Course Syllabus for

APPLIED ECONOMICS

COURSE DESCRIPTION

This course in Applied Economics has been designed to give MPM students a working
knowledge of Economics, the social science that deals with the optimal use of scarce material
resources to maximize the satisfaction of human material needs and wants.

This course focuses on the basic concepts and principles that underpin all of economics.
Microeconomic concepts such as scarcity, opportunity costs, marginal costs, and efficiency will never
lose their central role in economics as long as scarcity itself exists. Macroeconomic concepts like
national income, employment and unemployment, inflation and deflation, balance of payments and
foreign exchange rates will remain to be the primary concerns of all economies. In addition, the course
will deal with the economics of long-term growth, poverty, and development, specifically in the
Philippines in comparison with its ASEAN neighbors.

As an overview course, it will integrate and link all of these areas of concern and will show their
importance in managerial decision-making. Thus the course aims to teach MPM students the economic
way of thinking about business decisions, and even decisions in not-for-profit organizations, NGOs, and
cooperatives. The course provides MPM students with a working knowledge of the most critical aspect
of the business environment in which their organizations operate, and a familiarity with the tools of
analysis that will help them navigate successfully through its turbulence.

COURSE OBJECTIVES

By the end of this course, the students would have been able to competently:

1. Understand the basic microeconomic framework whereby the economic forces of the market
create both opportunities and constraints for making profit.

2. Understand the application of economic theory that has stood the test of time and continues to
be relevant to many facets of modern business and not-for-profit decision-making

3. Describe how present-day economies function and evaluate the nature of debates that
permeate among the political, economic, and industry leaders, including the efficacy of
monetary and fiscal policies.

4. Assess the emerging globalization of production, investments, and trade in the world

5. Analyze the current problems of development, underdevelopment, and poverty within the
context of a major set of issues

6. Integrate the ethical dimension in the discussion of various economic concepts and theories

7. Demonstrate the use of information technology in researching, analyzing, and presenting

economic data in class.

VICS - SHS 12 (APPLIED ECONOMICS)

COURSE METHODOLOGY

The course will make use of a variety of methodologies appropriate to adult learners who
already have experience working in an organization and are prepared to meet graduate-level standards
of performance. These methodologies may include any of the following:

 Lectures by the faculty

 Field, library, or Internet research by individuals or groups
 Extracting lessons learned from presentations by fellow students
 Classroom discussions on current economic issues

PRESENTATIONS AND REPORTS

Student presentations of assigned topics are expected to have the same quality of preparation
as would be found in a presentation to the senior management of an organization. Students are
encouraged to use Powerpoint and the computer and AV facilities available. Presentations per group
should be timed to last 20 minutes maximum.

Written reports accompanying these presentations should be printed, single space with double
space between paragraphs, on short bond (8.5” x 11”) with a title page identifying the chapter number
and title, the problem number, the group number, the group members’ names arranged in alphabetical
order according to surname, and the date of submission. Fonts should be 12 points and limited to any
of the following (MS Word): Arial, Book Antiqua, Tahoma, Times New Roman, Trebuchet, or Verdana.
Expensive folders are unnecessary.

GRADE COMPONENTS

The final grade of each student will be a weighted average of his/her individual work and
participation in group work. Typically, the composition of this grade will be as follows:

Class reports and presentations 35%

Peer evaluation 25%
Term paper 40%
Total 100%

GRADING CRITERIA

The following Quality Point Index (QP) applies to all courses within this Program:

4.0 Excellent/Outstanding 98-100

3.5 Superior 95-97
3.0 Very Satisfactory 92-94
2.5 Above Average 89-91
2.0 Average 86-88
1.5 Pass 85
1.0 Fail 84 and below

VICS - SHS 12 (APPLIED ECONOMICS)

TERM PAPER

Instead of a final examination, the professor will assign students to do individual term papers on
any Economics-related topic. The paper should be the product of research (library as well as Internet)
and thus should have adequate references included. The professor may present a list of pre-approved
topics. The paper is due on the last day of class. Individual presentations of term paper topics will be
scheduled on the last two days of the term.

