SOCIAL STUDIES 9: TERM 1

3.) Capital Resources

INTRODUCTION TO ECONOMICS
- These are resources that are created or
What is economics?
man-made to make production/life
- It is the social science that studies how a
easier.
person makes choices in deciding how to
allocate scarce resources to satisfy their
Terms used to describe the amount of resources:
unlimited wants and needs.
1.) Surplus - Having too many resources
- The name economics came from the two
2.) Shortage - Having high demand on products,
Greek words Oikos and Nemein. Oikos means
but low on supply.
“household” and Nemein means “to manage”.
3.) Scarcity - Having too few resources.
When these two are combined it results in
another Greek word Oikonomia meaning Positive and Normative Statements
“household management” or “to manage 1.) Positive Statements
household” - These statements describe the reality of
what is happening in society.
Types of resources:
1.) Natural Resources 2.) Normative Statements
- These resources come from nature and - These are statements that describe how
are essential to daily life. society should be.
- There are 2 types of natural resources: - It often has words that are opinionated
Renewable and Nonrenewable like should, I think, in my opinion, etc.
resources.
● Renewable Resources
BRANCHES OF ECONOMICS
- Also called inexhaustible
resources.
1.) Microeconomics
- These are resources that have
- The study of smaller units in the
an unlimited amount of supply.
economy like individuals, households,
● Non-Renewable Resources
and small businesses,
- Also called exhaustible
2.) Macroeconomics
resources.
- The study of an entire activity of the
- These are resources that have a
economy. These are global to country
limited amount of supply.
scale activities like governments, global
businesses, and finance.
2.) Human Resources
- These resources are not products, but
services of a person or company that
keeps the economy running.

FIRST TERM S.Y. 2023-2024

Page 1 of 11
 SOCIAL STUDIES 9: TERM 1
- It shows the different combinations of
SCARCITY AND PRODUCTION POSSIBILITY two goods that can be produced using
FRONTIER full employment of resources.
1.) Scarcity - Any combination inside the curve is
- It means that there are not enough insufficient; meaning that you are not
resources to satisfy everyone’s wants using you’re not resources to the fullest.
and needs because resources are - Any combination along the curve is
limited. efficient; meaning that you are using
- Scarcity is a natural phenomenon that your resources to the fullest.
always exists, and humans have - Any combination outside the curve is
relatively little control over it. unattainable; unattainability will
2.) Shortage change due to your ability and
- It happens when insufficient products or resources.
materials are available at a particular - There are two types of Production
time to meet the immediate demand. Possibility Frontier: Constant Opportunity
- Shortage is a temporary situation when Cost and Increase Opportunity Cost
the demand for something exceeds the
available supply.
3.) Trade-off
- The product or resources that you are
sacrificing.
- An act of choosing between different
options when resources are limited.
4.) Opportunity cost
● Constant Opportunity Cost
- The value of the product or resources
- You trade-off a resource to get the
you sacrificed.
same amount of another resource. (Ex:
- The value of the best alternative that
You traded 5 corn to gain 5 wheat.)
you give up when you make a decision.
5.) Production Possibility Frontier
- It can be called the Production
Possibility Curve (PPC).
- It is a model that helps understand
some important ideas about
production in an economy.
- It shows what a country can make with
its resources. ● Increase Opportunity Cost
- It demonstrates how they can become - The trade-off of resources has
more efficient or less efficient over time. completely different amounts.

FIRST TERM S.Y. 2023-2024

Page 2 of 11
 SOCIAL STUDIES 9: TERM 1
How do we calculate the different opportunity costs? - It demonstrates that an economy can produce
- With the given Production Possibility Chart, you different quantities of the two goods without
need to count the gap from the given different wasting any resources.
possibilities to calculate the opportunity cost.
- When the given is in alphabetical order you will Unattainable Combination
calculate the resource on the bottom of the - Combinations located outside the Production
chart. When the given is in reversed Possibilities Curve.
alphabetical order you will calculate the - Points outside the Production Possibilities Curve
resource at the top of the chart. are unattainable because they require more
resources or better technology than what is
Example: currently available.
- Producing at these levels would result in
inefficiency or resource waste.
- To reach these points, the economy would
need to acquire additional resources, improve
its technology, or both.
- It illustrates that the economy has room for
A to D = 15 hats growth and development.
B to C = 4 hats
E to D = 1 video ECONOMIC RESOURCES OF THE PHILIPPINES
C to A = 2 videos Natural Resources
(Do not forget the label, kasi wag mo itulad sayo na - These resources come from nature and are
walang label) essential to daily life.
- There are 2 types of natural resources:
Guide video: Renewable and Nonrenewable resources.
https://www.youtube.com/watch?v=O6XL__2CDPU ● Renewable Resources
- Also called inexhaustible
Attainable Combination resources.
- Those that fall along or inside the Production - These are resources that have
Possibility Curve. an unlimited amount of supply.
- These combinations represent the maximum ● Non-Renewable Resources
amount of goods or services an economy can - Also called exhaustible
produce efficiently. resources.
- Points along the Production Possibility Curve - These are resources that have a
are considered efficient because they indicate limited amount of supply.
that all available resources are fully utilized.

