APPLIED ECONOMICS
First Quarter- Module 2
Topic: Philippines Basic
Economic Problems
Applied Economics
Supplementary Learning Material
Quarter 1 – Module 2: Philippines Basic Economic Problems
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1
SHS 12
QUARTER 1 -Module 2
Lesson 2: Philippines Basic Economic Problems
Objectives:
After this lesson, you should be able to:
1. Identify the economic issues and problems in the Philippines
2. Analyze the economic problems in the Philippines
3. Propose solutions to the problems using the principles of applied
economics
KEY CONCEPTS:
Investopedia defines applied economics as “the application of
economic theories and principles to real world situations with the
desired aim of predicting potential outcomes”.
In this lesson, we will try to understand some economic
problems in the Philippines and examine the application of applied
economics to propose solutions for the following problems:
a. Unemployment
b. Poverty
c. Population growth
MELC Quarter: 1st Week No. 2
Competency code:
Competency: Examine the utility and application of Applied Economics to solve economic issues and
problems.
2
PRETEST
Direction: Read each statement carefully. Write T if the statement is TRUE and F
if FALSE.
1. Unemployment occurs when worker’s jobs don’t use all their skill and
education.
2. We should be able to improve human welfare among Filipinos by the
investigation and analysis of economic problems in the real world.
3. The booming population growth in the Philippines is another basic economic
problem that can be linked to the issue of scarcity.
4. One of the common causes of poverty is unemployment.
5. To improve quality of education, the government must continue reform in
key sectors such as power, roads and water.
REVIEW
Direction: Read each statement and choose the letter of the correct answer.
1. The concept of choice and ________ are considered fundamental in the study of
economics.
a. Capital
b. Land
c. Scarcity
d. Human skills
2. When one is making a choice, the cost of what one gives up is called
a. Economic problem
c. Trade-off
b. Scarcity
d. Opportunity cost
3. What is it called when you choose between two possible uses for resources,
giving up one alternative for another?
a. Trade-offs
b. Real Cost
c. Trade in
d. Value
4. It is a division of economics that is concerned with the overall performance of the
entire economy.
a. Macroeconomics
c. Applied economics
b. Microeconomics
d. Econometrics
5. It is the study of how individuals and society choose to use the scarce resources.
a. Macroeconomics
c. Econometrics
b. Microeconomics
d. Economics
MELC Quarter: 1st Week No. 2
Competency code:
Competency: Examine the utility and application of Applied Economics to solve economic issues and
problems.
3
ecoKNOWmics
Applied economics applies the conclusions from economic
theories and econometrics in dealing with practical economic issues.
A solid understanding of economic principles and how they are
applied in real-life situations can serve as tools to address economic
problem of a country. In the 21st century, the Philippines has been
faced with several economic problems such as the following:
UNEMPLOYMENT- According to the official website of Philippine Statistics
Authority (2004), unemployment includes all persons who are 15 years and over
and are reported as : (1) without work and currently available for work and looking
for work; or (2) without work and currently available for work but not looking for
work due to the following reasons:
a. Tired/believed no work available
b. waiting results of previous job application
c. Temporary illness/disability
d. Waiting for rehire/job recall
Unemployment is the main problem of the Philippine economy. As reported by
the Philippine Statistics Authority, the unemployment rate rose to 17.7 %
accounting for 7.3 million unemployed Filipinos in the labor force in April 2020 due
to the effects of a pandemic (Coronavirus disease 2019) economic shutdown to the
Philippine labor market. The unemployment rate in January 2020 was 5.3 % while
5.1 % in April 2019.
POVERTY- It refers to the state or condition in which people do not have the
minimum standard of life deemed accepted by society. As reported by the National
Statistics Authority, the 2018 poverty incidence among population or the
proportion of poor Filipinos whose per capita income is insufficient to meet their
basic food and non-food needs are now estimated at 16.7% or about 17.7 million
Filipinos living in poverty in 2018.
Common causes of poverty:
1. increase in population
2.
increase in the cause of living
3.
Unemployment
4. income inequality
MELC Quarter: 1st Week No. 2
Competency code:
Competency: Examine the utility and application of Applied Economics to solve economic issues and
problems.
4
The best predictor of whether a family is poor is whether someone in that
family has a job. If no one in the family has a job, the family is more likely to be
poor. Thus, the most direct way the government can help reduce poverty is to
nurture a healthy economy. Strong economy means better job opportunities.
POPULATION GROWTH- The booming population growth in the Philippines can be
connected to the issue of scarcity. Economic resources may not be sufficient to
support the growing population. As reported the population of the Philippines as of
August 1, 2015 was 100,981,437, based on the 2015 Census of Population
(POPCEN 2015). Compared with population of 92.34 million in 2010, the 2015
population is higher by 8.64 million.
The Census of Population aims to provide government executives, policy and
decision makers, and planners with updated population as bases for social and
economic development plans, policies, and programs at the national and local
levels.
The country’s problems may vary with times and circumstances. It is a
challenge to us to observe and identify what these problems are.
ACTIVITY NO. 1 : Think and Pair
DIRECTION: Choose a partner from the class or family member and
answer the question below. Discuss your answer with your partner.
1. Does fewer people receiving social benefits necessarily mean that fewer people are
living in poverty? Why or why not.
Student 1(your partner’s answer):
__________________________________________________________________________________
Student 2 (your answer):
__________________________________________________________________________________
MELC Quarter: 1st Week No. 2
Competency code:
Competency: Examine the utility and application of Applied Economics to solve economic issues and
problems.
5
ACTIVITY NO. 2 : #IAmPartOfTheSolution
Write 5 commitments to become part of a solution to any
economic issues. Share it on the classroom messenger using
the #IAmPartOfTheSolution
ACTIVITY NO. 3
If you were to advise the President of the Philippines on how to cope
with the issues on unemployment to improve the lives of the Filipino
people, what would you tell him and why?
POST TEST
Direction: Read each statement carefully. Write T if the statement is TRUE and F
if FALSE.
1. The Census of Population aims to provide government executives, policy and
decision makers, and planners with updated population as bases for social and
economic development plans.
2. Poverty refers to the state or condition in which people do not have the minimum
standard of life deemed accepted by society.
3. The booming population growth in the Philippines is another basic economic
problem that can be linked to the issue of scarcity.
4. A solid understanding of economic principles can serve as significant tools to
help address the country’s economic problem.
5. Due to a pandemic, unemployment rate hits record high 17.7 % in April 2020.
MELC Quarter: 1st Week No. 2
Competency code:
Competency: Examine the utility and application of Applied Economics to solve economic issues and
problems.
REFERENCES:
Dinio, R. P. and Villasis G.A. Applied Economics. Quezon City: Rex Bookstore. 2016
McEachern, W.A. Applied Economics: An introduction. Quezon City. Abiva
Publishing House. 2017
Retrieved from https://psa.gov.ph/poverty-press-releases
Retrieved from www.psa.gov.ph
For inquiries or feedback, please write or call:
Department of Education – Schools Division OfficeMandaluyong
Calbayog Street, Highway Hills, Mandaluyong City 1500
Telefax: (632) 79552557
Email Address: sdo.mandaluyong@deped.gov.ph
●www.depedmandaluyong.org