Applied economics in business management, Study notes of Business

Download Applied economics in business management and more Study notes Business in PDF only on Docsity! 12 DepED DEPARTMENT lf OF EDUCATION, Applied Economics Quarter 1 Module 2: Basic Economic Problems er OF Eby, sp, a REGION V BICOL Applied Economics - Grade 12 Quarter 1 — Module 2: Basic Economic Problems 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. Regional Director: Gilbert T. Sadsad Assistant Regional Director: Jessie L. Amin Development Team of the Module riters: Joanna Marie J. Madrid, Teacher II Editors: Ms. May D. Catubig, AP Area Chairman/ Mr. Rhoderick M. Barretto, Assistant Principal II Reviewers: Joy G. Cabrera, EPS / Darcy Guy Y. Mafiebo, EPS illustrator: Joanna Marie J. Madrid , Teacher II Layout Artist: Joanna Marie J. Madrid, Teacher II iT OP . . . Gj S t Regional Center Site, Rawis, Legazpi City 4500 2 @® osvaveszes @ resionssaeped.gou.ph REONY HICK Applied Economics - Grade 12 Let Us Examine! A solid understanding of the importance of economic resources as well as the economic principles and how to apply it in a real-life situation as a Senior High School Students that can serve as significant tools to help address the country’ s economic problem. Learning Activity 1. Picture analysis Instruction: Analyse the pictures below and write the answer on your answer sheet.. ye! [ sww.slideshare.c Guided Questions: Please refer your answer base on the picture analysis ané“Wrife the answer on your answer sheet. 1. What did you observe about the picture? Learning Activity 2. Graphic Organizer Gather information using various multi-media platforms, List down about the economic problem that we are facing today. Give at least 10 economic problems. ECONOMIC PROBLEM 8. v.@ 9. Process Question: Please refer your answer base on the above 10 economic problems. Write the answer on your answer sheet. 1. How does the following basic economic problem affects your daily living? Learning Activity 3. Let’s Solve Based on your above listed economic problems, choose at least 5 and apply the possible solution to solve the basic economic problems. Write the answer on your answer sheet. Guided Questions: Please refer your answers from the table above. Write the answer on your answer sheet. 1. What helped you to find the solutions? 2. What did you consider in applying the possible solutions? Rubric Clarity The purpose of | The central The central | The central (supported by | the student | purpose of purpose — of | purpose of the relevant work is not | the student | the student is | student is clear information will define. | is identified. | clear and | and supporting and ideas) The central | Ideas _—_are | ideas are | ideas are ideas are not | generally almost always well- focus to | focused in a | always focused. support the | way that | focused in a | Details are topic. supports the | way that | relevant, topic. supports the | enrich the topic. work. Organization | Information Information | Information | Information (sequence of | and ideas are | and ideas and idea are | and idea are elements/ poorly are presented in a | presented in a ideas) sequenced. presented in | logical logical The reader has | an order | sequence sequence difficulty that the | which is | which flows following. the | reader can | followed by | naturally and thread of | follow with the reader is engaging to thought. minimum with little or | the reader. difficulties. low difficulty. Mechanics There are five |There are | There are no| There are no Correction of grammar and spelling) or more misspellings and / or systematic grammatical errors in the entire essay. no more than four misspellings and / or systematic grammatical error in the entire essay. more than Three misspellings and / or systematic grammatical error in the entire essay. more than two misspelled words or grammatical errors in the essay. 1. What to produce? (What goods and services will be produced?) >» The system must determine the desires of the people. > Goods and services must be based on the needs of the consumers. Factors to consider: a.) Availability of resources b.) Physical environment c.) Customs and traditions of people For example: An economy must decide whether they should produce kitchen appliances or weapons, build and fix roads or buy textbooks for schools. 2. How to produce? (How will goods and services be produced?) >» The system must select the proper combination of economic resources in producing the right amount of output. > The quality of output must comes first before the quantity. For example Should we use copper or plastic to make pipes? Should machines be used to make clothing or should workers make it by hand? Should the power plant be built close to the ocean or inland? Which fertilizer is best for growing strawberries? There are millions of decisions that need to be made to figure out how to produce goods and services. 3. For whom shall the goods and services be produced? (Who will consume the goods and services?) > This has something to do with distributon. > Once the goods are produced, how shall they be distributed? Once the goods and services are produced, who will get to consume them? Will people consume them on a first-come, first-served basis? Should goods be allocated or given out by height, weight, religion, age, gender race, looks, strength, health or wealth? How should the goods and services be distributed among the people? Another Basic Economic Problems 1. Scarcity- refers to the tension between our limited resources and our unlimited wants and needs. 2.Unemployment- is a situation where people who are willing and able to work are seeking work but cannot find jobs. Common Causes: a.)The number of people entering the job market has been greater than the number of jobs created. The rural-urban migration increases, due to employment opportunities. 