(Applied Economics) Interactive Module Week 2

Yllana Bay View College, Inc.
“The Builder of Future Leaders”

Senior High School Department
Enerio Street, Balangasan District, Pagadian City
Contact Number: (062) 2154176 / Email Address: [email protected]
INTERACTIVE MODULE
FOR
APPLIED ECONOMICS
ABM MODULE
ANN MARGARET A.
DELA FUENTE
Educ’l Attainment: BS in Accounting
Technology (BSAcT)
Subject: Applied Economics
Topic: Introduction to Applied Economics
TNT: 09460677235
Margaret Dela Fuente
[email protected]
Module Content:
Lesson 1.2: Economics as an Applied Science
Lesson 1.3: Basic Economic problems and the Philippine
socioeconomic development in 21st century
LEARNING OUTCOME/COMPETENCIES
The learners…
 Define basic terms in applied economics
 Identify the basic economic problems of the country
 Explain how applied economics can be used to solve economic problems.
Introduction to Applied Economics
I. Pretest (True of False)

Direction: Write the correct answer on the Activity Sheet.
__________1. Applied Economics is the application of economic theory and econometrics in specific
settings with the goal of analyzing potential outcomes.
__________2. Unemployment is still a main problem of the Philippine economy despite
improvements reported by the National Statistics Office.
__________3. Positive economics are things that are not actually happening.
__________4. Normative Economics refers to what should be that which embodies the ideal such as
the ideal rate of population growth or the most effective tax system.
__________5. The Philippine economy has grown significantly during President Gloria Macapagal-
Arroyo’s administration.
__________6. Another significant socio-economic problem in the country is poverty.
__________7. The graft and corruption of the politicians is one of the Philippines’ Basic Economic
Problems
__________8. The population of the Philippines in 2019 is 100 million individuals.
__________9. Lee Kuan Yew is an economic icon and an example of how a leader of a previously
undeveloped country can lead to overcome its country’s basic economic problems and move toward
economic growth.
__________10. Lee Kuan Yew was the King of Singapore from 1959 to 1990.
__________11. John Neville Keynes is attributed to be the first to use the phrase “applied
economics” to designate the application of economic theory to the interpretation and explanation of
particular economic phenomena.
__________12. A weak understanding of economic principles and how they are applied in real-life
situation can serve as significant tools to help address the country’s economic problem.
__________13. PSA means Philippine Statistics Administration
__________14. PSA released the Labor Force Survey to show country’s unemployment rate.
__________15. Estimated 4 million individuals have no work in July 2015.
II. Class Activity

Direction: Kindly write your answer in a long bond paper or Yellow Pad paper.
1. Cut out a news item that is related to any economic issue then paste it in the long
bond paper. Decide if the issue is related to scarcity. If so, why and how? Write your
answer beneath the cut-out news.
2. Show your regular allowance for the week and how you budget this for your school
and personal expenses.
III. Instruction on the Proper use of this module:

1. Follow closely the instruction in every activity.
2. Be honest in answering and checking your exercises.
3. Answer the pre-test before going over the materials. This is to find out what you already
know.
4. Answer the exercises encountered at the end of every lesson.
5. Review the lesson that you think you failed to understand.
6. Seek assistance from your teacher if you need help.
IV. Introduction
Everybody goes through a day faced with constraints or limitations: motorists
complain of high gasoline prices, times when people suffer due to shortage of chicken in the
market, or insufficient allowance for a student who needs to buy books and school supplies.
People always complain about not having enough – not enough food on the table, not enough
money to pay one’s debt, or not enough income to meet all the family’s need. This, in effect,
is the existence of what we call scarcity or kakulangan, that is insufficiency of resources to
meet wants of consumers and insufficiency of resources for producers that hamper enough
production of goods and services. Scarcity is the reason why people have to practice
economics.
LESSON 1.2: ECONOMICS AS AN APPLIED SCIENCE
 Applied Economics is the application of economic theory and econometrics in specific

setting with the goal of analyzing potential outcomes.
 It is typically characterized by the application of the core, referring to economic theory
and econometrics, as a means of dealing with practical issues in fields that include
demographic economics, labor economics, business economics, monetary economics,
economic history, and many others.
 John Neville Keynes – is attributed to be the first to use the phrase “applied economics”
to designate the application economic theory to the interpretation and explanation of
POSITIVE ECONOMICS VERSUS NORMATIVE ECONOMICS

