Applied Economics - Module 1 PDF

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Purok Spring Uno, Brgy. Morales, Koronadal City Contact No. 887-Subject: Applied Economics Grade: __ Semester: 2 nd (1 st Term) Module: 1(1–2)I. OBJECTIVES: The learners should define basic terms in applied economics. The learners should identify the basic economic problems of the country. The learn...

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KORBEL FOUNDATION COLLEGE, INC.

.

Purok Spring Uno, Brgy. Morales, Koronadal City Contact No. 887-2051

Subject: Applied Economics Semester: 2nd (1st Term)

Grade: ______ Module: 1(1–2)

I. OBJECTIVES: 1. The learners should define basic terms in applied economics. 2. The learners should identify the basic economic problems of the country. 3. The learners should explain how applied economics can be used to solve economic problems. II. PRE-ASSESSMENT: ACTIVITY 1: Read and comprehend the text below and answer or discuss the questions at the end of the text. In October 2016, President Rodrigo Duterte outlined a long-term economic development plan entitled AmBisyon Natin 2040. This plan outlines a vision of the country’s economic development in the year 2040, and is the basis for the Philippine Development Plan (PDP) 2017-2022 drafted by the National Economic and Development Authority (NEDA). It is expected to be the guiding template for succeeding development plans until 2040. The following are the main goals for economic development from the PDP 2017-2022. The Filipinos’ vision for the Philippines in 2040 is a prosperous, predominantly middle-class society where there are equality of opportunities and poverty has been eradicated. It will be a society where people live long and healthy lives with a higher life expectancy at birth of 80 years. Longevity will be enhanced by the ability of individuals and communities to withstand natural as well as man-made shocks and disasters. With smarter and more innovative people, the country in 2040 is also envisioned to be a major player in the global knowledge economy, producing innovative products and processes that are used to make high-quality goods and services at competitive prices. The Philippines will be a high trust, more caring and peaceful society where human security is assured and government enjoys the people’s trust because it is clean, efficient, and service-oriented. High trust will also prevail between the private sector and the government, as well as between and among peoples. Overall, a high-trusty society will facilitate official and business transactions, and smooth interpersonal relations. On the kind of life they want for themselves, Filipinos want a life that is strongly rooted, comfortable, and secure; matatag, maginhawa at panatag. The terms “strongly rooted, comfortable, and secure” used to describe the life envisioned by Filipinos by 2040 reveal middle-class aspirations. They include home ownership, a steady source of income to support family and self, college education for the children, a motor vehicle, stable finances to cover daily needs and contingencies, savings for retirement, and time for vacation and travel. There is also a strong family orientation that underlies the preferences as reflected in the choice of living and working in the same locality, the desire for adequate spaces that allow for activities with family and friends, and the desire for access to convenient and affordable transportation for occasional visits to family and friends, among other reasons. The same value is reflected in the importance attached to education. Nearly every Filipino family considers college education a requisite to a decent job and so aspires to have the children complete a college degree. The desired lifestyle requires a monthly family income of at least P120,000 for a family of four valued in 2015 prices in the National Capital Region. With the right policies, improvements in productivity and efficiency can more than triple the gross national income per capita of the country in 25 years. This will allow the majority of Filipinos to enjoy a middle-class standard of living. Without reforms, however, per capita income can only double over a period of 25 years.

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KORBEL FOUNDATION COLLEGE, INC.

.

Purok Spring Uno, Brgy. Morales, Koronadal City Contact No. 887-2051

From the above text discuss the following questions. You can answer in Illonggo, Cebuano, Filipino or English Language. 1. What are the major Goals of the PDP 2017-2022? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ 2. Do you believe that these goals are attainable? Which of these goals do you consider to be attainable by 2022? By 2040? Why? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ 3. What economic concepts or theories, in your view, are the bases in formulating these goal? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ 4. Make a list of economic terms used in the text. How are these terms significant to development? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

III.

DISCUSSIONS:

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KORBEL FOUNDATION COLLEGE, INC.

.

Purok Spring Uno, Brgy. Morales, Koronadal City Contact No. 887-2051

LESSON 1: REVISITING ECONOMICS AS SOCIAL SCIENCE What is Economics? Economics refers to the effective management of scarce economic resources to satisfy unlimited human wants and needs. It is a social science that studies the means by which individuals, groups, and societies produce, distribute, and consume product and services. From the definition of economics, we can derive the following basic economic concepts: 1. Scarcity (Scarce) – is the fundamental concept of economics. It refers to the limitation of resources, particularly economic resources such as land, labor, capital, and entrepreneurship. 2. Economic Resources – are the factors used in producing goods or providing services. In other words, they are the inputs that are used to create things or help you provide services. Economists divided these factors into four major categories: a. Land – refers to all natural resources that exist without man’s intervention. It encompasses all things derived from the forces of nature such as air, water, forests, vegetation, and minerals. The payment for land is called rent. b. Labor – refers to human inputs such as manpower skills that are used in transforming resources into different products that meets our needs. The payment for labor is called wages and salaries. c. Capital – is a man-made factor of production used to create another product. Examples are machinery and equipment used in manufacturing companies. The payment for capital is interest. d. Entrepreneurship – is the factor od production that integrates land, labor and capital to create new products. An entrepreneur is an individual who makes the decisions with regard to production and utilizing the other factors of production. 3. Needs – is defined as things that are desired which are essential for human survival. 4. Wants – is defined as things that are desired but are not essential for human survival.

ACTIVITY 2: Classify the following items if it is included in each of the four major categories of economic resources. Write Land, Labor, Capital, and Entrepreneurship. ITEMS Example: Equipment 1. A factory used in production 2. Unrefined Gold 3. Lumber 4. Copper 5. A bulldozer at a construction site 6. Expertise of a foreman 7. A cash register at a clothing store 8. Water 9. An oven at a bakery 10.Skills of factory workers 11. Gasoline 12.Baker’s Skills 13.A delivery equipment 14.Expertise of an engineer 15.Rice field

CATEGORIES Capital

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