Applied - Economics - Q1 - SHS Applied

QUARTER 1 - GRADE 12
Applied Economics
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PIVOT 4A CALABARZON
Applied
Economics
for Grade 12
Regional Office Management and Development Job S. Zape, Jr.,

Team:
EPS in-Charge, Jhonathan S. Cadavido, Romyr L. Lazo, Fe M. Ong-Ongowan,
Lhovie A. Cauilan
Schools Division Office Management Team: :
Introduction to Applied Economics

PIVOT IV-A Learner’s Material
Quarter 1
First Edition, 2020
Published by: Department of Education Region IV-A CALABARZON

Regional Director: Wilfredo E. Cabral
Assistant Regional Director: Ruth L. Fuentes
PIVOT 4A CALABARZON
Guide in Using PIVOT Learner’s Material
For the Parents/Guardian
This module aims to assist you, dear parents, guardians, or

siblings of the learners, to understand how materials and activities
are used in the new normal. It is designed to provide the information,
activities, and new learning that learners need to work on.
Activities presented in this module are based on the Most

Essential Learning Competencies (MELCs) for Senior High School as
prescribed by the Department of Education.
Further, this learning resource hopes to engage the learners in

guided and independent learning activities at their own pace and
time. Furthermore, this also aims to help learners acquire the needed
21st century skills while taking into consideration their needs and
circumstances.
You are expected to assist the child in the tasks and ensure the
learner’s mastery of the subject matter. Be reminded that learners
have to answer all the activities in their own notebook.
For the Learners
The module is designed to suit your needs and interests using

the IDEA instructional process. This will help you attain the
prescribed grade-level knowledge, skills, attitude, and values at your
own pace outside the normal classroom setting.
The module is composed of different types of activities that are

arranged according to graduated levels of difficulty—from simple to
complex. You are expected to answer all activities on separate
sheets of paper and submit the outputs to your respective teachers
on the time and date agreed upon.
PIVOT 4A CALABARZON
PARTS OF PIVOT LEARNER’S MATERIAL
Parts of the LM Description
What I need to
know
The teacher utilizes appropriate strategies in presenting the MELC
Introduction
and desired learning outcomes for the day or week, purpose of the
lesson, core content and relevant samples. This allows teachers to
maximize learners awareness of their own knowledge as regards
content and skills required for the lesson
What is new
What I know The teacher presents activities, tasks , contents of

Development
value and interest to the learners. This shall expose the learners on
what he/she knew, what he /she does not know and what she/he
wanted to know and learn. Most of the activities and tasks must
What is in simply and directly revolved around the concepts to develop and
master the skills or the MELC.
What is it
What is more
The teacher allows the learners to be engaged in
various tasks and opportunities in building their KSA’s to mean-
Engagement
ingfully connect their learnings after doing the tasks in the D. This
part exposes the learner to real life situations /tasks that shall
What I can do ignite his/ her interests to meet the expectation, make their perfor-
mance satisfactory or produce a product or performance which
lead him/ her to understand fully the skills and concepts .
What else I can do
What I have The teacher brings the learners to a process where they shall
Assimilation
learned demonstrate ideas, interpretation, mindset or values and create

pieces of information that will form part of their knowledge in
reflecting, relating or using it effectively in any situation or con-
text. This part encourages learners in creating conceptual struc-
tures giving them the avenue to integrate new and old learnings.
What I can achieve
PIVOT 4A CALABARZON
WEEK Introduction to Applied Economics
1 Nature and Scope of Economics
I
Economics is a very interesting subject because it analyzes how human be-
ings make choices in an effort to maximize utility. It also analyzes how a society
seeks to allocate their limited resources in other to achieve growth. The nature
and scope of economics, its fields were provided for you to accomplish which will
allow self-discovery of the concept. Creativity and critical thinking skills will help
you to make decisions independently. And most importantly, your character and
initiative to handle situations which you cannot control will be improved.
After you finish the lesson, you should be able to explain the nature and
scope of economics, determine its fields: the micro and macroeconomics, resource-
fully use the different resources in the production of goods and services, and in
real world, efficiently consume these finished products.
This material also deals with the basic principles of applied economics, and
its application to contemporary economic issues facing the Filipino entrepreneur
such as prices of commodities, minimum wage, rent, and taxes. It covers an anal-
ysis of industries for identification of potential business opportunities.
D
THE NATURE AND SCOPE OF ECONOMICS
According to Molina, J.A & Nadal, G. JI (2020), economics is a SOCIAL SCI-
ENCE concerned with the explanation and prediction of observed phenomena
in the society. Economics studies the way in the societies solve the fundamen-
tal problems of reconciling the unlimited desires of individuals with scarcity of
resources, susceptible to numerous alternative uses. Economics is also an AP-
PLIED SCIENCE because it uses the scientific method in its explanations,
which consists of observing reality and presenting questions and problems to
arrive at the formulation of theories and models. As an applied science, it fol-
lows a systematic procedure to solve issues and problems of the society.
Learning Task 1.1
On your notepad, let us check your knowledge on the topic. Choose the letter
of the correct answer.
PIVOT 4A CALABARZON 6
1. These are man made resources used in the in the production of goods and services, which
include machineries and equipment.
A. Land C. Capital
B. Labor D. Entrepreneurial Activity
2. Soil and natural resources that are found in nature and are not man made. Owners of
lands receive a payment known as rent.
A. Land C. Capital
3. It is 'an individual's ability to turn ideas into action. It includes creativity, innovation and
risk-taking, as well as the ability to plan and manage projects in order to achieve
objectives.
A. Land C. Capital
4. It covers manual workers like construction workers, machine operators, professionals like
nurses, lawyers and doctors. The income received by labors is referred to as wage.
A. Land C. Capital
5. Which best describes as economics as social and applied science?
A. The study of human behavior.
B. The study of things we need to survive.
C. The study of how buyers make choices when there is limited supply of resources.
D. The study of how people make choices when they are faced with unlimited supply
of resources.
THE FIELDS OF ECONOMICS

1. Microeconomics - focuses on issues that affect individuals and companies. This could
mean studying supply and demand for a specific product, the production that an individ-
ual or business is capable or business is capable of, or the effects of regulations on a busi-
ness.
2. Macroeconomics - focuses on issues that affect the economy as a whole. It also focuses
on unemployment rates, the gross domestic product of an economy, and the effects of ex-
ports and imports. Simply issues facing the economy.
7 PIVOT 4A CALABARZON
The Economic Agents/Stakeholders:
1. Consumers
 A person who purchases/consumes goods and services for personal use.
 He/She maximize utility
2. Producers
 a person, company, or country that produce, grows, or supplies goods or
commodities for sale.
 Maximize profit
3. The Public Sectors - It attempt to maximize the well being of the society
* This agents interact among themselves in a specific territorial, social, natural and/or
cultural framework that determines their relationships—market
BASIC TERMS TO UNDERSTAND ECONOMICS
In studying economics, it is essential for you to unlock , identify and familiarize some
basic terms to understand the subject economics. This will facilitate your under-
standing of economic analysis.
TANGIBLE GOODS - when they are in

GOODS - is anything which the form of material goods or commodi-
yields satisfaction to some- ties. Ex. Bags, books, clothes
one. It is anything used to
satisfy a person’s wants and
desires. INTANGIBLE GOODS - when they are
in the form of services. Those rendered
by professionals (doctors, teachers etc.)
CLASSIFICATION OF GOODS
A. ACCORDING TO USE:
1. CONSUMER GOODS - when it is for the ultimate consumption of the
consumers. (Ex: food, soft drinks, toothpaste, bath soap, etc.)
2. CAPITAL GOODS or INDUSTRIAL GOODS - when it use for the production of
other goods and services. (Ex: buildings, machinery, equipment)
3. ESSENTIAL GOODS - if they are used to satisfy the basic needs of man, such as
food, shelter and medicine.
4. LUXURY GOODS—are those goods man may do without, but are used to
contribute to his comfort and well-being. (Ex: perfume, chocolates, expensive
cars.)
GOODS MAY ALSO BE CLASSIFIED AS ECONOMIC OR FREE
1. ECONOMIC GOOD - is a good which is both useful and scarce. It has a value at-
tached to it and a price has to be paid for its use. If a good is so abundant and it
can satisfy everyone’s needs without anybody paying for it, then that good is free.
The air is free, but the air from an electric fan is an economic good.
2. ECONOMIC RESOURCES - these are also called the factors of production. These
are needed for the production of goods and services.
A. LAND - refers to all natural resources, which are given by and found in nature,
and are, therefore, not manmade.
B. LABOR - it is any form of human effort exerted in the production of goods and
services.
C. CAPITAL - refers to manmade goods used in the production of goods and
services. It does only include money, it also includes building, machineries,
equipment's, raw materials used in production.
D. ENTREPRENUER - often, an entrepreneur is not presented as a separate factor
of production, but is classified as part of labor.
Learning Task 1.2

Read the article below and answer the following questions on your notepad.
CORONA Virus in Philippines: The COVID-19 risk, impact and measures
by: Praveen Duddu (https://www.pharmaceutical-technology.com/features/
coronavirus-affected-countries-philippines-measures-impact-tourism-economy/)
Philippines, one of the high-risk countries from the Wuhan coronavirus out-
break, recorded the first death outside China. The government has announced lock-
down of Metro Manila, followed by the entire Luzon island and is mulling over more lo-
calised lock-downs. The Philippines government declared a state of calamity in the
country for six months on 17 March. Manila, in particular, is one of the most cities in
the Philippines being affected by the said Pandemic. Population, Gross Domestic Prod-
uct (GDP), Trade in Services, Trade Balance and Biggest Importer has a huge impact
on the economy.
We want to understand why such case happens and how it affects the lives of
everyone in the economy. An ordinary citizen could hardly understand what is happen-
ing in the society if he does not have backgrounds in economics. Economics, as a so-
cial and applied science will explain and help you understand what is really happening
in the economy.
Guide Questions:
1. What is your idea about COVID-19?
2. How does it affects to the lives of
everyone in the economy?
GUIDE QUESTIONS:
1. Base on the article, what do you think is the impact of COVID 19 to economic re-
sources such as land, labor, capital and entrepreneur?
2. Base on your experience as a citizen of Rizal, is there a major change or adjustments
Filipinos are adopting because of COVID - 19? If yes, explain your answer.
3. How will you apply and relate this economic effects in studying economics as a social
and applied science?
The following scoring rubric will help you evaluate your work and for you to see where
your work needs enhancement.
Ideas and Content - 5 points

Use of terms - 5 points
Organization - 5 points
Completion - 5 points
Learning Task 1.3
Identify the following: Write the correct answer on your notepad.
1. It is anything use to satisfy a person’s wants and desires.