Term papers should include a title page, table of contents, chapter headings, pagination,
references, and a bibliography. Appendices and exhibits are optional. The page setup should be the
standard short bond (8.5” x 11”), with double spacing. Fonts should be 12 points and limited to any of
the following in MS Word: Arial, Book Antiqua, Calibri, Tahoma, Times New Roman, Trebuchet, or
Verdana.

The Word and Powerpoint electronic files shall be submitted to a class coordinator who will save
the entire collection in one CD for submission. No hard copies will be submitted. The class members
may arrange for individual copies of the same CD for future reference.

COURSE REQUIREMENTS:

1. ATTENDANCE:
This course will meet once a week for four hours at a time, for a total of eight sessions spread over
two months. The highly accelerated pace requires students to take a great deal of responsibility for
their own learning outcomes. While in class, students are expected to actively participate in
discussions and group activities. Outside of class, students are expected to do a minimum of 20
hours per week of study, homework assignments, and/or group projects.

Students are expected to attend all class sessions for this course. If an absence is unavoidable, the
professor should be advised beforehand. Arrangements will be made at the time for additional
assignments, if appropriate. However, points for attendance and participation will be affected by this
absence. Under existing rules, the student should not incur more than two (2) absences; otherwise
he will be disqualified from the course.

2. CLASS PARTICIPATION, TEAMWORK, REPORT AND PRESENTATION:

Presentations in class must have quality in content and form. Computer aided presentation
equipments (such as PowerPoint and Multimedia projection) are available in the school and all
classrooms have a ready Internet connection portal for free use during class hours. The
presentations should be well organized, with the topic covered thoroughly, handouts and visual aids
to be professionally done and appropriate for the topic.

3. WRITTEN ASSIGNMENTS:
An important component of this course is the completion and submission of written assignments on
due dates. All written works are expected to meet graduate level standards. Assignments will be
graded for presentation form, content and for basic writing skills.

4. RESEARCH WORK:
ASG recommends the use of standard style guides with preference to that of the American
Psychological Association (APA). The following websites are suggested as guide references:

VICS - SHS 12 (APPLIED ECONOMICS)

  http://www.aresearchguide.com/styleguides.html
 http://www.apastyle.org/index.html
 http://apastyle.org/electrf.html
 http://www.bedfordstrmartins.com/online/shrttoc.html
 http://bob.ucsc.edu/library/ref/instruction/research/libres.html

SPECIAL ACCOMMODATIONS

If a student is in need of course adaptation or special considerations due to certain disability or

other problems or constraints, the same should be discussed with the instructor ASAP.

ACADEMIC INTEGRITY POLICY

Each learner is responsible to know the standards of conduct and expectations of academic
integrity that apply to undertakings. Academic dishonesty will not be tolerated and will result in the
maximum penalty allowable as defined in the Student Guidebook, pp. 11-12. The following are
considered serious violations per Guidebook:
 Cheating during exams.
 Submitting spurious reports copied from previous materials other than his/her own.
 Plagiarism.
In understanding what constitutes Plagiarism, see the following sites:
http://www.engl.niu.edu/conskills/students/plagiaris/Plagiarism.html
http://www/ehhs.cmich.edu/~mspears/plagiarism.html

In addition to what is stated in the Guidebook, the following are examples of academic
dishonesty, which are pertinent to the requirements of this course:
 Copying another student’s work including assignments and reports
 Use of “crib” sheets or other hidden note for a quiz or an exam
 Receiving assistance from anyone else with take-home quizzes.

MATERIALS OF INSTRUCTION

1. Textbook: Case, Karl E, Fair, Ray C. & Oster, Sharon M. (2009)

PRINCIPLES OF ECONOMICS – 9TH Edition
Prentice Hall International, Inc.

2. Reference: Salvatore, Dominick

MANAGERIAL ECONOMICS IN THE GLOBAL ECONOMY –4TH Edition
McGraw-Hill, Inc.

Keat, Paul and Young, Philip (2000)

MANAGERIAL ECONOMICS – 3rd Edition
Prentice Hall International, Inc.

1. Web References

VICS - SHS 12 (APPLIED ECONOMICS)

http://www.geocities.com/vanderboon/Economiclinks.html A search engine for working
papers in economics plus links to
sites related to economics and
finance.

