ABM APPLIED ECONOMICS 12 - Q1 - W1 - Mod1 Revised PDF
ABM APPLIED ECONOMICS 12 - Q1 - W1 - Mod1 Revised PDF
Quarter 1*Module 1
Economics as a Social Science and
Applied Science in Terms of
Nature and Scope
For the learner:
The hand is one of the most symbolized parts 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 resource 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 was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.
This module was carefully prepared and designed for you to perform at your
own pace. Useful activities on the nature and scope of economics, its fields were
provided for you to accomplish which will allow self-discovery of the concept. These will
also help develop your creativity and critical thinking skills to make decisions
independently. It is also expected that upon accomplishing these activities, you
can communicate confidently and collaborate with other people to solve
problems, intelligently. And most importantly, your character and initiative to handle
situations which you cannot control will be improved.
At the end of the session, you should be able to explain the nature and scope of
economics, determine its fields: the micro and macroeconomics, resourcefully use the
different resources in the production of goods and services, and in real world,
efficiently consume these finished products.
What I know
Activity No. 1 Direction: Let us check your knowledge to our topic. Kindly arrange
the following words. These are the terms you commonly encounter when you make
decisions of going to the market. Examples of these items are given on the right column.
1. MIRECOOCNOMSCI individuals and industries
Assessment
Direction: Kindly choose the letter of the correct answer. Encircle your answer.
1. The physical effort of the manpower to produce the protective devices of the
frontliners describes which factor of production?
a) Land c) Labor
b) Capital d) Entrepreneur
2. The great ideas, concepts and drive of the production managers to produce
something new describe which factor of production?
a) Land c) Labor
b) Capital d) Entrepreneur
3. The computers of the production manager in an office are what kind of goods or
products?
a) Consumer goods
b) Either consumer goods or capital goods
c) Capital goods
d) Economic goods
Let’s say, in conducting your research, you may consider studying the economic
situation of the families in Manila. For example, the GAS and ABM students may focus on the
annual income of families, buying behaviour in the market, on specific items commonly
purchased these families and many more. The HUMSS might take an overall view on the entire
economic system: what causes the families to limit their spending capabilities, what
environmental factors stresses them from purchasing their needs and wants; or what makes
them satisfied in their buying behaviour. Both approaches are useful, and both examine
the same, but the viewpoints are different. In a similar way, both microeconomics
and macroeconomics study the same economy, but each has a different viewpoints.
Whether you are looking at the buying behaviour of the people in the market or
economics, the micro and the macro insights should blend with each other. In studying
the buying behaviour of the people, the micro insights about particular behaviour and
spending habits of the people help them understand the overall economic situation on individual
matters, while the macro insights about the overall economic situation on the entire economy
which help
to explain the internal and external environments, as a whole.
What’s In
Activity 1:
Direction: Let’s analzye the market environments of the society. Please
encircle your answer.
2. Which of the following has NOT observed in the community during the ECQ in
the same locality?
What Is It
Microeconomics
•Studies of markets of Macroeconomics
good and services •Studies the economy as a whole
•Focuses of the •Focuses on aggregate indicators
behaviour of individual in the market (such as production, employment,
etc.)
Explains how and why these
units make economic
1. Consumers
• Consume goods and services /offer production factors
• Maximize utility
2. Producers
• Produce goods / demand productive factors
• Maximize profit
3. The public sectors
• Attempt to maximize the well-being of society
Land - natural Labor is the work done by people- education, skills, and
resources motivation and productivity. Productivity measures how
available to much each hour of worker time produces in output.
create supply Workforce receives wage for his labor.
such as
raw materials
that comes
from the
ground. It can
be a non-
renewable
resource;
commodities
such as oil and gold; and renewable
resource, such as timber. Oil is a natural
resource, but petroleum gas is a
capital good. Farmland is a natural resource, Istockphoto.com
but a shopping center is a capital good.
https://study.com/academy/lesson/four-factors-of-production-land-
labor-capital-entrepreneurship.html
Capital as a Factor of Production
Entrepreneurship as a Factor of Production
Capital Entrepreneurship develops an idea into a business. An
or capital entrepreneur combines the other three factors of
goods production to add to supply. The most successful
are entrepreneurs are innovative and risk-takers. The income
capital – entrepreneurs earn is profits.
the
money
that
Characteristics of Resources:
1.Scarcity: insufficient resources to supply all the desires and needs of individuals.
In the production of goods and services; there are issues that economics may encounter:
these include: for Land – inadequate land and natural resources; polluted areas;
overcrowded spaces; for Labor – unskilled workforce; mismatch of jobs; for capital -
low quality of equipment/machines; insufficient fund/capital; and for entrepreneurship
– Inadequate training of entrepreneurs; limited opportunity; scarcity of great ideas but many
competitors in the market.
2.Multiple use: Resources can have more than one possible use. For example, a plot of
land can be used to plant coffee or to build a factory.
3.Partially replaceable: one resource can replace another in the production of a good or
service (e.g., replace manual labor with technology).