2. It focuses on issues that affect the economy as a whole.
3. It refers to goods man may do without, but are used contribute to his comfort
and well-being
4. It refers to manmade goods used in the production of goods and services.
5. They are used to satisfy the basic needs of man, such as food, shelter and medicine.
E
Learning Task 1.1
CLASSIFICATION OF GOODS
On your notepad, take a look on the goods your parents purchased on the market. List at
least 20 goods and classify them base on the following:
A. Consumer Goods
B. Industrial Goods
C. Essential Goods
D. Luxury Goods
Learning Task 1.2
Great! Now you are already familiar in classifying goods as to use, now its time to classify
the factors of production. On your notepad, decide if the pictures are one of the factors of
production—land, labor, capital or none of them. Then list them in the correct column be-
low.
Source: eslprintables.com/
vocabulary_worksheets/business_english/ LAND LABOR CAPITAL NONE
Classifying_Factors_of_Product_451345/
A
Learning Task 1.1
Microeconomics and Macroeconomics are two different perspectives on the conomy.
The microeconomic perspective 1. studies the behaviour and individual economic units; 2.
studies the functioning of markets 3. focuses on parts of the economy: individuals, firms, and
industries. The macroeconomic perspective 1. looks at the economy as a whole and 2. focus-
ing on goals like productions; standard of living, unemployment, and inflation. Macroeconom-
ics has two types of policies for pursuing these goals: monetary policy and fiscal policy.
On your notepad, fill the blanks with the correct answer base on what you have
learned for week 1 Introduction to Applied Economics.
1. Economics has two fields: Micro and Macroeconomics. __________ study of markets of
goods and services and focuses on the behaviour of individual on products and services in
the market while __________ deals with the study of the economy as a whole and focuses
on aggregate indicators such as __________; __________; __________.
2. The Classification of goods: __________; __________; __________; __________
3. There are four factors of productions or the resources needed to produce products and
services: __________; __________; __________; __________
Learning Task 1.2

Congratulations! By completing this task it means that you are now ready to answer this
question: On your notepad answer the question in 1-2 paragraph. QUESTION: Did you find
our topic enjoyable inspite and despite of the pandemic we are facing? Write something
about.
WEEK
2 Application of Applied Economics
Applied Economics to Solve Economic Issues
I
You have truly widen your perspectives about economics as a social and
applied science. Having accomplished all the tasks in the previous lesson it only
shows that you are now ready to accomplish this new lesson under this learning
material!
Specifically, this learning material will help you identify the basic economic
problems, illustrate how applied economics can be used to solve economic prob-
lems, how to construct framework to solve the economic problem and finally, solve
economic problems on economic activities.
D
In the article of Claire Jiao and Cecilia Yap (2020) The Philip-
pine economy suffered its deepest contraction on record in the second
quarter and revised down its forecast for the year amid one of Asia’s
strictest lockdowns against the coronavirus.
Gross domestic product shrank 16.5% from a year ago, accord-
ing to the national statistics agency, the worst reading in a data series
going back to 1981. The median forecast in a Bloomberg survey of 21
economists was for a 9.4% contraction. GDP declined for a second
consecutive quarter on a quarter-on-quarter basis, down 15.2%, im-
plying the economy is in recession.
Guru, S. (2020) mentioned, the main issues on production in-
clude the products to produce; how to produce these products and for
whom to produce the products and how to make the economy grow.
Economics, therefore, is concerned with the allocation of resources to
make the most efficient use of these resources.
BASIC ECONOMIC PROBLEMS OF THE COUNTRY
1. What to produce? This problem involves selection of goods and
services to be produced and the quantity to be produced of each
selected commodity. Every economy has limited resources and thus
cannot produce all the goods. More of one good or service usually
means less of others. (It has two aspects namely: What possible
commodities to produce and Which of the capital goods are to be
produced. (For example, which do we produce more, masks or
canned goods?)
2. How to Produce? This problem refers to selection of technique

to be used for production of goods and services. A good can be
produced using different techniques of production. (For exam-
ple, you can produce PPEs using sewing machine.)
3. For Whom to Produce? This problem refers to selection of the category of peo-
ple who will ultimately consume the goods, i.e. whether to produce goods for more
poor and less rich or more rich and less poor. Since resources are scarce in every
economy, no society can satisfy all the wants of its people. Thus, a problem of
choice arises. (For example, when we produce PPEs we suppose to produce first
these for the front liners of COVID Pandemic fight. A society decides on the distri-
bution of the goods and services among the members of the society who need
them the most.
4. What laws should be made for economic growth? A society uses all its re-
sources for current consumption. If a society uses all its resources, then its pro-
duction capacity will not increase. The standard of living of the people and the in-
come of the workforce remain constant until the standard of living will decline in
the future. The society must decide also on the part of the resources to be saved
for future progress.
APPLIED ECONOMICS ON BASIC ISSUES AND PROBLEMS

A solid understanding of economic principles and how they are applied in
real life situations can serve as significant tools to help address the country’s
economic problem. For example, understanding the existence of scarcity can
help Economics students analyze how to maximize the use of available re-
sources in order to overcome scarcity. Knowledge of economic theories such
as Law of Supply and Demand can help in analyzing why prices are high and
what the government can do to help bring down prices. Scarcity of means for
satisfying various needs is the central problem of our economic life and it is
scarcity that created the need to make a choice. Scarcity refers to the tension
between our limited resources and our unlimited wants and needs. For an in-
dividual, resources include time, money, and skill.
ANSWERS TO BASIC ECONOMIC PROBLEMS (ECONOMIC SYSTEM)
1. Traditional Economy - Decisions are based on traditions and practices
upheld over the years and passed on from generation to generation. Meth-
ods are stagnant and therefore not progressive.
2. Command Economy - This is authoritative system wherein decision mak-
ing is centralized in the government or a planning committee. It holds true
dictatorial, socialist, and communist nations.
3. Market Economy - The most democratic form of economic system. Deci-
sions are made on what goods and services to produce.
4. Mixed Economy - is an economic system that incorporates aspects of
more than one economic system. (Most countries fall in this category)
Learning Task 1.1
Watch the video at the link below and complete the chart as you watch.
Video: Economics: Economic Systems (https://youtu.be/djPFUgUOujY)
Who decides what Who decides how Who decides for

goods and services good and services whom goods and
Economic System
will be provided? will be produced/ services will be pro-
provided? duced/provided?
Market
Command
Mixed
Traditional
Learning Task 1.2

Base on the video and chart answer the following questions in one to two paragraph.
1. What Kind of Economy does the United States have?
2. What kind of economy does the United States have? Why?
3. Explain the economic system that you chose and include at least three why you chose
it?
The following scoring rubric will help you evaluate your work and for you to see where your
work needs enhancement.
CRITERIA Excellent Very Good Good Need Improve-

ment
Completeness 5 4-3 2 0-1
(5 point)
Knowledge 10-9 8-7 7-6 0-5
(10 points)
Analysis 5 4-3 2 0-1
(5 points)
Writing Skills 5 4-3 2 0-1
(5 points
Learning Task 1.3
Great! You are now on the next level of understanding Economic System in answering eco-
nomic problems. On your notepad, complete this graphic organizer.
In one sentence, explain

what you believe are the
Types of Economic Systems Definition
benefits/obstacles of this
type of economic System
Market Economy
Command Economy
Traditional Economy
Mixed Economy
Applied Economics seeks to solve the problems on scarcity. This happens when hu-
man wants for goods and services exceed the available supply. In a modern economy, it is
evident that a division of labor happens when people earn income by specializing in what
they produce. They will use that income to purchase the products they need or want every
day (BC Campus 2020).
Also, in the division of labor, it allows workers and firms to produce more. This is be-
cause: a) agents focus on areas of advantage due to natural factors and skill levels; b) the
agents learn and invent; c) the agents take advantage of economies of scale. Division and
specialization of labor only work when individuals can purchase what they do not produce
in markets. Applied economics then helps you understand the basic problems facing the
world today. It helps you become a well-rounded thinker. And most importantly, it prepares
you to be a good citizen.
(Credit: Nina Hale/Flickr Creative