VICS - SHS 12 (APPLIED ECONOMICS)

http://www.stats.bls.gov Table providing overview of
economy, with links to programs
and surveys, research papers,
and regional information.
http://william-king.www.drexel.edu/top/prin/txt/Intro/Ch1ToC.html Provides detailed explanations
about economics.
http://william-king.www.drexel.edu/top/prin/txt/probs/Ch17ToC.html Discussions about
macroeconomic problems.
http://william-king.www.drexel.edu/top/prin/txt/gro/Ch16ToC.html Offers discussions about
economic growth.
http://william-king.www.drexel.edu/top/prin/txt/Elasch/Ch4ToC.html Elasticity and applications in
macroeconomics.
http://william-king.www.drexel.edu/top/prin/txt/MUch/ChToC.html Advanced topics in the theory of
demand in macroeconomics.
http://william-king.www.drexel.edu/top/prin/txt/MBch/Ch5ToC.html Introduction to the theory of
demand in macroeconomics.
http://william-king.www.drexel.edu/top/eco/EPE/GDPch/GDP.html Discussions about measuring the
national economy.
http://william-king.www.drexel.edu/top/prin/txt/ASapp/Ch25ToC.html About applications of aggregate
supply and demand.
http://william- Controversies in
king.www.drexel.edu/top/prin/txt/controv1/Ch26ToC.html macroeconomics 1: monetarism
and the policy ineffectiveness
proposition.
http://william- Controversies in
king.www.drexel.edu/top/prin/txt/controv2/Ch27ToC.html macroeconomics 2: the nature of
unemployment.
http://william-king.www.drexel.edu/top/prin/txt/Monch/Ch10ToC.html Covers about monopoly.
http://william-king.www.drexel.edu/top/prin/txt/marx/ApxToC.html Offers discussions about marxist
economics.
http://william-king.www.drexel.edu/top/prin/txt/comsysf/ApxToC.html The twentieth-century economic
systems
http://ecedweb.unomaha.edu/ Economic education web site,
provides economic updates and
information about economy
globally.
http://www.economist.com/index.html A weekly magazine on the
international economy. This is a
good source for more in-depth
analysis of current political,
business and financial issues.
http://www.oswego.edu/~kane/econometrics Browse a guide to econometric
research projects and data
accessible on the internet.
http://www.bbh.com/ Commentary on exchange rate
http://pacific.commerce.ubc.ca/xr/currency_table.html Current information on a large
number of the world's currencies
(both in terms of exchange rates,
as well as symbols and types of
currency management regimes--
floating vs. fixed).
http://www.quickmba.com/econ/micro/elas/ped.shtml Defines price elasticity of
demand, discusses the
implications of elastic and
inelastic demands, and lists some
factors that influence a product's
price elasticity of demand.

VICS - SHS 12 (APPLIED ECONOMICS)

