School NAPURO NATIONAL Grade Level GRADE 12

HIGH SCHOOL
Teacher MARIA SHARALENE M. Learning Area APPLIED ECONOMICS
LAMOSTE
DETAILED LESSON Teaching Dates and AUGUST 27 (1:00 – 2:00) Quarter 1
PLAN Time

I. OBJECTIVES
A. Content Standard The learners demonstrate an understanding of economics as an applied science and its utility in
addressing the economic problems of the country.
B. Performance Standard 1. The learners shall be able to analyze and propose solution/s to the economic problems using
the principles of applied economics
C. Learning Competencies/Objective The learners define basic terms in applied economics
(write the LC Codes for each) ABM_AE12-Ia-d-1
D. Specific Objectives At the end of this lesson, learners are expected to:
1. define the basic concept in economics including: economics, scarcity, supply and demand,
trade-offs, opportunity cost, and economic resources.
II. CONTENT Introduction to Applied Economics
III. LEARNING REFERENCES
A. References
1. Teacher’s Guide pages
2. Learner’s Material pages
3. Textbook pages
4. Additional Materials from Learning
Resource (LR) Portal
B. Other Learning Resources Applied Economics Achievers’ Learning Packet 9-12
IV. PROCEDURES Teacher’s Activity Learner’s Activity
A. Reviewing previous lesson or Pre-Test: Answer’s key:
presenting the new lesson Encircle the letter of your answer. 1. C
1. What do you call the condition in which 2. D
our wants are greater than our limited 3. A
resources? 4. B
A. Economics C. Scarcity 5. C
B. Opportunity Cost D. Trade-off
2. What do you call things that you gave up
when you make a choice?
A. Choice C. problem
B. opportunity cost D. Trade-off
3. What do you call the application of
economic principles and theories to real
world situations?
A. Applied Economics
B. Macroeconomics
C. Economics
D. Microeconomics
4. Which of the following is not a factor of
production?
A. Capital C. Labor
B. Tax D. Land
5. What is supply?
A. It is a choice that you gave up
B. It is the totality of our needs
C. It is the amount of goods for sale
D. It refers to the economy
B. Establishing a purpose for the The teacher will present to the class the Lesson Objectives:
lesson expected lesson objectives to be 1. Define the basic concept in economics
accomplished by the end of the discussion. including: economics, scarcity, supply and
demand, trade-offs, opportunity cost, and
economic resources.
C. Presenting examples or Have you tried to budget your money in order Student’s answers may vary. Fundamentally, with
instances of the new lesson to buy what you want to eat or consume in probing of the teacher, the students will eventually
your daily living? Have you tried to run out of formulate a mental note of the correlation between their
water while you were taking a bath? Have you responses and the concept and theories in applied
tried to limit the number of kilos of rice that you economics.
will buy for your daily consumption?
D. Discussing new concepts and What is Scarcity? Why is scarcity linked to Scarcity is the condition in which our needs and
practicing new skills #1 Economics? What are Trade-offs? What is an wants are greater than our limited resources.
Opportunity Cost? Needs and wants differ from person to person.
The easiest way to describe needs is that these
are the things that we can’t live without. Examples
of needs are air, water, food and shelter. On the
other hand, wants are those that we can live
without.
Scarcity is the reason why people have to study
and practice economics. Economics studies how
people distribute or divide their limited resources
in order to satisfy their unlimited wants. Or simply,
it is the study of how individuals and societies deal
with scarcity.
 When making choices, there are things that we
need to give up. Trade-offs consist of all the
options that we give up when we make a choice.
Among all your trade-offs, the most desirable
alternative that you gave up is called the
opportunity cost. Opportunity cost is the highest-
valued alternative that must be sacrificed in order
to get something else.

