The document defines key terms in economics and explains why economics became a social science. It begins with objectives to define basic economics terms and explain the evolution of economics into a social science. It then presents a pre-test with true/false and essay questions on economics concepts. The main body defines economics using definitions from various authors emphasizing its focus on scarcity, resources, wants, and choices. It outlines the major types of economics including household, business, national, and international economics. It concludes by discussing economics as a science and outlining the historical development of economics.

2. OBJECTIVES
Define basic terms in Applied
Economics
 Explain why Economics became
a Social Science
At the end of the lesson, the learner
is expected to:
ABM_AE12

3. PRE-TEST
I. True or False: Carefully read each sentence and
determine if the sentence is TRUE or if the sentence is
FALSE.
1. Economics comes from the Greek word oikonomia
which means household chores.
2. Economics is considered a field of social science.
3. Economics is relevant because it is part of
everybody’s life.
4. There are three (3) divisions of Economics, the
microeconomics, the macroeconomics and the home
economics.
5. As a science, Economics is related to other sciences.ABM_AE12

4. II. Essay. Answer the following using five (5)
sentences and above.
a. As an individual, what do you
think is the essence of
studying economics?
b. How do you apply economics
in your household?
ABM_AE12

5. WHAT IS ECONOMICS?
Economics is the study of social behavior
guiding in the allocation of scarce
resources to meet the unlimited needs and
desires of the individual members of a
given society.

6. From the Greek words Oikos meaning household and
nomos meaning management
= household management
The wise production and use of wealth to meet the
demands or needs of the people
ECONOMIC
DEFINED
ABM_AE12

8. ECONOMICS
AS DEFINED BY
AUTHORS OF
ECONOMICS BOOKS

10. 4.

11. 5. Paul Samuelson (Economics)
“The study of how people and society end up choosing, with or
with or without use of money, to employ scarce resources that
that could have alternative uses to produce various
commodities among various persons and groups in society.”
ABM_AE12

12. 7. Hall and Loeberman (Macroeconomics: Principles and
Applications)
“The study of choice under the condition of
scarcity”
8. Bernardo Villegas (Guide to Economics for Filipinos)
“A social science that studies and seeks to allocate
allocate scarce human and non-human resources
resources among alternatives in order to satisfy
satisfy unlimited human wants and desires.”

23. COMMON WORDS AMONG
DEFINITIONS…
• Scarcity- a situation wherein the amount of something
available is insufficient to satisfy the desire for it.
• Resources-The labor, capital, land and natural
resources and entrepreneurship that are used to
produce goods and services.
• Unlimited – without limits, infinite
• Wants –desires
ABM_AE12

24. ECONOMICS AS A STUDY OF
WEALTH
The earlier definition of economics as
the science of wealth-getting and
wealth-using implies that the
motivation of the process of wealth
accumulation is the utilization of wealth
for the individual’s satisfaction and
society’s welfare.
ABM_AE12

25. ECONOMICS AS A STUDY OF
MAKING CHOICES
In everything we do, whether we
produce or consume, whether wealth-
getting or wealth-using, we make
decisions and these decisions are based
on alternative choices.
ABM_AE12

26. ECONOMICS AS A STUDY OF
ALLOCATION
The definition of economics as a social
science that deals with the study of
allocation of scarce resources to answer
the unlimited wants.
ABM_AE12

27. Major

36. A

38. A

40. A

43. TYPES OF ECONOMICS:
1. Household Economics – most common use of
economics is for the family. At this level, anyone
who knows the economic principles will be able to
improve the running of the household.
2. Business Economics – when a person or group of
persons begins to work, they come under the system
of business economics in their workplace. In this
type, you deal with the rent, salary, profits and
others.

44. 3. National Economics – Economic factors of problems
affecting the whole nation. Deals with the
management of income, expenditures, wealth or
resources of a nation.
4. International Economics – The highest stage of
economic activities involving the business of one
country with other countries like trade, tourism,
exchange rates.

