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Module 3-in-ABM-Applied Economics

Bachelor of Science in Psychology (University of San Jose - Recoletos)

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Applied SENIOR
HIGH
Economics SCHOOL

Self-Learning
Module
Microeconomics and 3
Macroeconomics Quarter 3

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Applied Economics
Quarter 3 – Self-Learning Module 3: Microeconomics and Macroeconomics
First Edition, 2020

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Published by the Department of Education - Schools Division of Pasig City

Development Team of the Self-Learning Module

Writer: Emmanuel B. Penetrante
Editor: Hedelita B. Calonia
Reviewers:
Content/Language: Hedelita B. Calonia
Technical: Emmanuel B. Penetrante
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Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
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Chief, School Governance and Operations Division and
OIC-Chief, Curriculum Implementation Division

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Applied SENIOR
HIGH
SCHOOL
Economics

Self-Learning
Module

3
Quarter 3

Microeconomics and
Macroeconomics

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Introductory Message

For the facilitator:

Welcome to the Senior High School 3 Applied Economics Self Learning Module
on Microeconomics and Macroeconomics!

This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.

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For the learner:

Welcome to the Applied Economics Self Learning Module on Microeconomics

and Macroeconomics!

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 material while being an active
learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from the
entire module.

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EXPECTATIONS

After going through this module, you are expected to:

1. define microeconomics and macroeconomics;
2. distinguish microeconomics and macroeconomics in terms of nature and
scope; and
3. enumerate microeconomic and macroeconomic activities.

PRETEST

Directions: Choose the letter of the best answer. Write the letter of your answer on a
separate sheet of paper.

1. Which of the following statements is TRUE?

a. The main concern of macroeconomics is the business sector.
b. Microeconomics deals with a larger scope of the economy.
c. Microeconomics and Macroeconomics can be applied in real-life.
d. Studying macroeconomics is more important than microeconomics.
2. Which of the statements is NOT TRUE about macroeconomics?
a. It is used to address national economic problem.
b. It can predict future events.
c. It deals with poverty, education, and aggregate production.
d. It discusses the law of demand and supply.
3. Which of the following statements does not describe microeconomics?
a. It seeks to answer the household management.
b. It can predict future events.
c. It deals with poverty, education, and aggregate production.
d. It discusses the law of demand and supply.

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4. Which of the following refers to macroeconomics?

a. Agricultural production

b. Pricing strategy

c. Both A and B

d. None of the above

5. Which of the following refers to microeconomics?

a. Profit Maximization

b. Gross National Income

c. Both A and B

d. None of the above

RECAP

Directions: Give your positive and normative statements in the following issues.

Economic Concern Positive Statement Negative Statement

1. Spread of Covid-19

2. Distance Learning

3. Business Closure

4. Social Amelioration
Program

5. Health Budget

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LESSON

We have learned that economics is an interdisciplinary with the different fields

of studies. Both natural and social sciences are part of studying economics. Because
of its scope and nature, there is a gap when it comes to addressing issues concerning
a specific type of problem. Hence, just like any other disciplines, economics has its
own branches too. This module will help the students understand the main divisions
of economics4Microeconomics and Macroeconomics.

Microeconomics
Microeconomics is a branch of economics that studies the behavior of
individuals and firms in making decisions regarding the allocation of scarce
resources and the interactions among these individuals and firms. Microeconomics
seeks to understand what happens when there are changes in certain conditions in
relation to household preferences and decisions, resource management, individual
demand, business supply, and market activity.

Analyzing business capacity and market forces are the primary concerns of
this branch. For instance, the company wants to know whether their business is still
profitable. With microeconomic analysis, they can determine if the company runs at
the maximum production capacity or in the economies of scale.

These are some of the microeconomics principles:

• Demand, Supply, and Equilibrium: Price is the determinant to consumers and

suppliers according to the law of supply and demand. As prices increases, the
suppliers will produce more products while consumers will buy less.

• Production Theory: An economic theory which relates the creation of product with
the given input materials.

• Consumer Theory: This theory explain how people decide to spend their money
based on their individual preferences and budget constraints.

Macroeconomics
Macroeconomics is a branch of economics that deals with the study of
performance, behavior, and decision-making of the whole economy. It includes
aggregate demand and supply, government policies for the country, national income,
international trade and etc.

