School: St.

Vincent of Quebiawan Integrated School Grade Level: 11

Teacher: Angelica H. Paras Quarter: First
Learning Area: Applied Economics Month: September Week: 3

DETAILED LESSON PLAN

I. OBJECTIVES
A. Content Standards

The learners demonstrate an understanding of economics as an applied science and its utility
in addressing the economic problems of the country.

B. Performance Standards

The learners shall be able to analyze and propose solutions to the economic problems using
the principles of applied economics.

C. Learning Competencies

The learners…
1. Examine the utility and application of applied economics to solve economic issues and
problems.

II. CONTENT

A. Analyzing basic economic problems

B. Application of economics to solve problems

III. LEARNING RESOURCES

A. Reference/s (Sanggunian)

Leano, R. (2016). Applied Economics for Senior High School

B. Other Learning Resources (Iba pang Kagamitang Panturo)

IV. PROCEDURES
A. Reviewing previous lesson or presenting the new lesson

Hello again! We are now on our third week of discussion. Are you ready?

Naalala nyo ba ng larawan na ito na ginamit natin sa nakaraang linggo? Sa pagtatapos ng lesson
natin nung nakaraan ay may iniwan tayong katanungan.

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 ACTIVITY

1 Anu-ano ba ang kasalukuyang mga problema na hinaharap ng ating bansa

ngayon? Isulatang mga ito sa ibaba.
Halimbawa: Kakulangan ng ayuda sa mga nawalan ng trabaho
1._______________________________________________________________________
2._______________________________________________________________________
3._______________________________________________________________________

B. Establishing a purpose for the lesson

Let us recall some important definitions from our last lesson.

QUICK Economics may appear to be the study of complicated tables and charts,
REVIEW statistics and numbers, but, specifically, it is the study of what constitutes
the rational human behavior in the endeavor to fulfill needs and wants.

Applied economics is the study of economics in world situations as opposed to the

theory of economics. It is the application of economic principles and theories to real situations,
and trying to predict the outcomes. Only with applied economics can a true and complete
picture of an economic situation or theory emerge. Then, decision-makers can choose what
to do to move in the right direction from a current position.

Today you will learn how to identify the basic economic problems in our country and explain how
applied economics can be used to solve economic problems.

ACTIVITY

2 Sa pamamagitan ng pagguhit ipakita ang kasalukuyang nasa isipan at

kalooban mo. Ano ang problema na iyong kinakaharap ngayon?

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C. Presenting examples/instances of the new lesson

Are your problems similar to the examples given below?

A. Households have limited income and they need to decide how to spend their finite
income. For example, with a monthly income of ₱20,000 but need to spend ₱10,000
a year on rent, tax and utility bills. The balance ₱10,000 must be decided by the family
how it be divided for their food, clothes, transport and other necessities.

B. A newly graduate student must decide to go straight into work or they could go to
university where they will hope to gain a degree and more earning power in the long-
term.

Natutunan natin na ang problemang pang-ekonomiya ay dulot ng walang katapusang

pangangailangan ng tao na may limitadong mapagkukunan o resources.

Dahil limitado ang mga pinagkukunan ng yaman, kinakailangang gawan ng desisyon ng lipunan
ang mga sumusunod:

1. What to produce and how much? - Society must have to decide what goods and
services should be produced in the economy. Having decided on the nature of goods
that will be produced, the quantity of these goods should also be decided on.

2. How to produce? - Is a question on the production method that will be used to

produce the goods and services. This refers to the resource mix and technology that
will be applied in production.

3. For whom to produce? - Is about the market for goods. For whom will the goods and
services be produced? The young or old, the male or female market, the low-income
or the high income groups?

Tignan natin ang mga sumusunod na halimbawa para maging mas maliwanag pa sa inyo ang
kakapusan ng mga pinagkukuhanan ng yaman:

1. Producers
A producer needs to remain profitable (revenue higher than costs). So it will need to
produce goods which are in high demand and respond to changing demands and
buying habits of consumers – for example, switching to online sales as the high street
declines. Producers will need to constantly ask the best way of producing goods. For
example, purchasing new machines can increase productivity and enable the firms to
produce goods at a lower cost. This is important for fast-changing industries where
new technology is frequently reducing costs of production. Without firms adapting to
how they produce, they can become unprofitable.
Firms may also need to make long-term investment decisions to invest in new
products and new means of production.

