For the learner:

Welcome to APPLIED ECONOMICS Alternative Delivery Mode (ADM) Module on Economics as a Social
Science and Applied Science in Terms of Nature and Scope.

The hand is one of the most symbolized parts of the human body. It is often used o depict skill, action and purpose.
Through our hands we may learn, create and accomplish. Hence, the hand in this learning resource signifies that
you as a learner is capable and empowered to successfully achieve the relevant competencies and skills at your
own pace and time. Your academic success lies in your own hands!

This module was designed to provide you with fun and meaningful opportunities for guided and
independent learning at your own pace and time. You will be enabled to process the contents of the learning
resource while being an active learner.

This module has the following parts and corresponding icons:

What I Need to Know

This will give you an idea of the skills or competencies you are expected to learn in the module.

What I Know

This part includes an activity that aims to check what you already know about the lesson to take. If you get all
the answers correct (100%), you may decide to skip this module.

What’s In

This is a brief drill or review to help you linkthe current lesson with the previous one.

What’s New

In this portion, the new lesson will be introduced to you in various ways such as a story, a song, a poem, a
problem opener, anactivity or a situation.

What is It

This section provides a brief discussion of the lesson. This aims to help you discover and understand new
concepts and skills.

What’s More

This comprises activities for independent practice to solidify your understanding and skills of the topic. You may
check the answers to the exercises using the Answer Key at the end of the module.

What I Have Learned

This includes questions or blank sentence/paragraph to be filled in to process what you learned from the lesson.

What I Can Do

This section provides an activity which will help you transfer your new knowledge or skill into real life situations or
concerns.

Assessment

This is a task which aims to evaluate your level of mastery in achieving the learning competency.

Additional Activities

In this portion, another activity will be given to you to enrich your knowledge or skill of the lesson learned. This
also tends retention of learned concepts.
At the end of this module you will also find:

References This is a list of all sources used in developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use a separate
sheet of paper in answering the exercises.

2. Don’t forget to answer What I Know before moving on to the other activities included in the module.

3. Read the instruction carefully before doing each task.

4. Observe honesty and integrity in doing the tasks and checking your answers.

5. Finish the task at hand before proceeding to the next.

6. Return this module to your teacher/facilitator once you are through with it.

If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult your teacher
or facilitator. Always bear in mind that you are not alone.

We hope that through this material, you will experience meaningful learning and gain deep
understanding of the relevant competencies. You can do it!
What I Need To Know
This module was carefully prepared and designed for you to perform at your own pace. Useful activities on the
nature and scope of economics, its fields were provided for you to accomplish which will allow self-discovery of
the concept. These will also help develop your creativity and critical thinking skills to make decisions
independently. It is also expected that upon accomplishing these activities, you can communicate confidently
and collaborate with other people to solve problems, intelligently. And most importantly, your character and
initiative to handle situations which you cannot control will be improved. At the end of the session, you should be
able to explain the nature and scope of economics, determine its fields: the micro and macroeconomics,
resourcefully use the different resources in the production of goods and services, and in real world, efficiently
consume these finished products.

What I know
Activity No. 1 Direction: Let us check your knowledge to our topic. Kindly arrange the following
words. These are the terms you commonly encounter when you make decisions of going to the
market. Examples of these items are given on the right column.

1. MIRECOOCNOMSCI ________________________ individuals and industries

2. TENAGILBDSOOG _________________________basic goods/commodities

3. SARCITYC _________________________shortage in supply

4. UXDOOSLUGYR _________________________expensive jewels and gems

5. CDAOTOASAGIP _________________________baking machines

Assessment
Direction: Kindly choose the letter of the correct answer. Encircle your answer.