FIRST TERM S.Y. 2023-2024

Page 3 of 11
 SOCIAL STUDIES 9: TERM 1
Human Resources - Involves feeling loved and accepted.
- These resources are not products, but services - It affects both the biological family and
of a person or company that keeps the the chosen family.
economy running. 4.) Safety Needs
- People want to experience order,
Capital Resources predictability, and control in their lives.
- These are resources that are created or - These include things that make humans
man-made to make production/life easier. feel safe.
- Together, the safety and physiological
WANTS AND NEEDS levels of Maslow's hierarchy of needs
Wants make up what is often referred to as
- Wants are the desires of an individual whether "basic needs.”
it be pleasure, entertainment, or aesthetics. 5.) Physiological Needs
Needs - These are biological requirements for
- Needs are the necessities for living whether it human survival.
be physiological, safety, psychological, - If these needs are not satisfied, the
esteem, and self-actualization. human body cannot function optimally.
- Maslow considered physiological needs
Marlow’s Hierarchy of Needs: to be the most essential of our needs.
1.) Self-actualization
- Refers to the realization of a person’s Bases for Personal Needs and Wants
potential, self-fulfillment, seeking 1.) Income
personal growth, and peak - Monetary compensation one receives
experiences. for service rendered or goods
- It is the desire to accomplish everything produced.
that one can. - Individuals have sufficient income
- It is to become everything one is which in turn has simple needs and
capable of becoming. wants.
2.) Esteem Needs - If they have the opportunity to have
- Include self-worth, accomplishment, higher income, their needs and wants
and respect. become complex.
- Together, the esteem and social levels 2.) Age
make up what is known as the - Biological needs of an individual
"psychological needs" of the hierarchy. change as they grow old
3.) Love and Belongingness
- The needs of a baby are different
- At this level, the need for emotional
compared with someone older.
relationships drives human behavior.

FIRST TERM S.Y. 2023-2024

Page 4 of 11
 SOCIAL STUDIES 9: TERM 1
3.) Education - This new product would influence a
- A student in grade school has different person’s decision to buy either as a
needs and wants compared to a want or a need.
student in college. 3.) Effects of Advertisement
- A student who graduated from - This factor is one way of letting the
medicine and a student who finished public know about a product or service.
law has different needs and wants. - It plays a vital role in influencing the
- Level of Education has a correlation needs of an individual.
with wants and needs. - This could encourage or entice a
4.) Taste person to adore and patronize a
- It is connected to the preference for product.
food. type of personality, or interest. 4.) Culture
- It is developed by the surroundings you - Our culture is influenced by different
grew up in countries such as America and
5.) Employment neighboring Asian Countries.
- As an individual’s status in society - Most Filipinos prefer imported products
changes, so do their wants and needs. to local ones.

Determinants of Needs ALLOCATION

1.) Increase in Income What is allocation?
- As a person’s income increases they - It is a wise distribution of natural resources to

can avail more products and services. satisfy the needs and wants of a household or

- This factor proves that some individuals society.

would prioritize buying the largest - The method used by society to answer the

quantity of products. needs and wants amidst scarcity is through

2.) Urbanization allocation.

- This factor is the growth of an area from - The government decides which sector gets the

a province to an industrialized city. larger percentage of the national budget,

- Modernization and Industrialization social services, or defense.

bring about a new product in a city.

