Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City
STUDENT ACTIVITY SHEET NO. 1_
(Individual Task)
Subject: Applied Economic
Topic:
Introduction to Applied Economics (Situational Analysis)
Name:
____________________ Date Given: November 10, 2020________
Due Date: __November 11, 2020____________________
Learning Competencies:
Differentiate economics as social science and applied science
Discuss the importance of Economics in the study of societal issues
Explain how economics help address market issues
Instructions:
Analyze the situation below. Apply the principles and economic theories in reflecting your answers in each
situation. Use a font style of Times New Roman with a font size 12. Provide your answer on the next blank page.
There should be at least 8 sentences in each answer.
(1) Societies across nations are facing the issue of scarcity of resources. Explain how economics can aid
humanity in preserving the resources for future generations.
What will happen if societies today have no economic issue of scarcity?
Economics can aid humanity in preserving the resources for future generations in many ways. It
plays the role of being the reservoir of all the resources as it manages the demand and supply for the
consumers. It balances the amount of resources to be given to each nation to have fair shares of
resources. Allocation of the resources is one of its prime objective to fight scarcity of resources that
might endanger the future generations. By generating the proper distribution and allocation of
resources, the unlimited human wants and needs of today and the succeeding generations. It's
responsible in considering all factors that affect the distribution of the resources to each sector of the
society/societies. It is responsible in instilling the laws to be followed to avoid conflicts between
societies in terms of having enough resources to sustain their wants and needs.
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Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City
If it happens that the issue of scarcity is absent in societies today then, each nation/society will
be free from engaging to connect with other societies to sustain their needs and a resources problem
free societies will then exist. Moreover, the need for strict distribution and allocation of resources will
not be needed. Societies can have enough or more to sustain their wants and needs without having to
consider the amount of resources available.
(2) The economic growth of the country has been further challenged by the pandemic that is currently
experienced by various nations. Economies are on the brink of collapse and millions of people lost
their jobs and small scale and medium scale businesses are closing and governments across nations
are spending enormous amount to mitigate the virus and funding for research and development for
vaccine.
A. Explain further the effects of the pandemic.
The pandemic greatly affected the economic growth of our country and other nations. It has
various negative effects to the economies. Limited employment is one of the prominent effect of this
pandemic. Companies and different establishments are pushed to hire not so many employees because
of the fear of not being able to pay accordingly. Also, unemployment increased in this time of crisis.
According to the National Statistics of the Philippines, the unemployment rate this year is around 10
% as of July 2020. It is very unfortunate to note that this global pandemic has drastically affected the
economy in a very negative way. Aside from unemployment, companies and other business entities
are left with no choice but to lay off some of their employees for fear of lack of money for their
salaries. In addition, some of the most popular brands are now filing for bankruptcy due to the large
impact this pandemic has caused in their business transactions (products are not sold due to decrease
in demand and more). Even the government is having a hard time in putting up with the situation in
our country and so as the other governments with their nations' situations. The further economic
decline of the Philippines' economy with its stern effects to the livelihood and to the way of living of
the Filipinos heightened so much uncertainties around us as to the extent of the negative impact of
this pandemic.
B. What should be done or steps for economic recovery to avoid economic depression?
There are many possible ways or steps for economic recovery to avoid economic depression.
Economic depression is very dangerous so a proper ways or steps for economic recovery is highly
needed. First, the government should ensure an extra fund or monetary resources for future
uncertainties that our country might go through in the course of a dilemma. Proper allocation of the
resources is of a great help. Second, business entities need to secure the bonds, stocks, and all of
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Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: inquiries@liceo.edu.ph [website: www.liceo.edu.ph)
Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City
their assets that it they shouldn't be overcame by their liabilities to save their companies in the long
run. It is important to take note of the direct relation of demand and supply so that they'll know the
exact amount they should manufacture to avoid loss of profits. As for us normal citizens, it's our
responsibility to consume products in a right way to have a sound financial health. Avoiding
overspending and considering the delayed gratification practice would help all of us in the process. It
is important to consider the benefits of our economic decisions in the long run/term than settling to
short term benefits just because it's easy to accomplish.
