Applied Economics
Quarter 1 – Module 1:
Economics as Social and
Applied Science
Applied Economics – Grade 12
Alternative Delivery Mode
Quarter 3 – Module 1: Economics as Social and Applied Science
First Edition, 2020
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Applied Economics
Quarter 1 – Module 1:
Economics as Social and
Applied Science
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners,
can continue your studies and learn while at home. Activities, questions, directions,
exercises, and discussions are carefully stated for you to understand each lesson.
Each SLM is composed of different parts. Each part shall guide you step-bystep as you discover and understand the lesson prepared for you.
Pre-tests are provided to measure your prior knowledge on lessons in each
SLM. This will tell you if you need to proceed on completing this module or if you
need to ask your facilitator or your teacher’s assistance for better understanding of
the lesson. At the end of each module, you need to answer the post-test to self-check
you’re learning. Answer keys are provided for each activity and test. We trust that
you will be honest in using these.
In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how they can
best help you on your home-based learning.
Please use this module with care. Do not put unnecessary marks on any part
of this SLM. Use a separate sheet of paper in answering the exercises and tests. And
read the instructions carefully before performing each task.
If you have any questions in using this SLM or any difficulty in answering the
tasks in this module, do not hesitate to consult your teacher or facilitator.
Thank you.
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What I Need to Know
This module deals with the fundamentals of applied economics as social and
applied science. It covers an analysis in terms of nature and scope of social and
applied science. This will help learners understand their environment , to be an
active participant rather than a passive economic agent .
At the end of the lesson, the learners will be able to:
1. Differentiate economics as social and applied science (ABM-AE12terms of :
in
a. nature and scope;
b. different applications of economics
2. Apply economics as social and as an applied science in real life situations.
What I Know
Directions: Rearrange the scrambled letters to make a meaningful word. Use the
corresponding meaning as a hint to guess the correct answer.
__________________________________
__________________
COEMNOCSI
1. It is a science of
making choices
SCIMONOCE AS LAICOS
ECNEICS
2. A science that deals with the
allocation of scarce resources to meet
the unlimited human wants.
____________________________
DEILPPA AS AN CESCEIN
NOCEMOSCI
3. A science that applies
economic
theory
and
econometrics in specific setting
with the goal of analyzing
potential outcomes.
_____________________________
SECOURSE
R
4. These are products of nature,
qualities of individuals, and man
made things which are used in
producing goods or services
___________________________
STNAW NAMUH
5. it can be described as
differentiated
or
expanded
human needs.
Directions: Find the best word inside the provided word pool that represents right
descriptive word for each number.
Opportunity cost
Capital
Human needs
Allocation
Scarcity
____________________6. Is a condition where there are
insufficient resources to satisfy all the need and wants of
a population.
____________________7. A man-made resources used in
production of goods and services which include
machineries and equipment.
____________________8. Refers to the value of the foregone
alternative.
____________________9. It can be portrayed as basic
necessities for material survival.
____________________10. A social mechanism to respond
to the economic problem of scarcity.
2
Write A if the statement is TRUE and B if the
statement is FALSE.
______11. Because of scarcity, there is a need for a man to make decisions in choosing how
to maximize the use of the scarce resources to satisfy as many wants as possible.
______12. Economics is a social science because it studies human behavior just like
psychology and sociology.
______13. The study of society and how people behave influence the world around them
______14. Relative scarcity explains why there are some products that are very expensive in
the Philippines.
______15. In making choices, trade – offs are involved.
Lesson
1
Economics as Social and
Applied Science
REVISITING ECONOMICS
There are three strands in the development of the
definition of economics. The first focuses on wealth. The
second stresses the decision-making process. The third
concentrates on the allocation process.
Economics as a study of wealth implies wealth
utilization for individual’s satisfaction and society’s welfare.
As people produce or consume, whether it is wealth- getting
or wealth-using, they make decisions which are based on
alternative choices. Consistent with the process of making
decisions and choices is the process of allocation.