1. The physical effort of the manpower to produce the protective devices of the
frontliners describes which factor of production?
a) Land
b) Capital
c) Labor
d) Entrepreneur
2. The great ideas, concepts and drive of the production managers to produce
something new describe which factor of production?
a) Land
b) Capital
c) Labor
d) Entrepreneur
3. The computers of the production manager in an office are what kind of goods or
products?
a) Consumer goods
b) Either consumer goods or capital goods
c) Capital goods
d) Economic goods
4. Which best describes economics as a social and an applied science?
a) The study of things we need to survive
b) The study of how people make choices when they are faced
with an unlimited supply of resources
c) The study of human behavior
d) The study of how buyers make choices when there is limited supply of resources
 5. Which of the following are examples of human needs?
a) Water and a place to live like houses
b) Iced caramel macchiato frappuccino
c) Flat screen televisions
d) Laptops and computers

MODULE 1 NATURE AND SCOPE OF ECONOMICS

Let’s say, in conducting your research, you may consider studying the economic situation of the families in Manila.
For example, the GAS and ABM students may focus on the annual income of families, buying behavior in the
market, on specific items commonly purchased these families and many more. The HUMSS might take an overall
view on the entire economic system: what causes the families to limit their spending capabilities, what
environmental factors stresses them from purchasing their needs and wants; or what makes them satisfied in their
buying behavior. Both approaches are useful, and both examine the same, but the viewpoints are different. In a
similar way, both microeconomics and macroeconomics study the same economy, but each has a different
viewpoints.
Whether you are looking at the buying behavior of the people in the market or economics, the micro and the
macro insights should blend with each other. In studying the buying behavior of the people, the micro insights
about particular behavior and spending habits of the people help them understand the overall economic
situation on individual matters, while the macro insights about the overall economic situation on the entire
economy which help to explain the internal and external environments, as a whole.

What’s In
Like in your studies, we can make an assumption of our real situation. Today, the whole world, including the
Philippines, suffers from economic problem due to the existence of worldwide COVID 19 Pandemic. Manila, in
particular,is one of the most cities in the Philippines being affected by the said Pandemic. We want to understand
why such case happens and how it affects the lives of everyone in the economy. An ordinary citizen could hardly
understand what is happening in the society if he does not have backgrounds in economics. Economics, as a
social and applied science will explain and help you understand what is really happening in the economy.
Activity 1:
Direction: Let’s analzye the market environments of the society. Please
write your answer on a sheet of paper.
1. As a citizen of Manila, determine which is NOT TRUE of the economic activities that have been observed in
your locality:
a) Everyone has experienced buying limited supply of commodities
b) Everyone has inadequate supply of hygienic materials and protective devices
c) Some citizens have suffered from changes in the pandemic protocols of the government
d) The people in Manila have freely enjoyed traveling from one place to other.
2. Which of the following has NOT observed in the community during the ECQ in the same locality?
a) Everyone enjoyed shopping in the market
b) Unemployment in the community was sharply experienced
c) Prices of commodities suddenly increased
d) The people in Manila were reluctant of the pandemic protocols.

What’s New
THE NATURE AND SCOPE OF ECONOMICS
According to Molina, J. A. & Nadal, G. J I (2020), economics is a SOCIAL SCIENCE concerned with the
explanation and prediction of observed phenomena in the society. Economics studies the way in the societies
solve the fundamental problems of reconciling the unlimited desires of individuals with scarcity of resources,
susceptible to numerous alternative uses. Economics is also an APPLIED SCIENCE because it uses the scientific
method in its explanations, which consists of observing reality and presenting questions and problems to arrive at
the formulation of theories and models. As an applied science, it follows a systematic procedure to solve issues
and problems of the society.

What Is It

THE FIELDS OF ECONOMICS

Microeconomics and macroeconomics has perspectives on the economy.
*Microeconomics: focuses on the behavior of individual economic units and the functioning of markets. Its
perspective focuses on parts of the economy: individuals, firms, and industries.
*Macroeconomics: studies the functioning of economics as an aggregate (production, employment). Its
perspective looks at the economy as a whole, focusing on goals like production, the standard of living,
unemployment and inflation. Macroeconomics has two types of policies for pursuing these goals: monetary
policy and fiscal policy.

