ABM Grade 12

PIVOT IV-A Learner’s Material

Quarter 1 Module 1
First Edition, 2020

Development Team of the Module

Author: Florenda R. Manongas To
Michelle Madiline
R. Angeles.MBA
Editor: Reviewer:
Illustrator:
Layout Artist:
Management Team:
 MODULE 1: Week 1-2

Applied
Economics
Quarter 1- Module 1

Introduction to Applied Economics

Most Essential Learning
Competencies
Week 1- Week 2

❖ Differentiate Economics as Social Science and Applied Science in

Terms of Nature and Scope
❖ Examine the Utility and Application of Applied Economics to Solve
Economic Issues and Problems
 MODULE 1: Week 1-2

Introductory Message
FOR THE FACILITATOR

Welcome to Grade 12 Applied Economics PIVOT IV-A Learner’s Material.

This module collaboratively designed, developed and reviewed by educators to assists you,
the
teacher or facilitator in helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social and economic constraints in schooling.
The learning resource hopes to engage the learners into guided and independent learning
activities
at their own pace and time. Furthermore, this also aims to help the learners acquire the needed 21st century
skills while taking into the consideration their needs and circumstances.
As a facilitator you are expected to orient the learners on how to use this module. You also need to
keep track of the learner’s progress while allowing them to manage their own learning. Furthermore, you are
expected to encourage and assist the learners as they do the tasks included in the module.

FOR THE LEARNER

Welcome to Grade 12 Applied Economics PIVOT IV-A Learner’s Material.

The hand is one of the most symbolized part of the human body. It is often used to depict skill, action
and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in this learning module
signifies that you as a learner is capable and empowered to successfully achieve the relevant competencies
and skills at your own pace and time. Your academic success lies in your own hands!

This module has the following parts and these are the following:
 MODULE 1: Week 1-2

This comprises activities for independent practice to solidify

your understanding and skills of the topic. You may check the
answers to the exercises using the Answer Key at the end of
the module.

This includes questions or blank sentence/paragraph to the

What I Have Learned filled in to process what you learned from the lesson.

This section provides an activity which will help you transfer

What Can I Do your new knowledge or skills into real life situations or
concerns.

This is a task which aims to evaluate your level of mastery in

Assessment
achieving the learning competency

In this portion, another activity will be given to you to enrich

Additional Activities your knowledge or skill of the lesson learned. This also tends
retention of the learned concepts.

Answer Keys This contains answers to all activities in the module.

 MODULE 1: Week 1-2

What I Need to Know?

This module consists of the following lesson.

✓ Differentiate economic as social science and applied science in terms of nature and scope
✓ Cite essential factors which adversely affect economic growth.

At the end of the lesson, the learners are expected to:

✓ Define Basic terms in Applied Economics

✓ Explain concept of Economics
✓ Identify the basic economic problems of the country
✓ Explain how applied economics can be used to solve economic problems

What I know

Pre- Assessment

PART 1. Directions: Find out how much you already know about this module. Choose the
letter of the best answer. Write the chosen letter on a separate sheet of paper.

1. Is a study of the ways that individuals and societies allocate their limited resources to satisfy their
unlimited wants?
a. Human nature
b. Natural resources
c. Experimentation
d. Plants and Animals
2. Economic is important so that we may be able to:
a. Understand problems facing the citizens and family
b. Help the government promote growth and improve quality of life.
c. Analyze fascinating patters of social behavior
d. All of the above