http://www.quickmba.com/econ/micro/indcon.shtml Discusses two common methods
for measuring the concentration
of firms in an industry.
http://www.themanager.org/Knowledgebase/Economics/index.htm Discussions about basics,
miscellaneous articles, statistics
and figures and microeconomics.
http://www.bris.ac.uk/Depts/Economics/Growth Economic growth resources web
site a general guide includes
sections on the latest research,
literature surveys and working
papers.
http://www.neda.gov.ph/ Economic planning agency that
presents economic updates
indicates publications, reports
and e-commerce laws. Includes
the websites of the Asian
productivity organization.
http://www.econlib.org/ Economics classics online,
featured essays letters to the
editors, chat with economists,
data links by topic, etc.
http://www.argmax.com/ Economics news, data and
analysis for the US economy and
the world.
http://rsqe.econ.lsa.umich.edu/forecast/table.html Forecasts from the University of
Michigan Seminar on Quantitative
Economics.
http://www.aeaweb.org/ Information for economists
provided by the American
economic association. Includes e-
Jel, the electronic edition of the
journal of economic literature.
http://www.federalreserve.gov/ Information the structure of the
federal reserve system, monetary
policy, consumer information,
testimony and speeches, federal
reserve board press releases,
and more.
http://www.iie.com/ Institute for International
economics, contains working
papers, speeches, testimonies
and essays related to
international economics.
http://www.gtnews.com/nav/emuset.html Interest rate discussion for the
European monetary union.
http://netec.mcc.ac.uk/JokEc.html Jokes about economics and
economists.
http://www.aeweb.org/journal/jel.class_system.html Journal of economic literature
classification system.
http://www.emgmkts.com/ Non-current information on the
emerging markets. Includes some
good information on these
markets.
http://www.helsinki.fi/WebEc/ Presents comprehensive world
wide web a resource in
economics includes online journal
information and publications in
Finland, US, UK, and Japan.
http://www.econdash.net/ Presents U.S. economic data in
an intuitive dashboard format,
VICS - SHS 12 (APPLIED ECONOMICS)
 provides tutorial on basic
economic measures.
http://gerdb.org/ Provides a collection of links to
regional economies departments,
current job and grant postings,
conferences, associations and
journals.
http://www.economist.com/ Provides daily published news
and current affairs by categories
opinion, world, business, finance
& economics, science &
technology, people, books & arts,
markets & data, diversions, etc.
http://www.economy.com/dismal/ Provides economic analysts,
financial outlook and global data.
http://www.economymodels.com/ Provides essay about and
software for forecasting the
economy through the use of
financial and macro economic
models.
http://www.pcastrd.dost.gov.ph/ Provides various resources for
economists on the internet
including teaching, resources and
guides to other economic sites on
the net, etc.
http://directory.google.com/Top/Business/Resources/Associations Site from the "google web
/Trade_Associations/ directory" lists numerous trade
Associations. Trade Associations
can be an excellent way to find
information on an industry.
http://www.eh.net Site of economic history services
that provides resources and
promote communication among
scholars in economic history and
related fields.
http://multinationalmonitor.org/monitor/monitor.html Site of multinational monitor,
provides articles on the impact of
multinational corporation on the
environment or on developing
economies.
http://www.prb.org/ Site of the population reference
bureau, provides worldwide
statistics on all aspects of
demographics.
http://economics.about.com/ Starting point for economics
information with features, articles,
web link library, economic data,
and more.
http://www.worldbank.org/data/countrydata/countrydata.html The world bank's economic and
social data on countries, from its
World Development Indicators
database.
http://www.barrons.com/ This newspaper often has some
very good insight into the
markets. It comes out on a
weekly basis, and many of the
major market analysts often
discuss their market calls in this
newspaper.
http://fairmodel.econ.yale.edu/ This site brings the power of
VICS - SHS 12 (APPLIED ECONOMICS)
 large-scale macro econometric
analysis to anyone with access to
the internet. It is a resource for
business forecasts, government
policy analysts, macro economic
researchers, teachers and
students.
http://www.cyveillance.com This site provides solutions
enable businesses to capture
revenue by taking control of their
brand identity, digital assets,
corporate reputation online and
strategic analysis.
http://econpapers.repec.org/ This website is a service for
finding and downloading the
latest research results in
economics, It contains around
11,000 papers.
http://www.economy.com/ Web portal for news, data and
analysis on the world's
economies, industry status and
related topics.
http://www.morganstanley.com/GEFdata/digests/digests.htm Well-reputated economists offer
this investment bank analysis and
predictions.

SUPPLEMENTAL MATERIALS: to be provided by the professor

COURSE OUTLINE

The course is conducted over eight sessions. Each session is a four-hour class period, 10:00
A.M.-12:00 NN and 1:00 – 3:00 P.M. on Fridays, for a total of 32 hours classroom time.

Session Topic Reading

Assignments

VICS - SHS 12 (APPLIED ECONOMICS)

 1 Course Content, Outcome, Requirements, Scope, C & F Chapters
and Method 1-10
Scarcity, Choice, and Opportunity Cost
Ethical Considerations
Tools of Microeconomic Analysis
Twin Market Forces of Supply and Demand, and the
Equilibrium Quantity and Price
Consumer Behavior and Demand Theory; Utility and
Income vs. Price; Concepts of Elasticity
Theory of Costs: Fixed, Variable, Total, Average,
and Marginal
Marginal Revenue