Commons)
https://opentextbc.ca/principlesofeconomics/chapter/1-1-what-is-economics-and-why-is-it-important/
E
Learning Task 1.1
On your notepad, write TRUE if the statement is correct and FALSE if the state-
ment is incorrect.
________________________ 1. Scarcity in goods and services happens if the re-
sources in the production are inadequate or scarce.
________________________ 2. Customers must choose among several alternatives if
scarcity exists.
________________________ 3. Income inequality is the gap in income that exists be-
tween the rich and the poor customers willing to buy the same products.
________________________ 4. Shortage of goods and services is an economic prob-
lem; and shortages are always constant.
________________________ 5. The Build Build Build program by the government
aims to help improve the infrastructure projects and other programs of the coun-
try.
Learning Task 1.2
Classify the following sentences based on the four types of economic system in an-
swering economic issues or problems of the country. Write only the letter of the
correct answer on the space before each number.
A. Traditional Economy C. Command Economy
B. Market Economy D. Mixed Economy
_______ 1. Prices are based on demand and supply.
_______ 2. The government decides on what goods should be produced.
_______ 3. Ancient methods are used in deciding what goods to produce.
_______ 4. People enjoy freedom of choice in arriving at decisions on what
to buy.
_______ 5. People have no freedom of choice in arriving at decisions on
what to buy.
_______ 6. Economy is stagnant, making use of practices in the olden
times.
_______ 7. Economy is backward because no new technology of production
methods are introduced.
_______ 8. It is the most democratic form of economic system.
_______ 9. Peoples preferences are reflected in the prices they are willing to
pay in the market.
_______ 10. It exists in primitive and backward civilizations.
Learning Task 1.3
You may collaborate and communicate with your friends and family members in doing
the tasks. Currently, we are dealing with scarcity on units of bicycles. Below is a framework
showing the solution on how to deal with economic issues on meeting the products.
As an agent of the economy, how will you deal with this scarcity? Choices are given
below. Place them in their proper columns as to economic growth; and improve the use of
available resources and reduce expectations.
A
Great job! You did very well in the tasks! As expected, you have already
gained sufficient skills in identifying different economic systems that will help in
answering some economic issues of the country.
Learning Task 1.1
Every society must make choices about which essential should be allocated
with the available but limited resources for production. In most cases, where there
is scarcity in the production of necessities, or where there are no enough funds to
accomplish everything for the satisfaction of everyone, the society has to make
better choices.
Today we have to adjust to the new normal way of living. There is scarcity
in the production of goods and services for everyone’s needs and wants. Every-
thing in this world has limitations. Rich and poor, all individuals… “ceteres pari-
bus…” all else are equal….
Regardless of your economic status, which is more important to you, health
or unlimited supply for your wants?
The following scoring rubric will help you evaluate your work and for you to see
where your work needs enhancement.

ment
(5 point)
Knowledge 10-9 8-7 7-6 0-5
(10 points)
(5 points)
(5 points
Learning Task 1.2
Given the resources below, please select the most efficient products that could be
produced to maximize production and help the economy.
Raw Material Finished Product Choice
1. Steel casino tokens or public cars __________________
2. Crude Oil gasoline or kerosene __________________
3. Cars small cars or SUV’s __________________
4. Flour cakes or breads __________________
5. Cloth Scraps doormats or washable masks __________________
Application of Supply and Demand WEEKS
3-4
Analyze Market: Demand, Supply and Equilibrium
I
In the previous chapter, we have investigated the various components of eco-
nomics as a social science and have analyzed economic decisions from the perspective
of benefits and costs. The framework developed has shown its usefulness in under-
standing various contemporary social, economic, and business issues.
In this chapter, the analysis of supply and demand, which is a simplified version
of the analysis of benefits and cost, will developed. Specifically this learning material
will help you to determine market demand, supply and equilibrium. We will also state
the laws of demand and supply, construct and analyze demand, supply and their
curves and finally solve problems on demand supply and equilibrium.
D
Economics helps us solve the problem on excess supply and excess
demand, and lead it to a balanced supply and demand. In our needs, we do not
want oversupply. It means wastage of income. For entrepreneurs, it is not
efficient if their stocks or supplies are greater than the actual demand. It is a
loss not revenue.
In economics, there are terms that you must learn to understand the
better market situations. A demand or the amount of good or service
consumers are willing to purchase at each price. If customers cannot pay for it,
there is no effective demand. Price is what a buyer pays for a unit of the
specific good or service. The total number of units purchased at that price is
called the quantity demanded.
THE LAW OF SUPPLY AND DEMAND

The law of supply and demand explains the interaction between the sellers of a
product and the buyers. It shows the relationship between the availability of a particu-
lar product and the desire (or demand) for that product has on its price.
The Law of Demand
After observing the behavior of price and quantity de-
manded in the above schedule, we can now state the Law of
Demand. “As price increases, the quantity demanded for
that product decreases.” The low price of the good moti-
vates the consumer to buy more. When price increases, the
quantity demanded for the good decreases.
The Law of Supply
The law of supply demonstratesthe quanti- Factors Affecting Supply

ties that will be sold at a given price.
A. Production Capacity,
The higher the price, the higher The
B. Production costs such as labor and
quantity supplied and vice versa. Pro-
materials
ducers supply more at a higher price be-
cause selling at higher quantity at a higher C. The number of Competitors
price increases revenue. D. Ancillary factors such as
E. Material Availability, weather and relia-
bility of supply chains
The law of supply says…… “as the price

of a product increases, companies will
produce more of the product.”
When graphing the supply vs. the price,
the slope rises.
https://www.ducksters.com/money/supply_and_demand.php
How Do Supply and Demand Create an Equilibrium Price?
Equilibrium price or market-clearing price, is the price at which the producer can sell
all the units he wants to produce and the buyer can buy all the units he wants.
Supply and Demand are balanced, or in equilibrium.
The demand curve is downward sloping. This is
due to the law of diminishing marginal utility.
The supply curve is a vertical line; overtime, sup-
ply curve slopes upward; the more suppliers expect to be
able to charge, the more they will be willing to produce
and bring to market.
In the Equilibrium point, two slopes will inter-
sect. The market price is suffiecient to induce suppliers
to bring to market that same quantity of goods that con-
sumers will be willing to pay for at that price.
ttps://www.investopedia.com/terms/l/law-of-supply-demand.asp
https://www.thoughtco.com/calculating-economic-equilibrium-1147698
Learning Task 1.1

Read each statement in the CAUSE column. Predict what will happen to the price and ex-
plain why in the EFFECT column. Write your answer on your notepad.
CAUSE EFFECT
Today is the day before the 4th of Ju- The price will __________________________________
ly holiday and the fireworks stand is because _______________________________________
almost out of fireworks. What will _______________________________________________
happen to the price of fireworks? _______________________________________________
There are lots of holiday ornaments The price will __________________________________

still on store shelves the day after because _______________________________________
Christmas. What will happen to the _______________________________________________
price of the ornaments? _______________________________________________
An oil well explosion reduces the The price will __________________________________
amount of oil available to make gaso- because _______________________________________
line for cars and trucks. What will _______________________________________________
happen to the price of gas? _______________________________________________
A car dealer has too many cars of The price will __________________________________
last year’s model still on his lot left to because _______________________________________
sell. The new models will be delivered _______________________________________________
next week. What happen to the price _______________________________________________
of last year’s model cars?
A bakery accidentally bakes too The price will __________________________________
many cupcakes one morning. Instead because _______________________________________
of 30 cupcakes, they now have 300. _______________________________________________
What will happen to the price of the _______________________________________________
cupcakes?
Source: https://www.teacherspayteachers.com/Product/
Supply-and-Demand-for-Google-Classroom-Distance-Learning-1079766 21 PIVOT 4A CALABARZON
Learning Task 1.2
On your notepad answer the following. Write TRUE if the statement is correct and FALSE
if incorrect.
________1.The upward slope of the supply curve illustrates the law of demand - higher price
leads to a higher quantity supplied, and vice versa‖.
________2.The downward slope of the demand curve illustrates the law of
Supply - the inverse relationship between prices and quantity demanded.
________3.Time is important to supply because suppliers must react quickly to
a change in demand or price.
________4.A shift in a demand or supply curve occurs when quantity demanded
or supplied changes even though price remains the same.
________5.The law of supply says that ―at higher prices, sellers will supply more
of economic goods.
Learning Task 1.3

On your notepad, Let’s analyze this passage. This will you understand our topic in de-
mand, supply and equilibrium. Read and carefully the passage and answer the question
below. The following scoring rubric will help you evaluate your work and for you to see
Supply, Demand and Marriage
By Robert H. Frank
In some cultures, romance isn’t nearly as important as cash when it comes to
choosing a marriage partner. And even when money play no explicit role in selecting a ma-
te, courtship customs are governed by the venerable economic model of supply and de-
mand. Under the dowry system of India, for example, parents of older brides would typical-
ly pay more to prospective grooms. Men with better jobs would receive larger payments,
too. In short, there really is a marriage market in many countries around the world, and
economic principles apply to it. In markets with a preponderance of women seeking part-
ners, the terms of trade shift in favor of men. If more men are seeking partners, the reverse
is true.
https://www.nytimes.com/2011/08/07/business/economy/marriage-and-the-law-of-supply-anddemand.html
GUIDE QUESTIONS:
1. Under the dowry system in India, a market with more women seeking partners, the
trade shift favors the men. What law or economic principle is applicable?
2. In the same system, men with better jobs receive larger payments. What economic
principle is applicable to this situation? Justify your answer.
3. State the law of demand. CRITERIA Excellent Very Good Good Need Im-
4. State the law of supply. provemen
Content 5 4-3 2 0-1
Completion 5 4-3 2 0-1
Organization 5 4-3 2 0-1
Demand and Supply Function
Demand is the willingness of a consumer to buy a commodity at a given price. A
demand schedule shows the various quantities the consumer is willing to buy at vari-
ous prices.
A Demand Function shows how the quantity demanded of a good depends on its
determinants, the most important of which is the price of the good itself, thus, the
equation: Qd = f(P)
This signifies that the quantity demanded for a good is dependent on the price of
that good. Presented in Table 1 is a hypothetical monthly demand schedule for vinegar
(in bottles) for one individual, Martha. The quantity demanded is determined at each
price with the following demand function: Qd = 6—P/2
Table 1.1. Hypothetical Demand Schedule of Martha for Vinegar (in bottles)
PRICE per NUMBER of

