the pleasure principle.
a. Superego c. Ego
b. Self d. Id
14.He was a Swiss Psychiatrist and Psychoanalyst who founded Analytical
Psychology.
a. Carl Jung c. Erich Fromm
b. Jacques Lacan d. Sigmund Freud
15.Sally was thirsty. However, she knew that her server would be back soon to
refill her water glass, so she waited until then to get a drink, even though she
really just wanted to drink from Mr. Smith’s glass. What is this an example
of?
a. Self- control c. Ego
b. Id d. Superego

Glossary
Anxiety – a feeling of apprehension and fear, characterized by physical
symptoms
such as palpitations, sweating, and feelings of stress.
Anxiety disorders – differ from developmentally normative fear or anxiety by
being excessive or persisting beyond developmentally appropriate
periods.
Behaviour – the way in which one acts or conducts oneself, especially toward
others
Depression – is a common and serious medical illness that negatively affects
how you feel, the way you think and how you act.

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Personality – the combination of characteristics or qualities that form an
individual’s distinctive character
Theory – a supposition or a system of ideas intended to explain something,
especially one based on general principles independent of the thing to be
explained.
Therapy – treatment intended to relieve or heal a disorder.

Additional Activities
Read and study the situation below.
Situation:
You are working in a convenience store and you see Jack, your co-worker,
stealing money from the cash register. He is also your best friend and he's only
stealing 100 pesos. Despite the fact that he is your best friend he has also been
flirting with the girl you like – and he knows that you like her. What would the
id, ego, and superego do?

What I Need to Know

Content Standard
The learners demonstrate an understanding of…
The emergence of the Social Sciences and the different
disciplines
Key concepts and approaches in the Social Sciences
Performance Standard
The learners shall be able to… connect the disciplines with their historical
and social foundations interpret personal and social experiences using relevant

14
approaches in the Social Sciences evaluate the strengths and weaknesses of the
approach.

Most Essential Learning Competencies

Analyze the basic concepts and principles of the major social science ideas:
Rational Choice MELCS-Pages 609-610 DISS (Week 8-10)

Learning Objectives
At the end of the module you should be able to:
1. Explain what is rational choice theory;
2. Identify the basic assumptions of rational choice theory;
3. Discuss the key concepts in rational choice theory;
4. Illustrate why cost-benefit analysis applies in decision-making;
5. Distinguish the key important theorist on rational choice;
6. Realize the important role of preferences in making decision.

What’s New

Rational choice theory also called as rational action theory or choice

theory, states that individuals use rational calculations to make rational choices
and achieve outcomes that are aligned with their own personal objectives. These
results are also associated with an individual’s best, self-interest. Using rational
choice theory, it is estimated that the outcomes provide people with the greatest
benefit and satisfaction given the choices they have available.

It is used to model human decision making, especially in the context of

Microeconomics, where it helps Economists better understand the behavior of a
society in terms of individual actions as explained through rationality, in which
choices are consistent because they are made according to one’s personal
preferences. For Economists, rationality simply means that when you make a
choice, you will choose the thing you like best.

Rational choice theory is a theory in social science that argues with human
behavior, and social life in general, that can be explained in terms of rational
choices of individuals. The ‘rationality’ defined by the rational choice theory
adopts a more specific and narrower definition, which simply means that “an

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individual act as if balancing costs against benefits to arrive at action that
maximizes personal advantage” (Friedman, 1953).

Rational Choice Theory is an approach that could be used by social

scientists to understand human behavior, because this theory explains that
human action and behavior are products of choice. Individuals rationalize their
situations by processing between the most beneficial choice and the lesser
individual cost. In this theory, cost –benefit analysis is always performed in
every given situation and is considered an instinctual response to every human.
Cost is something disadvantageous to or what is lost by an individual, while
benefit is what should be gained or advantageous to the individual after making
the choice.

Here are some questions commonly asked during cost –benefit analysis:
- Will this benefit me?
- How will this benefit me?
- How far I’m going to negotiate?
- What will I have to sacrifice?
- How much will it cost?

For example, Sebastian has two classmates whom he wants to be friends

with: Ethan, a social outcast but has the newest action game, and Alyster, the
most popular in the class but does not like to play action games. Sebastian’s first
level of cost –benefit analysis is choosing between having the chance to play the
newest game or not. His second level of cost-benefit analysis is choosing
whether he would like to be associated with social outcast or with the most
popular student in class. The rational choice for Sebastian would then be
dependent on which is more important to him- to play the game or to be
associated with the popular crowd. This example provides the basic principle of
rational choice theory wherein preferences play an important role in decision-
making, while the individual rationalizes the burdens and benefits of his/her
individual choices.