Scarce resources and unlimited desires → Scarcity
Scarcity and alternative uses → Choice
Choice → Opportunity cost
What’s More
CLASSIFICATION OF GOODS
Activity no. 1
Direction: Please perform independently. Pick all the goods and classify
them accordingly. Your mother went to the market to shop goods for the family. She
purchased the following goods. Canned goods; bread; sacks of rice; meat; vegetables;
toothpaste; bath soaps; perfumes; wrist watch; aircon to ventilate her store and coffee
maker for her store.
Essential Goods
ASSESSMENT (Picture Analysis)
3
2
See! Economics is a very interesting field to study. Your teacher is very much
willing to teach you more about it.
In the production of goods and services; there are factors that economics may
encounter: these include: land – inadequate land and natural resources; polluted areas;
overcrowded spaces; labor – unskilled workforce; mismatch of jobs; capital - low
quality of equipment/machines; insufficient fund/capital; and entrepreneurship –
inadequate training of entrepreneurs; limited opportunity; scarcity of great ideas but
several competitors in the market.
https://www.google.com/search?q=ofw+stranded+due+to+covid&tbm=isch&ved=2ahUKEwi0r__y987rAhURAqYKHSeTB78Q2-
cCegQIABAA&oq=ofw+stranded&gs_lcp=CgNpbWcQARgCMgQIA
The picture shows the situation of the returning OFWs who were
stranded because of Covid 19. Reflect on the situation how it affects
on each factors of production:
1. Land -
2 Labor -
3. Capital
4. Entreprenuership
What I Need to Reflect
Today, we are in a new normal way of living, a very different one from way we
have lived for several years. It’s because everyone has that fear of the COVID 19 that
might cause us from health and economic issues. Everyone, therefore, has to be very
responsible in his behaviors in the market; and become efficient in his consumption;
friendly to the environment or the natural resources as these may become scarce in the
future. Everyone must become aware of the micro and macro levels of the environment
and contribute to the growth of our economy.
Did you find our topic enjoyable and interesting? Write something about. You
may use the box below.
WHAT I CAN DO
RESOURCES OF PRODUCTION
3. The top manager of the firm said “the great ideas, concepts
and emotional determination of a person to produce
something that consumers want to buy” is very important for
the company. What factor of production describes the ability
to create great ideas?
https://quizizz.com/admin/quiz/5b7564f0dfd12e00194449b9/factors-of-production
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Name Year/Section_ Date_
Teacher School_
1. Mrs Nenita De Jesus purchased basic goods like vegetables and groceries
for the consumption of her family. These goods are:
a. Consumers goods c. Luxury Goods
b. Capital Goods d. Economic Goods
2. Mr. Dennis Elecanal purchased new car as a gift for his father’s birthday.
This
good is
a. Consumers Good c. Capital Good
b. Luxury Good d. Economic Good
3. ABM Computer shop purchased additional 10 units of computer for the business.
These goods are called:
a. Consumers goods c. Capital Goods
b. Luxury Goods d. Economic Goods
4. Which is not considered as tangible good?
a. Cell phone c. Sack of rice
b. Mask d. Training service
Teacher School_
Worksheet
Let’s do this (Additional Activity No. 1)
Direction: Listed below are the resources for production of goods and services.
Please list down the economic issues to each resource of production that may harm
the economy. Choose your answer from the box below. You may collaborate with
family and friends in accomplishing the graphic organizer.
Land Labor
_
Resources of
Capital Production Entrepreneurship
The Economy
Microeconomics Macroeconomics
1. 1.
2. 2
3. 3.
References
Articles
Sirin Çaki S (2019) 10 Basic Office Equipment Every Business Needs. Retrieved on June 01 2020
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equipment-for-starting-a-business
Enriquez, H C (2020). Basic Economic Problems of the Country. Retrieved on June 01 2020 from
https://www.slideshare.net/HannahCullen/lesson-3-basic-economic-problems
Lamarco, N. (2018) The Socioeconomic Factors Affecting Small Businesses Retrieved on June 01
2020 from https://smallbusiness.chron.com/socioeconomic-factors-affecting-small-businesses-73234. html
https://www.slideshare.net/HannahCullen/lesson-3-basic-economic-problems
Molina, J. A. & Nadal, G. J I (2020) Concept and Scope of Economics. Retrieved on June 01 2020
from http://personal.unizar.es/jamolina/Unit1.pdf
Nowaczyk, J. (2020 ).Four Factors of Production: Land, Labor, Capital & Entrepreneurship
Retrieved on June o1 2020 from https://study.com/academy/lesson/four-factors-of-
production-land-labor-capital-entrepreneurship.html
Portillo, E.F (2017). Basic terms in Economics retrieved on June 01 2020 from
https://www.slideshare.net/enaportillo13/basic-terms-in-economics
Websites:
https://global.oup.com/us/companion.websites/9780199811786/student/chapt1/multiplechoice
https://www.thebalance.com/factors-of-production-the-4-types-and-who-owns-them-4045262
https://quizizz.com/admin/quiz/5b7564f0dfd12e00194449b9/factors-of-production
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https://int.search.myway.com/search/AJimage.jhtml?
http://www.aloha-hawaii.com/oahu/dole-plantation/