E. Discussing new concepts and What is economic resource? How do ECONOMIC RESOURCES
practicing new skills #2 economics define as applied science and Economic resources refer to the resources consumed
social science? What are the Branches of in production in order to make products and services.
In layman’s term, they are inputs used for the
Economics? What is Supply and Demand? production process.
1. Land- Refers to the real estate and property
comprises geographic land. Payment for lease
contract to the land owners is rent.
2. Labor- physical and human effort exerted to be
used in making the product or providing services.
Compensation received for provided service is
wage
3. Capital- consists of human-created assets utilized
in producing commodities. The capital of the
owner invested earns income is known as interest.
ECONOMICS AS SOCIAL SCIENCE
Principles in economics which analyze how people
create and execute choices in distributing limited
resources for the satisfaction of limitless wants and
needs based on their social behaviors.
ECONOMICS AS APPLIED SCIENCE
Refers to the use of economic concepts and theories
and their application in real life scenarios and
conditions. It also includes an attempt to forecast the
results of utilizing these concepts given different
conditions in the market.
TWO DIVISIONS OF ECONOMICS:
Macroeconomics - division of economics that is
concerned with the studies how an overall performance
of the entire economy behaves. Macroeconomics
attempts to quantify the performance of the entire
economy in different aspects.
Microeconomics - division of economics that studies the
implications of decisions of each individual and firms
and how it affects the utilization and allocation of limited
resources. It also focuses on relativity or response of
every individual to change in prices, allocation of
resources and method of production.
SUPPLY AND DEMAND
Supply refers to the total number of goods or services
available for sale. These goods or services are
produced by making use of the factors of production
consisting of land, labor and capital.
Demand on the other hand refers to the aggregate or
the totality of the needs and wants of the customers.
F. Developing mastery (leads to The teacher will project to the board the table Student’s answer:
Formative Assessment) of letters below and will task the students to 1. Scarcity
encircle the word they will find and provide 2. Economics
example of the word/s found. 3. Trade-offs
4. Opportunity Cost
5. Microeconomics
6. Macroeconomics
7. Supply
8. Demand
9. Land
10. Labor
11. Capital
12. Aggregate
13. Needs
14. Wants
G. Finding practical applications of What instances can you point out the The student will provide instances where the concept
concepts and skills in daily living application of economics, scarcity, supply and and terms in economics is in complete play in their
demand, trade-offs, opportunity cost, and daily life as a learner.
economic resources to your life as a student?
H. Making generalization and How those terms will help you to better The students will share their ideas to the class.
abstraction about the lesson understand applied economics and the current
situations faced by our country?
I. Evaluating Learning ASSESSMENT:
Directions: On Column A are the basic terms The student’s response will vary, accordingly.
used in Economics. Define each term based
on how you understand it from the previous
texts. Place your definitions under Column B.
COLUMN A COLUMN B
 1. Aggregate
2. Capital
3. Demand
4. Economics
5. Labor
6. Land
7. Macroeconomics
8. Microeconomics
9. Needs
10. Opportunity
Costs
11. Scarcity
12. Supply
13. Trade-offs
14. Wants
J. Additional activities for Assignment: Students will compose a coherent output, accurately
application or remediation Directions: Internalize the basic terms in following the condition as instructed by the teacher.
Applied Economics introduced to you a while
ago. Grab a newspaper. Turn to the business
section or page. List down at least 5 terms that
you think would relate to Applied Economics
and then briefly define these terms that you
have listed.
V. REMARKS
VI. REFLECTION
A. No. of learners who earned 80%
in the evaluation
B. No. of learners who require
additional activities for
remediation
C. Did the remedial lessons work?
No. of learners who have caught
up with the lesson
D. No. of learners who continue to
require remediation
E. Which of my teaching strategies
worked well? Why did this work?
F. What difficulties did I encounter
which my principal or supervisor
can help me solve?
G. What innovation or localized
materials did I use/discover
which I wish to share with other
teachers?

Prepared by:

MARIA SHARALENE M. LAMOSTE