2. Government
The government has finite resources and its spending power is limited by the amount
of tax that they can collect. The government needs to decide how they collect tax and
then they need to decide whom they spend money on. For example, the government
may wish to cut benefits to those on low income to increase incentives to work.
However, cutting benefits will increase inequality and relative poverty.

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D. Discussing new concepts and practicing new skills #1

How does Applied Economics solve economic problems?

Applied Economics solves economic problems by providing information as to how people,

businesses, and governments behave. This can enable economic actors to make better
decisions and solve problems.
For example, economists may describe how markets function, which behaviors result
in costs, and more, enabling businesses and others to avoid those costs and resolve
their problems.

Economics will help you understand why there is a need for everybody, including the
government, to budget and properly allocate the use of whatever resources are available. It
will help one understand how to make more rational decisions in spending money, saving
part of it, and even investing some of it. On the national level, economics will enable you to
take a look on how the economy operates and to decide for yourself if the government
officials and leaders are effective in trying to shape up the economy and formulate policies
for the good of the nation.

ACTIVITY

3 Isulat ang iyong mga gastusin sa isang linggo at isulat din kung saan ang
pinagkukuhanan mo ng salapi at magkano ito kada linggo. Ano ang iyong
napansin? Sapat ba ito o kulang?
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E. Discussing new concepts and practicing new skills #2

Alam mo ba na ang ating gobyerno ay kagaya mo din na kailangan makakuha ng sapat na

kayaman para maponduhan ang mga iba’t-ibang programa para sa ating mga mamamayan.

One of the reasons why Filipinos work abroad is due to limited job opportunities. Because of
these problems they tend to find good job in other country. OFW (Overseas Filipino Worker) is
a term used to refer to a person of Filipino origin who resides outside the Philippines. This term
applies to Filipinos who are abroad as permanent residents in a different country as well as to
those who are abroad for a limited period for employment or education. According to the
International Labor Organization, there are approximately 11 million Filipinos overseas.

OFWs are considered economic heroes.

They are heroes because of their significant contribution towards the growth of the Philippine
economy. Remittances sent by OFWs accounted for 11% of the total GDP of the country in 2018.
The Philippines is one of the top 5 economies in the world that benefit the most from remittances.

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 Gross National Production (GNP) is the total income of all residents of a nation, including
income from factors of production, used abroad, and the total expenditure on a nation’s output
of goods and services.

Gross Domestic Product (GDP) is the total income earned domestically, including the income
earned by foreign-owned factors of production, the total expenditure on domestically-produced
goods and services.

ACTIVITY

4 Basahin natin ang artikulo para mas maintindihan natin ang GDP at kahalagan
nito sa ating pamumuhay.

Philippine GDP Growth to Slide in 2020 Due to COVID-19,

Strong Rebound Seen in 2021 — ADB

MANILA, PHILIPPINES (3 April 2020) — The Philippines’ economic growth will slow
significantly this year before a strong rebound in 2021, with expansionary fiscal and monetary
policies partly offsetting slower domestic demand and disruptions in tourism, trade, and
manufacturing, according to a new Asian Development Bank (ADB) report released today.

In its annual flagship economic publication, Asian Development Outlook (ADO) 2020,
ADB projects the Philippines’ gross domestic product (GDP) to grow at 2.0% in 2020 following
an “enhanced community quarantine” imposed by the government in March to stop the
spread of the novel coronavirus disease (COVID-19) in the country. But ADB expects a strong
recovery to 6.5% GDP growth in 2021, assuming that COVID-19 infections in the country are
curbed by June this year.

“This unprecedented and extraordinary public health emergency brought about by the
COVID-19 pandemic will substantially slow down economic growth this year, with most of the
contraction in the economy occurring in the second quarter. We are anticipating a bounce
back starting in the second half of this year, supported by the government’s stimulus spending
and easier monetary policies,” said ADB Country Director for the Philippines Kelly Bird.

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F. Developing mastery (Leads to Formative assessment)

Anu-ano nga ba ang mga kasalukuyang problema na hinaharap ng ating bansa at ano ba ang
mga posibleng solusyon sa mga ito?