3. A study of Economics can be describe all aspects of a:

 MODULE 1: Week 1-2
a. Country’s economy
b. Production function
c. Consumption of individuals
d. Market
4. Economics is a science because:
a. It can predict the future
b. It conducts experiment in a laboratory
c. It measures the quantity of output
d. It undergoes observation and experimentation
5. As social science, economics can be more:
a. Predictable
b. Unpredictable
c. Changeable
d. All of the above
6. Economics is derived from Greek word “oikanomia” meaning?
a. Economic management
b. Household management
c. Social management
d. Political Management
7. Scarcity of resources means?
a. Minimum resources
b. Shortage of resources
c. Slight resources
d. Excess resources
8. Unlimited wants means?
a. Infinite
b. Limited
c. Perfume
d. Watch
9. These are example of human wants except:
a. Smartphone
b. Clothing
c. Perfume
d. Watch
10. Allocation of resources means:
a. Apportionment of resources
b. Stocking of resources
c. Keeping of resources
d. Protection of resources
11. It is also termed as human resource:
 MODULE 1: Week 1-2
a. Land
b. Labor
c. Capital
d. Entrepreneur
12. It refers to the allocation of products among the factors of production:
a. Production
b. Consumption
c. Distribution
d. Exchange
13. Macroeconomics deals with the following except:
a. Gross National Product
b. Employment
c. National Income
d. Price of rice
14. Economics is important so that we may be able to:
a. Understand problems facing the citizen and family
b. Help the government promote growth and improve quality of life
c. Analyze fascinating patterns of social behavior
d. All the above
15.The simplest application of mathematics for economic analysis is found in this field because It explains
the relationships:
a. Physics
b. Chemistry
c. Geometry
d. Sociology
16. Once the good is produced, how shall they be distributed?
a. What to produce?
b. How to produce?
c. For whom to produce?
d. How much to produce?
17.Goods and services to be produced are based on the needs of the consumers.
a. What to produce?
b. How to produce?
c. For whom to produce?
d. How much to produce?
18. It is a study of Economics in relation to real world situations as opposed to the theory of economics.
a. Economics
b. Applied Economics
c. Pure Economics
d. Macroeconomics
 MODULE 1: Week 1-2
19. Scarcity means?
a. Infinite resources
b. Finite resources
c. Definite resources
d. Unlimited resources
20. Because of scarcity, people and economies must make decisions over how to:
a. Allocate resources
b. Import resources
c. Export resources
d. Stagnation of resources

PART II. Directions. Matching Type: Match column A to column B. Write the letter of the
correct answer in a separate sheet.

Column A Column B
21. Factors of Production A. Services

22. Scarcity B. Entrepreneur

23. Natural Resources C. Profit

24. Capital D. Land

25. Entrepreneurial ability E. Not enough of everything to satisfy

everybody’s wants

26. Human resources F. Goods

27. Intangible G. Rent

28. Risk Taker H. Economics

29. Price Paid for the use of labor I. Wages

30. Machinery and tools are examples of which J. Capital

factors of production
 MODULE 1: Week 1-2
31. Tangible items of value K. Labor

32. The return of land L. Interest

33. Social Science that describes how society chooses M. Land, labor, capital, entrepreneurial
from among scarce resources ability

34. The acts of making goods and services. N. Production

35. The acts of using the goods produced. O. Consumption

Lesson

1
Introduction to Applied Economics

What’s In

Activity 1

Create a list of needs of ten (10) people and assign a value to each need, below is the example:

Name Water Food Clothes Electricity

Marcus Php 150.00 Php 1500.00 Php 300.00 Php 1,500.00

Margaux Php 200.00 Php 1,000.00 Php 250.00 Php 1,800.00

Make your own observations and write a generalization derived from your list as you
explain the
role of economics in daily life. Write your answer on your answer on a separate answer sheet.
 MODULE 1: Week 1-2

What’s New

Economics as a Social Science

One of the popular attempts to define economics suggests that “economics is the science which studies
human
behavior as a relationship between ends and scarce means which have alternative uses.” A definition which has also
gained prominence is that “economics is the study of the ways that individuals and societies allocate their limited
resources to satisfy their unlimited wants.”
It is important to recognize the following aspects of economics:

1. It is a science concerned with human behavior.

2. It is concerned with the choices we make and the consequence of these choices for ourselves and others. In
fact the central focus of economics is on choice and decision making.
3. It is concerned with man’s material welfare.

Economics is by no means the product of the single mind, but probably no one is more deserving of
this
title “Father of Economics” than Adam Smith. His book “An Inquiry Into The Nature and Causes of the
Wealth of Nations” in 1776 attracted widespread attention and helped establish economics as a scientific
field of study apart from political science and moral philosophy.
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 as a social science has common ground with other social sciences. Economics borrows
freely from the works of psychologists, sociologists, anthropologists, legal scholars, ecologists, biologists,
political scientists and philosophers, all of whom offers alternatives of the economic way of thinking about
how the world works. But economics has some advantages over the social sciences. Firstly, the economic
motives of human beings are more regular and therefore predictable. Secondly, there is more available
factual information in the form of economic statistics that can be the basis of theoretical verification.