The key elements of all rational choice explanations are individual

preferences, beliefs, and constraints. Preferences denote the positive or negative
evaluations individuals attach to the possible outcomes of their actions. Beliefs
refer to perceived cause-effect relations, including the perceived likelihood with

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which an individual’s actions will result in different possible outcomes.
Constraints define the limits to the set of feasible actions.

ASSUMPTIONS OF THE RATIONAL CHOICE THEORY

According to Peter Abell (2000), there are a few assumptions made by
rational choice theorists.
1. Individualism – it is the individuals who ultimately take actions.
Individuals, as actors in the society and everywhere the go, behave and act
always as rational beings, self-calculating, self-interested and self-
maximizing. These individual social actions are the ultimate source of
larger social outcomes.
2. Optimality – Individuals choose their actions optimally, given their
individual preferences as well as the opportunities or constraints with
which they are faced with. Abell (2000) defines optimality as taking place
when no other course of social action would be preferred by the individual
over the course of action the individual has chosen. This does not mean
that the course of action that the actor adopts is the best in terms of some
objective, and outside judgment. The rational choice theory, therefore
assumes, according to Abell (2000), that individuals “do the best they can,
given their circumstances as they see them”.
3. Structures - Abell argues that structures and norms that dictate a single
course of action are merely special cases of rational choice theory. In other
words, the range of choices in other circumstances differ from choices in a
strong structural circumstance, where there may be only one choice.
Although these structures may be damaging to the rational choice model,
individuals will often find a way to exercise action optimally, hence the
rational choice model may not necessarily show harmony, consensus, or
equality in courses of action. Again, structures, as we know them, may not
be optimal from the viewpoint of an individual with few resources,
however, the rational choice approach will attempt to explain how this
situation emerges and is maintained through rational choices.
4. Self-Regarding Interest – This assumption states that the actions of the
individual are concerned entirely with his or her own welfare. Abell
(2000) noted that in as much as this is a key assumption in the rational
choice approach, is not as essential to the approach as the assumption on
optimality.
5. Rationality – This appears to be the most predominant assumption of the
rational choice theory. All individuals, according to this assumption, act in
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 ways that would benefit them more; every individual is most likely to
undertake courses of actions that they perceive to be the best possible
option and one that would immensely be to their own advantage.
Key Concepts in Rational Choice Theory

Social consequences of Scarcity-based Decision

Human beings have unlimited wants but only limited resources. Scarcity
of resources and the requirements of human’s unending ambitions force us to
make a choice. The most essential rational choice is to conserve the limited
resources and share these with each other. However, in every choice we make,
opportunity cost exist. The decision to make such choices depends upon our
mind-set, especially those individuals who only seek self-interest and what
benefits them most.
Such structure of human nature being described in the context of rational choice
theory and further elaborates on the tragedy of the commons.

Important Theorist

William Stanley Jevons (1835–1882) was an English

economist who applied the principles of rational choice
theory in political economy. Jevons was one of the first to
advance the theory of marginal utility(value), which sought
application in determining and understanding consumer’s
behaviour. This theory states that the utility (value) of
something decreases as more of it is consumed.
The theory held that the utility (value) of each
additional unit of a commodity—the marginal utility—is
less and less to the consumer. When you are thirsty, for
example, you get great utility from a glass of water. Once your thirst is
quenched, the second and third glasses are less and less appealing.
Feeling waterlogged, you will eventually refuse water altogether. “Value,”
said Jevons, “depends entirely upon utility.”

Jevons also identified the concept called “equation of exchange,” which

shows that for a consumer to be maximizing his or her utility, the ratio of the
marginal utility of each item consumed to its price must be equal. Marginal
utility, in this sense, points to the line wherein the value for certain object is still
within satisfactory level.

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Gary Becker (1930–2014) was an American economist
who expanded the study of economics to the realm of
sociology and other social sciences. Suggesting that human
behaviour is subject to economic analysis, Becker argued
that individuals act to minimize their own welfare, thereby
taking the scope of economics beyond mere calculation of
financial gains. Like other theorist of rational choice
theory, Becker ascribes to the principle that humans
behave according to their “perceived values and
preferences”.
For Becker, it is detrimental to choose preferences outside the necessary
skills and talents required to complete the task. He said that if the purpose of
human behaviour is the maximization of welfare, then discrimination in a
corporate setting leads to an opposite effect. Becker, added that preferences are
also to be chosen based on rational decisions. Thus, a “True Rational Choice” is
having a clear understanding not only of the situation and the given choices, but
also of the factors that are imposed by the individual actors in decision making.