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John Maynard Keynes (1883-1946) is known for his economic

theories (Keynesian economics) on the causes of prolonged
unemployment. His most important work, The General Theory of
Employment, Interest and Money, advocated a remedy for
economic recession based on a government-sponsored policy of
full employment. He is recognized as the father of modern
economics and macroeconomics.

These are some of the macroeconomics principles:

1. Gross Domestics Product: It measures the overall performance of the

economy through the aggregate output produced in the country.

2. Philips Curve: It shows the relationship of unemployment with inflation.

There’s an inverse relationship between the unemployment and inflation rate.

3. Fiscal Policy: A tool used by the government to attain economic goals

through taxation and spending.

4. Monetary Policy: A tool used by the central bank to control the interest rate
and money supply in the economy.

Difference between Microeconomics and Macroeconomics

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ACTIVITIES

Activity 1: Microeconomics vs Macroeconomics

Directions: Identify if the following activities are under microeconomics or
macroeconomics. Put a check mark on the appropriate column.

Economic Activity Microeconomics Macroeconomics

1. Clearance sale in SM-East Ortigas

2. Hiring of employees in Universal

Robina Corporation

3. The government is looking for ways to

contain Covid-19.

4. The Marketing Manager reports the

sales of the company for the current
month.

5. The DepEd will adopt distance

education in all schools nationwide.

Activity 2: Microeconomics vs Macroeconomics

Directions: Give 4 examples of microeconomic and macroeconomic activities. The
activities should be parallel to each other. See examples below.

Microeconomics Macroeconomics

Aling Nena prepares a weekly budget for The national budget has been
her family. proposed by the congress.
1. 1.

2. 2.

3. 3.

4. 4.

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WRAP-UP

To summarize what you have learned in the lesson, answer the following
questions:

1. What is Microeconomics?
2. What is Macroeconomics?
3. Can you give three (3) differences between of microeconomics and
macroeconomics?
4. Can you enumerate five (5) microeconomic and macroeconomic activities?

VALUING

Based on what you have learned about microeconomics and macroeconomics,

how will these concepts help you in dealing with the economic problems, such as
loss of job, limited financial resources, and closure of the business in the country?

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POSTTEST

Directions: Write MICRO if the words or phrase refers to microeconomics, MACRO

if the statement is for macroeconomics.

1. Household management
2. Rice production

3. Inflation rate

4. Decrease in lending rate

5. Public Infrastructure

6. Trade agreement among Southeast Asian countries

7. Tax Reform for Acceleration and Inclusion (TRAIN) Law

8. Rising unemployment rate due to pandemic

9. High demand for flagship mobile phones

10. Barter of goods in rural areas

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KEY TO CORRECTION

10. MICRO
14. MICRO
13. MACRO
12. MACRO
11. MACRO
5. A Macroeconomics 5. 10. MACRO
4. A Microeconomics 4. 9. MACRO
3. C Macroeconomics 3. 8. MACRO
2. D Microeconomics 2. 7. MACRO
1. C Microeconomics 1. 6. MICRO
PRE-TEST 1: Activity POST-TEST:

References

Liberto, Daniel. <Consumer Theory Definition.= Investopedia, Investopedia, 29 Jan.

2020. Accessed June 06, 2020. www.investopedia.com/terms/c/consumer-
theory.asp.

Macalinao, Eloisa M. Applied Economics. Chapter 1 p. 2. 2016.

Segal, Jim Chappelow and Troy. <Everything You Need to Know About
Macroeconomics.= Investopedia, Investopedia, 7 Apr. 2020. Accessed June
06, 2020. www.investopedia.com/terms/m/macroeconomics.asp.

Staff, Investopedia. <Microeconomics vs. Macroeconomics: What's the Difference?=

Investopedia, Investopedia, 29 Jan. 2020. Accessed June 06, 2020
www.investopedia.com/ask/answers/difference-between-microeconomics-
and-macroeconomics/#:~:text=Microeconomics studies individuals and
business,it a bottom-up approach.

The Editors of Encyclopaedia Britannica. John Maynard Keynes. Encyclopædia

Britannica. Encyclopædia Britannica, Inc. June 01, 2020. Accessed June 06,
2020. https://www.britannica.com/biography/John-Maynard-Keynes.

Thangavelu, Poonkulali. <How Microeconomics Affects Everyday Life: Renting an

Apartment.= Investopedia, Investopedia, 2 Apr. 2020. Accessed June 06,
2020. www.investopedia.com/articles/personal-finance/032615/how-
microeconomics-affects-everyday-life.asp.

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