LEARNING ACTIVITY SHEET

QUARTER 3/2nd SEMESTER, WEEK 1

Name: __________________ Grade & Section _____________ Score:

_________

Subject: Applied Economics Teacher: _____________________ Date:

__________

I. Title: Economics as a Social Science and Applied Science in Terms of Nature and
Scope

II. Type of Activity: Concept notes with formative activities

LAS for summative assessment
( Written Work Performance Task)
III. MELC: Differentiate economics as social science and applied science in terms of
science and scope.

IV. Learning Objective/s:

 define basic terms in economics.
 explain the principles of economics as a social science.
 write an essay on the importance of economics in our daily lives.

V. Reference/s
Print Material/s:
 Textbook on Applied Economics authored by Rosemary P. Dinio,PhD and
George A. Villasis
 K TO 12 Most Essential Learning Competencies with Corresponding CG
Codes by DepEd, Curriculum and Instruction Strand.

Online Resource/s:
 https://www.scribd.com/document/475944046/ABM-APPLIED-
ECONOMICS-12-pdf

VI. Concept notes with formative activities

NATURE AND SCOPE OF ECONOMICS

Economics is a social science that deals with the proper allocation of scarce
resources to satisfy the unlimited human wants. Economics is classified as a social
science because it deals with the study of man’s life and how he lives with other
men.

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ECONOMICS AS A SOCIAL SCIENCE

Social science is defined as the study or discipline that aims to explain human
behavior and society. It is a study of society or parts of it that utilizes the scientific
method of observation, hypothesis formulation, testing and experimentation.
Economics is a social science because it tries to understand how members of
a society behave and organize themselves to meet their individual and communal
material needs and desires. It explains how the unlimited demands and desire of
man or consumer is given satisfaction by the goods and services produced using the
limited economics resources available in the country.

ECONOMICS AS AN APPLIED SCIENCE

Applied science is the discipline that utilizes scientific knowledge to develop

practical solutions to society’s problems.
Economics uses theories to help come up with answers when analyzing a
certain situation. When you put these theories into action by trying things out, you
are actually applying these ideas and bringing them into practice. Simply put, when
economic principles and theories are applied to real-life situations, and outcomes are
predicted because of this, then economics has been applied.
Applied economics thus, is the study or economics relative to real-life
situations. This is done by observing how theories work in practice. Applied
economics usually deals with numbers on which possible outcomes being reviewed
are based and supported.

Branches of Economics

The study of Economics is divided into two branches: Microeconomics and

Macroeconomics.

1. Microeconomics - It deals with the economic behavior of individual units such as

the consumers, firms, and the owners of the factors of production. Such specific
economic units constitute a very small segment of the whole economy. For
example, the price of rice, the number of workers of a certain firm, the income of
Mr. Cruz, the expenditures of PLDT, etc. Microeconomics is also known as the
Price Theory.

2. Macroeconomics - It deals with the economic behavior of the whole economy or

its aggregates such as government, business and households. An aggregate is
composed of individual units. The operation of the various aggregates and their
interrelationship is analyzed to provide a profile of the economy as a whole.
Macroeconomics is concerned with the discussion of topics like gross national
product, level of employment, national income, general level of prices, total
expenditures, etc. It is also known as employment and income analysis.

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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.

WHY STUDY ECONOMICS?

I. To learn a way of thinking: It helps you understand how people make

decisions.
Economics has three fundamental concepts:
• Opportunity cost: the best alternative that people forego, or give up,
when making a choice or decision.
• Marginalism: the process of analyzing the additional costs or benefit
arising from a choice or decision.
• Efficient Markets: a market in which profit opportunities are eliminated
almost instantaneously.

II. To understand society: It helps you understand how people interact with
each other.
• Trade can make everyone better off.
• Markets are usually a good way to organize economic activity.
• Governments can sometimes improve economic outcomes.

III.To understand global affairs and be an informed citizen: It helps you

understand the forces and trends that affect how the economy as a whole.
− The standard of living depends on a country’s production.
− Prices rise when the government prints too much money.
− Society faces a short-run tradeoff between inflation and unemployment.

COMMON TERMS IN THE DEFINITION OF ECONOMICS

 Scarcity: is a situation wherein the amount of something available is
insufficient to satisfy the desire for it.
 Resources: labor, capital, land, and entrepreneurship that are used to
produce goods and services also known as factors of production.
 Production: the process of combining inputs to make something for
consumption. It is the act of creating output.
 Output: a good or services which has value and contributes to the utility of
individuals.
 Distribution: the allocation of the total product among members of society.
 Consumption: the use of a good or service.