45. Is Economics a science?
Support your answer.
ABM_AE12

46. ECONOMICS AS A SCIENCE
• Is a science because it is an organized body of
truth, coordinated, arranged and systematized
with reference to certain general laws and
principles.(Observation, Formulation of
theories, Gathering of data, Experimentation,
Conclusion, Generalization)
• Economic analysis seeks to explain economic
events using some kind of logic based on a set
of systematic relations.
ABM_AE12

47. ESSENCE OF STUDYING ECONOMICS
• To understand the world better
Applying the tools of economics can help you
understand global and cataclysmic events such as
wars, famines, epidemics, and depressions. Economics
has the power to help us understand these
phenomena because they result from the choices we
make under the condition of scarcity.
• To gain self-confidence and become wise decisions
makers
Mastery of economics will help you to
understand how things work in your society thereby
“feeling equipped” ABM_AE12

48. • To achieve social change and contribute to National
Development
Economics can help us understand the origins of
origins of serious social problems such as:
unemployment, hunger, poverty, disease, child abuse,
drug addiction, violent crime. It will also explain why
previous efforts to solve these problems have failed,
and help us to design new, more effective solutions.
ABM_AE12

49. • To help prepare for other careers
Economics has long been a popular college
major for individuals who are intending to work
in business. But it has also been popular among
those planning careers in politics, international
relations, law, medicines, engineering, etc. This is
for good reason because practitioners in each of
these fields often find themselves confronting
economic issues.

50. Historical Development of Economics
INDUSTRIAL STAGE
HANDICRAFT STAGE
AGRICULTURAL STAGE
PASTORAL STAGE
HUNTING AND FISHING
ABM_AE12

51. THE DEVELOPMENT OF PHILIPPINE
ECONOMICS
Pre-
Hispanic
Digong
Gov’t
Fill in the economic development of the Philippines
and the significant policies in each stage.
ABM_AE12

52. Problems and Application:
How much did you spend on the last
item you bought for yourself?
What other things could you have
bought with the same amount of
money? Why didn’t you buy the other
other items you just listed?
ABM_AE12

53. Activity : Newspaper Clipping
Cut an article from any leading newspaper
under the business section. Identify the article
article whether Microeconomics or
Macroeconomics. Discuss and be able to
explain why the article falls under the
Microeconomics or Macroeconomics. (Note:
(Note: Be able to specify the exact issue of the
the newspaper).
ABM_AE12

54. QUIZ

55. Quiz: Identification
1. Economics came from the Greek word _______
_______ which means “household
management”.
2. According to him, economics is “a scientific
study which deals with how individuals and
society make choices.”
3. It is the study of social behavior guiding in the
the allocation of scarce resources to meet the
unlimited needs and desires of the individual
members of a given society. ABM_AE12

56. 4. The earlier definition of economics as the
science of wealth-getting and wealth-using
implies that the motivation of the process of
wealth accumulation is the utilization of wealth
for the individual’s satisfaction and society’s
welfare.
5. It deals with the economic behavior of the
individual units such as consumers, firms, the
owners of factors of productions

57. 6. It is the allocation of the total product among members of society.
It is related to the problem of for whom goods and services are to
be produced.
7. It is used of good and services.
8. It is the use of inputs to produce outputs.
9. It refers to management of income, expenditures, wealth or
resources of a nation.
10. In everything we do, whether we produce or consume, whether
wealth-getting or wealth-using, we make decisions and these
decisions are based on alternative choices.
ABM_AE12
APPLIED ECONOMICS
REVISITING ECONOMICS AS A SOCIAL
SCIENCE

58. Part II. Enumeration.
1 – 4. Common words in Economics
5 – 7. Study of Economics
8 – 11. Concerns of Economics
12 – 13. Divisions of Economics
14 – 17. Types of Economics
18 – 22. Historical Development of Economics
23 – 27 Rowtow’s 5 Stages of Economic Development
28 – 30. Essence of Studying Economics
ABM_AE12
APPLIED ECONOMICS
REVISITING ECONOMICS AS A SOCIAL
SCIENCE

59. Reference:
APPLIED ECONOMICS
REVISITING ECONOMICS AS A SOCIAL
SCIENCE
ABM_AE12
• Tullao Jr., Tereso S. Applied Economics For A
Progressive Philippines. Phoenix Publishing House;
927 Quezon Ave., Quezon City. 2016
• Pagoso, Cristobal M. Philippine Economics (Macro
Approach). NELSON PUBLICATION; Marimar
Village Paranaque City. 2003
• Carnaje, Gideon P. Applied Economics. Vibal Group
Inc, Araneta Avenue, Quezon City. 2016