Applied Eco Q1 WK 1

Abra High School FIRST SEMESTER
SENIOR HIGH SCHOOL QUARTER 1

Bangued 2800, Abra WEEK1
Source: SLM from National Capital Region APPLIED ECONOMICS
CONTENT: Economics as a Social Science and Applied Science in Terms of Nature and Scope
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LC: Differentiate economics as social science and applied science in terms of nature and scope
After going through this module, you are expected 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 1. Directions: 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 columnchannel
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
Activity 2. Kindly choose the letter of the correct 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
[Author Name] 1
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
PRESENTATION AND DISCUSSION:
Lesson 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 STEM students may focus on the annual income of families, buying
behaviour in the market, on specific items commonly purchased these families and many more. The SMAW 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 behaviour. 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 behaviour of the people in the market or economics, the micro
and the macro insights should blend with each other. In studying the buying behaviour of the people, the micro
insights about particular behaviour 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.
THE FIELDS OF ECONOMICS

Microeconomics and macroeconomics has perspectives on the economy.Communication is a two-way
process of connecting to both living and nonliving things. It is also a means of sharing and exchanging messages,
information, ideas, and feelings for mutual understanding (Gregoriom, J.C., 2015).
Communication connects people and the world they live in. It is through communication that people are able to
express their thoughts and ideas or convey information and messages through word of mouth, gestures and
signals, signs, and others. People have always communicated with one another in various forms.
Let us further define communication using the two key terms stated above, “message” and “understand”.
*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.
[Author Name] 2
*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.
Microeconomics Macroeconomics
 Studies of markets of good and  Studies the economy as a whole
services  Focuses on aggregate indicators
Focuses of the behaviour of
individual in the market (such as production, employment,
Explains how and why these etc.)
units make economic
Figure 1. Micro vs Macro Economics
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 .
BASIC TERMS TO UNDERSTAND ECONOMICS
It is essential that you familiarize yourself with the study of economics. This will facilitate your
understanding of economic analysis. Specifically you meet GOODS – which yields to your
satisfaction. It is anything used to satisfy your wants and needs.
TANGIBLE GOODS –material goods or INTANGIBLE GOODS – when they are

commodities. in the form of services. Those rendered
[Author Name] 3
by doctors, engineers, doctors and
other professionals
GOODS MAY ALSO BE CLASSIFIED ACCORDING TO USE

CONSUMERS GOODS – goods for the ultimate CAPITAL GOODS or INDUSTRIAL GOOD
consumption of the consumers. used in the production of other goods and
Ex.: toothpaste, bath soap, services.
Ex.:
buildings,
machinery,
equipment.
https://int.search.myway.com/search/ https://int.search.myway.com/search/AJimage.j
AJimage.jhtml etc.
ESSENTIAL GOODS- used to satisfy the basic LUXURY GOODS –goods man may do without,
needs of man. Ex: foods and medicine. but may
give comfort and
satisfaction.
Ex., perfume,
cakes;
chocolates
expensive cars.
https://int.search.myway.com/search/ https://int.search.myway.com/search/
AJimage.jhtm AJimage.jhtml
ECONOMIC GOODS –goods which are useful https://
and scarce; with value attached to them
and a price has to be paid for their use. If a good
so abundant and it can satisfy
everyone’s needs without anybody paying for it,
then, that good is free. The air is free, but int.search.myway.com/search/AJimage.jhtml
the air from an aircon is an economic good.
Figure 2: Kinds of Goods
ECONOMIC RESOURCES OR FACTORS
[Author Name] 4
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.
Land as a Factor of Production Labor as a Factor of Production

