AEC 12 - Q1 - 0101 - PS - Economics As A Social Science

Lesson 1.
Economics as a Social Science
Applied Economics
General Academic Strand | Accountancy, Business, and Management
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2
In 2013, the Enhanced
Basic Education Act was
introduced which
brought about the K-12
program.
3
This program had
students making their
first major life decision
on which track and
strand to pursue.
4
It might surprise you to
hear that students made
use of economics in
making their decisions.
How was economics

present in this situation?
5
This lesson serves as a prerequisite lesson for the
Learning following DepEd competency:
Competency
Define basic terms in applied economics
(ABM_AE12-la-d-2).
6
Learning
Objectives ● Understand the relationship between
scarcity, choice, and opportunity cost.
● Distinguish between microeconomics and

macroeconomics.
● Analyze real-world situations using different

basic economic concepts.
7
Deserted Island Wishlist
Let’s
Connect Imagine that you find yourselves on a deserted
island with no food, water, or any other readily
available resources.
8
Let’s
Connect
After your first few days of surviving on the
island, you come across a shipwrecked container
that contains ten supplies.
The class will be divided into groups of three to

four students each.
9
Let’s
Connect
1. Each group is to prepare a list of ten items they
want to find inside the container.
After a few hours with your new supplies, a

rogue wave comes in and destroys your
respective camps.
2. Each group will only be able to save half (or five)

of their supplies. Discuss amongst yourselves
and decide which five items you will keep.
10
How did you choose the initial list of ten items
Let’s you wanted with you on the island?
Connect
11
If you had been allowed a list of 15 items, what
Let’s would you have added? What if the list could
Connect accommodate 20 items?
12
When the rogue wave hit, how did you choose
Let’s
which five items to save?
Connect
13
Essential
Question
How did you use economics to decide on

your strand in senior high school?
14
Economics as a Social Science
Economics
● Seeks to understand how

choices are made
● Is considered a social science
as it seeks to study humans
with empirical tools
15
Basic Economic Concepts
The Economic Problem
● Human wants are unlimited; however, resources are

scarce.
● The reason why individuals are forced to make
choices
16
Scarcity
● The limited availability of a

resource, good, or service
● A resource is scarce when
quantity is limited relative to
the demand for it.
17
Example of Scarcity
In March, the WHO had already

shipped out over 500 million sets
of PPE. However, the WHO also
reported that 89 million surgical
masks are needed every month.
Face masks are a scarce resource.

18
Check Your
Progress
Aside from PPEs, what are some other
things that have become scarce because of
the pandemic? Provide two to three
examples.
19
Choice
● Because there is scarcity,

people have to choose
which wants to satisfy
first.
● People decide how to
allocate their limited
resources.
20
Utility
● The satisfaction or usefulness the consumption of a

good can bring
● One of the considerations when making decisions
21
Example of Utility
If you enjoy instant noodles, then

economics would say you gain
utility from consuming or eating
that good.
22
Utility
Economists believe that

humans are rational beings, and
as such will make decisions that
maximize their utility.
23
Opportunity Cost
● The value of the next best alternative

● What we give up by choosing something else
● Includes the monetary costs, time, and effort
24
Example of Opportunity Cost
Choosing to pursue the ABM strand

under the academic track means
missing out on the opportunity to
take STEM or HumSS.
The strands and tracks you did not

pick are your opportunity costs.
25
Production Possibility Frontier
● Diagram that models scarcity,

choice, and opportunity cost.
● Shows the choice between two
options (PPE and food)
● Blue curve represents their
limited resources.
26
● Points on or inside the PPF

curve represent the possible
choices for production.
Example:
Points A, B, C, and D are all on or

inside the curve.
27
● Points on the PPF curve are

efficient. They maximize all
available resources.
Example:
Points A, B, and C are all on the

curve.
28
● Points inside the PPF curve are

possible but inefficient as it
leaves resources unused.
Example:
Point D is inside the curve.

29
● Points outside the PPF curve

are impossible given the
current limited resources.
Example:
Point E is outside the curve.

30
Check Your
Progress
How does the production possibilities

frontier illustrate the concepts of scarcity,
choice, and opportunity cost?
31
Scarcity is seen with how the

curve prevents us from fulfilling
all the wants for both PPE and
food.
32
Choice is visualized through the

different points of production (A,
B, C, and D) that are available.
33
Opportunity cost is present

because choosing any of the
points means missing out on the
other alternatives.
34
Microeconomics Macroeconomics
● Subset of economics that ● Subset of economics that

focuses on the decisions focuses on aggregates
of smaller agents. and groups of agents.
Example: Example:
A SHS student choosing Understanding how the
what strand to take student population of Luzon
chose their tracks for SHS
35
Give a thumbs up if the statement is true or a
Try This!
thumbs down if the statement is false.
👍
TRUE
👎
FALSE
36
Try This!
1. The scarcity of a resource refers to whether

or not it is large in quantity.
2. Opportunity cost only exists when we spend
money on something.
3. Humans have to make choices because of the
reality of scarce resources.
37
Try This!
4. Economics is the study of how people make

choices.
5. Economists evaluate decisions by weighing
their monetary costs.
6. In the PPF, as more one good is produced, the
less the other good can be produced.
7. Opportunity costs are only quantitative by
nature.
38
Try This!
8. Studying the choices made by a group of

students falls under the scope of
macroeconomics.
9. Opportunity cost is the value of the worst
alternative.
10.Being efficient means maximizing all available
resources.
39
The Amazon rainforest is one of the most
biodiverse ecosystems in the entire world and
Challenge
Yourself serves as protection against climate change.
About 60% of the rainforest resides within

