Applied Economics – Chapter 1: Revisiting Economics (Comprehensive Study Notes)
Page 1: Document Identification
- Prepared by Ms. Kimberly M. De Asis for the Department of Basic Education, Senior High School Division, Lyceum of Alabang (LoA).
- Campus address: Km , National Road, Tunasan, Muntinlupa City.
- Course/Strand: Accountancy, Business & Management (ABM) — Subject: Applied Economics.
Page 2: Grading System & Chapter Context
- Material belongs to LoA Senior High School’s official grading and curriculum framework.
- Current focus: Chapter – “Revisiting Economics.”
- Visual reference sourced from DepEd’s K– portal (symbolic of national curricular alignment).
Page 3: Evaluation Components
- Coursework is broken down into two principal categories:
- Written Works
- Performance Tasks
- Both feed into the overall grade in Applied Economics, evaluating theoretical mastery and practical engagement.
Page 4: Institutional Vision & Mission
Vision
Lyceum of Alabang envisions becoming one of the nation’s leading educational institutions dedicated to advancing knowledge, skills, and values for personal, community, and national development.
Mission
To provide world-class education and training via competent personnel, high-end facilities, advanced technology/equipment, and industry-accredited curricula.
Page 5: Core Values
- Excellent & Dynamic Service – Continuous modernization for global competitiveness.
- Educational Partnership – Sustainable alliances among school, parents, and learners for nation-building.
- Human Resources Development – Ongoing training to create a workforce responsive to rapid societal change.
- Moral & Spiritual Leadership – Inspiring learners to live the institution’s values.
Page 6: Subject Description—Applied Economics
- Emphasizes practical application of economic principles to real-world decision-making.
- Tools imparted: case studies, problem-solving, simulations.
- Key thematic issues: resource allocation, poverty, unemployment, sustainability.
- Ultimate goal: foster critical thinking for informed choices in a dynamic economy.
Page 7: Chapter Header
- Chapter Title: “Revisiting Economics.”
Page 8: Learning Objectives
By the end of Chapter , students should be able to:
- (a) Define basic terms in applied economics.
- (b) Explain the importance and practical applications of applied economics.
Page 9: Defining Economics & Scarcity
- Economics: study of how individuals and societies allocate limited resources to satisfy unlimited wants.
- Scarcity: limited availability of resources versus unlimited human wants/needs.
- Creates the foundational economic problem all societies must solve.
Page 10: Economics as a Social Science
- Investigates how society copes with scarcity through choice-making.
- Related disciplines: sociology, political science, anthropology.
- Core inquiry: “How do people decide?”
Page 11: Why Multiple Perspectives Matter
- Broadens Understanding – Enriches comprehension of economic operations.
- Addresses Complex Problems – Multiple lenses help tackle inequality, trade, etc.
- Cross-Field Adaptability – Makes economics relevant to varied industries.
Page 12–13: Meanings of Economics from Different Scholars
- Feliciano Fajardo: Proper allocation & efficient use of resources for maximum satisfaction of human wants.
- William Nordhaus: “Science of choice” — how people decide to employ scarce resources to produce commodities.
- Gerardo Sicat: Scientific study of choice at both individual & societal levels.
- Webster Dictionary: Branch of knowledge on production, distribution, and consumption of goods & services.
Page 14–16: Three Developmental Strands in Defining Economics
- Economics as Study of Wealth
- Creation, distribution, allocation, and accumulation of wealth.
- Economics as Study of Making Choices
- Concepts: scarcity & trade-offs, , incentives, rational decision-making (utility maximization).
- Economics as Study of Allocation
- Tackles efficiency vs. equity under scarce resources.
Page 17–26: Five Key Elements in the Definition of Economics
- Economics as a Social Science
- Studies how society creates, distributes, and expands wealth.
- Resources
- Defined as products of nature, human qualities, or man-made assets used in production.
- Types:
- Natural, Marine, Forest, Mineral, Human, Physical.
- Characteristics:
- Limited (non-renewable, time-consuming)
- Competing Uses (multi-purpose).
- Human Wants & Economic Analysis
- Wants = differentiated or elevated needs (e.g., Need: food → Want: pizza/sushi).
- Scarcity as Source of Economic Problems
- Resource limits vs. expanding wants.
- Allocation & the Act of Economizing
- Society must decide what, how, and for whom to produce.
- Three responses to scarcity:
- Temper wants.
- Expand resources (innovation, technology).
- Combine both approaches.
Page 27–28: Major Allocation Mechanisms
| Aspect | Market Economy | Command Economy | Traditional Economy | Mixed Economy |
|---|---|---|---|---|
| Decision-Making | Decentralized; individuals & firms. | Central authority. | Customs & elders. | Shared by state & market. |
| Ownership | Private. | Public/state. | Communal. | Coexistence. |
| Advantages | Innovation, variety. | Social goals, public goods. | Cultural preservation, low ecological impact. | Balances efficiency & equity. |
| Disadvantages | Inequality, market failure. | Bureaucracy, shortages. | Resistance to change, slow growth. | Regulatory burden, coordination challenges. |
Key Takeaways on Systems
- Market: Relies on price signals; efficiency prioritized.
- Command: Uses central planning; equity or political goals prioritized.
- Traditional: Stability through continuity; often subsistence-level.
- Mixed: Real-world default; blends mechanisms for flexibility.
Page 29: Transition Note
- The succeeding material will shift focus to Business Finance (Chapter – “Understanding Finance”), indicating interdisciplinary progression from economics to finance.