Criticisms and Limitations

Rational choice theory is heavily criticized for its neglect of ethical and
moral standards. The main philosophy of rational choice theory is the
acquisition of personal interest, power and wealth. It is not strict with the
method and the product of decisionmaking: rather, it analyses the outcome and
the preferences based on what is optimal and ultimately beneficial for individual
actor.

What I Can Do
Picture Analysis

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Direction: Analyze and describe each picture. Write your summative tests
inside your brown envelope
1. What can you say about the pictures?
2. How can you relate these pictures to your daily life?
3. How do you make a choice?
4. What are the factors that influenced you to make a decision?
5. What are the consequences after making that decision?

Assessment
A. Identify the following statements.
1. This theory explains that human action and behavior are products of choice.
2. He was an English Economist who applied the principles of rational choice
theory in Political Economy.
3. This assumption states that the actions of the individual are concerned
entirely with his or her own welfare.
4. According to him, True Rational Choice “is having a clear understanding not
only of the situation and the given choices, but also of the factors that are
imposed by the individual actors in decision making.
5. He defines optimality as taking place when no other course of social action
would be preferred by the individual over the course of action the individual
has chosen.

B. Modified True or False. Write True if the statement is correct and False if
the statement is incorrect and supply the correct answer.
1. The key elements of all rational choice explanations are individual
preferences, beliefs, and constraints.
2. Preferences play an insignificant role in decision making.
3. Rational Choice Theory is also called as Rational Action Theory or Choice
Theory.
4. Rational Choice Theory states that individuals use irrational calculations to
make rational choices and achieve outcomes that are aligned with their own
personal objectives.
5. Rational Choice Theory states that individuals use irrational calculations to
make rational choices and achieve outcomes that are aligned with their own
personal objectives.

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 Additional Activities
Explain the following:
a. What is rational choice theory?
b. Why does cost-benefit analysis applicable in rational choice theory?

Glossary
Ascribe – to refer to a supposed cause, source, or author: to say or think that
(something) is caused by, comes from, or is associated with a particular
person or thing
Assumption – a thing that is accepted as true or as certain to happen, without
proof.
Constraints – something that imposes a limit or restriction or that prevents
something from occurring.
Finite – having limits or bounds
Optimally – the best or most favorable way
Quenched – to put out, put an end to, or satisfy
Rational – based on or in accordance with reason or logic
Scarcity – the state of being scarce or in short supply; shortage
References
Alejandria-Gonzalez, Maria Carinnes P., and Elizabeth T. Urgel. DIWA Senior High School Series: Discipline and Ideas in Social Sciences. Makati City, Philippines: DIWA Laerning Systems Inc., 2016.
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Econlib. “William Stanley Jevons - Econlib.” Accessed August 24, 2020. https://www.econlib.org/library/Enc/bios/Jevons.html. Economy. “What Is ‘Rationality’? — Economy.” Accessed August 24, 2020. https://www.ecnmy.org/learn/you/choices-behavior/what-is-rationality/.

Encyclopedia Britannica. “Rational Choice Theory | Political Science and Economics.” Accessed August 24, 2020. https://www.britannica.com/topic/rational-choicetheory.

Ganti, Akhilesh. “Rational Choice Theory Definition.” Investopedia. Accessed August 24, 2020. https://www.investopedia.com/terms/r/rational-choice-theory.asp. McCumber , John . “A Critique of Rational Choice Theory.” Accessed August 24, 2020. https://sevenpillarsinstitute.org/ethics-101/a-critique-of-rational-
choice-theory/.

“Merriam-Webster Dictionary.” Accessed August 24, 2020. https://www.merriamwebster.com/dictionary.

Ogu, Michael I. “Rational Choice Theory: Assumptions, Strengths, and Greatest Weaknesses in Application Outside the Western Milieu Context.” Arabian Journal of Business and Management Review (Nigerian Chapter) 1, no. 3 (2013).

“Rational Choice Theory.” Accessed August 24, 2020. http://uregina.ca/~gingrich/319m703.htm.

Sharma, Megha. “How Scarcity Affects the Decision Making!! - Megha Sharma - Medium.” Medium, August 29, 2017. https://medium.com/@megha0111/howscarcity-affects-the-decision-making-c891df0fd560.

Wikipedia contributors, “Rational choice theory,” Wikipedia, The Free Encyclopedia, https://en.wikipedia.org/w/index.php?title=Rational_choice_theory&oldid=9661 80159 (accessed August 24, 2020).

Wittek, Rafael. “Rational Choice Theory.” In Theory in Social and Cultural Anthropology: An Encyclopedia, edited by R. Jon McGee and Richard Warms, 688–90. Sage, 2013.

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