ALEXIS SHANE D.

RECLA SIR ERVIN GARCIA

12 ABM- ENVIRONMENTAL 3RD QUARTER

APPLIED ECONOMICS
Module 1

Lesson 1: Basic Terms in Applied Economics

What’s More
The estimate demonstrates an economic approach to calculating the cost of parenting
another kid. Because the income of the parents is involved, the Department's estimation
is an example of microeconomic analysis, and there may be some adjustments in the
budgeting inside of the household because it emphasizes the upbringing of an extra kid.

What I Can Do
After a few weeks, demand for Boy's sandals will decrease due to the new stall selling
China-made sandals at a lower price. This is related to the law of demand, which is a
fundamental principle of economics. It asserts that an increase in the price of a certain
product or service is equivalent to a decrease in the amount required for that product.
This demonstrates the inverse relationship between price and demand. However, in the
case of the new stall, because they sell their items at a lower price than the boy's sandals,
a decrease in price will result in increased quantity demand.

Lesson 2: Basic Economic Problems of the Country

What’s More
The Philippines has a mixed economy that includes privately held firms that are
governed by government policies. It is classified as a newly industrialized economy and
an emerging market, which implies that it is transitioning from an agricultural-based
economy to one that is more focused on services and manufacturing.

What I Have Learned

➢ Purchasing power – If the government purchases power at a higher price, there
might be a power shortage since they cannot have more power at that certain
price.

➢ Fixed Income – When there is inflation, officials may raise interest rates, which
may create some adjustments in fixed income. Prices of current fixed-income
assets often decline when interest payments from existing fixed-income assets
 become less competitive in comparison to newer higher-rate fixed-income
instruments.
➢ Savings – Inflation may have a negative impact on savings, even if they are
insured. It's because your income is keeping up with inflation. If inflation rises,
so will the prices of goods on the market, causing you to spend more and save
less.

Lesson 3: Applied Economics in Relation to the Philippine

Economic Problems

What’s More

Assessment
I. II. III.
1. B 1. Labor 1. I
2. B 2. Capital 2. A
3. D 3. Land 3. X
4. B 4. Land 4. A
5. C 5. Labor 5. I
6. C 6. Capital 6. A
7. A 7. Capital 7. I
8. A 8. Land 8. I
9. A 9. Labor 9. A
 10. B 10. Capital 10. X
11. A
12. I
13. X
14. A
15. X

IV.
1. The scarcity of sources is determined if the needs and wants of the people or the
demand are greater than the availability of the supplies. I make sure that I always
minimize using resources as I go with my daily activities. For example, when I am
writing on paper, I make sure that every piece of paper is used before I use
another piece of paper since this helps to prevent the cutting of new trees to
manufacture paper.
2. The opportunity cost of taking an exam in your economics class to not attending
the concert of your idol means that you will have a grade in your economics and
won’t be able to hear them sing live.
The opportunity cost of taking an exam in your economics class to not attending a
Php 5,000 ticket concert of your idol is you will not spend 5,000 pesos for a
concert ticket.