FIRST TERM S.Y. 2023-2024

Page 5 of 11
 SOCIAL STUDIES 9: TERM 1
Example: - The price of goods and services is
- A father thinks of how to use his income to pay usually determined by the supply and
demand.
off household expenses.
- There are four structures of a market
- A mother who is equally dividing the food
economy: perfect competition,
among her children. monopolistic competition, oligopoly,
- The government studies and plans the national and monopoly.
budget and how to use it. ● Perfect Competition - Many firms
that produce the same product
in which the price is mainly
ECONOMIC SYSTEMS determined by the supply and
What is an economic system? demand.
- An economic system is an organized way a ● Monopolistic Competition -
country allocates resources and distributes Many firms that produce the
goods and services across the whole nation or same product but with different
a given geographic area. branding, features, quality, and
pricing.
Types of economic systems: ● Oligopoly - Few firms that
1.) Traditional Economy produce the same product with
- It is a system in which economic little competition.
decisions are made based on cultures, ● Monopoly - One firm that
traditions, or customs. produces a product with no
- There is no common currency the competition.
country follows; it instead uses the 4.) Mixed Economy
method of bartering. - It is a system in which the characteristics
● Bartering - A system that of the market and command economy
involves two individuals who are observed.
exchange goods or services. - It is the most used system of different
2.) Command Economy countries on the entire globe.
- It is a system in which the government
makes economic decisions. CONSUMPTION
- It is usually an inefficient way of What is consumption?
allocation due to the resources not - It is the response to our wants and needs.
being maximized. - It is the act of buying and using products and
3.) Market Economy services.
- It is a system in which buyers, sellers,
businesses, and entrepreneurs make
economic decisions.

FIRST TERM S.Y. 2023-2024

Page 6 of 11
 SOCIAL STUDIES 9: TERM 1
Factors of Consumption: Rights of Consumers:
1.) Income 1.) Right to Basic Needs
- Our consumption is dependent on our - Having sufficient supply of basic
capacity to buy. commodities such as food, healthcare,
- Someone who has a bigger income has education, and shelter.
more capability to buy as compared to - Basic commodities and quality services
someone who has less income. should be affordable to everyone.

2.) Occasion 2.) Right to Safety

- Celebrating occasions is a big part of - To protect consumers from harm in
our lives. using or consuming products.
- Products released should pass strict
3.) Advertisement quality control
- It is one strategy that a producer uses to - Should be ensured to harmful
encourage consumers to like his materials/ingredients.
products.
- It can come in two forms: Bandwagon 3.) Right to Proper Information
and Testimonies - Protect consumers from deceptive and
wrong information about a product.
4.) Price - It should have a short description,
- We aim to get our money’s worth in materials used, limitations,
buying goods and services. manufacturing, and expiration date.
- We are encouraged to buy products
that have lower prices as compared to 4.) Rights to Choose
higher prices so that we can buy more. - Variety of quality products to choose
from given competitive prices.
5.) Value / Importance - Consumers are assured that products
- Consumption is based on the come in from different brands.
importance or value we give to the - The government cannot force
product consumers to buy a product or service.

Characteristics of a Filipino Consumer: 5.) Right to Representation

According to Rappler (2013) - Government agencies should hold
- Fond of Freebies public discussions to allow consumers
- Fond of buying a loyal brand to express their opinions.
- Television is the main source of information - It allows consumers to be active in the
- Advertisement process of writing and implementing
rules and law.

FIRST TERM S.Y. 2023-2024

Page 7 of 11
 SOCIAL STUDIES 9: TERM 1
6.) Right to Redress 2.) Action
- Paves the way for consumers to forward - Responsible for being active in the
product complaints to the attention of market.
the producer. - Make sure that the prices are just right
- Products that are being complained of and appropriate for the product.
may be exchanged by the Consumer - To avoid being taken advantage of.
Act of the Philippines.
3.) Social Concern
7.) Right to Consumer Education - Know the effect of his consumption on
- This creates awareness as to the rights the community.
of the consumers and the role they - Uses the right amount of product or
have in society. service to avoid wastage.
- Government agencies may conduct - Give other consumers to avail of the
seminars to educate by disseminating same product.
information.
4.) Environmental Awareness
8.) Right to a Healthy Environment - Knowing the impact of his consumption
- To have the assurance of living and on the environment.
working in a clean and safe - Maintain the cleanliness of the
environment. surroundings
- The government strictly monitors the - Nurture the natural resources for
proper ways of garbage and waste generations to come.
disposal to keep the environment.
5.) Solidarity
Consumer Responsibilities - To assemble and form organizations to
- Consumers have responsibilities as well as monitor and uphold consumer interests.
rights.
- They should be critically aware, active, socially
concerned, environmentally aware, and Guide to Wise Consumerism
practice solidarity 1.) Prepare a list of things to buy according to your
needs.
1.) Critical Awareness - You should not be swayed by brand
- To be critical of the product or services names but rather by the quality.
to avail of. - Do not engage in panic-buying and do
- Responsible consumers will ask not practice hoarding in consideration
questions regarding the price and of other customers.
quality of a product or service.

