Applied Economics: Quarter 1 - Module 2 Application of Economics

12
Applied
Economics
Quarter 1 – Module 2
Application of Economics
Applied Economics – Grade 12
Alternative Delivery Mode
Quarter 1 – Module 2: Application of Economics
First Edition, 2021
Republic Act 8293, Section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government
agency or office wherein the work is created shall be necessary for exploitation of such
work for profit. Such agency or office may, among other things, impose as a condition
the payment of royalties.
Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this book are owned by their respective copyright
holders. Every effort has been exerted to locate and seek permission to use these
materials from their respective copyright owners. The publisher and authors do not
represent nor claim ownership over them.
Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio
Development Team of the Module
Writers: Rhyan R. Eronico

Ma. Lowella T. Cenisero
Editor: Arcadio J. Malmis PhD
Management Team: Bianito A. Dagatan EdD, CESO V
Schools Division Superintendent
Faustino N. Toradio PhD

Assistant Schools Division Superintendent
Felix C. Galacio Jr. PhD

EPS, Mathematics
Josephine D. Eronico PhD

EPS, LRMDS
Printed in the Philippines by Schools Division of Bohol

Department of Education – Region VII, Central Visayas
Office Address: 0050 Lino Chatto Drive Barangay Cogon, Tagbilaran City,
Bohol
Telefax: (038) 501 – 7550
Tel Nos. (038) 412 – 4938; (038) 411-2544; (038) 501 – 7550
E-mail Address: [email protected]
Lesson 1: Economics on Poverty

Learning Competency: Examine the utility and application of applied economics
to solve economic issues and problems.
At the end of the lesson, you are expected:

 describe the role of economics in solving poverty,
 examine the role of economics in pursuing food security; and
 explain the role of economics in infrastructures.
What is it?
Poverty is a restricting condition experienced by millions of families that

prevents them in attaining the minimum level of consumption for subsistence living.
Two categories of poverty:
 Absolute poverty refers to the lack of income to buy the basic food and
necessities for subsistence living.
 Relative poverty refers to the structures on how the national income is
being distributed among households in an economy.
Interventions in addressing the problem of Absolute Poverty:
 Provide free meals
 Provide housing
 Provide adequate clothing
Interventions in addressing the problem of Relative Poverty:
 Improve income distribution like taxation, income transfers and other
programs focuses on income generation.
What’s more?
Exercise 1
Directions: Write TRUE if the statement is correct and FALSE if it is wrong.
1. Poverty limits the attainment of level of consumption for subsistence living.
2. Relative poverty is the lack of income to buy the basic food and necessities for
subsistence living.
Exercise 2
Directions: Answer the given question.
Give at least two roles of economics in solving poverty.
Lesson 2: Economics on Food Security
What is it?
Pursuing food self-sufficiency, the country must focus on the development of

agriculture especially in the production of food grains. Food security implies that the
country and its people should have enough income to purchase food grains at the
cheapest price anywhere in the world. On the other hand, there are other initiatives
that can increase the productivity of the agricultural sector as follows:
 Invest irrigation facilities
 Provide cheap fertilizers and inputs
 Organize farmers with small farm lands so they can reap the benefits of
economies of scale through the mechanisms of cooperative
 Construction of farm-to-market roads
 Expansion of agricultural extension programs
 Development of post-harvest facilities can contribute to agricultural
productivity
Thus, enhancing the productivity of the agricultural sector can contribute to the
achievement of food security. This is not done through the food self-sufficiency but in
increasing the income of farmers through various means and cultivating a variety of
agricultural crops as well as the income of workers in the other economic sectors
that will provide sufficient resources so they can purchase cheaper food grains
sourced anywhere in the region and the world
What’s more?
Exercise 1
1. Food security implies that the country and its people should have enough income to
purchase food grains at the cheapest price.
2. Providing cheap fertilizer is one of the initiatives that can increase the productivity
of the agricultural sector.
3. Enhancing the productivity of the agricultural sector can contribute to the

achievement of employment.
Exercise 2
Give at least three roles of economics in pursuing food security.
Lesson 3: Economics on Infrastructures
What is it?
Similar to the role of human capital on economic growth, physical infrastructure