Brazil, and the government, led by president Jair
Bolsonaro, have recently pushed towards
industrializing it. In the last 50 years, over 17%
of the forest’s original area has been turned into
roads, dams, and other business ventures.
40
Challenge
Yourself
Using the concepts of scarcity, choice, and
opportunity cost, evaluate the Brazilian
government's stance on the Amazon rainforest
issue.
41
Challenge
Yourself
Is the Amazon rainforest issue a

macroeconomic or microeconomic issue?
Explain your answer.
42
Wrap-
● Economics is a study of choices and
Up understanding how scarce resources can be
allocated to fulfill unlimited human wants and
needs.
● Scarcity, or the reality that resources are
limited, forces humans to choose where to
allocate them.
● In making choices, we inevitably have to give up
the alternatives. This represents opportunity
cost or the value of the next best option.
43
Wrap- ● The production
Up possibilities
frontier is a
fundamental model
that economists use
to illustrate the
concepts of scarcity,
choice, and
opportunity costs.
44
Wrap-
Up
● The fields of economics differ on the scope of

their study. Microeconomics focuses on
individuals and smaller economic agents, while
macroeconomics looks at aggregates and
larger economic agents.
45
Wrap-
Up
46
Photo Credits
Slide no. 3: See Through Glass by Avel Chuklanov is licensed under Unsplash license via Unsplash.
Slide no. 4: Fellowship in Church by Jhudel Baguio is licensed under Unsplash license via Unsplash.
Slide no. 5: Succession of Choices by Javier Allegue Barros is licensed under Unsplash license via Unsplash.
Slide no. 9: La Graciosa by Ferran Feixas is licensed under Unsplash license via Unsplash.
Slide no. 14: Little Boy and the Vending Machine by Egor Myznik is licensed under Unsplash license via Unsplash.
Slide no. 16: Empty Grocery Store by Mick Haupt is licensed under Unsplash license via Unsplash.
47
Photo Credits
Slide no. 17: Frontline by United Nations Covid-19 Response is licensed under Unsplash license via Unsplash.
Slide no. 19: Decision Brain Heart by Mohamed Hassan is licensed under Pixabay license via Pixabay.
Slide no. 21: Untitled by Miguel Andrade is licensed under Unsplash license via Unsplash.
Slide no. 22: Happy Face Signal by Jacqueline Munguia is licensed under Unsplash license via Unsplash.
Slide no. 24: Lady Justice by Tingey Injury Law Firm is licensed under Unsplash license via Unsplash;
Biomedical engineer develops blood filtering by This is Engineering is licensed under Unsplash license via Unsplash;
Businessman by Adeolu Eletu is licensed under Unsplash license via Unsplash.
48
Bibliography
Blink, Jocelyn, and Ian Dorton. “The Foundations of Economics.” In Economics Course Companion, 2nd ed., 2–8. Oxford:
Oxford University Press, 2011.
Maley, Sean, and Jason Welker. “The Foundations of Economics.” In Economics: Supporting Every Learner across the IB
Continuum, 1–10. Pearson Education, 2011.
Mankiw, N. Gregory. Principles of Economics. Boston, MA: Cengage Learning, 2021.
49

AEC 12 - Q1 - 0101 - PS - Economics As A Social Science

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Lesson 1.

Economics as a Social Science

How was economics

● Distinguish between microeconomics and

● Analyze real-world situations using different

The class will be divided into groups of three to

After a few hours with your new supplies, a

2. Each group will only be able to save half (or five)

How did you use economics to decide on

● Seeks to understand how

● Human wants are unlimited; however, resources are

● The limited availability of a

In March, the WHO had already

Face masks are a scarce resource.

● Because there is scarcity,

● The satisfaction or usefulness the consumption of a

If you enjoy instant noodles, then

Economists believe that

● The value of the next best alternative

Choosing to pursue the ABM strand

The strands and tracks you did not

Production Possibility Frontier

● Diagram that models scarcity,

● Points on or inside the PPF

Points A, B, C, and D are all on or

● Points on the PPF curve are

Points A, B, and C are all on the

● Points inside the PPF curve are

Point D is inside the curve.

● Points outside the PPF curve

Point E is outside the curve.

How does the production possibilities

Scarcity is seen with how the

Choice is visualized through the

Opportunity cost is present

● Subset of economics that ● Subset of economics that

1. The scarcity of a resource refers to whether

4. Economics is the study of how people make

8. Studying the choices made by a group of

About 60% of the rainforest resides within

Is the Amazon rainforest issue a

● The fields of economics differ on the scope of

Mankiw, N. Gregory. Principles of Economics. Boston, MA: Cengage Learning, 2021.

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