BOTTLE BOTTLES
P 10 6
2 5
4 4
6 3
8 2
10 1
COMPUTATION ON DEMAND FUNCTION

Example: GIVEN: Qd = 400 - 5P
400 - (no. of products consumers don't want to buy)
5P - Change in Price
- (negative sign) - Relationship of P and Qd
What if there is a change in Price of P 80.00?
Using the given: Qd = 400 - 5P solve for P.
SOLUTION: Qd = 400 - 5P
= 400 - 5 (80)
= 400 - 400
=0
Learning Task 1.4
Given the Demand Function: Qd = 400-5(P) compute the following if there is a
change in price:
A. 65 C. 45 D. 25
B. 55 D. 35
Supply - refers to the quantity of goods that a seller is willing to offer for sale. The
supply schedule shows the different quantities the seller is willing to sell at various prices.
The supply function shows the dependence of supply on the various determinants that af-
fect it.
Assuming the supply function is given as: Qs = 100 + 5P and is used to determine
the quantities supplied at the given prices.
Table 1.2. Supply Schedule of Pedro for Fish in one Week
PRICE of SUPPLY in
fish (p/kilo) KILO
P 20 200
40 300
60 400
80 500
100 600
Supply Function shows the mathematical relationship of price and quantity de-
manded. Supply Function: Qf = f (P) where: Qs - dependent variable;
P - independent variable
Example: Mathematical Equation: Qs = -300 + 60P (+) positive sign shows the
relationship of price and supply (-) negative sign signifies the refusal of producer to supply
products. Using Qs = -300 + 60P if Price change to P5 What will be the Qs?
Solution: Qs = -300 + 60P
= -300 + 60(5)
= -300 + 300
Qs = 0
Learning Task 1.5

Given the Supply Function: Qs = 300+30(P) compute the following if there is a change in
price:
A. 75 C. 55 D. 35
B. 65 D. 45
E
Great! You have just completed your understanding about the demand and
supply function. Always remember that A demand curve shows the relationship between
quantity demanded and price in a given market on a graph while A supply curve shows
the relationship between quantity supplied and price on a graph.
The equilibrium price and equilibrium quantity occur where the supply and
demand curves cross and the equilibrium occurs where the quantity demanded is
equal to the quantity supplied. Finally, if there is an excess demand or a shortage
will exist. If the price is above the equilibrium level, then the quantity supplied will
exceed the quantity demanded.
Learning Task 1.6

On your notepad, copy and answer the given data then analyse this problem. The following
data were taken from an invoice of Company X. The company imports gasoline from other
country.
A. Plot or graph the data. Interpret the results.
PRICE ($ PER GALLON) QD (MILLIONS OF GALLONS)

1.00 800
1.20 700
1.40 600
1.60 550
1.80 500
2.00 460
2.20 420
B. Analyze the data

and describe the
curve. Interpret the
results.
Learning Task 1.7
On your notepad, copy and answer the given data then analyse this problem. The following
data were taken from an invoice of Company X. The company imports gasoline from other
country.
A. Plot or graph the data. Interpret the results.
PRICE ($ PER GALLON) SUPPLY OF GASOLINE MIL-

LIONS OF GALLONS)
1.00 500
1.20 550
1.40 600
1.60 640
1.80 680
2.00 700
2.20 720
B. Analyze the data

and describe the
curve. Interpret the
results.
Learning Task 1.8

A. Using the data from demand and supply, determine the equilibrium point of the
demand and supply curve. Write your answer on your notepad.
B. How much is the

price in the equilibri-
um point? Show your
solution
Sources: https://opentextbc.ca/principlesofeconomics/chapter/3-1-demand-supply-and-equilibrium-in-marketsfor-goods-
and-services/
A
Learning Task 1.9
Read the sentences carefully. Encircle the correct answer. Write your answer on
your notepad.
1. An increase in the price of electricity bill will force you to:

a. increase your demand for kerosene heaters and coal.
b. increase your demand for light bulbs and aircon.
c. increase your demand for stereos and videokes.
d. increase your demand for TVs and use of gadgets.
2. The market demand curve for apple shows the
a. effect on market supply of a change in the demand for apple
b. quantity of an apple that consumers like to buy at different prices.
c. marginal cost of producing and selling different quantities of an apple.
d. effect of advertising expenditures on the market price of an apple.
3. Economies experience an increased in unemployment and a reduced of
activity during recession. How does recession affect the market demand for new
cars?
a. Demand for new cars shifts to the right.
b. Demand for new cars shifts to the left.
c. Demand for new cars has no shift
d. Demand for new cars either has or no shift
4. The market supply curve for gasoline shows the
a. effect on market demand of a change in the supply of gasoline.
b. quantity of gasoline that firms offer for sale at different prices.
c. quantity of gasoline that consumers are willing to buy at different prices.
d. All of the above are correct.
5. If Toyota firm is producing a car faster than people want to buy, there is
a. an excess supply of car and price can be expected to decrease.
b. an excess supply of car and price can be expected to increase.
c. an excess demand of car and price can be expected to decrease.
d. an excess demand and price can be expected to increase.
https://global.oup.com/us/companion.websites/9780199811786/student/chapt2/multiplechoic
Learning Task 1.10
Analyze the problem carefully. In December, the price of ―hamon‖ rises and the
number of ―hamon‖ sold also rises. Is this a violation of the law of demand? Justify
your answer. Write your answer on your notepad.

ment
Content 5 4-3 2 0-1
Learning Task 1.11
Our case today can be compared to our topic. Let us understand that everything
has limitations in our consumption –our basic needs like food, shelter and water. Even
our consumption on the mode of transportation has limitation.
The challenge to us, consumers, is how we make use of our imitative, and utilize
our income to satisfy our demands at the most affordable prices; for the sellers to sup-
ply the needs of the\ consumers while making profit; for the government to legislate the
economy while helping all the agents and to protect the monetary and fiscal transac-
tions.
As a consumer, how can you sustain your needs (basic commodities) despite the
challenges in increased price of these items in the market? Write your answer on your
notepad.

ment
Content 5 4-3 2 0-1
WEEK
Market Pricing 5
Implications of Market Pricing in making Economic Decisions
I
You have learned how demand and supply respond to changes in their
determinants. Goods, however, differ in terms of how demand and supply respond
to changes in these determinants. The degree of their response to a change is re-
ferred to as elasticity. Elasticity is a measure of how much buyers and sellers
respond to changes in market conditions.
The coefficient of elasticity is the number obtained when the percentage
change in demand is divided by the percentage change in the determinant.
At the end of this learning material, you are expected to determine the im-
plications of market pricing in making economic decisions, you will also learn to
explore the elasticity of demand and supply, solve problems on price elasticity of
demand and supply and value the implications of market pricing in decision mak-
ing.
D
Market Pricing on Making Economic Decisions
Please read this article on Energy supply and demand outlook under Department of En-
ergy in the Philippines. This will help you understand better our new lesson. Enjoy
reading.
Demand, Supply and Elasticity of Clean Water in the Philippines
8/27/2015
According to an article created by Vice News, there are 55
people who die in the Philippines every day because of the
lack of clean water. As one can see clean water is greatly
needed by all people. As a student who is lucky to be given
all the necessities needed in life it would be normal not to
think of this because we normally do not notice it. However,
we need to. According to Katrina Arianne Ebora, who works
for UNICEF’s Water, Sanitation and Hygiene program in the
Philippines stated that “Over 30 million people in the
Philippines do not have access to improved sanitation
facilities.” Also, according to the PIS by 2050 the population
of the areas with poverty in Manila will reach over 9 million!
With the rising population of the Philippines there will be a
problem with the economy of clean water because there will
be too much demand for the supply of water. .
https://redmonteconomics.weebly.com/blog/demand-supply-and-elasticity-of-clean-water-in-the-philippines
The Marketing Price System
Last module, we talked about the market demand, market supply and market equilibrium. In
our new topic, we will link more of these variables to the market price system. For example, in
the article above, the causes and effects of the water shortage around the Philippines could be
best explained if we could understand the concepts of demand and supply elasticity of the
clean water.
A shortage is when there is an excess demand for the quantity supplied. While sur-
plus is excess in supply.
For example, if there are 10 bottles of water and there are 20 students who want
drinking these, then there will be only 10 students whose demands are met while the oth-
ers will not be able to be given anything. There is shortage in the supply.
If producers make too many bottles of water and consumers cannot by them want
to buy them, there will be surplus.
Price System in a Market Economy

Let us find out more about the price system. We have learned that demand is the will-
ingness of the consumers to buy goods and services. In economics, the willingness to buy
goods and services should be accompanied by the ability to buy, also called the “purchasing
power”. This is referred to as an effective demand (source: Investopedia).
EQUILIBRIUM CHARACTERISTICS
Equilibrium is a point of balance or a point The supply and demand are balanced in
of rest. It is also called equilibrium.
“market-clearing price”.
Equilibrium price is the price at which the The economic forces are balanced and in
producer can sell all the units he wants to the absence of external influences, the
produce and the buyer can buy all the (equilibrium) values of economic variables
units he wants. will not change.
Quantity demanded and quantities sup- The amount of goods or services sought by
plied are equal. buyers is equal to the amount of goods or
services produced by sellers.
Price System in a Market Economy: Its Characteristics

