Department of Education

Division of Laguna
District of Nagcarlan
PLARIDEL INTEGRATED NATIONAL HIGH SCHOOL
Brgy. Banago, Nagcarlan, Laguna

Grade 12 ABM
S.Y. 2020-2021

APPLIED
ECONOMICS
Prepared by:

Mrs. Vivian P. Ayuso

Subject Teacher
 ACTIVITY SHEET: WEEK 1
I. Multiple choice. Choose the letter of the correct answer.
1. Inadequacy of purchasing power to meet minimum nutritional requirements and basic
necessities for subsistence living.
a. absolute poverty b. allocation c. depreciation d. knowledge capital
2. A social science that deals with the allocation of scare resources to meet the increasing
human wants.
a. human resource development b. human capital c. economics d. human wants
3. Expanded human needs differentiated by various factors such as income, taste,
environment.
a. human resource development b. human capital c. economics d. human wants
4. Training and other programs made by firms to enhance the skills and productivity of it’s
personnel.
a. human resource development b. human capital c. economics d. human wants
5. The capacity of individuals to create utility, income, and output brought about by the
accumulation of skills and knowledge from education and training.
a. human resource development b. human capital c. economics d. human wants
6. Transfer of people, permanent or temporary, to change residence and work within the
country.
a. knowledge capital b. infrastructure c. internal migration d. explicit benefits
7. Physical or man-made resource that link various economic sectors through transportation
and telecommunication networks and the provision of basic utilities.
a. knowledge capital b. infrastructure c. internal migration d. explicit benefits
8. The capacity of individual to create a higher level of utility, income, and output brought about
by the accumulation of professional skills, scientific knowledge and technology derived from
higher education, research and development and innovation.
a. knowledge capital b. infrastructure c. internal migration d. explicit benefits
9. Spillover effects of individual decisions that put a burden on the community at large.
a. social cost b. social benefits c. social methods d. spatial dimension
10. Refers to the impact of an economic activity or decision with refers to the sectors, location,
and development.
a. social cost b. social benefits c. social methods d. spatial dimension

II. Fill in the blank. Instruction: Identify the following term. Write your answer on the
blank.
____________1. The social mechanism of distributing limited resources to meet expanding
human wants.
____________2. A rate used to reduce a stream of future values to make them comparable
with present values.
____________3. A condition of a household, community, region, or country to have sufficient
income to purchase food grains at the cheapest price.
____________4. A framework that compares the marginal benefits and marginal costs f any
activity, project, or program to determine its net welfare impact.
____________5. The foregone benefits of an alternative when making a choice.
III. . Directions: Match the column A to column B. Write the letter of the correct answer
in the space provided before the number.
A B
_____1. The difference between the total revenue and total
cost or the net welfare for the firm a. opportunity costs
_____2. The foregone benefits of an alternative when making a
choice b. poverty incidence
_____3. The gap between the poor and rich households base on
structure on how the national income is being distributed among c. poverty threshold
households in an economy. d. profit
_____4. Proportion of households or population in a country with
family income lower than the poverty threshold or poverty line. e. relative poverty
_____5. Income needed to purchase these minimum nutritional
requirements and other basic necessaries for daily survival.

IV. Answer and explain the situation below. 3 and above sentences only. (5 points)
Compare the similarities and differences of the three major strands in the definition of
economics.

ACTIVITY SHEET: WEEK 2

I. Multiple choice. Choose the letter of the correct answer.
1. Unlimited effects to third parties caused by commercial transactions between buyers and
sellers.
a. spillover effect b. spatial dimension c. social studies d. social costs
2. The study of the various modes and aspects f human interactions I the group as there
people aspire to preserve their group as a social unit, make it stable, and promote its growth,
expansion, and development.
a. spillover effect b. spatial dimension c. social studies d. social costs
3. Spillover effect of individual decisions that the entire community may enjoy.
a. spillover effect b. spatial dimension c. social studies d. social costs
4. A system form of injury that involves identifying the problem, proposing alternative tentative
answers or hypothesis, testing the tentative answers to the question, gathering and treating the
data, and answering the question through the conclusion.
a. scientific method b. resources c. scarcity d. profit
5. Investment by firms, universities, and the government in developing the knowledge capital of
the country for the production of innovative products and for efficient products processes.
a. scientific method b. research and development c. scarcity d. profit
II. Fill in n the blank. Write the correct answer on the blank.
1. Discount rate is a rate used to ________ a stream of future value to make them comparable
with present values.
2. A command system is a ______________ of allocation where the state or an agency of the
government are in charge of the distribution of resources and in answering the basic economic
questions of production and consumption.
3. Explicit costs are costs that can be measured in _______________ or levels of disutility.
4. Lorenz curve is a curve derived from the income distribution that shows the share of the
various household groups (ranked from the poorest to the richest) on the total national income
and measures ____________.
5. __________ is a process of discounting the value of a capital equipment due to wear anD
tear and obsolescence.