ECONOMICS AS A SOCIAL SCIENCE
Economics is primarily a social science. As a science it
uses scientific method of inquiry. This systematic or scientific
method is being used in the study of society and its
components. Thus, social science can be described as the
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Founders of Economics:
John Stuart Mill, along
with
David
Ricardo,
Jeremy Bentham and
other political and social
philosophers of the midnineteenth century are
credited
with
the
founding of the socialpolitical theory that has
evolved
to
be
the
discipline of economics.
study of the various modes and aspects of human interactions in a group as these
people aspire to preserve their group as a social unit, to make it stable, and to
promote its growth, expansion, and development.
As a social science, economics pertains to the study on how society creates its
material wealth, how it makes this wealth available to its people with minimum
difficulties, and how it expands its wealth.
ECONOMICS AS AN APPLIED SCIENCE
What makes economics an applied science is the formulation of general
theories through testing, mainly using data from the past. In simpler definition, it is
the study of observing how theories work in practice.
Applied economics becomes a powerful tool to reveal the true and complete
situation in order to come up with things to do.
The use of applied economics is designed to analytically review potential
outcomes without the “noise” associated with explanations that are not backed by
numbers. Because economics relies on the interpretation of historical events in its
theories, applied economics can lead to “to do” lists for steps that can be taken to
ensure stability in real world.
Economic Theory
Consumerism
Keynesianism
Liberalism
Malthusianism
Monetarism
4
What’s In
Needs VS. Wants
Analyzing A Day During Home Quarantine
Write the following activities in the correct column below.
Advance
reading
Doing
household
chores
Using
personal
gadgets over
time
Doing
physical
activities
Over sleeping
Playing
indoor games
with siblings
Spiritual
enrichment
Watching T.V.
Enhance
personal
skills or
talent
Learn new
household
activities
NEEDS VS. WANTS DURING HOME QUARANTINE
NEEDS
WANTS
“To examine each aspect,
one can
strengthen areas where
performance is weak.”
(Enriquez H. 2017)
5
What’s New
Acrostic Poem
Follow these steps to write a nine-line acrostic poem
explaining economics as a social science and as an
applied science.
Write the term ECONOMICS vertically along
the left side of a notebook page. Begin each line with
a word that starts with the appropriate letter.
Each line must help
answer questions
concerning economics as a social science and as an
applied science.
Include the following terms somewhere in your
acrostic: society, scientific, wealth, theories, applied
science, social science.
consider the rubrics below in crafting your
poem.
ACROSTIC POEM
3 points
4 points
5 points
Structure/focus
The poem does not
have
a
clear
message .
More than 2 lines
do not relate to the
topic.
The
poem
has
message but 1-2
lines do not relate
to the topic
The poem has a
clear
message.
Each line relates to
the topic of the
poem.
The poem does not
contain
poetic
elements
(lines,
rhyme, imagery).
Alliteration)
The poem contains
3 or more
incorrect spelling,
grammatical
errors.
The poem uses one The poem contains
poetic element.
more than one
poetic element.
Creativity
Mechanics
The poem contains
1-2
incorrect
spelling
,
grammatical
errors.
6
The poem does not
contain
any
incorrect spelling,
grammatical
errors.
Reflect on the message of the poem below.
Supply and Demand
The Invisible Hand
Isn’t this the way the economy shrinks and expands?
Are your goods elastic
Or inelastic static
When you raise your price is it sweet or tragic?
Does your income waver
As you look for labor
Is it inferior goods you favor?
Is there a substitute
For the pricey things you choose
Will the demand curve shift when you get a clue?
By Gordon Snyder
Directions: Tick (/) the sentence that expresses what is true about the poem.