Circular Flow of Income, Output, and Expenditure C & F Chapters

Three Basic Macroeconomic Questions: 17-19
 What goods will be produced, and in what
quantities?
 How will the goods be produced?
 For whom will the goods be produced?
Major concerns of macroeconomics: growth,
employment, and price stability
2 Market Structures and How a Typical Firm in them C & F Chapters
Maximizes Profit: 11-14
 Pure competition
 Monopoly
 Oligopoly
 Monopolistic Competition
3 Monetary Policy, Money Supply and Demand, the C & F Chapters
Role of the BSP, Inflation-targeting, and BSP’s 20 - 24
Policy Tools
Goods and Money Markets; Aggregate Demand and
Aggregate Supply
Fiscal Policy: Taxation, Government Budget, the
Consolidated Public Sector Fiscal Position, and
Public Debt
4 National Income Accounts; GDP and GNP; RP’s C & F Chapters
GDP and GNP Record Compared to its ASEAN 15, 18,
Neighbors
Income and Output Determination
RP’s population and per capita income compared to
its ASEAN neighbors
5 Employment, Unemployment, and Labor C & F Chapters
Productivity: RP vs. ASEAN Neighbors 25-27
The Consumer Price Index and How it Is Computed
Inflation in RP vs. in its ASEAN Neighbors

VICS - SHS 12 (APPLIED ECONOMICS)

 6 The Global Economy: C & F Chapters
Economic Basis for International Trade: the 32-34
Principle of Comparative Advantage
Free Trade vs. Protectionism
RP’s Principal Exports and Imports; Balance of
Trade and Balance of Payments
The Bretton Woods Accord; Fixed and Floating
Foreign Exchange Rate Systems
Globalization of Trade, Investments, Operations,
and Human Resources: Driving Forces
AFTA, GATT/WTO, & APEC: Opportunities and
Risks of Participating in International Trade
Agreements
7 Economic Growth and Development C & F Chapters
The UN Millennium Development Goals 28-30, 35
Poverty Incidence in RP vs. in its ASEAN neighbors
Education and investment in human capital: RP vs.
ASEAN neighbors
The Role of Science and Technology in Overcoming
Poverty
Start of presentation of individual term papers (2nd
half of the session)
8 Continuation of presentation of individual term
papers

VICS - SHS 12 (APPLIED ECONOMICS)

 Session 1

Assignments to be completed prior to Session 1:

1. Read Chapters 1-10 of the textbook.

2. Write a one-page paper on the students’ assessment of how your organizations and their clients
take into consideration macroeconomic and microeconomic theories and principles when
making decisions
3. Bring a recent copy of any economic magazine or publication and be ready to discuss a relevant
news item or article illustrating the concepts of economics.

Learning Objectives:

At the end of this session, learners are expected to competently:

1. Articulate the course format, expectations, and requirements

2. Differentiate the various fields of economics
3. Identify and explain key economic concepts that influence personal lives, businesses, and
economies
4. Apply economic concepts to real-world situations
5. Identify and resolve ethical issues in economics
6. Apply microeconomic theory with emphasis on:
a. Behavior of consumers with respect to utility, price, and income
b. Costs and output decisions of the firm
c. Behavior of profit-maximizing firms

Activities:

1. Introduction of students and facilitator

2. Submission of papers on organizational application of economic theories and principles
3. Discussion of a relevant news item/article
4. Groupings for class presentations and reactions
5. Selection of topics for the individual term paper and explanation of format and content
requirements
6. Discussion of basic microeconomic principles, concepts, and tools of analysis and their
application to managerial decision-making

VICS - SHS 12 (APPLIED ECONOMICS)

 Session 2

Assignments to be completed prior to Session 2:

1. Read the assigned chapters and readings.

2. Visit the Case and Fair Web page and other websites for additional resources and be ready to
discuss them.
3. Be prepared to present and discuss assigned topics.

Learning Objectives:

At the end of this session, learners are expected to competently:

1. Classify the different types of market structures and the factors that create them
2. Analyze how they work and how profit-maximizing firms in them behave with respect to output,
costs, pricing, and revenues.
3. Cite real-life examples of each type of market structure

Activities:

1. Group presentations and discussion of assignments

Group Topic
1 Perfect competition Describe each market
2 Monopolistic competition structure and how a firm in it
3 Oligopoly maximizes profits, and give
4 Monopoly real-life examples of industries
and firms for each structure.