Let us learn more! The prices of goods that we encounter everyday to the things we buy plays
a crucial role in determining an efficient distribution of resources in a market system. The
prices will help us to make every day economic decisions about our needs and desires. They
are the indications of the acceptance of a product; the more popular the product, the higher
the price that can be charged.
Example is when a tables are for sale in your community today and is assumed that they
are not very important as compared to other products or commodities that we need to survive
especially that our movements are very limited.
Price System in a Market Economy: Its Characteristics
Let us learn more! The prices of goods that we encounter everyday to the things we
buy plays a crucial role in determining an efficient distribution of resources in a market
system. The prices will help us to make every day economic decisions about our needs and
desires. They are the indications of the acceptance of a product; the more popular the
product, the higher the price that can be charged.
Example is when a tables are for sale in your community today and is assumed that they are
not very important as compared to other products or commodities that we need to survive especially
that our movements are very limited.
Neither the producers nor consumers Price acts as a signal for shortages
can impact prices, consumers can buy and surpluses which help firms and con-
whatever they want; nor can producers sumers respond to changing market condi-
make and sell whatever they want. tions.
Prices are decided by interactions be-  If good is in shortage - price will tend
tween the producers and the consumers. to rise. Rising prices discourages de-
mand, and encourage firms to try and
increase supply.
 If a good is in surplus - price will tend
to fall. Falling price encourage people to
buy and cause firms to try and cut
back on supply.
 Prices help to redistribute resources
from goods with little demand to goods
https://study.com/academy/lesson/characteristics-of-the-price-system-in-a-market-economy.html
Prices are Market Driven
The producers can make what they

want and consumers are free to purchase
what they want. This means that customers
live in a market economy. When prices are
high, supply increases as many firms join
the market (Judge, S. 2020).
Let’s say the units of cellular
phones. The numbers of suppliers have in-
creased because of high prices of the cellu-
lar phones. When smartphones were new in
the market, there were fewer producers and
prices were high. The high prices attracted
the producers to join the market (Judge, S.
2020).
In shortage, quantity is less than the
demand; it causes prices to go up due to
SOURCE: https://study.com/academy/ scarcity
lesson/characteristics-of-the-pricesystem-in
-a-market-economy.html https:// Example of which is the shortage in
www.economicsonline.co.ukCompetitive_ma masks and ethyl alcohol in the market.
rkets/Price_elasticity_of_dem and.html There is shortage in the supply, thus, price
tends to go up or tends to go higher
(Judge, S. 2020).
How Do Supply and Demand Create an Equilibrium Price?
Equilibrium price is the price at which a

producer can sell all the units he wants to produce and a
buyer can buy all the units he wants.
Supply and demand are balanced, or in equilibrium
The demand curve is downward sloping. This is due to
the law of diminishing marginal utility.
The supply curve is a vertical line; overtime, supply
curve slopes upward; the more suppliers expect t to charge higher,
the more they will be willing to produce and bring products to market.
In the Equilibrium point, the two slopes will intersect. The market price is
sufficient to induce suppliers to bring to market that same quantity of goods that consum-
ers will be willing to pay for at that price.
https://www.investopedia.com/terms/l/law-of-supply-demand.asp
https://www.thoughtco.com/calculating-economic-equilibrium-1147698
Price elasticity measures the responsiveness of the quantity demanded or sup-
plied of a good to a change in its price. Elasticity can be described as: a) elastic or very
responsive and b) unit elastic, or inelastic or not very responsive. (source: Investopedia)
Effects of Change in Demand and Supply
Elastic demand or supply curve indicates that quantity demanded or supplied respond
to price changes in a greater than proportional manner.
Inelastic demand or supply curve is one where a given percentage change in price will
cause a smaller percentage change in quantity demanded or supplied.
Unitary elasticity means that a given percentage changes in price leads to an equal
percentage change in quantity demanded or supplied.
Price Elasticity of Demand

Is an economic measure of the change in the quantity demanded or purchased of a
product in relation to its price change. Expressed mathematically.
In terms of how responsive demand and supply are, degrees of elasticity may either
be:
1. Elastic - a change in a determinant will lead to a proportionately greater change in de-
mand or supply. The absolute value of the coefficient of elasticity is greater than 1. Ex-
ample: If the price of LPG increases by 10% and as a result the quantity demanded
goes down by 12% then we say that the demand for LPG is elastic.
2. Inelastic - a change in a determinant will lead to a proportionately lesser change in
demand or supply. The absolute value of the coefficient of elasticity is less than 1.
Suppose the price of cellphone load goes up by 5% and the quantity demanded goes
down by 3%, then we can say that the demand for cellphone load is inelastic.
3. Unitary Elastic—a change in a determinant will lead to a proportionately equal
change in demand or supply. The absolute value of the coefficient of elasticity is equal
to 1. Let us say that the price of string beans goes down by 6% and as a result the
quantity demanded goes up 6% also, we describe the demand for string beans as uni-
tary elastic.
Learning Task 1.1

Tell if the following percentage is ELASTIC, INELASTIC or UNITARY.
1. 1.99 % 6. 3.45 %
2. 0.35 % 7. 0.15 %
3. 1.00 % 8. 1.25 %
4. 2.35 % 9. –0.10 %
5. –0.75 % 10. 1.56 %
Learning Task 1.2
Base on the demand schedule of orange given below, plot the points to create a demand
curve.
Demand Schedule of Orange
POINTS PRICE QUANTITY DEMANDED
A 2 20
B 4 18
C 6 16
D 8 14
E 10 12
Learning Task 1.3

Base on the supply schedule of candy given below, plot the points to create a supply
curve.
Supply Schedule of Candy
POINTS PRICE QUANTITY SUPPLIED
A 10 50
B 15 100
C 20 150
D 25 200
E 30 250
E
Learning Task 1.4
On your notepad, Give the meaning of the following words/phrases. You may use the
internet to substantiate your ideas.
A. Price Elasticity : _______________________________________

B. Price Elasticity of Demand : _______________________________________
C. Price Elasticity of Supply : _______________________________________
Learning Task 1.5
Please conduct a survey or observe the market in your vicinity. This can make you aware
of your environments. Give examples of goods considered as elastic and inelastic. You
may work with your parents and siblings. Write your answer on your notepad.
ELASTIC INELASTIC
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.
Learning Task 1.6

Read the sentences carefully. Write TRUE if the statement is correct and FALSE if the
statement is incorrect. Write your answer on your notepad.
1. Elasticity of demand refers to the change in demand when there is a change in

another factor such as price or income
2. If demand for a good or service is static even when the price changes, demand
is said to be inelastic
3. Examples of elastic goods include gasoline, while inelastic goods are
items like canned goods and vitamin c tablets
4. The law of demand states that “elasticity shows how much a good or
service is demanded relative to its movement in price”.
5. Inelastic demand is when a demanded quantity for masks changes
by a greater percentage compared to its percentage change in price
6. The opposite of a market economy is a planned economy, where
investment and production decisions are decided by the government.
7. Unit elastic is when a percentage change in demand equals the price.
8. A mango fruit with an elastic demand gets more sales when its
price drops slightly. When its price goes up, it stays longer in the box.
9. The demand curve shows how quantity demanded for apple
responds to price changes. The flatter the curve, the more elastic is the
demand for an apple.
10. The midpoint elasticity is greater than 1.
A
Learning Task 1.1
HOW DO YOU RESPOND TO PRICE ELASTICITY?
(www.catholicmom.com)
People have unlimited needs and wants for their personal satisfaction and
because of that the prices of products easily get changed. Everyone is affected
with the new normal in the market. The prices of products have become very ex-
pensive since the outbreak of the pandemic, not only in our locality, but in the
whole world.
If your income or the income of your family is not enough to purchase the
basic commodities needed by your family, what goods would you buy, instead?
What economic or marketing strategies would you apply? How would you
respond to the price changes of these commodities?
Learning Task 1.2
Kindly read the sentences carefully. Identify the word or phrase that is ap-
propriate to each item.
1. A ________________ shows the relationship between quantity demanded

and price in a given market on a graph.
2. The __________________________ states that, higher the price, the higher
the quantity supplied.
3. __________________means that a given percentage changes in price leads
to an equal percentage change in quantity demanded or supplied.
4. _______________means the effect on the change in demand of one good as
a result of a change in price of related to another product.
5. __________________ those goods for which the demand rises as consumer
income rises.
6. _______________the coefficient of the elasticity is less than 1; when an
increase in price causes a smaller % fall in demand.
WEEK
Market Structures 6
I
After looking at the basic principles of demand and supply, it will also be helpful to
learn about the market structures in which sellers can operate. Each structure will be de-
scribed in terms of the of the product being sold, the number of buyers and sellers in the
market, and the ease of entering or existing the market.
At the end of this learning material, you will be able to differentiate market structures
in terms of number of sellers, types of products, entry/exit to market, pricing power, etc.
And finally, you will appreciate the importance of being competitive in the market.
D
What Are Market Structures?
Business firms comprise a big portion of the economy. Everywhere you go, there is
business. In the economy, firms differ from one another on how to allocate their resources
to produce the products and how to deliver them to the consumers. They have to plan how
to meet the demands of the consumers and participate in the market with identified or non-
identified competitors. From the statements of the founder of Apple, would you agree that
the secret for being successful in the industry is to build the best thing (innovate the prod-
uct) and not more on the market structuring? As a customer and entrepreneur, do you
agree that market structures are important considerations to be competitive in the market?
You can at least answer these questions when you appreciate more the concepts of the mar-
ket and its structures.
When a firm enters the market world, it has to decide for the ideal market structure
in order stay longer in the industry. Take note that, to assess the business environments, is
a big help to remain competitive in the market. Let’s get to know about the different market
structures. In the article of AU Online (2017), A Guide to Types of Market Structures, it de-
fined market structure as a starting point for assessing economic environments of firms. It
also mentioned market structure as a tool of understanding of how companies and markets
work allows business professionals and leaders to accurately judge industry and market
news, policy changes and legislation and how the economy shapes important decisions.
https://online.aurora.edu/types-of-market-structures
The Market Structures and Characteristics