10 ee ARK im ae Pull Factors few services ¢ lack of job opportunities O access to services better job opportunities * unhappy life ; ¢ more entertainment facilities * poor trasport links © better transport links ¢ natural disasters ¢ improved ° wars living conditions ¢ shortage ¢ family links b.) Many of the unemployed individuals are college graduates. What can be done to solve uneployment problem? 1. 2. 3. Appropriate economic policies for labor-intensive industries. Improve the educational system of the country especially in the rural areas. Minimize rural urban migration by improving the economic environment in rural areas. . Proper coordination between government and the private sectors to solve the problem of job mismatch. . Slowing populaltion growth. Philippine growth must increase faster than the population. Limit the size of families. . Provision of more investment opportunities to encourage local and international investment. 4. Poverty- is the state of being extremely poor. It is a condition where people’s basic needs for food, clothing and shelter are not being met. Common causes: ¢ increase in population ¢ increase in the cost of living ¢* unemployement ¢ income inequality What can be done to solve the poverty problem? 1. 2. 3. Reduce unemployment Appropriate policy on labor income Provision of unemployment benefits for those who will be unemployed due to natural or man-made calamities. (Ex. Typhoon, bombing of terrorists, Earthquake) Increase social services like education, health care and food subsidies for sustainable poverty reduction. Appropriate policy on labor income. 14 5. Infrastructure- the basic facilities, services and installations needed for the operation of a community or society (e.g. roads, transportation, communication, power) What can be done to improve the quality of infrastructure? 1. The government shall implement fiscal reform program. 2. Continue reform in key sectors- particularly power, roads and water- to improve cost recovery, competition, and institutional credibility and sharply reduce corruption. 3. Improving central oversight of the planning and coordination of investments. 4. Focus on investments through public-private partnerships to achieve faster delivery of services. 6. Income inequality- refers to the gap in income that exists between the rich and the poor. Income- is the money that an individual earned from work or business received from investments. Major causes of income inequality * Es 1. Political culture - “palakasan” “utang na i ) aHF § loob” Example: voting for the wrong person during election. 2. Indirect taxes- poor people shoulder this taxes like Value Added Tax — 12%. 3. Income Taxes oo What can be done to solve the problem of income inequality? E a = zz, 1. Policies to enforce progressive rates of direct taxation on : 4 high wage earners and wealthy individuals. # s oe | 2. Direct money transfers and subsidize food programs for the L urban and rural poor. | a eS 3. Direct government policies to keep the price of basic £ commodities low. ob — # 4d 4. Raise minimum wage. a Encourage profit sharing. 12 Rubric Clarity The purpose of | The central The central | The central (supported by | the student | purpose of | purpose — of | purpose of the relevant work is not} the student | the student is | student is clear information will define. is identified. | clear and | and supporting and ideas) The central | Ideas _—_are | ideas are | ideas are ideas are not | generally almost always well- focus to | focused in a | always focused. support the | way that | focused in a | Details are topic. supports the | way that | relevant, topic. supports the | enrich the topic. work. Organization | Information Information | Information | Information (sequence of | and ideas are | and _ ideas | and idea are | and idea are elements/ poorly are presented in a | presented in a ideas) sequenced. presented in | logical logical The reader has | an order | sequence sequence difficulty that the | which is | which flows following the | reader can | followed by | naturally and thread of | follow with | the reader is engaging to thought. minimum with-little or | the reader. difficulties. | low difficulty. Mechanics There are five |There are | There are no| There are no Correction of grammar and spelling) or more misspellings and / or systematic grammatical errors in the entire essay. no more than four misspellings and / or systematic grammatical error in the entire essay. more than Three misspellings and / or systematic grammatical error in the entire essay. more than two misspelled words or grammatical errors in the essay. 45 A. Complete the table below by looking for the economic concept that best describes to the key terms in the column 1 of the table and give some short insights why it is crucial in the flow of the economy in column 3. Write the answer on your answer sheet. A. Resources used to produce goods and services. C. Natural resources B. who used economic resources to create new goods and services D. Man-made resources, such as machinery that are used to make other goods and services E. Human effort exerted in production 1.Entrepreneur 2. Land 3. Capital 4. Factors of Production 5. Labor B. Complete the column 2 below in the table by looking for the economic concept that best describes to the key terms in the column 1 and give some short insights on how these economic problems affects in the flow of the economy in column 3. Write the answer on your answer sheet. A. Unlimited wants and needs but limited resources. C. Is the state of being extremely poor of a person. B. A person who is actively searching for job D. General rise the general level of price E. an organism that both belong to same group and live in the same geographical area 16 1.Unemployment 2. Poverty 3. Scarcity 4. Population 5. Inflation VIII. Assignment/Additional Activities. Additional Practice: Aside from the given economic problems presented, list down at least 5 current economic issue / problems that the country is facing today. Write the answer on your answer sheet. 17