2. Discussion of economic articles.

VICS - SHS 12 (APPLIED ECONOMICS)

 Session 3

Assignments to be completed prior to Session 3:

1. Read the assigned chapters and readings.

2. Visit the Case and Fair Web page and other websites for additional resources and be ready to
discuss them.
3. Be prepared to present and discuss assigned topics.

Learning Objectives:

At the end of this session, learners are expected to competently:

1. Understand the targets of the Medium Term Philippine Development Plan with respect to
growth, price stability, and employment for 2004-2010, and how these will be achieved.
2. Explain the role of monetary policy and how the Bangko Sentral ng Pilipinas exercises its
mandate within its framework of inflation-targeting
3. Explain the role of fiscal policy and how the government plans its revenues and expenditures,
and how these affect the economy as a whole.
4. Explain the logic behind privatization and the Build-Operate-Transfer programs.

Activities:

1. Group presentations and discussion of assignments

Group Topic
2 Describe the targets of the Philippines’ Medium Term
Development Plan (as created by NEDA) with respect to
growth, price stability, and employment. How will these
targets be met?
3 Describe the BSP’s framework of inflation targeting. How
does the BSP control money supply? What has been the
BSP’s track record in maintaining price stability?
4 Describe and analyze the Consolidated Public Sector Fiscal
Position in the post-Marcos period. What were the causes of
the CPSFP’S deterioration?
1 What is privatization? What is Build-Operate-Transfer? How
did these contribute to the alleviation of the fiscal deficit?
What were their risks and disadvantages, if any?

2. Discussion of economic articles

VICS - SHS 12 (APPLIED ECONOMICS)

 Session 4

Assignments to be completed prior to Session 4:

1. Read the assigned chapters and readings.

2. Visit the Case and Fair Web page and other websites for additional resources and be ready to
discuss them.
3. Be prepared to present and discuss assigned topics.

Learning Objectives:

At the end of this session, learners are expected to competently:

1. Explain how the primary measures of economic performance, GDP and GNP/GNI, are derived
and what they mean.
2. Describe Philippine GDP/GNP performance and compare it against those of its ASEAN
neighbors.
3. Explain the per capita income record of the Philippines compare it against those of its ASEAN
neighbors.
4. Understand both sides of the population debate, and decide which, at the Philippines current
level of development, is more valid.

Activities:

1. Group presentations and discussion of assignments

Group Topic
3 Describe how the Phil. government measures GDP and GNP.
What accounts for the biggest difference between the two
measures?
4 Describe the Philippines’ GDP and GNP growth rates over
the last 10 years. Compare with those of our ASEAN
neighbors over the same period.
1 Describe the Philippines’ per capita income and its growth
rates over the last 10 years. Compare with those of our
ASEAN neighbors over the same period.
2 Describe the Philippines’ population size and growth rates
over the last 10 years. Compare with those of our ASEAN
neighbors over the same period. Is population an asset or a
liability for the Philippines?

2. Discussion of economic articles

VICS - SHS 12 (APPLIED ECONOMICS)

 Session 5

Assignments to be completed prior to Session 5:

1. Read the assigned chapters and readings.

2. Visit the Case and Fair Web page and other websites for additional resources and be ready to
discuss them.
3. Be prepared to present and discuss assigned topics.

Learning Objectives:

At the end of this session, learners are expected to competently:

1. Describe the historical employment and unemployment situation in the Philippines in

comparison with its ASEAN neighbors and identify the underlying causes
2. Compare Philippine labor productivity against those of its ASEAN neighbors and analyze the
implications of the differences seen
3. Explain the Consumer Price Index, its significance, and how it is computed
4. Describe the historical inflation performance of the Philippines vis-à-vis its ASEAN neighbors
and identify the underlying causes

Activities:

1. Group presentations and discussion of assignments

Group Topic
4 Describe the Philippines’ employment and unemployment
rates over the last 10 years. Compare with those of our
ASEAN neighbors over the same period. Analyze for causes.
1 Describe the Philippines’ labor productivity levels over the last
10 years. Compare with those of our ASEAN neighbors over
the same period. Analyze for causes.
2 Explain the Consumer Price Index, its significance, and how it
is computed by the National Statistics Office.
3 Describe the Philippines’ inflation rates over the last 10 years.
Compare with those of our ASEAN neighbors over the same
period. Analyze for causes.