Let us proceed analyzing the market structures. Each market structure has character-
istics which determine the relations between the sellers to another, of sellers to buyers, com-
pany to investors, economists to government and more which affect the behavior and inter-
action of buyers and sellers. Remember that the term market is a set of buyers and sellers
who determine the price of goods and services.
Some of the market structure’s characteristics include: type of the products pro-
duced, number and size of sellers and buyers, price of products sold in the market, the ease
or difficulty of entering and exiting the industry and the number of companies in the market
(AU Online 2017).
PURE (PERFECT COMPETITION)
1. Many and small sellers and no one can affect the market
2. Homogeneous product is offered by the companies
3. Free entry to and exit from the industry
4. All firms only have the motive of profit maximization
5. No concept of consumer preference
www.dreamstime.com
6. Consumers can dictate the price www.dreamstime.com
7. Examples: agricultural markets such as wheat, cereals foreign exchange markets, etc.
MONOPOLY
1. A single seller and no competitors in the market

2. Very unique and highly predictable product or no close substitutes
3. The firm is the price maker and the firm has considerable
control over the price
4. It can control the quantity supplied
5. Entry/exit is difficult and blocked
6. Sole seller has the full power to set prices
*Examples are public transportations like MRT, computer www.ayokay.com
software manufacturer like Microsoft markets, etc.
MONOPOLISTIC COMPETTITION
1. Multiple giant firms produce similar and highly predictable products

2. Profit maximization occurs where MC=MR
3. Firms compete for economic profits
4. A competitive market that has only a handful of
buyers and sellers
5. Sellers offer close substitutes products to consumers
6. Comparatively easier entry and exit
Examples: cosmetics, garments,
medicines, shoes, car washes, automotive services, etc.
www.clipart.eamil.com
OLIGOPOLY
1. Standardized or differentiated products/goods

2. Various barriers to enter the market, entry is difficult and huge capital investment may
be the barrier to enter
3. The firms set and control their prices
Examples: aluminum and steel, oil and gas,
automobile, airlines, entertainment, hotel and restaurants,
coffee shops, etc.
Learning Task 1.1
Read the questions carefully. Identify the type of market structure for each item. Write
your answer on your notepad.
1) If Company A competes with several firms in the industry but with product homogene-
ous to their offers on shelves, what market structure does it enter?
2) If BCX Company competes with few large firms in the industry but with differentiated
products they offer on shelves, what market structure does it enter?
3) If there are several barriers on the entry and exit of firms in the industry due to huge
amount of capital needed, what market structure are they in?
4) If Company X is the only provider of electricity energy in Metro Manila, what market
structure does it join?
5) ABM Supermarket has joined many and small marketers in the industry with several
competitors selling the same products. What market structure does it join?
Learning Task 1.2
Accomplish this activity independently. Below is the list of some industries which
dominate the market. Enumerate the industries which are considered perfect
competitors, monopolists, monopolistic competitors and oligopolists.
agricultural markets, internet providers, foreign exchange (FOREX), markets

electricity provider, public (MRT) transport, telecom companies, gasoline sta-
tions, auto/car companies, flower shops,
barber shops, car wash services, automotive services (source: educba.com)
Perfect Competi- Monopoly Monopolistic Oligopoly

tion Competition
1. 1. 1. 1.
2. 2. 2. 2.
3. 3. 3. 3.
Learning Task 1.3

Read the sentences carefully. Write the missing word in each item.
1. There is a free entry to and exit from the industry in a ______ market structure.
2. In monopoly, there is a unique product and no close ______ for the firm’s product.
3. In monopoly, the firm and industry are synonymous. No ______ is observed.
4. In oligopoly, the _____ is difficult and huge capital investments are needed to penetrate
the market.
5. In _____, multiple firms produce similar and highly predictable products.
E
Learning Task 1.1
Observe some industries in your locality. Using the graphic organizer below, enumer-
ate the characteristics that you know about the common market structures in terms
of: A) types of product/s, B) pricing power, C) number of sellers, and D) entry/exit
barriers. Write the answers on your notepad.
A.
B.
C. A.
D. B.
C.
D.
A.
B.
C. A.
D. B.
C.
D.
https://www.toppr.com/guides/business-economics/meaning-and-types-of-markets/types-of-market-structures/
Learning Task 1.2
Match the following market structures (SET A) with their characteristics (SET
B). Write the answer on your notepad.
SET A SET B
1. Perfect Competition A. Sole seller has the full power to set

prices
2. Monopolistic Competition B. Entry is difficult and huge capital in-
vestment may be the barrier to enter the
3. Oligopoly C. Sellers offer close substitutes to the

end users
4. Monopoly D. Homogeneous product is offered by
many and small sellers
Learning Task 1.3
Observe the behavior of the nearest market in your locality. In the columns are
the characteristics of the different market structures. Describe the market struc-
tures of the industries in the market as to number of sellers, pricing power, type
of goods or services, and barriers to entry and exit. Complete the chart.
MARKET STRUCTURES AND CHARACTERISTICS
Market Struc- No. of sellers/ Control over Type of goods Barriers to en-
tures firms price/pricing or products try/exit to mar-
Pure/Perfect
Competition
Monopolists
Oligopolists
Monopolistic
Competition
A
Learning Task 1.4
The market has always been competitive due to entries of potential companies in a
specific industry. However, due to the economic issues that our country has been suffer-
ing since the imposition of lockdowns all over Metro Manila, several industries have to cut
down their operations before they lost all their assets and revenues. The Covid 19 pan-
demic has a great impact on business overall operations.
In your assessment, what structures of business industries could sustain their op-
erations in the long run? Is there any or specific structure which really can easily domi-
nate and exit the market? Defend your answer.

ment
Content 5 4-3 2 0-1
WEEK
7-8 Effects of Contemporary Economic Issues
I
COVID 19 has been affecting the business world since its occurrence. There has
been economic contraction, corporate revenue losses, liquidity stresses, jobless people and
many more. The pandemic is just one of the many issues and problems that the economies
around the world are suffering nowadays.
The business world is very complex and its complexity creates several issues and
problems that can disturb the growth of the economy. Understanding the contemporary so-
cio-economic factors and their effects will help entrepreneurs to recover from economic dis-
tresses and regain their positions in the market.
In this learning material, you will be able to analyze the effects of socio-economic is-
sues facing the Filipino Entrepreneurs, you will also identify and solve economic problems
and finally, develop skills in solving socio economic issues that may harm the entrepreneurs
and the entire economy.
D
Before we explore further our new lesson, let us read the article below. This is a
“think, learn and challenge” opportunity for you to connect more to the ideas on the socio-
economic impact of the COVID 19 pandemic that attacks the whole world. Enjoy reading!
Socio Economic Impact of COVID 19

The UN’s Framework for the Immediate Socio-Economic Response to the COVID 19
Crisis warns that “The COVID 19 pandemic is far more than a health crisis: it is affecting
societies and economies at their core. While the impact of the pandemic will vary from
country to country, it will most likely increase poverty and inequalities.
Without urgent socio-economic responses, global suffering will escalate, jeopardiz-
ing lives and livelihoods for years to come. Immediate development responses in this cri-
sis must be undertaken with an eye to the future. Development trajectories in the long-
term will be affected by the choices countries make now and the support they receive.”
The United Nations has mobilized the full capacity of the UN system through its
131 country teams serving 162 countries and territories, to support national authorities
in developing public health preparedness and response plans to the COVID 19 crisis.
Over the next 12 to 18 months, the socio-economic response will be one of three
critical components of the UN’s COVID 19 response, alongside the health response, led
by WHO, and the Global Humanitarian Response Plan. (UNDP 2020)
Massive production disruptions that started in China have led to a lower supply of
goods and services that reduces overall hours worked, leading to lower incomes.
Source: https://www.undp.org/content/undp/en/home/coronavirus/socio-economic-impact-of-covid-19.html
Learning Task 1.1
Case Problem: According to UNDP (2020), assessing the effects of the COVID 19 crisis on
societies, economies and vulnerable groups is fundamental to inform and tailor the re-
sponses of governments and partners to recover from the crisis and ensure that no one is
left behind on this effort.
Complete the chart. Determine the social and economic impacts or effects of the COVID
19 crisis to the industries in your locality.
SOCIO ECONOMIC EFFECTS SOCIO ECONOMIC EFFECTS

OF COVID 19 OF COVID 19
SOCIAL EFFECTS ECONOMIC EFFECTS
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.
Socio-Economic Factors
There are social factors that may affect the entrepreneurs which include: a) popu-
lation size and growth rate b) wealth distribution c) social classes d) income distribution
among families e) lifestyles and buying behaviour of the people f) health consciousness
issues g) average disposable income h) attitude towards the government, work buying
habits, ethical concerns, cultural norms and values, religion and beliefs i) education level
j) attitudes towards saving, investing, retirement, product quality and customer service.
Economic Factors
There are also economic factors that may affect the Filipino Entrepreneurs. These
include: a) economic growth rate b) interest rate c) inflation rate c) exchange rate d) avail-
ability of credit e) spending behaviour f) government budget deficits g) gross domestic
product trends h) unemployment trend i) stock market trends j) price fluctuations. Let us
discuss some of the contemporary socio-economic issues and their effects to entrepre-
neurs.
Interest Rates Exchange Rates