The problems of economics arise out of the scarcity of resources to satisfy human wants. Human
wants are unlimited, but the resources (land, labor, and capital) required to satisfying them are limited. If
human wants are unlimited, but resources to satisfy those wants are limited, then people in the society face
the problem of scarcity.

Everyone has to make choices. You may see many items that you would like to have, but you cannot
afford to buy them all. Business owners, managers, team leaders and even government must make right
decision because they cannot have everything. There will always be difference because they cannot have
 MODULE 1: Week 1-2
everything. There will always be difference between what people want and the resources available to satisfy
those wants.

Economic Resources
Economic resources are factors of production used to produce things that people desire in order to
satisfy their wants. The things that people produces are called commodities, Commodities may be divided
into goods and services. Goods are tangible, like bags or shoes, and services are intangible, like haircuts
or education, The act of making goods and services is called production, and the act of using them to satisfy
your wants is called consumption.

It has been conventional to categorize economic resources (factors of production) as

land, labor,
capital and entrepreneurial ability.

Categories of Economic Resources

Land. It includes all natural resources (gifts of nature) used in the production process.
These include
mineral and oil deposits, water, fertile soil, air, climate forest, wildlife, and rain.
• Payment for the use of land is called rent. Rent is income to the owner of the land.

Labor or Human Resources. It refers to the physical and mental talents to produce
goods and
services.• Payment for the use of labor is called wage. Wage is income to laborers, who own their
labor.

Capital. Man-made or manufactured resources or also known as capital goods used in

producing consumer goods. These include buildings, machine, tools, equipment, roads, highways,
bridges and even software.

• Payment for the use of capital is called interest.

Entrepreneurial Ability. Special skills of an individual needed to produce goods and

services like
managerial and organizational skills.
• Profit. Income of an entrepreneur after deducting the payments from the owners of land,
labor and capital.
 MODULE 1: Week 1-2
Economics as an Applied Science

Applied Economics is the study of economics in relation to real World situations, as opposed to the theory
of economics. It is the application of economic principles and theories to real situations, and trying to predict what the
outcomes might be.

Economics as an Applied Science helps students to learn about relationship of a business and basic
economic theories. It offers many opportunities to measure their academic and personal growth and improve their
educational career planning. It focuses primarily on theoretical business economics. It focuses on urban problems, the
health-care crisis, agricultural problems, poverty, economic growth and the environment.

Economic theory is a broad concept for the explanation and understanding of the movement of goods
and
services in the market. For example, the theories of the behavior of individuals and institutions engaged in the
production, consumption, distribution and exchange of goods and services.
Economic theory uses different economic models to describe how the people react to a particular
economic
situation.
Economic models may be in the form of verbal expression, numerical tables, and mathematical
equations or
diagram used to understand economic events.
The law of supply and the law of demand are good example of a useful economic model. The law of supply
states that, other things being equal, as price increases, the quantity supplied increases, and as price decreases, the
quantity supplied decreases, the quantity demanded decreases, and as price decreases, the quantity demanded
increases. This topic law of supply and demand will further discussed on the next lesson.

What Is It

Applied Economic Application

Applying economic theories to current economic conditions can be extremely

helpful for three key reasons.

1. Applying economics to the status of the economy of a company, a household or a country helps to sweep
aside all attempts to dress up the situation so that it will appear to be worse or better than it actually
is.
2.Applied economics acts as a mechanism to determine what steps can reasonably be taken to improve
3. Applied the
economics can teachsituation.
current economic valuable lessons on how to avoid the recurrence of a negative situation, or
at least minimize the impact.
 MODULE 1: Week 1-2

s you can see in the illustraton above,

Economic Theory is all about thinking things up, while pplied Economics is about
trying things out.

What is Econometrics?

Econometrics is the application of statistical and mathematical theories to economics for the purpose
of
testing hypotheses and forecasting future trends. Econometrics takes economic models and tests them through
statistical trials. The results are then compared and contrasted against real-life examples.
Econometrics can be subdivided into two major categories: theoretical and applied.