_________1. Economics is a study of wealth.
_________2. Economics is a study of choices.
_________3. Economics is a study of allocation.
_________4. Human needs are brought about by differences in income.
_________5. Allocations distribute unlimited resources
_________6. Society creates its material growth.
_________7. Social science deals with how people interact with one another.
_________8. Instability is an economic goals of society.
_________9. Individual needs and wants are certain.
_________10. It deals with how wealth available to its people.
7
What’s More
Philippine’s economics news
MANILA, Philippines – the World Bank projected the
Philippine economy would contract by 1.9% in 2020, as Covid
19 crisis triggers supply and demand disruptions worldwide.
(Ralf Rivas. June 9, 2020)
Social and economic stability are radically imperative for economics as social
and applied science to be in the right direction.
As a step to recovery in trying things up, the government crafted different
programs in response to the country’s crisis.
8
Directions: Tick (/) sentences or phrases that appears to be government programs
or activities in response to pandemic.
__________1. Mass lay-off
__________2. Strengthen and intensify social safety nets.
__________3. Conduct health awareness.
__________4. Provision of basic necessities to the marginal sector.
__________5. Allows continuous business operation.
__________6. Granting interest free loans.
__________7. Non disruption of transportation particularly public utilities.
__________8. Budget realignment for carrying out urgent measures.
__________9. Provision of cash subsidy program to the members of the poorest.
__________10. Non-declaration of state of calamity.
__________11. Swabbing of residents in locked down areas.
__________12. Distribution of Social Amelioration Fund to needy families.
__________13. Creation of Inter Agency Task Force (IATF).
__________14. Continuous mass gatherings in different places.
__________15. Allowing of opening of restaurants and dining in.
9
What I Have Learned
Complete the information on economics as a social and as an applied science by
filling in the blanks with the best answers. Choose the best word/s from the list
below:
People
Stability
Society
Work
To do list
scientific method
Growth
General theories
Powerful tool
Wealth
Economics as Social and Applied Science
Economics
is
primarily
a
social
science.
This
systematic
or
___________________________is being used in the study of ___________________________
and its components. Thus, social science can be described as the study of the various
modes and aspects of human interactions in a group as these people aspire to
preserve their group as a social unit, to make it stable, and to promote
its_________________________, expansion, and development.
As a social science, economics pertains to the study on how society creates its
material __________________________, how it makes this wealth available to its
_________________________ with minimum difficulties, and how it expands its wealth.
10
What
makes
economics
an
applied
science
is
the
formulation
of
__________________________ through testing, mainly using data from the past. In
simpler definition, it is the study of observing how theories _________________________
in practice.
Applied economics becomes a ___________________________ to reveal the true
and complete situation in order to come up with things to do.
The use of applied economics is designed to analytically review potential
outcomes without the “noise” associated with explanations that are not backed by
numbers. Because economics relies on the interpretation of historical events in its
theories, applied economics can lead to ____________________________ lists for steps
that can be taken to ensure ___________________________ in real world.
11
What I Can Do
Identify keywords from a given economics word.
1. ECONOMICS
2. ECONOMICS as
SOCIAL SCIENCE
12
3. ECONOMICS as
APPLIED SCIENCE
4. ECONOMIC THEORY
5. WEALTH
13
Assessment
Directions : Make a table illustrating the differences of economics as a social and
as an applied science. Choose from the words given below.
Systematic
Formulation of material
wealth
Application of theories
and principles
Theories in practice
Human interaction
Review of potential
outcomes
SOCIAL SCIENCE
APPLIED SCIENCE
14
Additional Activities
Directions: Fill in the diagram with the economic impact of Covid 19 pandemic.
Choose from among the word/s given inside the word pool.
Increase employment
Health crisis
Reduction of poverty
Loss of human capital
Economic crisis
Gross domestic product
decreases
New business opens
Education disruption
Increase number of labor force
1.
2.
3.
4.
5.
15
What’s
More:
15
3/
14
2/
13 /
1
4/
16
What’s In:
What is It:
NEEDS
1/
1.Advance
reading
2.Doing
household
chores
3.Doing
physical
activities
4.Playing
indoor
games
with
siblings
5.Spiritual
enrichme
nt
6.Enhance
personal
skills
7.Learn new
house
activities
WANTS
2/
3/
4/
5
5
6/
6/
7/
7
8
8/
9
9/
10 /
10
11 /
12 /
1.Using
personal
gadgets
overtime
2.Watching
T.V.