It is essential that you familiarize yourself with the study of economics. This
will facilitate your understanding of economic analysis. Specifically you meet

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GOODS –which yields to your satisfaction. It is anything used to satisfy your wants
and needs.
Tangible Goods –material goods or commodities.
Intangible Goods - when they are in the form of services. Those rendered by
doctors, engineers, and other professionals

Classifications of Goods according to use:

1. Consumer Goods – goods for the ultimate consumption of the consumers.

Example: toothpaste, bath soap, etc.
2. Essential Goods- used to satisfy the basic needs of man.
Example: foods and medicine.
3. Economic Goods –goods which are useful and scarce; with value attached
to them and a price has to be paid for their use. If a good is so abundant and
it can satisfy everyone’s needs without anybody paying for it, then, that good
is free. The air is free, but the air from an aircon is an economic good.
4. Capital Goods or Industrial Goods -used in the production of other goods
and service Example: buildings, machinery, equipment.

5. Luxury Goods –goods man may do without but may give comfort and
satisfaction.
Ex., perfume, cakes; chocolates, expensive cars.

Economic Resources

Our economic resources are also known as factors of production or inputs.

There are five major factors of production, which are utilized in our economy. These
are land, labor, capital, entrepreneur, and foreign exchange.

1. Land –
These resources consist of free gifts of nature which includes all natural
resources above, on, and below the ground such as soil, rivers, lakes, oceans,
forests, mountains, mineral resources and climate. Land is considered economic
resources because it has a price attached to it. One cannot utilize this natural
resource without paying for it usually in the form of rent or lease.

2. Labor -
This is also termed as human resources. Labor refers to all human efforts, be
it mental or physical, that help to produce want satisfying goods and services. This
applies not only to workers, farmers or laborers, but also to professionals like
accountants, economists or scientists.
Labor is an indispensable factor in the production of goods and services. In
return, he earns an income in the form of wages and/or salaries.

3. Capital –
It is a finished product, which is used to produce goods. It consists of all man-
made aids to further the production process such as tools, machinery and buildings.
Capital also serves as an investment. Income derived from capital is interest.

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4. Entrepreneur –
An entrepreneur is the organizer and coordinator of the other factors of
production: land, labor, and capital. An entrepreneur is one who is engaged in
economic undertakings and provides society with goods and services it needs. He
utilizes his initiative, talent and resourcefulness in the creation of economic goods.
He is able to compensate himself through the acquisition of profits.

5. Foreign Exchange –
This refers to the dollar and dollar reserves that the economy has. This is
mostly affecting the national economy in terms of import and export
transactions, and in the case of Philippine Overseas Filipino Workers (OFW), is
affecting their remittances of money to their families back home.

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).

YOU CAN DO THIS!

Task 1
Choose the best answer to the following questions. Write your answer on your
answer sheet.

1. A social science which deals with the proper allocation of scarce resources to
satisfy the unlimited human wants.
a. Economics b. Entrepreneurship c. Scarcity d. Capital
2. An economic resource that includes the natural resources:
a. Land b. Labor c. Capital d. Entrepreneur
3. Economics is a social science because it deals with:
a. Human nature b. Natural resources c. Experimentation d. Plants and
animals
4. Another term used for equilibrium

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 a. Stable b. Static c. Balance d. None of the above
5. It is a finished product which is used to produce other goods:
a. Land b. Labor c. Capital d. Entrepreneur
Task 2
Choose the best answer to the following questions below. Write your answer on your
answer sheet.

1. It is use to satisfy the basic needs of man.

a. Essential needs c. Consumer goods
b. Capital goods d. Luxury goods
2. It refers to the insufficient resources to supply all the desires and needs of
individuals
a. Entrepreneurship c. Economic system
b. Production d. Scarcity
3. Decision on resource allocation shall be made together by _____________
a. Corporation c. Businesses.
b. Individuals and society d. Politicians
4. It is the problem on how to make use of the limited and scarce resources
available
a. Economics c. Economic problem
b. Scarcity d. Trade-off
5. For every additional production of a box of milk, there is an equivalent
incremental cost. This is an example of a/an__
a. Opportunity cost c. Marginalism
b. Normative economics d. Efficient market

Task 3
Fill in the blanks with the correct answers. Write your answer on your answer sheet
__________1. It is the branch of economics that studies the behavior of the
economy as a whole.
__________2. It is the study or discipline that aims to explain human behavior.
__________3. It is the study of economics relative to real-life situations.
__________4. It refers to economics “as it should be”.
__________5. It is the science that manages limited resources in demand.
__________6. These are the things people may desire to have but are not
necessary for survival.
__________7. Refers to anything that it used to make a good or services.
__________8. Refers to work performed for another person.
__________9. Refers to the compilation of data that describe phenomena and facts.
__________10. Refers to the foregone value of the next best alternative.

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YOU CAN DO MORE

Task 4
Label each factor of production below using the terms on the box. Write your answer
on your answer sheet
Capital Entrepreneur Natural ResourcesLabor

1 2
. .

3 4
. .

Task 5
Using the following terms, complete the chart below. Write your answer on your
answer sheet

Labor Produces Capital

Needs Services Wants
Goods Natural Resources Four Factors of Production
Entrepreneurship
5
.