The Economic Agents/Stakeholders:

1. Consumers
• Consume goods and services /offer production factors
• Maximize utility
2. Producers
• Produce goods / demand productive factors
• Maximize profit
3. The public sectors
• Attempt to maximize the well-being of society
*The agents interact among themselves in a specific territorial, social, natural
and/or cultural framework that determines their relationships → Market
ECONOMIC RESOURCES OR FACTORS
In the article of Nowaczyk , J (2020) on Identifying the Factors of Production,he defined economic
resources as the factors of production for goods and services.The factors of production are inputs
combinations in the production of goods and services to make an economic profit for the firms. These
factors of production are land, labor, capital, and entrepreneurship. Resources are limited in nature, but
human wants and needs are unlimited, thus, an efficient allocation of these resources or factors of
production is a big challenge for every economy. Economics also helps the entrepreneurs and the
economy to allocate resources in the production of supplies to meet the demands of the consumers.

Characteristics of Resources:
1.Scarcity: insufficient resources to supply all the desires and needs of individuals. In the production of
goods and services, there are issues that economics may encounter: these include: for Land – inadequate
land and natural resources; polluted areas; overcrowded spaces; for Labor – unskilled workforce;
mismatch of jobs; for capital – low quality of equipment/machines; insufficient fund/capital; and for
entrepreneurship –Inadequate training of entrepreneurs; limited opportunity; scarcity of great ideas but
many competitors in the market.
2.Multiple use: Resources can have more than one possible use. For example, a plot of land can be used
to plant coffee or to build a factory.
3.Partially replaceable: one resource can replace another in the production of a good or
service (e.g., replace manual labor with technology).

Scarce resources and unlimited desires → Scarcity

Scarcity and alternative uses → Choice
Choice → Opportunity cost

What’s More

CLASSIFICATION OF GOODS
Activity no. 1 Direction: Please perform independently. Pick all the goods and classify them accordingly.
Your mother went to the market to shop goods for the family. She purchased the following goods. Canned
goods; bread; sacks of rice; meat; vegetables ;toothpaste; bath soaps; perfumes; wrist watch; aircon to
ventilate her store and coffee maker for her store

Consumer good Luxury goods

Industrial goods Economic goods

Essential Good

ASSESSMENT (Picture Analysis)

Direction: Still, please do this independently.
The picture shows the different factors in the production of goods. This will help you become creative in
your analysis on the application of resources you need in the production of goods that are most needed
in the society. Please determine the resources.
What I Have Learned

Microeconomics and macroeconomics are two different perspectives on the economy. The
microeconomic perspective
1) studies the behavior of individualeconomic units.
2) studies the functioning of markets 3) focuses on parts of the economy: individuals, firms, and industries.
The macroeconomic perspective
1) looks at the economy as a whole and
2) focusing on goals like productions; standard of living,unemployment, and inflation.
Macroeconomics has two types of policies for pursuing these goals: monetary policy and fiscal policy.
In the production of goods and services; there are factors that economics may encounter: these include:
land – inadequate land and natural resources; polluted areas; overcrowded spaces; labor – unskilled
workforce; mismatch of jobs; capital – low quality of equipment/machines; insufficient fund/capital; and
entrepreneurship – inadequate training of entrepreneurs; limited opportunity; scarcity of great ideas but
several competitors in the market.

What I Need to Reflect

Today, we are in a new normal way of living, a very different one from way we have lived for several
years. It’s because everyone has that fear of the COVID 19 that might cause us from health and
economic issues. Everyone, therefore, has to be very responsible in his behaviors in the market; and
become efficient in his consumption; friendly to the environment or the natural resources as these may
become scarce in the future. Everyone must become aware of the micro and macro levels of the
environment and contribute to the growth of our economy.
WHAT I CAN DO