Banking institutions are interested of know- When exchange rates fluctuate, they affect
ing the status for interest rates in the econ- the ability of a company to pay its suppli-
omy to determine their lending practices; a ers. This can also affect their profit margin
good information for a company that relies and the amount of resources they need to
on debt capital to finance projects. remain financially stable.
Interest Rates Exchange Rates
Banking institutions are interested of know- When exchange rates fluctuate, they affect
ing the status for interest rates in the econ- the ability of a company to pay its suppli-
omy to determine their lending practices; a ers. This can also affect their profit margin
good information for a company that relies and the amount of resources they need to
on debt capital to finance projects. remain financially stable.
Recession Economic Sluggishness/Depression

Whenever an economy faces a recession, it Economic depression is a severe and long
has the potential to change the attitude tak- term contraction in economic activity. It
en by consumers toward their purchasing may rise in unemployment rates and clo-
decisions. This may force companies to drop sure of many businesses. Poor health
prices to stay afloat. services will expose the employees on health
risk; and the slowdown in growth rates of
GNP and income throughout the world can
cause the demand and supply not to grow
at similar rates.
Economic Rent Minimum Wage
Can cause to market imperfections and lead Increase in wage can increase in consumer
to the rise of economic rents; it would not spending capabilities and the low-income
exist if markets were perfect since competi- workers have a higher spending capability.
tive pressures would drive down prices. An increase in minimum wages could lead
to a higher growth and contribute towards
inflation (higher costs for firms and higher
spending by the workers).
Sources: https://int.search.tb.ask.com/search/AJimage.jhtml
https://int.search.tb.ask.com/search/AJimage.jhtml
https://int.search.myway.com/search/AJimage.jhtml
MACRO AND MICRO ECONOMIC ISSUES IN THE ECONOMY

Economics deals with the util-
ity maximization allowing individuals
to improve their economic welfare.
However, there are certain issues
that may hinder this objective. We
classify these issues according to
macro and micro levels.
The chart represents the mi-
cro and macro-economic economic
issues that affect the entrepreneurs
and the entire economy.
ECONOMIC ISSUES: MICRO LEVEL
There are economic issues on the micro level that can harm the entrepreneurs.
Some of these issues are the following:
1. Externalities.
The economic decisions can have external effects on other people
 If utility maximizes, it’s a waste of resources for entrepreneurs
 Externalities require government intervention. For example, taxes on
negative externalities (e.g. tobacco tax)
 Solution to market failure (e.g. taxes), creates its own potential problems,
such as how much to tax? Will there be tax evasion?
2. Environmental Issues
Over-consumption could cause serious problems for future generations
 Example, global warming, loss of non-renewable resources.
 The price mechanism doesn’t take into account these future costs
 Policies to reduce consumption may prove politically unpopular
3. Volatile Prices
 A surplus in supply can fall in price which can cause lower revenue
 Volatile markets can cause swings in economic fortunes.
4. Inequality of Income Distribution
 There is an unfair distribution of resources.
 There is a diminishing marginal utility of wealth.
 If all wealth is owned by a small percentage of the population, this reduces
general welfare
ECONOMIC ISSUES: MACRO LEVEL

There are also economic issues on the macro level that can harm the entrepreneurs.
Some of these issues are the following:
1. High Unemployment Rate
A swing in the business cycle causes high unemployment rate.
 A fall in demand for goods during a recession causes the laborers to
be removed from work.
 There is an imbalance between demand and supply of workers.
 A rapid change in labor markets, for examples, unskilled workers
unable to gain employment in a high tech economy.
 Unemployment is a waste of resources which leads to a very high
personal cost, such as low income and feelings of failure.
2 Recession
A recession is a period of negative economic growth and a decline in the
growth rate of the economy.
 It worsens problems of inequality and unemployment.
 It can create a negative spiral to business
 When demand falls, firms lay off workers
 May cause shutdown of companies
 The unemployed have less money to spend for goods (demand)
3. Inflation
High inflation can be a serious problem if prices rise faster than wages
and nominal interest rates.
 A rise in price may decline the wealth of the people
 If prices rise faster than wages, spending power will decline.
 A rapidly rising prices creates confusion and uncertainty on spending
and demand of goods.
 A decrease in quantity demanded due to rapidly rising prices can
cause firms to cut back on investment and spending
4. Exchange Rate Volatility
 Exports fall and they can develop a large current account deficit.
 The overvalued exchange rate can cause a fall in economic growth.
5. Poverty Cycle
 The developing economies may be stuck in a poverty trap.
 Low growth and low saving ratios lead to low levels of investment and low economic
growth.
 Low growth and poverty cause low savings and investment to continue
Learning Task 1.2
GREAT JOB! You already unlock your knowledge about contemporary issues in our
country. This time classify the following issues as to SOCIAL or ECONOMIC.
Write S if the issue is related to social and E if related to economic. Write your
answer on your notepad.
_______1. Population size and growth rate
_______2. Exchange rate volatility
_______3. High Interest rates on loans
_______4. Inequality in wealth distribution
_______5. Unpredictable and extravagant lifestyles
Learning Task 1.3
For several months now, everyone has been regulated by the Bayanihan Act as an
effective measure to fight the issues caused by COVID 19. There are protocols that everyone
needs to comply while the community is in the ECQ or GCQ or MCQ situation. In Manila,
various economic issues and problems contain everyone to live in a normal way.
Please accomplish the chart. This will help you easily understand our next topic. Be-
low are some of the perceived issues and problems by the Filipino Entrepreneurs฀ nowa-
days. Classify them according to PEST.
POLITICAL ECONOMIC
SOCIAL TECHNOLOGY
1. irregularities on the implementation of the Bayanihan Act protocols 2. alleged cor-

ruption by barangay officials 3. restricted foreign trade policy 4. strict labor laws 5.
tight environmental and resources laws 6. education system, 7. poor infrastructure
projects 8. inefficient health regulations 9. death rate 10. issues on amelioration dis-
tribution 11. inadequate information for safety measures 12. lifestyle barriers 13. lim-
ited local workforce 14. slow research and development activity of reporting COVID
patients 15. limited technological facilities 16. high interest rate 17. poverty rate 18.
unavailable credit opportunities 19. unemployment trend 20. price fluctuations
(source: GMA 7)
E Learning Task 1.4

As a citizen of your community, what can you do to solve or improve the following economic
problems? Rubrics: Focused on the problem or Effectiveness 50%ꓹ Efficiency 30% and Useful
ideas 20% (Write the answer on your notepad.)
1. What can be done to solve unemployment problem?
Recommendations
2. What can be done to improve poor quality of infrastructure?

Recommendations
3. What can be done to minimize inequality in income distribution?

Recommendations
Learning Task 1.5
Below is a graphic organizer illustrating the socio-economic issues that challenge
the Filipino Entrepreneurs in your locality. State the causes and effects of the macro and
micro socio-economic problems that can harm the local economy. (Write the answer on
your notepad.)
Learning Task 1.6

Describe the following socio-economic issues that may harm the Filipino Entrepre-
neurs. You can be aided by your media and information literacies. Write the answer on
your notepad.
SOCIO—ECONOMIC ISSUES DESCRIPTIONS
1 Tax evasion
2 Economic stagnation
3 Inequality in wealth distribution
4 Health disparity
5 Infectious disease
A
Learning Task 1.1
Determine whether micro or macro-economic issue. Write MIC if micro issue and
MAC if macro issue. (Write the answer on your answer sheet)
___________1. Pollution due several public and private transportation
___________2. Increasing unemployment rate
___________3. Inadequate sources of water
___________4 Economic depression
___________5. Inequality of income distribution
___________6. Poor quality of standard of living
___________7. Monopoly of electric power source
___________8. Import export barriers
___________9. Unstable prices of products
___________10.Poverty cycle among families
Learning Task 1.2
The influence of socio-economic status, particularly on healthꓹ is as-

sumed to begin in the family environments and continue through life. It affects
childhood conditions such as exposure to infectious agents or viruses.
Therefore, we are responsible for taking care of our “health” for it is our
ultimate “wealth”. Everything turns to be insignificant if we surrender taking
care of our health. Write something about it.
The following scoring rubric will help you evaluate your work and for you to
see where your work needs enhancement.

