Quarter 1 – Module 1:

Differentiate Economics as social

science and Applied science in
terms of nature and scope.
(ABM_AE12-Ia-d-1)
 

LET US KNOW  

What do you
• What does Economics mean? Does studying it important?
think are
these
pictures all
about?
  
LET US REVIEW

When we say
Economics, what are
the words that come
into your mind?
 LET US STUDY

Economics comes from the Greek word “oikonomia” which means

“management of household”.
• Economics is that branch of social science which is concerned with the
study of how individuals, households, firms, industries and government
take decision relating to the allocation of limited resources to productive
uses, so as to derive maximum gain or satisfaction.
Nature of Economics
• Economics is a science: • Economics is an art: Art
Science is an organized is a discipline that
branch of knowledge, expresses the way things
that analyses cause and are to be done, so as to
effect relationship achieve the desired end.
between economic
agents.
Therefore, economics is considered as science as
well as art, i.e. science in terms of its
methodology and arts as in application
Scope of Economics
 Scope of Economics
Microeconomics:
The part of economics whose
subject matter of study is individual
units, i.e. a consumer, a household,
a firm, an industry, etc.
Macro Economics:
• It is that branch of economics
which studies the entire economy,
instead of individual units, i.e.
level of output, total investment,
total savings, total consumption,
etc.
 WHAT IS AN APPLIED SCIENCE?
• Applied science is a discipline that applies existing scientific knowledge
to develop more practical applications, such as technology or inventions.
• In applied science it is study about how to theories of a subject
apply for the humans’ applications. 
 WHAT IS A Social Science?

• Social science is defined as any scholastic discipline or scientific

field that investigates human society.
• According to James High “Social Sciences as those bodies of
learning and study which recognizes the simultaneous and mutual
action of physical and no-physical stimuli which produce social
relation”.
• According to Charles Beard “Social Sciences are a body of
knowledge and thought pertaining to human affairs as
distinguished from sticks, stones, stars and physical objects”.
 Economics as a Social Science

• As a science it utilizes the scientific method of inquiry from

identifying the problem, proposing alternative tentative answers or
hypothesis, testing the tentative answers to the question or the
problem at hand, gathering and treating data, and answering the
question through conclusion.

• Social Science, economics pertains to the study on how society

creates its material wealth, how it makes this wealth available to its
people with minimum difficulties, and how it expands
 What is the importance of Applied
Economics application?

• Applying Economics to company, household or a country helps

sweep aside all attempts to dress up a situation so that it will
appear worse or better than it is. It is a powerful tool to reveal the
true and complete situation in order to come up with things to do.
• Applied economics acts as a mechanism to determine what steps
can reasonably be taken to improve current economic situation.
• Applied economics can teach valuable lessons on how to avoid the
recurrence of a negative situation, or at least minimize the impact
  

LET US PRACTICE
In each letter of the word ECONOMICS, write a word that will represent each letter.
Each word must be associated with economics.
After writing its word, come up with your own definition of economics.
E-
C-
O-
N-
O-
M-
I-
C-
S-
 LET US REMEMBER

Economics is regarded as a social science because it

uses scientific methods to build theories that can help explain the
behavior of individuals, groups and
organizations. Economics attempts to explain economic behavior,
which arises when scarce resources are exchanged.
Where economics takes a look at theories and the history of these
theories in general terms, applied economics helps companies,
businesses and entire governments evaluate risks to take the
proper measures to ensure stability based on numbers and trends.
  
LET US APPRECIATE

What is the significance of studying

economics? Having the knowledge of the
country’s economic situation, how will it
help you improved your life and the
economy as a whole?
  
LET US PRACTICE MORE
Between set A and B, which shows the application of an Applied Economics?
Explain it in not less than 5 sentences.
• What is Economics? definition, nature and scope - Business Jargons