Econometrics uses tools such as frequency distributions, probability and probability distributions,
statistical
inference, simple and multiple regression analysis, simultaneous equation models and time series methods.

Why Study Economics?

a. Decision-Making Skills. An exposure to quantitative problem solving techniques is an important part of

economics. The business sector typically rewards employees who have acquired specific quantitative skills.
The study of economics gives you an opportunity to acquire those necessary skills.
b. Problem Solving Abilities. People with education in economics develop an appreciation of the social security.
The issues are complex and the ability to deal with them suggest ways of improving our standard of living in
the broadest sense that requires clear thinking.
c. Job Opportunities. Better job opportunities wait the economics graduate. Business and government are
increasingly aware of the need for people who are trained in economics. They are employed in teaching,
government services, banks and business firms. Their duties may include research, economic analyst,
forecasting and consultants on capital investments.
 MODULE 1: Week 1-2

Basic Economic Problems

The fundamental problem of economics is to determine the most efficient ways to allocate the resources.
The
decision must be made to transform the different economic resources into goods and services to satisfy their
need and want.
• In today’s world, it is commonly believed that scarcity is the root of all economic problems. But this
important aspect was neglected by Alfred Marshall.

• In 1932, Lionel Robbins offered a new definition, the scarcity definition which was accepted by most economists
and no one challenged the definition then.

• Scarcity of means for satisfying various needs is the central problem of our economic life and it is scarcity
that created the need to make a choice.

• Scarcity refers to the tension between our limited resources and our unlimited wants and needs. For an
individual, resources include time, money, and skill.

• Because of the scarcity of resources, every economic system is faced with the following problems:

There are three basic questions to make the right decisions:

➢ What to produce?
➢ How to produce?
➢ For whom to produce?

What to produce?

Every economy must determine what goods and services are to be produced and in what quantities of each,
to produce. In some, the buyers and the producers need to produce in order to obtain things and exchange the things
they already own. Since society cannot have everything, they must decide which goods and services they want now and
which one to give up.

First of all, the system must determine the desires of the people. Goods and services to be produced are
based on the needs of the consumers. However, there are some factors that should be taken into consideration in
producing the goods and services the individuals need. These are:

➢ Availability of resources;
➢ Physical environment; and
➢ Customs and traditions of the people.
 MODULE 1: Week 1-2

How to produce?

The company must decide on how to use the resources to produce goods and services. What
combinations
of resources and technologies will be used to produce goods and services at lowest cost? The manufacturer may wish
to maximize profits and minimize production costs. They may be combine labor and capital given the prices of labor and
capital and productivity of those resources.
Through several combinations of resources, goods are produced. A clear knowledge of manipulating
the
different factors of production helps a lot in coming up with the desired output. However, the quality of output must
come first before quantity.

For whom to produce?

This question determine the distribution of goods and services. Goods and services will be distributed to
buyers in the basis of their ability and willingness to pay its existing market price. The ability to pay the prices for goods
and service depends on the amount of income that buyers have, along with the prices of, and tastes and preferences
for various goods and services.

For Example, who will get the car and the computers that have been produced? This is often
called the
problem of distribution.

Basic Economic Problems of the County

Philippines appeared to be one of the fastest growing economies of Asia. As reported by the Philippine National
Statistical Coordination Board, the Philippines economy grew an annual 6.3 percent in the December quarter of 2015.
According to the Philippine National Statistics Office, Philippines annual inflation rate slowed to 1.3 percent in January
2016 from 1.5 percent in December, recorded a Current Account surplus of 88.41 US$ Million in September of 2015 as
reported by the Bangko Sentral ng Pilipinas but still need to address different economic problems to achieve economic
growth. There are four (4) economic problems of the country and these are the following:

1. Unemployment. According to the Labor Force Survey, the unemployment rate was 6 percent in October 2014 and 6.6
percent in January 2015. Unemployment remains a persistent problem in the Philippines because of its increase in
population. As reported by the Bangko Sentral ng Pilipinas, the total population in Philippines was last recorded at 102.2
million people in 2015 from 26.3 million in 1960. The number of people entering the job market has been greater than
the number of jobs created. The rural-urban migration increases due to insufficient employment opportunities. Many
of the unemployed individuals are college graduates.