Write down at least 5 potential effects if there is NO scarcity in every society and explain each potential effects.
Potential Effects in the
Society if there is no scarcity:
1. Everything
would
become
free,
no
monetary
gain
is
expected.
Explanations:
With the absence of scarcity, a society will have all its resources free. Its
people can eat, drink, and do whatever they want with their available
resources. This will be the result of not considering the right way of
allocating the resources since they are not limited anymore. The people of
a specific society will end up facing opportunity costs between utilization
of resources. Despite considering the practice of trade off it's still inevitable
to end up practicing opportunity cost depending on the type of people are
in a society. Also, the number of their population is great factor in
considering the practice of the above mentioned practices. Moreover, with
a greater amount of resources it will not become difficult for the people to
utilize their abilities in terms of man power. By that, they'll be able to use
different resources according to their will. An increase in labor and capital
are expected.
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Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City
2. There will be no use of As we all know the existence of economics is to address scarcity. Thus, if
Economics.
there's no scarcity then there's no economics as well. This means that if
there's no problem with the resources in a certain society then there's no
need for the presence/application of economics. Economics is very
important in addressing scarcity issues. When a society has limited
resources economics is there to address the problem by proper distribution
and allocation of the resources. So that, there is a fair share of the resources
to the people of that society. However, knowing that there's no scarcity
problems then, there's no use of economics. Meaning, the society isn't
facing limited resources problems to sustain their wants and needs. There
will be enough resources to cope up with the necessities of their people.
3. Government will not The job of the government in the issue of scarcity is that it makes and
be needed.
implement rules, laws, etc. to ensure that this issue is addressed justly. It
helps in allocating the limited resources available for every human being in
a society. We all know that our needs and wants as human beings are
unlimited. That's why the government is needed to manage the limited
resources that a society has with the unlimited wants and needs of the its
people. However, due to enough available resources with the absence of
scarcity, government's intervention is not anymore needed. Societies will
then decide on what to do with their resources without following rules,
laws, etc. set by the government. This can have both good and bad effect
depending on how a specific society handles it. It's good if they share the
resources fairly and it's bad if others will take advantage of them.
4. Absence of the concept The concept of supply and demand is based on the relationship between the
of supply and demand number of goods the producers sell and the number of goods the consumers
want to buy. In relation to scarcity, we know that there's this what we call
dynamic relationship. Meaning a price of a good/product of low supply and
high demand rises to meet the expected demand. Withal, we can say that
it correlates with the availability of the resources
to respond to the need of the people. But in this case since there's no more
scarcity problem which means that there is an unlimited resources enough
to sustain the wants and needs of human beings then, it's not important to
implement such concept. It is because every need and want of the people
are already available. It is not important to have this concept anymore. It is
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Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: inquiries@liceo.edu.ph [website: www.liceo.edu.ph)
Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City
somehow a bad idea for the producers because it'll definitely affect their
businesses.
5. Excessive consuming of This may seem okay but it's actually not a good thing because this will
the available resources.
result to disregarding the important matters/needs that these resources
should be reserved for. With an enough amount of resources available in a
specific society, the people will tend to overuse the resources in producing
goods that's of great benefit for themselves. Sometimes forgetting the most
important needs to be responded to. The entrepreneurs will decide on their
own on how many goods they'll produce in response to the needs of the
societies. Excessive consuming of the available resources may result to
future conflicts between the people in a specific society. Some may
overpower others. While some may go under other people's power in
managing the resources just to have enough sustenance for their needs and
wants, as well. Substantive conflicts may arise as well over the proper
allocation of resources.
List down at least 5 effects of the pandemic to our economy and explain why such affects our economy.