Activity No 2
 Assessment

Name____________________________Year/Section___________________Date______

Teacher___________________________School_________________________________

(Multiple Choice )
Direction: Choose the letter of the correct answer. Write your answer in a sheet of paper.
1. Mrs Nenita De Jesus purchased basic goods like vegetables and groceries for
the consumption of her family. These goods are:
a. Consumers goods
b. Capital Goods
c. Luxury Goods
d. Economic Goods
2. Mr. Dennis Elecanal purchased new car as a gift for his father’s birthday. This
good is
a. Consumers Good
b. Luxury Good
c. Capital Good
d. Economic Good
3. ABM Computer shop purchased additional 10 units of computer for the business.
These goods are called:
a. Consumers goods
b. Luxury Goods
c. Capital Goods
d. Economic Goods
4. Which is not considered as tangible good?
a. Cell phone
b. Mask
c. Sack of rice
d. Training service
5. Which is true about Economics as a social science?
a) Scarce resources and limited needs drive choice
b) Economics explains and predicts economic events
c) The scientific method is based on the normative analysis
d) Economic hypotheses lead directly to predictions
6. Which is true on the value of an economic theory in practice? It is determined by
a. how accurate the assumptions are.
b. how well the theory can be represented by a graph.
c. how well the theory can predict or explain.
d. how economical the model is.
7. Which of the following is the study of the aggregate economy studied as a whole?
a. Mathematical economics
b. Econometrics
c. Macroeconomics
d. Microeconomics
8. Business ethics refers to any behavior by businesses that may
a. be illegal.
b. violate social or moral standards.
c. result in the maximization of profits.
 d. All of the above.
9. Businesses have responded to incentives for ethical behavior by doing ALL except
a. lobbying for the abolition of laws that require ethical behavior.
b. appointing “ethics officers” to monitor ethical manners of employees.
c. providing training sessions in ethical behavior for employees.
d. establishing codes of ethical behavior for employees.
10. Which of the following is not an economic agent in your locality?
a. Producer
b. Consumer
c. Public Sector
d. None of ABC
https://www.stagneshs.org/ourpages/auto/2015/4/25/44353125/Unit%201%20Answer%20Key.pdf
https://study.com/academy/practice/quiz-worksheet-four-factors-of-production.html
https://global.oup.com/us/companion.websites/9780199811786/student/chapt1/multiplechoice
https://quizizz.com/admin/quiz/5b7564f0dfd12e00194449b9/factors-of-production

The Economy
References
Articles
Sirin Çaki S (2019) 10 Basic Office Equipment Every Business Needs. Retrieved on June 01 2020
from https://www.market-inspector.co.uk/blog/2017/01/10-basic-officeequipment-for-starting-a-business
Enriquez, H C (2020). Basic Economic Problems of the Country. Retrieved on June 01 2020 from
https://www.slideshare.net/HannahCullen/lesson-3-basic-economic-problems
Lamarco, N. (2018) The Socioeconomic Factors Affecting Small Businesses Retrieved on June 01
2020 from https://smallbusiness.chron.com/socioeconomic-factors-affecting-small-businesses-73234. html
https://www.slideshare.net/HannahCullen/lesson-3-basic-economic-problems
Molina, J. A. & Nadal, G. J I (2020) Concept and Scope of Economics. Retrieved on June 01 2020
from http://personal.unizar.es/jamolina/Unit1.pdf
Nowaczyk, J. (2020 ).Four Factors of Production: Land, Labor, Capital & Entrepreneurship
Retrieved on June o1 2020 from https://study.com/academy/lesson/four-factors-of-
production-land-labor-capital-entrepreneurship.html
Pretty, N (2020). Basic terms in Economics. Retrieved on June o1 2020 from
https://www.slideshare.net/nikspretty/basic-terms-in-economic
Portillo, E.F (2017). Basic terms in Economics retrieved on June 01 2020 from
https://www.slideshare.net/enaportillo13/basic-terms-in-economics
Websites:
https://global.oup.com/us/companion.websites/9780199811786/student/chapt1/multiplechoice

https://www.thebalance.com/factors-of-production-the-4-types-and-who-owns-them-4045262

https://quizizz.com/admin/quiz/5b7564f0dfd12e00194449b9/factors-of-production

https://study.com/academy/practice/quiz-worksheet-four-factors-of-production.html

https://int.search.myway.com/search/AJimage.jhtml?

https://int.search.tb.ask.com/search/AJimage.jhtm

https://www.stagneshs.org/ourpages/auto/2015/4/25/44353125/Unit%201%20Answer%20Key.pdf

https://quizizz.com/admin/quiz/5b7564f0dfd12e00194449b9/factors-of-production

https://int.search.myway.com/search/AJimage.jhtml?

http://www.aloha-hawaii.com/oahu/dole-plantation/