What Can Be Done to Solve Unemployment Problem?

a. Appropriate economic policies for labor-intensive industries.

b. Improvement in the educational system of the country especially in the rural areas.
c. Minimize rural-urban migration by improving the economic environment in the rural areas.
 MODULE 1: Week 1-2
d. Provision of more investment opportunities to encourage local and international investment like tax
incentives.
e. Proper coordination between the government and the private sector to solve the problem of
job
f. Decreasing the retirement age from 65 to 60 for public sector to give chance to younger generation
mismatch.
to
enter the labor market but providing an attractive well-defined benefit pensions and retiree health care for
g. Slowing population growth. To improve standard of living of the Filipinos, Philippine economic growth must
retirees.
increase faster than its population. If the country’s output over a period of time increased by 5 percent, while
its population increased by 20 percent, standard of living is better in the beginning of the period but difficult
in the end. If population increased by 5 percent, while output increased by 20 percent, standard of living would
have been improved. The government must encourage people to limit the size of their families and at the same
time increasing economic growth.

2. Poverty. As a fast-growing economy, with 6.3 percent Gross Domestic Product for the 4th Quarter of 2015, still there
is a decline in the incidence of poverty in the Philippines. Poverty remained not only an economic problem but also a
social problem of the country. Increase in population, increase in the cost of living, unemployment, inequality in the
distribution of income are some of the reasons why a decline in poverty is very slow.

What Can Be Done To Solve Poverty Problem?

a. Reduce unemployment.
b. Appropriate policy on labor income.
c. Promote economic growth to improve the standard of living.
d. Provision of unemployment benefits for those who will be unemployed due to natural and man-made
calamities.
e. Increasing social services like education, health care and food subsidies leads to sustainable poverty
reduction.

3. Quality of Infrastructure. Based on the Global Competitiveness Report 2014-2015, the Philippines ranks 91st out
of 144 countries on a World Economic Forum survey of infrastructure quality. This can be the result of low investment
on infrastructure projects. The budget for infrastructure is consistently below 3 percent of Gross Domestic Product
(GDP) and the government spending on social infrastructure for education and health is only 4 percent of GDP. From
the economist’s point of view of poor infrastructure, the 2.2 million vehicles a day experiencing traffic congestion cost
the country Php876 billion a year, or more than $20 billion, in lost productivity and wasted energy based on the study
conducted by the Japan International Cooperation Agency that would cost a serious drain on an economy of about $250
billion.
 MODULE 1: Week 1-2

What Can Be Done to Improve the Quality of Infrastructure?

a. Quality infrastructure increases macro-level competitiveness and encourages investments. In

order to ease infrastructure constraints, the Philippines need to achieve a gradual increase in
infrastructure investments to at least 5 percent of Gross Domestic Product (GDP), and an increase
in the efficiency of spending.
b. The government shall implement fiscal reform program.
c. Continues reform in key sectors-particularly power, roads, and water-to improve cost
recovery,
d. and
competition, Improving central
institutional oversightand
credibility, of the planning
to sharply and coordination
reduce corruption of investments.
e. Focus on investments through public-private partnerships to address key bottlenecks, and
achieve
quick gains in service delivery.

4. Income Inequality. Income inequality is the money that an individual earned from work or business received from
investments. Income inequality refers to the gap in income that exists between the rich and the poor.

The following are the major cause of income inequality in the Philippines:

a. Political culture can be considered as one of the major causes of income inequality in the
Philippines. The “palakasan” and the “utang na loob” that cannot be avoided especially after
election. If you are relatives or friends or someone in power they can have all the chances to get
the position even without or less knowledge on the position given to them.“Utang na loob” is
indebtedness to person to repay whatever good things they have done to you. It may be in a form
of voting for them in the election or do something for them till the end.

b. Indirect taxes also is one of the major causes of income inequality. Indirect tax is a regressive
tax that poor people shoulder the burden of paying higher taxes like the Value Added Tax.