ment
(5 point)
Knowledge 10-9 8-7 7-6 0-5
(10 points)
(5 points)
(5 points
Learning Task 1.1
1. C 2. A 3.D 4.B 5. D
Learning Task 1.2 (Answers may vary)
Learning Task 1.3
1. Goods 3. Luxury Goods 5. Essential Goods
2. Macroeconomics 4. Capital
Learning Task 1.2
Land Labor Capital NONE
Forest Housekeeper Computer
Ocean Photographer Bank
Flowers Carpenter Dollar Bill , Taxi
Apple Pie Teacher
Learning Task 1.1
1. Micro Economics; Macro economics
2. Productions; standard of living, employment, and inflation (in any order)
3. Land; labor; capital; entrepreneurship (in any order) Unlimited; limited
Learning Task 1.1 ( 1. TRUE 2. TRUE 3. TRUE 4. FALSE 5. TRUE)
Learning Task 1.2
1. Market 6. Traditional
2. Command 7. Traditional
3. Traditional 8. Market
4. Market 9. Mixed
5. Command 10. Traditional
Learning Task 1.3
1. Economic Growth - ability tp produce goods & services, reduce our wants or lessen-
ing consumption
2. Use of Available Resources - use our resources wisely, don’t waste limited re-
sources, productive efficiency, being efficient and equity of resources.
3. Reduce expectation - reduce wants and needs, find alternative or second option.
Answer
Learning Task 1.2
1. Public cars 2. SUV’s 5. Doormat
2. Gasoline 3. Breads
Learning Task 1.1 Answers may vary)
Learning Task 1.2
1. False 3. True 5. True
2. False 4. True
Learning Task1.3 (Answers may vary)
Learning Task 1.4 A. 75 B. 125 C. 175 D. 225 E. 275
Learning Task 1.5 A. 1,950 B. 1,650 C. 1,350 D. 1,050 E. 750
Learning Task 1.5 (Answers may vary) Learning Task 1.10 (Answers may vary)
Learning Task 1.7 1. A 2. B 3. B 4. B 5. A
Learning Task 1.8 (Answers may vary) Learning Task 1.11(Answers may vary)
Learning Task 1.9
1. Elastic 2. Inelastic 3. Unitary 4.Elastic 5. Inelastic 6.Elastic
7. Inelastic 8. Elastic 9. Inelastic 10. Elastic
Learning Task 1.1 (Answers may vary) Learning Task 1.1 (Answers may vary)
Learning Task 1.2(Answers may vary) Learning Task 1.2 (Answers may vary)
Learning Task 1.3
1. True 2. True 3. False 4. True 5. False
6. True 7. True 8. True 9. True 10. False
Learning Task 1.2 (1. Demand Curve 2. The Law of Supply 3. Unitary Elasticity
4. Cross Price Elasticity of Demand 5. Normal Goods 6. Inelastic Demand
Learning Task 1.2
Perfect Competi- Monopoly Monopolistic Com- Oligopoly
tion petition
1. Agricultural 1. Electricity 1. carwash services 1. telecom
markets providers companies
2. Internet providers 2. MRT Transport 2. flower shops 2. gasoline stations
3. Foreign exchange 3. Software 3. barber shops 3. auto/car
markets manufacturer companies
Learning Task 6.3
1. Pure Competition 3. Competition 5. Monopolistic Competition
2. Substitute Products 4. Entry
Learning Task 6.4
1. Perfectly Competitive Market
Number of Sellers- many small competitors in the industry
Products - all firms sell the exact same product
Price- all firms are price takers and consumers can dictate the price
Barriers to exit and entry - low barriers and costs to entry and exit
2. Monopoly
Number of Sellers- A single seller and no competitor
Product - unique product and no close substitutes for the firm’s product
Price- the firm is the price maker and has a control over the price
Barrier to entry/exit- entry or exit is blocked
3. Monopolistic Competition
Numbers of sellers - multiple firms produce similar products
Products - highly unpredictable products
Price - firms compete for economic profits
Barrier to entry/exit - comparatively easier entry and exit
4. Oligopoly
Number of sellers - few large firms in the industry
Products - standardized or differentiated products/goods
Barrier to entry/exit- entry is difficult
Price - firms can control the prices of the products
Learning Task 6.5
1. D 2. C 3. B 4. A 5. C
Learning Task 7-8.1 (Answers may vary)
Learning Task 7-8.2
1. Social 4. Social
2. Economic 5. Economic
3. Economic
Answer
Learning Task 7-8.3
Learn-
ing Task 7-8.4 (Answers may vary)
Learning Task 7-8.6
Learning
Task 7-8.7
1. MIC 6. MAC
2. MAC 7. MIC
3. MIC 8. MAC
4. MAC 9. MIC
5. MAC 10. MAC
References
Articles
Sirin Çaki S (2019) 10 Basic Office Equipment Every Business Needs. Retrieved on June 01 2020
from https://www.market-inspector.co.uk/blog/2017/01/10-basic-officeequipment- 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
rom http://personal.unizar.es/jamolina/Unit1.pdf
The Economic Problem: Scarcity and Choice Retrieved on June 08 2020 from
www.cob.jmu.edu.com
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
Guru, S. (2020) 4 Basic Central Problems Faced by an Economy Retrieved on June 10
2020 from https://www.yourarticlelibrary.com/economics/4-basic-central-problems-
faced-by-an-economy-explained/36608
Amadeo, K. (2020) Elastic Demand: Definition, Formula, Curve, Examples. Retrieved on
Jun 03 2020 from https://www.thebalance.com/elastic-demand- definition-
formulacurve- examples-3305836; https://www.thebalance.com/inelastic-demand- def-
initionformula- curve-examples-3305935
Buensuceso, N. (2011)Demand Supply and Market Equilibrium. Retrieved on June 3
2020 fromhttps://www.slideshare.net/opaprb/demand-supply-and-market-equilibrium
- 8463331
Chappelow, J (2019) Law of Supply and Demand. Retrieved on June 03 2020 from
https://www.investopedia.com/terms/l/law-of-supply-demand.asp
Danabalan, K. (2014) The Price System. Retrieved on Jun 03 2020 from https://
www.slideshare.net/kalaiyarasidanabalan/a-level-economics-chapter-2-core
Agarwal, P. (2018) Price Elasticity of Supply. Retrieved on June 04 2020 from https://
www.intelligenteconomist.com/price-elasticity-of-supply
Amadeo, K. (2020) Elastic Demand with Its Formula, Curve, and Examples Retrieved on
June 04 2020 from https://www.thebalance.com/elastic-demand-definition-formula-
curve-examples-3305836; https://www.thebalance.com/inelastic-demand-definition-
formula-curve-examples-3305935
Judge, S. (2020) Characteristics of the Price System in a Market Economy. Retrieved on
June 04 2020 from https://study.com/academy/lesson/characteristics-of-the-price-
system-in-a-market-economy.html
Hand. Retrieved on June 05 2020 from https://study.com/academy/lesson/
perfectcompetition- in-economics-adam-smiths-invisible-hand.html
Pettinger, T. (2019). Monopolistic Competition – definition, diagram and examples
Retrieved on June 05 2020 from https://www.economicshelp.org/blog/311/
markets/monopolistic-competition
Suman, S. K. ( 2015) Pure Competition And Perfect Competition. Retrieved on
June 05 20202 from https://www.lawctopus.com/academike/pure-
competitionperfect-competition/
Trivedi, M. (2013) Market Structure and Types of Market Structure
Retrieved on June 05 2020 from https://www.slideshare.net/mithileshtrivedi581/
market-structure-and-types-ofmarket-strucyure
Zeder, R. (2020) The Four Types of Market Structures. Retrieved on June 27 2020
from https://quickonomics.com/market-structures
Lamarco, N (2018) The Socioeconomic Factors Affecting Small Businesses. Retrieved

on June 05 2020 from https://smallbusiness.chron.com/socioeconomic-factors-
affecting-small-businesses-73234.html
Pettinger, T. (2019) Examples of Economic Problems. Retrieved on June 05 2020 from
https://www.economicshelp.org/blog/15276/economics/examples-of-economic-
problems; https://www.economicshelp.org/blog/11503/labour-markets/effect-of-
minimum-wage-on-adas
Para sa mga katanungan o puna, sumulat o tumawag sa:
Department of Education Region 4A CALABARZON
Office Address: Gate 2 Karangalan Village, Cainta Rizal

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QUARTER 1 - GRADE 12

Borrowed materials (i.e., songs, stories, poems, pictures, photos,

Regional Office Management and Development Job S. Zape, Jr.,

Schools Division Office Management Team: :

Introduction to Applied Economics

Published by: Department of Education Region IV-A CALABARZON

For the Parents/Guardian

This module aims to assist you, dear parents, guardians, or

Activities presented in this module are based on the Most

Further, this learning resource hopes to engage the learners in

For the Learners

The module is designed to suit your needs and interests using

The module is composed of different types of activities that are

Parts of the LM Description

What I know The teacher presents activities, tasks , contents of

What else I can do

learned demonstrate ideas, interpretation, mindset or values and create

Learning Task 1.1

THE FIELDS OF ECONOMICS

BASIC TERMS TO UNDERSTAND ECONOMICS

TANGIBLE GOODS - when they are in

Learning Task 1.2

Ideas and Content - 5 points

Learning Task 1.3

Identify the following: Write the correct answer on your notepad.

1. It is anything use to satisfy a person’s wants and desires.

Learning Task 1.2

Learning Task 1.2

2. How to Produce? This problem refers to selection of technique

APPLIED ECONOMICS ON BASIC ISSUES AND PROBLEMS

Who decides what Who decides how Who decides for

Learning Task 1.2

CRITERIA Excellent Very Good Good Need Improve-

In one sentence, explain

(Credit: Nina Hale/Flickr Creative

CRITERIA Excellent Very Good Good Need Improve-

THE LAW OF SUPPLY AND DEMAND

The law of supply demonstratesthe quanti- Factors Affecting Supply

The law of supply says…… “as the price

Learning Task 1.1

There are lots of holiday ornaments The price will __________________________________

Learning Task 1.3

Content 5 4-3 2 0-1

Completion 5 4-3 2 0-1

Organization 5 4-3 2 0-1

PRICE per NUMBER of

COMPUTATION ON DEMAND FUNCTION

Learning Task 1.5

Learning Task 1.6

PRICE ($ PER GALLON) QD (MILLIONS OF GALLONS)

B. Analyze the data

PRICE ($ PER GALLON) SUPPLY OF GASOLINE MIL-

B. Analyze the data

Learning Task 1.8

B. How much is the

1. An increase in the price of electricity bill will force you to:

CRITERIA Excellent Very Good Good Need Improve-

Content 5 4-3 2 0-1

Completion 5 4-3 2 0-1