a. Positive Economics – deals with what is – things that are actually happening such as the
current inflation rate, the number of employed labor, and the level of the Gross National
Product. To simply say, it is an overview of what is happening in the economy that is
possibly far from what is ideal.
b. Normative Economics – refers to what should be – that which embodies the ideal such as
the ideal rate of population growth or the most effective tax system. It focuses on policy
formulation that will help to attain the ideal situation.
Activity 1.2: Write your answers on the activity sheet.
1. WHY SHOULD WE APPLY ECONOMIC THEORY IN OUR LIVES?

2. WHY IS THE CONCEPT OF SCARCITY AND CHOICE IMPORTANT IN OUR LIVES?
LESSON 1.3: BASIC ECONOMIC PROBLEMS AND THE PHILIPPINE

SOCIOECONOMIC DEVELOPMENT IN 21st CENTURY
A solid understanding of economic principles and how they are applied in real-life situations can
serve as significant tools to help address the country’s economic problem. For example,
understanding the existence of scarcity can help Economics students analyze how to maximize the
use of available resources in order to overcome scarcity. Knowledge of economic theories such as
the Law of Supply and Demand can help in analyzing why prices are high and what the
government can do to help bring down prices.
THE PHILIPPINES’ BASIC ECONOMIC PROBLEMS

 During President Benigno Simeon Aquino’s administration, the Philippine economy has
grown significantly with a growth rate of the Country’s Gross Domestic Product of 6.8%
in 2012, improving to 7.2% in 2013, and slowing down to 6.1% in 2014, these rates are
an improvement of past rates preceding President Aquino’s term. It is also higher that its
Asian neighbors such as Malaysia, Thailand, South Korea, Hongkong, India and
Indonesia (CIA World Factbook 2013)
 Unemployment is still a main problem of the Philippine Economy despite improvements
reported by the National Statistics Office.
 Philippine Statistics Authority (PSA) released the Labor Force Survey that shows the
country’s unemployment rate at 6.4% or an estimated 2.68 million individuals in July
2015.
 Poverty is also one of the significant socio-economic problem in the country. As reported
by the National Statistics Coordination Board, in 2006, poverty incidence of the
population registered at 26.4%, 26.5 in 2009, 25.2 in 2012, and 28.8% in the first
semester of 2014.
 Population Growth is another basic economic problem that can be connected to the
issue of scarcity. When the population becomes too big, economic resources may no
longer be enough to support the growing population. Let us take a look at the basic
population data.
Philippine Population:
a. 2010 – 92.3 million individuals

b. 2014 – 100 million: growing by 2% from the previous year and one of the highest in
Asia.
c. 2019 – 104 million individuals
The population of the Philippines in 2014 represents 1.37% of the world’s total Population.
This is apparently the reason why schoolrooms are not enough for our children who are of
school age. This could also be an explanation why government hospitals are crowded with
sick people and maternity wards are full of women giving birth with hospital beds that are not
enough to accommodate them.
The country’s problems vary with times and circumstances. It is now a challenge for the students
to observe and identify what these problems are.
Activity1.3: Give at least one possible solution for each Philippine Problem and elaborate.
1. Unemployment
2. Poverty
3. Population Growth
ASEAN ICON
LEE KUAN YEW (1923 – 2015)