Example is a 12% VAT is imposed on the gross selling price on the sale, barter or exchange
of goods and properties, as well as on the gross receipts from the sale of services within
the Philippines.

c. Income Taxes A Filipino worker receiving minimum wage is exempted in the payment of income
tax, but for those Filipino workers earning more than the minimum wage is taxed 32 percent or
more.
 MODULE 1: Week 1-2

Example of Tax exempton and Income tax rate in the Philippines

What can be done to solve the Problems of Income Inequality?

a. Direct money transfers and subsidize food programs for the urban and rural poor.

b. Direct government policies to keep the price of essential products low.

c. Reform people’s political culture.
d. Encourage and expand collective bargaining
e. Encourage profit sharing

What’s More

Activity 2

Practice what you have learned.

Write your answer on your activity sheet.

1. Define Economics on your own words.

______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
 MODULE 1: Week 1-2

2. Differentiate economics as social science and applied science.

Social Science ____________________________________________

ECONOMICS pplied Science ___________________________________________

3. Collect at least 5 issues (news clippings) pertaining to Philippine economy .How these issues affect you as a
student and as individual.
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________

Activity 2.1

Identify some of the problems in our country. Do the identified problems have something
to do with
economics?
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________

Discuss the impact of COVID-19 pandemic crisis in our economy?

_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________

If you are the economic planner, how can you resolve unemployment? List down your options

_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
 MODULE 1: Week 1-2

Activity 3

Compare economic condition in our country under traditional and the ‘new normal”

TRADITIONAL “NEW NORMAL”

Name the three (3) central problem of an economy? Suggest some solutions in each problem?

_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________

What I Have Learned

Activity 4
 MODULE 1: Week 1-2
To better understand the term used in the module, complete the sentence on the words provided below.
Write your answer on the activity sheet.

1. Economics 6. Scarcity

2. Economic Resources 7. Economic Theory

3. Economic as Social Science 8. What to produce

4. Economic as Applied Science 9. How to produce

5. Econometrics 10. For Whom to produce

Activity 4.1

Assuming that you are the leader of the country, what would you do to solve the four (4) Economic
problems of the country? Suggest solution of each problem.

_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________

What can you say about the program of our government on how to address the economic crisis in
our country amid of COVOD-19 pandemic?

_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
 MODULE 1:

Week 1-2
Explain how applied economics can be used to solve economic problems.

_______________________________________________________________________________________________________
Activity 4.2
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________

Activity 5

The product that you buy in store, grocery or supermarket involves the use of different economic resources
or factors of production like land/natural resources, labor, capital and entrepreneurial ability. Think of
product that you are familiar and list the resources needed to produce it and sell it to ultimate consumers.

Land/natural resources Labor/human resources Capital resources Entrepreneurial

resources
 MODULE 1: Week 1-2

What can I Do

Performance Task

Activity 6

Interview your parents or whoever is in charge of your family’s budget. Use the following guide questions:

1. How many are you in your family?

2. How many are bread winners?

3. How much, more or less, is your family’s monthly income? Is it enough for your needs? Why o why not?

4.How does your family allocate your income? What are your primary and secondary needs?

5.What does your family do when you run short of budget? How do the members of your family react to it?

6.What values and skills do your parents teach you to help become wise economic decision- maker?

Activity 6.1

Cut some news clippings that have something to do with economics. Identify the problems presented and try
to solve the problems.

_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
_______________________________________________________________________________________________________
 MODULE 1: Week 1-2

Activity 6.2

As a student and as individual, in what way can you help to solve economic problem in scarcity?

Support your answer.

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________

Assessment

PART 1. Directions: Find out how much you already know about this module. Choose the letter of the best
answer. Write the chosen letter on a separate sheet of paper.