Land Labor is the work done by people education,
natural skills, and motivation and productivity.
resources Productivity measures how much each hour of
available to worker time produces in output. Workforce
create receives wage for his labor.
supply
such as raw
materials
that comes
from the
ground. It
can be a
non
renewable resource; commodities such as oil and
gold; and renewable resource, such as timber. Oil
is a natural resource, but petroleum gas is a
capital good. Farmland is a natural resource, but
a shopping center is a capital good.
https://study.com/academy/lesson/four-factors-of-
production-landlabor-capital-entrepreneurship.
Capital as a Factor of Production Entrepreneurship as a Factor of Production
Capital Entrepreneurship develops an idea into a
or business. An entrepreneur combines the other
capital three factors of production to add to supply. The
goods most successful entrepreneurs are innovative
are
capital
–
the
money
that
companies used to buy resources; man- made
objects like machinery, equipment, and chemicals
[Author Name] 5
that are used in production. For example, capital and risk-takers. The income entrepreneurs earn
goods include industrial and commercial is pro fits.
buildings. A commercial aircraft is example of a https://int.search.myway.com/search/
capital good. AJimage.jhtml
https://www.marketinspector.co.uk/blog/
2017/01/10-basicoffice-
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
SUPPLEMENTAL VIDEO: Learn more about the Economics as a Social Science and Applied Science in Terms
of Nature and Scope.
https://www.market-inspector.co.uk/blog/2017/01/10-basicoffice-
https://youtu.be/DQq-zJPSf4U
https://study.com/academy/lesson/four-factors-of-production-landlabor-
capital-entrepreneurship.html
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/
ENHANCEMENT ACTIVITIES
Activity 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.
[Author Name] 6
CONSUMER GOODS LUXURY GOODS
INDUSTRIAL GOODS ECONOMIC GOODS
ESSENTIAL GOODS
Activity 2 (Picture Analysis)
Direction: 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.
Image by Brianna Gilmartin © The Balance 2019
https://www.thebalance.com/factors-of-production-the-4-types-and-who-owns-them-4045262
See! Economics is a very interesting field to study. Your teacher is very much willing to teach you more about it
ASSESSMENT
I. Directions: Read each item carefully then choose the letter that corresponds to your answer. Write your
answers on a separate sheet of paper.
1. Mrs Nenita De Jesus purchased basic goods like vegetables and groceries for the consumption of her family.
These goods are:
[Author Name] 7
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 Good
d. Economic Good
4. Which is not considered as tangible good?

a. Cell phone
b. Mask
c. Capital Goods
d. Economic Goods
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.
[Author Name] 8
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
II. Direction: Listed below are the resources for production of goods and services. Please list down the economic
issues to each resource of production that may harm the economy. Choose your answer from the box below. You
may collaborate with family and friends in accomplishing the graphic organizer.
LAND LABOR
__________________ __________________
RESOURCES
PRODUCTION
CAPITAL ENTREPRENEURSHIP
___________________ ___________________
[Author Name] 9

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Abra High School FIRST SEMESTER

SENIOR HIGH SCHOOL QUARTER 1

After going through this module, you are expected to:

1. MIRECOOCNOMSCI_______________________individuals and industries

Activity 2. Kindly choose the letter of the correct answer.

4. Which best describes economics as a social and an applied science?

5. Which of the following are examples of human needs?

PRESENTATION AND DISCUSSION:

Lesson 1 NATURE AND SCOPE OF ECONOMICS

THE FIELDS OF ECONOMICS

Figure 1. Micro vs Macro Economics

The Economic Agents/Stakeholders:

3. The public sectors

BASIC TERMS TO UNDERSTAND ECONOMICS

TANGIBLE GOODS –material goods or INTANGIBLE GOODS – when they are

GOODS MAY ALSO BE CLASSIFIED ACCORDING TO USE

ECONOMIC RESOURCES OR FACTORS

In the article of Nowaczyk , J (2020) on Identifying the Factors of Production, he defined

Land as a Factor of Production Labor as a Factor of Production

Scarce resources and unlimited desires → Scarcity Scarcity

CONSUMER GOODS LUXURY GOODS

INDUSTRIAL GOODS ECONOMIC GOODS

Activity 2 (Picture Analysis)

Image by Brianna Gilmartin © The Balance 2019

4. Which is not considered as tangible good?

5. Which is true about Economics as a social science?

a Scarce resources and limited needs drive choice

6. Which is true on the value of an economic theory in practice? It is determined by

8. Business ethics refers to any behavior by businesses that may

c. providing training sessions in ethical behavior for employees.

10. Which of the following is not an economic agent in your locality?

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