facilities and expands transactions likewise fuel economic growth like the following:
 Construction of roads
 Building bridges
 Other networks in transportation and communication
 Well-developed the energy infrastructure that can be relied in
supplying cheap electric power to households, businesses, and other
sectors
Although there is recognition on the vital contributions of strong infrastructure
on the economy, many low-income countries including Philippines have weak
infrastructure. The inadequate infrastructure in the country has debilitating effects
on the following:
 Individuals
 Households
 Business firms
 Economy
The major reason for this inadequate expansion of the infrastructure is the
insufficient funds to finance the huge cost of constructing these networks. Billions of
pesos are needed to construct road projects and highways. Construction costs of
energy plants to supply electricity are also very prohibitive. Putting up a subway for a
mass transit system in a Metropolis is just like constructing several tall buildings
below the ground for a distance of several kilometres which is very costly.
What’s more?
Exercise 1
1. The major reason for inadequate expansion of the infrastructure is the availability
funds.
2. Construction of bridges fuel economic growth.
3. Inadequate infrastructure in the country has debilitating effects on individuals.
Exercise 2
Give at least two roles of economics in infrastructure.
Assessment
Directions: Read each item carefully and write the letter of your choice on your
answer sheet.
1. It is a restricting condition experienced by millions of families that prevents them in

attaining the minimum level of consumption for subsistence living.
A. Food security C. Poverty
B. Infrastructures D. Unemployment
2. This refers to the lack of income to buy the basic food and necessities for
subsistence living.
A. Absolute poverty C. Millennial poverty
B. Common poverty D. Relative poverty
3. This refers to the structures on how the national income is being distributed among
households in an economy.
A. Absolute poverty C. Millennial poverty
B. Common poverty D. Relative poverty
4. The following are ways in solving the problem of absolute poverty except __________.
A. Provide free meals C. Provide income generation program
B. Provide housing D. Provide adequate clothing
5. Which of the following initiatives increase the productivity of the agricultural
sector?
A. Invest irrigation facilities
B. Provide cheap fertilizers and inputs
C. Construction of farm to market roads
D. All of the above
6. Enhancing the productivity of the agricultural sector can contribute to the

achievement of _____________.
A. Employment C. Poverty reduction
B. Food security D. Taxability
7. How to increase productivity of agriculture?

A. Providing sufficient resources
B. Increasing the income of the farmers
C. Cultivating a variety of agricultural crops
D. All of the above
8. How does infrastructure fuel economic growth?

A. Building bridges C. Network in transportation
B. Construction of roads D. All of the above
9. Sufficient infrastructure has debilitating effects on households.

A. True B. False C. Either A or B D. No answer
10. What is the major reason for inadequate expansion of infrastructure?

A. Enough supply of electricity
B. Insufficient funds
C. Increasing inflation rate
D. Imposing travel restrictions
Our greatest glory is not in never failing – but in rising every time we fall. - Confucius
APPLIED ECONOMICS
Answer Sheet
Name: ________________________________________________________________________
Grade & Section: ________________ Score: _______
Quarter 1 – Module 2
Lesson 1
What’s more?
Exercise 1
1.
2.
Exercise 2
1.
2.
Lesson 2
What’s more?
Exercise 1
1.
2.
3.
Exercise 2
1.
2.
3.
Lesson 3
What’s more?
Exercise 1
1.
2.
3.
Exercise 2
1.
2.
Assessment
1. 6.
2. 7.
3. 8.
4. 9.
5. 10.
Reference

Applied Economics: Quarter 1 - Module 2 Application of Economics

Uploaded by

Copyright:

Available Formats

Applied Economics: Quarter 1 - Module 2 Application of Economics

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Applied Economics: Quarter 1 - Module 2 Application of Economics

Uploaded by

Copyright:

Available Formats

12

First Edition, 2021

Published by the Department of Education

Development Team of the Module

Writers: Rhyan R. Eronico

Faustino N. Toradio PhD

Felix C. Galacio Jr. PhD

Josephine D. Eronico PhD

Printed in the Philippines by Schools Division of Bohol

Lesson 1: Economics on Poverty

At the end of the lesson, you are expected:

Poverty is a restricting condition experienced by millions of families that

1. Poverty limits the attainment of level of consumption for subsistence living.

Lesson 2: Economics on Food Security

Pursuing food self-sufficiency, the country must focus on the development of

3. Enhancing the productivity of the agricultural sector can contribute to the

Directions: Answer the given question.

Give at least three roles of economics in pursuing food security.

Lesson 3: Economics on Infrastructures

Similar to the role of human capital on economic growth, physical infrastructure

2. Construction of bridges fuel economic growth.

3. Inadequate infrastructure in the country has debilitating effects on individuals.

1. It is a restricting condition experienced by millions of families that prevents them in

6. Enhancing the productivity of the agricultural sector can contribute to the

7. How to increase productivity of agriculture?

8. How does infrastructure fuel economic growth?

9. Sufficient infrastructure has debilitating effects on households.

10. What is the major reason for inadequate expansion of infrastructure?

You might also like