2. Discussion of economic articles

VICS - SHS 12 (APPLIED ECONOMICS)

 Session 6

Assignments to be completed prior to Session 6:

1. Read the assigned chapters and readings.

2. Visit the Case and Fair Web page and other websites for additional resources and be ready to
discuss them.
3. Be prepared to present and discuss assigned topics.

Learning Objectives:

At the end of this session, learners are expected to competently:

1. Explain the Principle of Comparative Advantage and how it results in mutually beneficial trade
among economies
2. Understand both sides of the Free Trade vs. Protectionism debate and decide which will be
more beneficial for the country in the long run
3. Describe the Philippines’ historical international trade performance (Balance of Trade and
Balance of Payments), its principal exports and imports and their historical development, and its
principal trading partners
4. Explain the features of both the fixed and the floating exchange rate schemes and the Bretton
Woods Accord that created the post-WWII monetary exchange system
5. Explain the phenomenon of globalization and its driving forces, its effects on production, trade,
investments, human resources, and the environment, and the opportunities and risks that the
Philippines faces in participating in international economic agreements such as AFTA, WTO,
and APEC.

Activities:

1. Group presentations and discussion of assignments

Group Topic
1 What is the Principle of Comparative Advantage, and how
does it apply in international trade? What are the arguments
for Protectionism? For Free Trade? What had been the
Philippines’ economic performance under the protectionist
policies of the post-World War II administrations?
2 Describe the Philippines’ Balance of Trade and Balance of
Payments over the last 10 years. What are our principal
exports and imports? Which are our principal export markets
and import sources?
3 What was the Bretton Woods Accord? What was its role in
creating the post-World War II monetary exchange system?
4 What is globalization? What are its driving forces? What are
its effects on production, trade, investments, human
resources, and the environment? What are the opportunities
and risks that we face in participating in international
economic agreements such as AFTA, WTO, and APEC?

2. Discussion of economic articles

VICS - SHS 12 (APPLIED ECONOMICS)

 Session 7

Assignments to be completed prior to Session 7:

1. Read the assigned chapters and readings.

2. Visit the Case and Fair Web page and other websites for additional resources and be ready to
discuss them.
3. Be prepared to present and discuss assigned topics.

Learning Objectives:

At the end of this session, learners are expected to competently:

1. Explain what economic development means and identify its critical success factors
2. Explain the UN Millennium Development Goals, how their attainment is measured, and how
they apply to the Philippines
3. Describe the incidence of poverty in the Philippines, in comparison over time with its ASEAN
neigbors, and identify its causes
4. Explain the role of education and other forms of investment in human capital in overcoming
poverty, and describe RP’s educational investments vis-à-vis those of its ASEAN neighbors
5. Explain the role of science and technology in overcoming poverty, and describe RP’s
investments in S & T vis-à-vis those of its ASEAN neighbors

Activities

1. Group presentations and discussions of assignments

Group Topic
2 Explain the UN Millennium Development Goals, how their
attainment is measured, and how they apply to the
Philippines. Is the Philippines likely to achieve all the Goals?
3 Describe the incidence of poverty in the Philippines over the
last 10 years. Compare with those of our ASEAN neighbors
over the same period. Analyze for causes.
4 Explain the role of education and other forms of investment in
human capital in overcoming poverty, and describe RP’s
educational investments vis-à-vis those of its ASEAN
neighbors over the last 10 years.
1 Explain the role of political governance and its institutions in
determining the direction and speed of economic
development. Is the Philippine political system a help or a
hindrance in the country’s development?

3. Start of presentation of individual term papers (2nd half of the session)

VICS - SHS 12 (APPLIED ECONOMICS)

 Session 8

Assignments to be completed prior to Session 8:

1. Be prepared to present your individual term paper

2. Submit the required electronic files to the class coordinator on or before the deadline.

Learning Objectives:

At the end of this session, learners are expected to competently:

1. Demonstrate the application of economic principles and theories in a particular context or

industry

Activities:

1. Presentation of individual term papers

2. Submission of the CD containing the compilation of all term papers and presentations.

VICS - SHS 12 (APPLIED ECONOMICS)