3.Over
sleeping
What I
Know:
1. Econo
mics
2. Econo
mics as
social
science
3. Econo
mics as
applied
science
4. Resour
ces
5. Human
Wants
6. Scarcit
y
7. Capital
8. Opport
unity
cost
9. Human
wants
10.
All
ocation
11.
A
12.
A
13.
A
14.
B
15.
A
Answer Key
17
Additional
Activities:
1.
2.
3.
4.
5.
Health
crisis
Loss of
human
capital
Econom
ic crisis
Gross
domesti
c
product
decreas
es
Educati
on
disrupti
on
18
What I Can
Do:
Assessmen
t:
SOCIAL
SCIENCE
1. Syste
matic
2. Formu
lation
of
materi
al
wealth
3. Huma
n
interac
tion
APPLIED
SCIENCE
1. Applic
ation
of
theorie
s and
princip
les
2. Theori
es in
practic
e
3. Review
of
potenti
al
outco
mes
1. Resources
Scarcity
Human
wants
2. Individ
ual
Scientific
meth
od
Society
3. Theorie
s
Real world
situations
Mechanis
m
4. Consu
merism
Liberalism
Monetaris
m
5. Money
Property
Education
What I
have
learned:
1. Scienti
fic
metho
d
2. Society
3. Growt
h
4. Wealth
5. People
6. Gener
al
theorie
s
7. Work
8. Powerf
ul tool
9. To do
list
10.
S
tability
References
2020. https://www.rappler.com/business/263285-world-bank-philippineeconomy-forecast-june-2020.
2020. https://www.slideshare.net/HannahCullen/lesson-2-economics-as-anapplied-science.
2020. https://www.slideshare.net/MizpaHerbuela/applied-economics-77458768.
"Boy With Book | Public Domain Vectors". 2020. Publicdomainvectors.Org.
https://publicdomainvectors.org/en/free-clipart/Boy-with-book/72459.html.
"Download Free Photo Of Right,False,Next,Note,Counterpoint - From Needpix.Com".
2020. Needpix.Com.
https://www.needpix.com/photo/download/978401/right-false-next-notecounterpoint-contrariety-contrary-difference-counterpart.
"Economy Poem About Economics - Google Search". 2020. Google.Com.
https://www.google.com/search?q=economy+poem+about+economics&tbm=is
ch&hl=en-US&hl=enUS&ved=2ahUKEwij0vjr25HqAhVyNaYKHWqyAW4QrNwCKAJ6BQgBENkB&bi
w=1519&bih=754#imgrc=TTXW4MSyitnUvM.
"File:PSM V03 D380 John Stuart Mill.Jpg - Wikimedia Commons".
2020. Commons.Wikimedia.Org.
https://commons.wikimedia.org/wiki/File:PSM_V03_D380_John_Stuart_Mill.j
pg.
"Manila Supermarket Vendors With Acetate Full Face Shields COVID-19 2.Jpg".
2020. En.M.Wikipedia.Org.
https://en.m.wikipedia.org/wiki/File:Manila_Supermarket_Vendors_with_Acet
ate_Full_Face_Shields_COVID-19_2.jpg.
"Rubric Gallery: List Of Public Rubrics: Rcampus". 2020. Rcampus.Com.
https://www.rcampus.com/rubricshowc.cfm?code=N2AC64.
Tullao, Tereso. 2018. Applied Economics. Philippines: Phoenix Publishing House.
"Why Is Economics An Applied Science? - Quora". 2020. Quora.Com.
https://www.quora.com/Why-is-economics-an-appliedscience#:~:text=It%20is%20a%20social%20science%2C%20one%20of%20the%
20most%20rigorous,using%20data%20from%20the%20past.
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