ACTIVITY

5 Basahin ang artikulo nasa ibaba.

House Approves P1.3-Trillion Economic Stimulus Package vs Pandemic

MANILA, Philippines – The House of Representatives gave its final nod to the P1.3-
trillion stimulus package designed to help the economy recover from the coronavirus
pandemic in the next 4 years.With 216 yes votes, 7 negative votes, and no abstention,
lawmakers approved House Bill (HB) No. 6815 or the Accelerated Recovery and Investments
Stimulus for the Economy of the Philippines (ARISE Philippines) on third and final reading on
Thursday, June 4.
The bill was formerly called the Philippine Economic Stimulus Act.
The proposed stimulus package is seeking to offer various forms of assistance to
micro, small, and medium enterprises (MSMEs) and other key sectors affected by the
COVID-19 crisis, while at the same time rebuilding consumer confidence.
It is expected to generate some 1.5 million jobs through infrastructure projects and
financial assistance for small businesses between 2020 and 2023.
The P1.3 trillion would be used to fund wage subsidies and cash-for-work programs
for displaced workers, zero-interest loans for companies, and loan guarantees for banks.
Marikina City 2nd District Representative Stella Quimbo, a primary author of ARISE
Philippines, said a total of P708 billion would be set aside for 2020 while P600 billion would
be allocated for 2021 to 2022.
The bill also seeks to allot P20 billion for the massive COVID-19 testing of millions of
Filipino workers in 2020 and 2021.
Another P650 billion would be spaced over 3 years starting 2021 until 2023 to enhance
the government's Build, Build, Build infrastructure program.

G. Finding practical applications of concepts and skills in daily living

Economics is the study of how people, firms or institutions choose to allocate resources.
Resources are not always in pesos– time, skill and land are all resources. People make
economic decisions with the intention of maximizing their return.
For example, a college student might allocate his time and substantial amounts of money to earn
a degree. In return, that degree will ideally yield him numerous job opportunities and an
increased income.

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 Life Decisions
Some of the most important life decisions are made using economic reasoning. When you
choose to have children, whom you marry and where you will live are just a few of these. Before
deciding on any of these events, a person performs what economists call a “cost-benefit
analysis.” Simply put, the pros are weighed against the cons. If one choice provides more utility,
or personal satisfaction, than another choice, a decision is made.

Household Budgeting
Economics permeates into everyone’s daily life in the area of purchasing decisions. How much
money you have in your bank account dictates what types of purchases you make.

Price Tags
How much you buy once an item’s price tag changes is also an economic issue. The
responsiveness to a change in price is known as elasticity. If you continue to buy a product in
the same quantity regardless of a price change, like gas, then it is an inelastic good. On the
other hand, if you cease to buy lattes when the price is raised by 50 cents, then coffee is elastic.

Employment
Gregory Makiw’s book, “Principles of Economics,” uses a graph to explain how a person
allocates her time based on the desire for more goods or leisure. In everyday life, this scenario
is demonstrated when she turns down a high-paying job because of the 60-hour work weeks
that come with it. Conversely, a person might pick up overtime shifts to earn more money at
Christmas.

H. Making generalizations and abstractions about the lesson

Applied Economics is very important in our daily lives just in the sense that it summarizes so
many aspects of our daily lives such as our income, the cost of goods and services, as well as
the flow of money from taxpayers to the government.

Applied economics can illustrate the potential outcomes of financial choices made by individuals.
For example, if a consumer desires to own a luxury good but has limited financial resources, an
assessment of the cost and long-term impact such a purchase would have on assets can
compare them to the expected benefit of the good. This can help determine if such an expense
is worthwhile. Beyond finances, understanding the meaning of the economic theories of rational
choice, game theory, or the findings of behavioral economics and evolutionary economics can
help a person make better decisions and plan for success in their personal life and even
relationships.

I. Evaluating learning

ACTIVITY

6 Based on the article that you have read in Activity 5, what are the problems
confronted by the Philippines due to the effect of pandemic covid-19 and what
are the objectives of the proposed stimulus package ?.
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J. Additional activities for application or remediation

ACTIVITY

7 Balikan natin ang Activity 3. Anu-ano ang mga naisip mong paraan para
mapunan ang kakulangan ng pananalapi para sa iyong lingguhang gastusin ?
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ACTIVITY

8 Bigyang pansin ang business idea mo sa Entrepreneurship class.

Makakatulong ba ito para sa pagkukuhanan ng pananalapi? Ito ba ay
makakatulong para maabot ang iyong ambisyon?

9
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Prepared by: (Inihanda ni) Noted by: (Binigyan Pansin ni)

ANGELICA H. PARAS ARIEL D. GARCIA Ed. D.

Teacher I OIC, Office of the School Head

Reference: DepEd Order No. 42, s. 2016 (Policy Guidelines on Daily Lesson Preparation for the K to 12 Basic Educ. Program)

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