8
6 7
.
. .

9
.

Task 6
Briefly discuss your answer in the illustration above. Limit your answer to three to
five sentences. Write your answer on your answer sheet
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

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CHALLENGE YOURSELF!

Task 7
List five examples of needs and wants. Write your answer on your answer sheet.

Needs Wants
1. _____________________________ 1. _____________________________
2. _____________________________ 2. _____________________________
3. _____________________________ 3. _____________________________
4. _____________________________ 4. _____________________________
5. _____________________________ 5. _____________________________
__ __

Task 8
List five examples of goods and services. Write your answer on your answer sheet.

Goods Services
1. _______________________________ 1. __________________________
_ 2. __________________________
2. _______________________________ 3. __________________________
_ 4. __________________________
3. _______________________________ 5. __________________________
_
4. _______________________________
_
5. _______________________________
_

Task 9
Identify the following statement below by arranging the jumbled letters. Write your
answer on your answer sheet.

1. MIRECOOCNOMSCI ______________________ individuals and industries.

2. TENAGILBDSOOG ________________________basic goods/commodities.
3. SARCITYC _______________________________shortage in supply.
4. UXDOOSLUGYR__________________________expensive jewels and gems.
5. CATALPI_________________________________used to produce goods.

LEVEL UP!

Task 10
In your answer sheet, differentiate the two branches of Economics using the
template below.
MACROECONOMICS MICROECONOMICS

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Task 11
In your answer sheet, explain the following question in a minimum of three (3)
sentences.

Question: How do you assess our economy today? Is it underdeveloped?

Developing? Or developed? Why? Justify your answer.

Task 12
CLASSIFICATION OF GOODS
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; wristwatch; aircon to ventilate her
store and coffee maker for her store.

Consumer Industrial Luxury Economic Essential

Goods Goods Goods Goods Goods

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VII. Notes to teachers:
Rubric for Essay
Criteria Outstanding Very Satisfactory Did Not Meet Scor
Satisfactory Expectation e
3 2 1 0
Focus/Main The essay is The essay is The essay is The essay
Point focused, focused on the focused on poorly
purposeful, topic and topic and addresses
and reflects includes includes few topic and
clear insight relevant ideas. loosely related includes
and ideas. ideas. irrelevant
ideas.
Support Persuasively Supports main Supports main Provides little
supports main point with point with or no support
point with well- developed some for the main
developed reasons underdevelope point.
reasons and/or d reasons
and/or examples. and/or
examples. examples.
Organizatio Effectively Organizes Some Little or no
n organizes ideas to build organization of organization of
ideas to build an argument, ideas to build ideas to build
a logical, an argument. an argument.
coherent
argument.
Language Effective and Appropriate Some use of Little or no use
Use, style creative use of use of elements of of elements of
& elements of elements of style. Contains style. Many
Convention style to style. Uses frequent errors errors in
s enhance correct in grammar, grammar,
(Sentence meaning. grammar, spelling, and spelling, and
structure, Uses correct spelling, and punctuation. punctuation,
word grammar, punctuation makes
choice, spelling, with few reader’s
grammar, punctuation errors. comprehensio
spelling, throughout n difficult.
punctuation with very few
) errors.
Originality Distinctive Sufficient Very little No
(Expressio experimentatio experimentatio experimentatio experimentatio
n of the n with n with n to enhance n nor
theme in a language and language and concepts. enhancement
creative usage to usage to Does not of concepts.
way) enhance enhance exhibit No adherence
concepts. concepts. creativity. to the theme.
Applies higher Applies basic
order thinking creative skills
and creative to relay ideas.
skills to relay
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 complex
ideas.
TOTAL 15

SCORING

Points Earned Descriptive Rating

15 Outstanding
12-14 Very Satisfactory
9-11 Satisfactory
Below 8 Did not meet expectations

VIII. Answer Key to the Tasks:

Task 1 Task 2 Task 3
1. c 1. a 1.Macroeconomics 6.Wants
2. b 2.d 2. Social Science
7.Resources
3. c 3.d 3. Applied Science
8.Services
4. a 4. c 4.Normative Economics
9.Descriptive Economics
5. b 5. c 5.Economics
10.Opportunity Cost

Task 4 Task 5 6.
Produces
1. Natural Resources 1. Four Factors of Production 7.
Goods and services
2. Labor 2.Labor 8.Needs and
wants
3. Capital 3.Capital
4. Entrepreneur 4. Natural Resources
5. Entrepreneur

Task 9
1. Tangible goods
2. Microeconomics
3. Scarcity
4. Luxury Goods
5. Capital Goods

Task 12
1. Essential goods: Canned goods; bread; sacks of rice; meat; vegetables;
2. Consumer goods: toothpaste; bath soaps
3. Luxury Goods: perfumes; wristwatch
4. Industrial goods: Coffee maker
5. Economic Goods: unit of air-conditioning

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