 He is an economic icon and an example of how a leader of a previously undeveloped
country can lead to overcome its country’s basic economic problems and move toward
economic growth.
 He was the prime minister of Singapore from 1959 to 1990, making him the longest-
serving prime minister in history.
 Singapore became the most prosperous nation in Southeast Asia during his long rule.
 Bong in Singapore on September 16, 1923, Lee Kuan Yew became the longest-serving
prime minister in world history.
 Before Lee rose through the ranks of his country’s political system, Singapore was a poor
nation that is mired in debt and plagued by poverty.
 When he became the first prime minister of Singapore in 1959, he introduced a five-year
plan calling:
a. Urban renewal
b. Construction of new public housing
c. Greater rights for women
d. Educational Reform
e. Industrialization
 In 1962, Lee led Singapore into a merger with Malaysia but three years later, Singapore
left the union for good.
 Lee resigned as prime minister in 1990 and his son became the prime minister in 2004.
 He died on March 23, 2015.
Lee has left behind a legacy of an efficiently run country and as a leader who brought
prosperity unheard of before his tenure, at the cost of a mildly authoritarian style of government
and by imposing disciple among his people. By the 1980s, Singapore, under Lee’s guidance, had
a per capita income second only to Japan’s in East Asia and the country had become a chief
financial center of Southeast Asia envied by many Asian countries including the Philippines.
Activity 1.4: Write your personal opinion on the following questions.
1. What can you say about Lee Kuan Yew’s rule over Singapore?
2. What did you learn from him?
3. What do you wish for our country in next 10 years? Elaborate.
V. NEW LEARNINGS
 Applied Economics is the application of economic theory and econometrics in specific
setting with the goal of analyzing potential outcomes.
 John Neville Keynes is attributed to be the first to use the phrase “applied economics”.
 Positive Economics is an overview of what is happening in the economy that is possibly
far from what is ideal.
 Normative Economics focuses on policy formulation that will help to attain the ideal
situation.
 Philippines’ basic economic problems are unemployment, poverty and population growth
 Lee Kuan Yew is the longest prime minister in the world history ruling over Singapore.
VI. WHAT CAN I DO?

Direction: Write your answers on the Activity sheet.
1. Why is economics deeply rooted in the concept of scarcity?

2. In what ways is applied economics important in tackling economic issues or problems of the country?
3. Why is studying applied economics important? How can studying it contribute to the economy of the
Philippines.
TRUE OR FALSE
__________1. Applied Economics is the application of economic theory and econometrics in specific
settings with the goal of analyzing potential outcomes.
__________2. Unemployment is still a main problem of the Philippine economy despite
improvements reported by the National Statistics Office.
__________3. Positive economics are things that are not actually happening.
__________4. Normative Economics refers to what should be that which embodies the ideal such as
the ideal rate of population growth or the most effective tax system.
__________5. The Philippine economy has grown significantly during President Gloria Macapagal-
Arroyo’s administration.
__________6. Another significant socio-economic problem in the country is poverty.
__________7. The graft and corruption of the politicians is one of the Philippines’ Basic Economic
Problems
__________8. The population of the Philippines in 2019 is 100 million individuals.
__________9. Lee Kuan Yew is an economic icon and an example of how a leader of a previously
undeveloped country can lead to overcome its country’s basic economic problems and move toward
economic growth.
__________10. Lee Kuan Yew was the King of Singapore from 1959 to 1990.
__________11. John Neville Keynes is attributed to be the first to use the phrase “applied
economics” to designate the application of economic theory to the interpretation and explanation of
__________12. A weak understanding of economic principles and how they are applied in real-life
situation can serve as significant tools to help address the country’s economic problem.
__________13. PSA means Philippine Statistics Administration
__________14. PSA released the Labor Force Survey to show country’s unemployment rate.
__________15. Estimated 4 million individuals have no work in July 2015.
BIBLIOGRAPHY
APPLIED ECONOMICS by Rosemary P. Dinio, PhD and George A. Villasis
Book of Economics (New Edition) by Gerardo P. Sicat
Wikipedia.org

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Yllana Bay View College, Inc.

“The Builder of Future Leaders”

Margaret Dela Fuente

I. Pretest (True of False)

II. Class Activity

III. Instruction on the Proper use of this module:

LESSON 1.2: ECONOMICS AS AN APPLIED SCIENCE

 Applied Economics is the application of economic theory and econometrics in specific

POSITIVE ECONOMICS VERSUS NORMATIVE ECONOMICS

Activity 1.2: Write your answers on the activity sheet.

1. WHY SHOULD WE APPLY ECONOMIC THEORY IN OUR LIVES?

LESSON 1.3: BASIC ECONOMIC PROBLEMS AND THE PHILIPPINE

THE PHILIPPINES’ BASIC ECONOMIC PROBLEMS

a. 2010 – 92.3 million individuals

LEE KUAN YEW (1923 – 2015)

Activity 1.4: Write your personal opinion on the following questions.

VI. WHAT CAN I DO?

1. Why is economics deeply rooted in the concept of scarcity?

APPLIED ECONOMICS by Rosemary P. Dinio, PhD and George A. Villasis

Book of Economics (New Edition) by Gerardo P. Sicat

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