APPLIED ECONOMICS ACTIVITY 1: SCARCITY AND COMPARATIVE ADVANTAGE

I. “ In your observation in your environment, identify if the following resources are

scarce (may it be relative or absolute scarce), or abundant in the Philippines :
”

1. Oil = Scarce
2. Banana plants = Abundant
3. Rice = Abundant
4. Carbon Minerals = Abundant
5. Diamonds = Scarce
6. Marine resources = Abundant
7. Human resources with technical know-how = Scarce
“ ”

II. “ Give more examples of Philippine resources that are scarce and abundant in
nature. ”

ABUNDANT IN THE PHILIPPINES SCARCE RESOURCES IN THE

PHILIPPINES

Rice Oil

Corn Fuels

Banana plant Human resources with technical

know-how

III. Now, based on your observation, what is the comparative advantage of the
Philippines over other countries, and what are our problems with resources?
Explain briefly.

The Philippines has a revealed comparative advantage in exporting goods like rice and
bananas in other countries. On the other hand, the problems that the Philippines is trying to
overcome is lack of other natural resources like oil and common problems that other country
face this includes poverty, lack of education, unemployment and illegal human activities.