III. TRUE or FALSE. Write true if the statement is true and the correct answer if the
statement is false, write the correct answer at the top of the wrong term.
1. Explicit benefits are the rate of costs that can be measured in monetary terms or levels of
utility.
2. Gini coefficient is a measure of income inequality derived from the income distribution as
Presented by the Lorenz curve where 0 represents perfect inequality and 1 indicates perfect
equality.
3.depreciation is the additional benefit derived from an additional activity.
4. Marginal benefits is the additional cost incurred from an additional production of a good or
service.
5. A poverty threshold is an allocation mechanism where changes in the market price can
address the problem of scarcity and answer the basic economic problems of production and
distribution.

IV. Essay making. Make at least 5 and above sentence that will perfectly explain the
situation given. (10 pts.)
Explain why profit or net surplus is not maximized when marginal benefit is lower than marginal
cost.

ACTIVITY SHEET: WEEK 3

I. Fill in the blank. Write the missing word or term on the blank given.
1. A spillover effect is unlimited effects to third parties caused by _________________
between buyers and sellers.
2. A discount rate is a rate used to reduce a stream of ____________ to make them
comparable with present values.
3. A spatial dimension refers to the impact of an _______________ or decision with refers to
the sectors, location, and development.
4. profit is the difference between the total revenue and total cost or the ____________ for the
firm.
5. Relative poverty is the gap between the ___________ households base on structure on how
the national income is being distributed among households in an economy.

II. Answer the following questions. 3 and above sentences. (2 pts each)
1-2. Compare how the three economic system of allocation (market, command, and tradition)
answer the basic question of production and distribution?

3-4. What is the difference between explicit benefits/costs and implicit benefits/costs?

5-6. Identify the explicit and implicit costs of school attendance.

7-8. Explain what it means to “think at the margin” and how it relates to applied economics.

9-10. Compare absolute poverty from relative poverty on how they are measured. What
policies should be implemented to address these two types of economy?

III. TRUE OR FALSE. Write true if the statement is true and the correct answer if the
statement is false, write the correct answer at the top of the wrong term.

1. Absolute poverty is an inadequacy of purchasing power to meet minimum nutritional

requirements and basic necessities for subsistence living.
2. Allocation is the mechanism of distributing limited resources to meet expanding human
wants.
3. Benefit cost analysis is a framework that compares the marginal benefits and marginal costs
of any activity, project, or program to determine its net welfare impact.
4. Command system is a mechanism of allocation where the state or an agency of the
government are in charge of the distribution of resources and in answering the basic economic
questions of production and consumption.
5. depreciation is a process of discounting the value of a capital equipment due to wear and
tear and obsolescence.

IV. Give the meaning of the given term.

1. surplus-

2. temporal dimension-

3. traditional system-

4. unemployment-

5. wealth-
 ACTIVITY SHEET: WEEK 4
I. Multiple choice. Choose the letter of the correct answer.
1. Refers to the impact of an economic activity or decision with reference to the duration of the
impact (current vs. future).
a. wealth b. traditional system c. temporal dimension d. unemployment
2. excess supply of labor relative to the demand for labor at prevailing wage rate.
a. wealth b. traditional system c. temporal dimension d. unemployment
3. like resources, these are products of nature, qualities of individuals, man-made things that
can provide satisfaction or value currently or in the future.
a. wealth b. traditional system c. temporal dimension d. unemployment
4. An allocation mechanism that uses culture and social norms to address the problem of
scarcity and solve the basic economic problems of production and distribution.
a. wealth b. traditional system c. temporal dimension d. unemployment
5. The capacity of individuals to create utility, income, and output brought about by the
accumulation of skills and knowledge from education and training.
a. human resource development b. human capital c. economics d. human wants
II. . Directions: Match the column A to column B. Write the letter of the correct answer in
the space provided before the number.
A B
_____1. A social science that deals with the allocation of scare
resources to meet the increasing human wants a. research and
_____2. Expanded human needs differentiated by various factors development
such as income, taste, environment. b. economics
_____3. Training and other programs made by firms to enhance the
skills and productivity of it’s personnel. c. human wants
_____4. The capacity of individuals to create utility, income, and
output brought about by the accumulation of skills and knowledge
from education and training. d. human capacity
_____5. Investment by firms, universities, and the government in
developing the knowledge capital of the country for the production
of innovative products and for efficient products processes. e. human resource
development

III. Give the answer of the given questions below.

1-2. what are the implication of slow adoption of modern technology on the national economy?

3-4. explain the importance of protecting the environment.

5-6. what are the opportunity costs of a total ban on logging?

7-8. what is the role of education and training in the pursuit of economic prosperity?

9-10. show how cost-benefit analysis can be used in explaining the family size among poor
household?

11-15. Write an essay on the proportion that senior citizens should be exempted from paying
the value-added tax (VAT).