AGECON

(Agricultural Economics)
2nd Semester SY 2023-24
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Name: Joshua D. Vilarma Date: February 20, 2024
Course/Year/Section: BSA 2B
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Activity 1. (8 pts)

Let us try and apply our knowledge of Economics to one significant issue we
encounter daily, during this time, staying at home, online homeschooling and shopping,
working from home, and no face-to-face interaction. What are human wants and needs?
What are the resources needed for the situation? Are the resources available? In a limited
or unlimited amount? How can we solve this issue?

Use the table below as your guide to answering the questions.

List down human wants and needs regarding the issues we encounter daily during this pandemic.

Human Needs Human Wants

1. Stable Internet Connection 1. Bags

2. Smartphone/Tablet 2. Flower Pots
3. Food & Water 3. Phone accessories
4. Shelter 4. Accessories
5. Clothing 5. Bakeware
6. Electricity 6. Hair Dye
7. Alcohol/Hand Sanitizers 7. Board Games
8. Masks 8. Water Filters
9. Face Shield
10. Healthcare Access
11. Hygiene Products
12. Vaccine

Match with what the resources are needed to acquire the wants and needs for the
situation (Specific resources). Identify by limited or unlimited amount.
Human Needs – Needed resources (availability: limited or unlimited)

1. Stable Internet Connection – money (limited), Internet Service Provider (unlimited),

Internet Plan (unlimited), router (unlimited), modem (unlimited), Wi-Fi equipment
(unlimited), power supply (limited), infrastructure and maintenance (limited), technical
support (limited)
2. Smartphone/Tablet – money (limited), resellers or sellers (unlimited), internet connection
(unlimited), technical support and warranty services (unlimited), power supply (limited)
3. Food & Water – money (limited), food suppliers (limited), water sources (limited),
transportation or delivery services (limited), packaging and containers (unlimited), labor
 and workforce (limited)
4. Clothing – money (limited), clothing retailers (unlimited), manufacturing and production
(limited), transportation or shipping services (limited), labor and workforce (limited)
5. Electricity – money (limited), energy sources (limited), power plants (limited), transmission
and distribution infrastructure (limited), grid connectivity (limited), utility providers
(limited)
6. Alcohol/Hand Sanitizers – money (limited), raw materials (limited), production facilities
(limited), labor and workforce (limited), packaging materials (unlimited), energy sources
(limited), transportation or shipping services (limited)
7. Masks – money (limited), raw materials (limited), production facilities (unlimited), labor
and workforce (limited), packaging materials (unlimited), transportation or shipping
services (limited), energy sources (limited)
8. Face Shield – money (limited), raw materials (limited), production facilities (unlimited),
labor and workforce (limited), packaging materials (unlimited), transportation or shipping
services (limited), energy sources (limited)
9. Healthcare Access – money (limited), healthcare facilities (limited), healthcare providers
(limited), medical equipment and supplies (limited), transportation (limited)
10. Hygiene Products – money (limited), raw materials (limited), production facilities
(unlimited), labor and workforce (limited), packaging materials (unlimited), transportation
or shipping services (limited), energy sources (limited)
11. Vaccine – research and development capacity (limited), biological materials (limited),
manufacturing facilities (limited), skilled workforce (limited), supply chain logistics
(limited), regulatory approvals (limited), funding and investment (limited), public health
infrastructure (limited)

Human Wants – Needed resources (availability: limited or unlimited)

1. Bags – money (limited), raw materials (limited), production facilities (unlimited), labor and
workforce (limited), packaging materials (unlimited), transportation or shipping services
(limited), energy sources (limited)
2. Flower pots – money (limited), raw materials (limited), production facilities (unlimited),
labor and workforce (limited), packaging materials (unlimited), transportation or shipping
services (limited), energy sources (limited)
3. Phone accessories – money (limited), raw materials (limited), production facilities
(unlimited), labor and workforce (limited), packaging materials (unlimited), transportation
or shipping services (limited), energy sources (limited)
4. Accessories – money (limited), raw materials (limited), production facilities (unlimited),
labor and workforce (limited), packaging materials (unlimited), transportation or shipping
services (limited), energy sources (limited)
5. Bakeware – money (limited), raw materials (limited), production facilities (unlimited),
labor and workforce (limited), packaging materials (unlimited), transportation or shipping
services (limited), energy sources (limited)
6. Hair Dye – money (limited), raw materials (limited), production facilities (unlimited), labor
and workforce (limited), packaging materials (unlimited), transportation or shipping
services (limited), energy sources (limited)
7. Board Games – money (limited), raw materials (limited), production facilities (unlimited),
labor and workforce (limited), packaging materials (unlimited), transportation or shipping
services (limited), energy sources (limited)
8. Water Filters – money (limited), raw materials (limited), production facilities (unlimited),
labor and workforce (limited), packaging materials (unlimited), transportation or shipping
 services (limited), energy sources (limited)

List down the economic concepts and theories which you think relate to our present
situation?