Effects of the Pandemic to the
This is the effect because…
economy:
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Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: inquiries@liceo.edu.ph [website: www.liceo.edu.ph)
Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City
1. Increased Unemployment
Having a job amidst this pandemic is risky but it's also important. Going
to work can help employees sustain their needs and wants especially that
goods nowadays are increasing in prices. However, due to this pandemic,
most of the business entities tend to hire limited employees only leaving
the other applicants on edge because of being afraid in giving fair
treatment and just salaries/wages. Many contractual employees have lost
their job because of this pandemic. Moreover, many establishments
choose to lay off their workers because of low income and profits. Since,
they're not open all the time it's more important to have less workers to
avoid future financial management problems.
2. Limited Employment
With the fear of not being able to pay their salaries justly, many
companies hire employees on a minimum basis to ensure that they don't
go overboard. Business entities also considered their economic and
financial situations. They cannot employ too much applicants because
that might endanger their businesses in the future. With all the
uncertainties surrounding us today due to this pandemic, many business
entities prioritized the safety of their businesses by employing not too
many employees. They just focused on getting the capital even with low
profits rather than continuing with the old normal that may cause them
future problems.
3. Inflation Increased
There's a continuous increase in prices of the products these days due to
this pandemic and most of the time, these products are those that are
badly needed in this time of crisis making it hard for the consumers to
buy their necessities. That's why many households are struggling in
dealing with their needs. Moreover, the cost of living today is very high.
The high costs of materials in the production of goods are what making
it harder for both the producers and consumers.
Tel. No. (088) 858-4086, 858-4093 to 95, (8822) 72-7044, 71-4253 PABX local (President) – 112 & 126, (Registrar) – 109
Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: inquiries@liceo.edu.ph [website: www.liceo.edu.ph)
Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City
4. Bankruptcy
Many of the consumers today consider buying their needs instead of their
wants. This directly affected business entities and companies. Some
business entities resort to filing bankruptcy to save their companies. It is
also to avoid further money and production problems in the long run.
Most if not all companies that have too much supplies than the demand
end up filing bankruptcy. Most of the goods that are in demand are those
that are for necessities. However, for those companies and business
entities that focus mainly on fashion trends and such faced a real hard
time during this course of pandemic. Thus, some ended up filing
bankruptcy.
5. Businessmen
in
the We know how hard this pandemic has caused to the lower sectors. Due
middle and low sectors to the unfortunate effect of the pandemic, those businesses in the lower
struggle more.
sectors tend to suffer more because of not enough funds to support their
local businesses and transactions, some even resort to closures of their
businesses/stores. With higher cost of goods to manufacture than the
usual, businesses under these sectors struggled in producing enough
goods to sustain the continuation of their businesses. They can't even hire
workers because of low budget. Also, they gain lesser profits today
because of the increased in the prices of goods/products.
As of this moment, we are in the middle of economic meltdown. What should the government do in order to
avoid economic depression?
To avoid economic depression, the government should …
do their best to ensure the economic recovery of our economy. They should prioritize additional
fiscal support for the mass and accommodative monetary policy stance. By adapting the accommodative
monetary policy, they can ensure that the money supply can be expanded to boost the economy. Withal,
private sectors and other business entities can borrow more money and grow it in due time. They should
apply profit maximization to pay higher wages/salaries to their workers. Also, it's important that they
consider
eradication
unemployment
to improve
the economic
condition
of our country.
Moreover, it
Tel.
No. (088)the
858-4086,
858-4093of
to 95,
(8822) 72-7044, 71-4253
PABX local
(President) – 112
& 126, (Registrar)
– 109
Tel.
No. (01163)
(088) 858-3123
72-7044, 71-4253
local 111 our
[email:population.
inquiries@liceo.edu.ph
www.liceo.edu.ph)
is Fax
very
important
for the (8822)
government
to consider
With[website:
a continuous
increase of our
population, it's best for them to have a proper approach in balancing the fiscal support for the mass and in
what way the mass can help in the economic recovery of our country before it hits economic depression.
There are a lot to consider by the government to make sure that our economy does not fall to the pit of