1. Is a study of the ways that individuals and societies allocate their limited resources to satisfy their
unlimited wants?
a. Human nature
b. Natural resources
c. Experimentation
d. Plants and Animals
2. Economic is important so that we may be able to:
a. Understand problems facing the citizens and family
b. Help the government promote growth and improve quality of life.
c. Analyze fascinating patters of social behavior
d. All of the above

3. A study of Economics can be describe all aspects of a:

a. Country’s economy
b. Production function
c. Consumption of individuals
d. Market
 MODULE 1: Week 1-2
4. Economics is a science because:
a. It can predict the future
b. It conducts experiment in a laboratory
c. It measures the quantity of output
d. It undergoes observation and experimentation
5. As social science, economics can be more:
a. Predictable
b. Unpredictable
c. Changeable
d. All of the above
6. Economics is derived from Greek word “oikanomia” meaning?
a. Economic management
b. Household management
c. Social management
d. Political Management
7. Scarcity of resources means?
a. Minimum resources
b. Shortage of resources
c. Slight resources
d. Excess resources
8. Unlimited wants means?
a. Infinite
b. Limited
c. Perfume
d. Watch
9. These are example of human wants except:
a. Smartphone
b. Clothing
c. Perfume
d. Watch
10. Allocation of resources means:
a. Apportionment of resources
b. Stocking of resources
c. Keeping of resources
d. Protection of resources
11. It is also termed as human resource:
a. Land
b. Labor
c. Capital
d. Entrepreneur
 MODULE 1: Week 1-2
12. It refers to the allocation of products among the factors of production:
a. Production
b. Consumption
c. Distribution
d. Exchange
13. Macroeconomics deals with the following except:
a. Gross National Product
b. Employment
c. National Income
d. Price of rice
14. Economics is important so that we may be able to:
a. Understand problems facing the citizen and family
b. Help the government promote growth and improve quality of life
c. Analyze fascinating patterns of social behavior
d. All the above
15.The simplest application of mathematics for economic analysis is found in this field because It explains
the relationships:
a. Physics
b. Chemistry
c. Geometry
d. Sociology
16. Once the good is produced, how shall they be distributed?
a. What to produce?
b. How to produce?
c. For whom to produce?
d. How much to produce?
17.Goods and services to be produced are based on the needs of the consumers.
a. What to produce?
b. How to produce?
c. For whom to produce?
d. How much to produce?
18. It is a study of Economics in relation to real world situations as opposed to the theory of economics.
a. Economics
b. Applied Economics
c. Pure Economics
d. Macroeconomics
19. Scarcity means?
a. Infinite resources
b. Finite resources
c. Definite resources
 MODULE 1: Week 1-2
d. Unlimited resources

20. Because of scarcity, people and economies must make decisions over how to:
a. Allocate resources
b. Import resources
c. Export resources
d. Stagnation of resources

PART II. Directions. Matching Type: Match column A to column B. Write the letter of the
correct answer in a separate sheet.

Column A Column B

21. Factors of Production A. Services

22. Scarcity B. Entrepreneur

23. Natural Resources C. Profit

24. Capital D. Land

25. Entrepreneurial ability E. Not enough of everything to satisfy

everybody’s wants

26. Human resources F. Goods

27. Intangible G. Rent

28. Risk Taker H. Economics

29. Price Paid for the use of labor I. Wages

30. Machinery and tools are examples of which J. Capital

factors of production

31. Tangible items of value K. Labor

32. The return of land L. Interest

 MODULE 1: Week 1-2

33. Social Science that describes how society chooses M. Land, labor, capital, entrepreneurial
from among scarce resources ability

34. The acts of making goods and services. N. Production

35. The acts of using the goods produced. O. Consumption

Additional Activities

Activity 6.2

1. Clip an economic news article from the newspaper or magazine. Explain why and how the issue
being discussed is economic in nature.

2. Write an essay on the relevance of economics in one’s daily life?

 MODULE 1: Week 1-2

Answer Key

Assessment:

PART I PART II

1. A 21. M
2. D 22. E
3. A 23. D
4. A 24. L
5. D 25. A
6. B 26. K
7. B 27. C
8. A 28. B
9. B 29. I
10. A 30.J
11. B 31. F
12. C 32. G
13. D 33. H
14. D 34. N
15. D 35. O
16. B
17. A
18. B
19. A
20. A
 MODULE 1: Week 1-2
REFERENCES
Jesus B. Remiter Jr. “Managing Resources, Securing the Future”

Roan D. Leano “Applied Economics for Senior High School”

Rica delos Reyes,PhD, Nestor Torrefranca, Uriel J. Ancheta “Applied Economics for Senior High School”

Dr. Eloisa M. Macalinao “Applied Economics”

YOUTUBE LINK

https://youtu.be/qzmx2B4W5Ko