1. Wants and Needs

2. Scarcity
3. Allocation
4. Opportunity Cost
5. Supply and demand
6. Choice
7. Economic Resources (Land, Capital, Labor, Entrepreneurial Ability)
8. Export and Import
9. The Fundamental Economic Problem
10. Trading (Local and International)
11. Microeconomics and Macroeconomics
12. Laissez-faire
13. Labor theory of value
14. General economic system
15. Principles of Economics
16. General Theory of Employment, Interest, and Money

Choose a concept or theory that helps you identify a possible solution to the
problem/problems (needs and wants) you mentioned above.

The concept of opportunity cost fits with the problem between our needs and wants.
When we want something and yet we are financially incapable, we tend to sacrifice our wants and
rather, choose our needs just to survive. As our needs are of highest priority and we cannot live
them without them; our wants are of lowest priority as we can live without them.
Activity 2. (6 pts)

Explain in your own words the three basic economic questions and please give any
activity or example that will answer the three basic economic problems.

Example or Activity: University Jacket for students currently residing in Claveria due to
cold weather

1. What to produce?
We ask this question as to know what our customers/consumers want despite on the
never-ending dilemma on scarce resources. They demand things based on their current
problem facing and as producers, we supply their demands to satisfy their desires.

2. How to produce?
When we say how to produce, we ask this to our customers/consumers on how
should we produce certain materials to meet their demands. For example, we produce
certain product and we ask ourselves if we make it by hand (which is laborious) or we
make it using a machine for us to save time and effort.

3. For whom to produce?

This is about our target market of the products we produce. We specifically make
products for certain targets for us to know the customers/consumers that will pay us. With
the idea of knowing our target market, we can assure that we have potential buyers and we
certainly know on where to concentrate our efforts.

Activity 3. (6 pts)

Explain in your own words the three economic systems mentioned above. Give an
example country or place having this economic system.

1. Capitalism – it is a type of economic system that private individuals have the full
authority to own businesses, industries, and resources rather than the government.
Private individuals are free to do their thing and people can buy and sell goods and
services, anytime and anywhere. Since everyone can own businesses, expect that
competition is prevalent which can make the prices fair at the same time the products
are much more improved just to attract potential customers/consumers. One example
of a country exercising capitalism is Japan.

2. Communism – this type of economic system means that the government have the full
authority to own businesses, industries and resources. The government owns
everything and controls the economy. Individuals do not own property or businesses
since everything belongs to the state. The government makes all decisions like the
goods and services produced, the setting of prices and how much is produced.
Although the government owns everything, it ensures equality to all the constituents.
There is neither poor nor rich and everyone has access to same resources as well as
opportunities. Also, there is no competition since there are no private ownership of
 businesses. Lastly, the government provides for the basic needs for its citizens for
free. One example of a country exercising communism is North Korea.

3. Socialism – another type of economic system that the government owns and operates
the key industries and resources and at the same time, private individuals can still
operate small businesses as well as private ownership of property. The government in
Socialism plays a significant role for the regulation of economy with a goal of
creating a more equal society by the reduction of inequality by the redistribution of
wealth and providing social services to all citizens. Also, the worker rights are given
importance to give workers more power and protection in the workplace. One
example of a country exercising socialism is Norway.

Activity 4. (4pts)

Give 2 examples/statements of positive economics.

 An increase in government spending on education is correlated with higher levels of

economic growth.
 Increased spending on state security measures, such as border control and surveillance,
is associated with a decrease in crime rates.

Give 2 examples/statements of normative economics.

 The government should increase spending on education to improve long-term

economic growth.
 Governments should allocate a larger portion of the budget to national security to
ensure the safety and well-being of citizens.

Activity 5. (5 pts)

Look for a news article discussing an issue related to scarcity. Discuss the factors
that brought about scarcity based on the article. Conduct research to gain more insight
into the issue.
Activity 6. (5pts)

From your knowledge of opportunity cost and trade-offs. What were the most
significant “trade-offs” or opportunity costs you have incurred in your life? What lessons
have you learned from this experience?