FIRST TERM S.Y. 2023-2024

Page 8 of 11
 SOCIAL STUDIES 9: TERM 1
2.) Read the label of the product you are buying 8.) Be proactive in taking care of the environment.
- To know if there are materials or - Use eco-friendly materials.
ingredients that are harmful to children - Reduce, reuse, and recycle!
or the elderly. - Be aware of the possible consequences
of your consumption.
3.) Research on the product or service.
- Read documents that pertain to
waivers, warranties, guarantees, or
PRODUCTION
credit contracts before signing.
What is the concept of production?
- It refers about creating products and services
4.) Know your needs
to meet society’s wants and needs.
- Canvass the price of the product to get
- Creating products makes us use different
the lowest price with the same quality.
- At the same time, beware of products combinations of money, materials, and

that are less expensive. resources.

- They might be of poor quality.

Factors of Production:
5.) Be aware of the laws 1.) Land
- Attend seminars or forums on consumer - This term refers to natural resources.
issues. - Majority of these cannot be replaced,
or, will take years to be replaced.
6.) Return defective products. ● Water
- Proceed to the Customer’s Service or ● Mineral
Consumer Welfare Desk. ● Forest
- You may request the defective product ● Land
to be fixed, exchanged, or refunded. ● Animals
2.) Labor
7.) Read articles - It is the time and effort exerted by man.
- Read on consumer welfare or where - It is the ability to work, physically and
you can get the best bargain.
mentally.
- You may look into trusted and verified
- This could be in the sectors of
sources to be aware.
agriculture, industry, and service.
- Attend forums given by the industry or
● Employed
government to learn new concepts.
● Unemployed
● Underemployed

FIRST TERM S.Y. 2023-2024

Page 9 of 11
 SOCIAL STUDIES 9: TERM 1
3.) Capital 3.) Corporation
- It is considered as man-made products. - It is an organization that is created and
- It is used to produce goods and has a legal identity.
services. - It is registered to Securities and
● Infrastructures Exchange Commission.
● machineries - Corporation has five to fifteen directors;
● factories they are the ones who control and

● malls manage the business.

● computers - While the owners are called

4.) Entrepreneur stockholders/shareholders.

4.) Cooperative
- It combines the factors of production.
- It is voluntary group composed of
- Business risk takers in time, effort, and
individuals who share the same
money.
interests.
- Cooperative is composed of not less
Business Organizations:
than fifteen members.
1.) Sole Proprietorship
- They have joint savings that are used to
- By the name itself it is owned and
fund the cooperative.
managed by one person.
- They are registered in the Cooperative
- It only entails minimal capital and the
Development Authority.
management is simple.
- It is the easiest business to register in the
DTI (Department of Trade and Industry).
DEMAND & FACTORS THAT CHANGE DEMAND
● Bakery
What is the concept of demand?
● Sari-sari store
- It is the quantity of product or service that a
● Eatery (Karinderya) consumer is willing to buy.
● Barber Shop/Parlor - There is a relationship between price of a
2.) Partnership product or service and demand.
- It owned of two or more individuals.
- They must share equal responsibilities of Demand Schedule
assets and liabilities. - This is a tabular representation.
- It can be general or limited. - It refers to the quantity demand a consumer is
● General - is where all owners willing to buy to given alternative prices.
have the same responsibilities.
● Limited - depends on the value
of his investment.

FIRST TERM S.Y. 2023-2024

Page 10 of 11
 SOCIAL STUDIES 9: TERM 1
Demand Function Market Demand
- It is a mathematical equation that has two - It refers to the total quantity of a product or
variables. service that is demanded by all consumers.
- The dependent variable is the Quantity
Demand.
- While the independent variable is the Price.

Qd = a - b(P)

“Oh Jesus, You are in my heart’s

● Qd = Quantity Demanded
desire”
● P = Price
● a = Intercept (quantity demanded
when the price is zero) Created By: Haeckel Mata & Ryu S. Tengson
● b = Slope (quantity demanded Proofread by: Eithne Jaione L. dela Peña
changes for each one-unit change in
the price.)

Demand Function
- It is a graphical representation
- It refers to the inverse relationship between
price and quantity demand.

Law of Demand
- It states that at ceteris paribus or “all else are
equal or constant”;
● While the price is decreasing, the quantity
demand is increasing.
● On the other hand, while the price is increasing
the quantity demand is decreasing.

FIRST TERM S.Y. 2023-2024

Page 11 of 11