Applied economics is the use of the insights gained from economic theory and research to make better decisions and solve real-world problems.

Applied economics for Senior High School

1. APPLIED ECONOMICS

2. CONTENT INTRODUCTION TO APPLIED ECONOMICS The basic economic problems and the Philippine socio-economic development in the 21st century .

3. LEARNING COMPETENCY The learners identify the basic economic problems of the country. (ABM_AE12-Ia-d-2)

4. Quote Review

5. AT THE END OF THE LESSON, THE LEARNERS SHOULD HAVE: Defined economics as an applied science; Identified the basic economic problems; Enumerated the things to be done to solve the economic problems in the country. OBJECTIVES

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15. ANSWERS SCIENCE APPLICATION THEORY WORLD POVERTY ECONOMICS APPLIED ANALYZE

16. APPLIED ECONOMICS As a science , is an application of theory/theories in the real world situation to fight problems such as poverty .

17. APPLIED ECONOMICS “brings economic theory nearer to reality”

18. ECONOMICS AS AN APPLIED SCIENCE Is studying Economics important? Why? Why not?

19. ECONOMICS AS AN APPLIED SCIENCE Its primary aim is to increase human welfare by the investigation and analysis of economic problems of the real world. It focuses on social problems, the health-care crisis, agricultural problems, poverty, economic growth and the environment.

20. A B C D DECISION MAKING-SKILLS

21. PROBLEM SOLVING ABILITIES

22. JOB OPPORTUNITIES

23. ECONOMICS AS AN APPLIED SCIENCE Decision-Making Skills Problem Solving Abilities Job Opportunities

24. ECONOMICS AS AN APPLIED SCIENCE

25. BASIC ECONOMIC PROBLEMS There are three Basic Economic Problems to make the right decisions: What to Produce? How to Produce? For Whom to Produce?

26. BASIC ECONOMIC PROBLEMS

27. BASIC ECONOMIC PROBLEMS What to Produce? How to Produce? For Whom to Produce? Enough Supply of Potable Water Desalination For all the people in the community Bags made of Water Hyacinth Means of Weaving/Handicraft For the people who need bags

28. IN GENERAL…

29. Branches of Social Science: 1. Philosophy – This is the study of general and fundamental questions about existence 2. Anthropology – This is an exciting branch of Social Science which deals with the study of ancient stories and extracts which determines the human origin, civilization, culture, and development.

30. 3. Political Science - The branch of Social Science which deals with the study of all the current socio-political aspects like Government policies, administration, democracy, and administrative management is called Political Science. 4. Sociology - is the study of groups and group interactions, societies and social interactions, from small and personal groups to very large groups. A group of people who live in a defined geographic area, who interact with one another, and who share a common culture is what sociologists call a society. Sociology is the detailed study of varied human cultures, traditions, social status and beliefs in various social institutions or organizations. It deals with every aspect of human society.

31. 5. Psychology - is the scientific study of mind and behavior . This is perhaps the most scientific branch of Social Science. Psychology deals with various abstract entities which constitute the overall mind and the thought process of human beings, i.e., the way they behave, think, believe, perceive or internalize things and reflect that on the society. 6. Archaeology – Archaeology also deals with ancient studies of human beings where the prime focus is on the objects or things made, used or left behind by the people at various situations of the past.

32. 7. Geography – Which deals with the study of the physical and physiological features (mountains, rivers, trees, plains, plateaus, deserts, oceans, etc.) of the Earth. 8. History – this is the study of past events.

33. Branches of Economics: 1. Microeconomics – is the study of the behavior of individual entities such as the households, firms and markets. Example: stock market, auto industry, shipping industry, health industry 2. Macroeconomics – is the study of the over-all performance of the economy such as inflation, interest rates and money. Example: Gross Domestic Product, OFWs remittances, foreign exchange.

34. Economic Statement: 1. Normative statement – expresses a value judgment, claims that attempt to prescribe how the world should be EXAMPLE: Filipinos are lazy people There should be an increase in the public school teacher’s salary. 2. Positive statement – based on facts, claims that attempt to describe the world as it is. EXAMPLE: Inflation rate is 2.5% higher this third quarter of 2020. Nearly 11, 000 are unemployed due to the pandemic.

35. 10 Principles of Economics: How People Make Decisions: 1. People face trade-offs 2. The cost of something is what you give up to get it 3. Rational people think at the margin 4. People respond to incentives How People Interact: 5. Trade can make everyone better off 6. Markets are usually a good way to organize economic activity 7. Government can sometimes improve market outcomes

36. How the Economy as a Whole Works? 8. A country’s standard of living depends on its ability to produce goods and services 9. Prices rise when the government prints too much money 10. Society faces a short run trade-off between inflation and unemployment

37. Applied Economics – is the study of economics in relation to real world situations. It is the application of economic principles and theories to real situations and trying to predict what the outcomes might be. Simply: it is observing how theories work in practice. Econometrics is the use of mathematics and statistics in verifying economic theories or models.

38. Utility – a measure of pleasure and satisfaction Economic model – is a simplified version of reality that allows us to observe, understand and make predictions about economic behavior. Economic theory – a particular idea or principle that aims to describe how an economy works. Economic principle – a well-tested economic theory.

39. Rationing device is a means of deciding who gets what quantities of the available resources and goods. Scarcity implies competition. If resources are ample enough to satisfy all our seemingly unlimited wants, people would not have to compete for the available but limited resources. Effects: 1. Need to make choices 2. Need for a rationing device and 3. Competition

40. Opportunity cost/Trade-off – the most highly valued opportunity or alternative forfeited when a choice is made. The higher the opportunity cost of doing something, the less likely it will be done. It is giving up of something else in exchange of the other.

41. Marginal Changes – small incremental adjustments to a plan of action. A rational decision maker takes an action if and only if the marginal benefit of the action exceeds the marginal cost.

42. DIRECTION: -Think of any raw materials found in your locality which you think can be a good source of goods for consumption. -Decide with your group and get only three among the many options you had thought and brainstormed. These raw materials that you will choose will be used to fill in the chart given to you. -After 7 minutes, one from your group will report your finished output to the front. ACTIVITY

43. DIRECTION: Flashed on the screen later is the list of economic problems arising in the Philippines. All you need to do is to select one and enumerate the things needed to be done to solve these economic problems in our country. You are going to do this through writing a poem , a song composition , an interactive drawing , or by writing an essay . After 5 minutes, the teacher will select 3 pairs of students to present their work in front. DYAD ACTIVITY

44. ECONOMIC PROBLEMS IN THE PHILIPPINES -Unemployment -Inflation -Water Shortage -Calamity -Underpaying Jobs -Job Mismatch -Scarcity of Resources -Poverty Source: https://opinionfront.com/economic-problems-of-philippines

45. DIRECTION: IN A 1 WHOLE SHEET OF PAD PAPER You’re planning to buy at a nearby sari-sari store, grocery or mall. You have noticed that stores have enough stocks of commodities to sell, you probably cannot afford to buy all you want, and so you have to make choices on how to use your limited resources (money, time, energy). Given Php500.00 as your allowance for the whole week. How will you allocate your budget for your expenses for the week? ASSIGNMENT

46. DIRECTION: List your choices and describe the advantages and disadvantages of each choice. ASSIGNMENT CHOICE 1 CHOICE 2 CHOICE 3 Advantages Disadvantages Advantages Disadvantages Advantages Disadvantages