Republic of the Philippines
Department of Education
Region VII, Central Visayas
Division of Bohol
City of Tagbilaran
LESSON PLAN IN APPLIED ECONOMICS
GRADE: 12 QUARTER: 1 WEEK: 1 DAY: 3
COMPETENCY Differentiate economics as social science and applied science in terms of nature
:
and scope.
OBJECTIVE/S : Explain economics as applied science.
CONTENT : Economics as Applied Science
LEARNING SLM Q1 Module 1, Applied Economics by Efren S. Basilla Jr., pp. 2-23; Applied
:
RESOURCES Economics for a Progressive Philippines by Tereso S. Tullao Jr. PhD., pp. 15-16
PROCEDURE : A. Preparation
Routinary Activities
B. Motivation
Let the students reflect in this line: “Economics is a study of economic activities
of man. It is only concerned with the wealth-getting and wealth-using activities
of a man.”
C. Presentation
Applying economics to a company, household or a country helps sweep aside all
attempts to dress up a situation so that it will appear worse or better than it
actually is.
D.Discussion/Abstraction
Applied economics
- is the study of economics in relation to the real world situations, as
opposed to the theory of economics.
- It is the application of economics principles and theories to real
situations, and trying to predict what the outcomes might be.
- The application of economics theories and principles to real world
situations with the desired aim of predicting potential outcomes.
- The use of applied economics is designed to analytically review potential
outcomes without the “noise” associated with explanations that are not
backed by numbers.
- can involve the use of econometrics and case studies.
- is the study of observing how theories work in practice.
- It may be practiced at:
o macroeconomics (the whole, aggregate economy)
o microeconomics (analyzing individual consumers and
companies) levels.
- is the application of economic theory and econometrics in specific
settings.
- As one of the two sets of fields of economics (the other set being the
core), it is typically characterized by the application of the core, i.e.
o economic theory and econometrics, to address practical issues
in a range of fields including demographic economics, labor
economics, business economics, industrial organization,
agricultural economics, development economics, education
economics, health economics, monetary economics, public
economics, and economic history.
o The process often involve a reduction in the level of abstraction
of this core theory.
o There are a variety of approaches including not only empirical
estimation using econometrics, input-output analysis or
simulations but also case studies, historical analogy and so-
called common sense or the “vernacular”.
o This range of approach is indicative of what Roger Backhouse
and Jeff Biddle argue is the ambiguous nature of the concept of
applied economics.
- is believed to have started being used nearly 200 years ago, in the
writings of French economist and businessman Jean-Baptiste Say (1767-
1832) and British political economist, philosopher and civil servant John
Stuart Mill (1806-1873).
E. Exercises
Answer the given question.
Is economics an applied science? Why or why not?
F. Generalization
Applied economics is the application of economics principles and theories to real
situations, and trying to predict what the outcomes might be.
G. Application
Answer the question: If you are an economic planner, how can you resolve
unemployment?
H. Evaluation
Cite some applications of economics in your day to day living.
I. Agreement/Assignment
Study the next topic on the difference between economics as social and applied
science.
Prepared by:
RHYAN R. ERONICO
Writer
