Lesson 1.1.2 Significance of Economic Study PDF

SOCIAL SCIENCE 5: ECONOMICS Significance of Economics | MODULE NO. 1: LESSON NO. 1.2 At the end of this lesson, you will be able to: 1. Identify the most common economic goals of countries. 2. Discuss the significance of economic goals in the Philippine context....

SOCIAL SCIENCE 5: ECONOMICS Significance of Economics | MODULE NO. 1: LESSON NO. 1.2 At the end of this lesson, you will be able to: 1. Identify the most common economic goals of countries. 2. Discuss the significance of economic goals in the Philippine context. Suggested Time: 1 min | Actual Time Spent: ____min(s) Suggested Time: 2 mins Albert Einstein once said, “If you want to live a happy life, tie it to a goal, not to people or things.” What do you think this quote all about? How do you think this quote relate to out topic today? Actual Time Spent: ____ min(s) Suggested Time: 10 mins MACROECONOMIC GOALS How do you see yourself 15 years from now? Do you see yourself as a public servant or scientist? Or could it be a biologist, engineer, entrepreneur, or educator? Do you have any goals? Once we set our goals, we know that it will imply a rigid decision-making in our life as they decide what we want to achieve in our life. This is where being rational comes in. Our goals help us determine what is important and those that are distractions and they motivate us everyday to move forward. The fulfillment of our goals helps build our self-confidence and do more to achieve more. Thus, the achievement of our goals is the greatest incentive in life which what Albert Einstein mean in his quote above. An economy is not different from us at all. Through its leaders and decision-makers, it also sets goals to guide the direction of the country. All economies set their own targets to have a stable economy and they all strive achieve them. These targets are called as Macroeconomic Goals. These goals guide the society in their decision-making and provides purpose for the government. These goals can also be used to evaluate the economic systems and assess the impact of government programs and policies. The government adjusts its policies in order to achieve these goals. PSHS Social Science 5: Economics | Page 1 of 4  Filipinos have numerous economic goals. First of these goals is financial security. We wanted to have enough to meet our daily needs, like food, transportation, and other things. Thus, the country identifies its goals in order to protect its people and provide them security not just economically but also in other aspect of their daily lives. The following are the most common Macroeconomic goals of countries. Sustainable Economic Growth Economic growth refers to the increased productive capacities of an economy. It is the general increase of output of the Philippines. The Philippines and other economies would want to provide the goods and services that its people desired and wanted. Economic growth can be represented by an outward shift of our production possibilities frontier (PPF). This can be influenced by either an increased in quantity of resources or advancement of technology. You will know more about the PPF in the next lessons of this quarter. However, it is undeniable that external factors can also affect economic growth. According to the Philippine Statistics Authority (PSA), the Philippines posted 5.9% full-year growth last year but for the first and second quarters of this year, our growth dropped by 0.7% and 16.5% respectively due the 2019 coronavirus disease or COVID-19. This decline was caused by the closures of our major economic sectors such as manufacturing, construction, and transportation. Nevertheless, the government is still optimistic that we will be able to revert to a 6% full-year growth in 2021. Full Employment All economies would want to become productive efficient by producing the maximum output with the given resources and technology. This means that all resources and technology are fully employed in production. It also means that no one is unemployed or jobless in the economy. Even if full employment is close to impossibility because there is always a certain level of unemployment in the country caused by economic imperfections, governments tried their best to achieve it and control unemployment by adjusting their fiscal policies to provide or create job opportunities for their people. The Philippines allots billions of pesos each year since 2017 to finance the “Build, Build, Build” project of the Duterte administration. It “is expected to address unemployment, with a projected average of 1.1 million jobs created annually, mostly from the construction sector," said by Maria Lourdes D. Lim, NEDA-Davao Regional Director in a conference last August 31, 2018. However, an unexpected high unemployment rate occurs this year. The PSA recorded 7.3 million Filipinos jobless in April because of the COVID-19 pandemic. This translates into an all-time high 17.7% unemployment rate. But the hope of the government is still high as it considers “Build, Build, Build” project to fuel and usher economic recovery and growth in the coming months. Stable Prices The third macroeconomic goal is stable prices. For an economy, this means a low and stable inflation rate. Price stability is important because for market to function properly, prices should accurately convey information about relative scarcities of available goods and services in the market. High inflation rates devalue our peso thus decreasing our purchasing power. On the other hand, declining prices or deflation are also costly since it could mean there are very few market activities. The government tries to maintain prices so that the system will work efficiently. PSHS Social Science 5: Economics | Page 2 of 4  The government reported a 2.7% inflation rate last July 2020 with the transportation cost as the highest in the list due to the limitations of allowable passengers in the public vehicles. We have to take note of these goals because we often hear and read them in the news. You can contribute to meaningful discussions by understanding them. By putting these goals in your heart, you can also use your science and technology education to make our country better-off in the future. Actual Time Spent: ____min(s) Suggested Time: 5 mins This quiz is NOT RECORDED. True or False. Write T if the statement TRUE or F if it is FALSE. Write your answer in the blank provided before each number. T ________________ 1. Being rational is important in achieving our goals. F ________________ 2. Deflation is the sustained increase of prices. T ________________ 3. Economic growth can be represented by an outward shift of the production possibilities frontier (PPF). T ________________ 4. Full employment is close to impossibility because of economic imperfections. ________________ 5. The macroeconomic goals can also be used to evaluate the economic systems. ________________ 6. Full employment means there is no waste of resources. ________________ 7. Economics growth is only influenced by increased in quantity of resources and advancement of technology. ________________ F 8. High inflation rates do not affect our purchasing power. T ________________ 9. The COVID-19 pandemic has caused 7.3 million jobless Filipinos last April 2020. F ________________ 10. The COVID-19 pandemic did not affect our economic growth since we sustained our desired GDP growth rate in the first half of this year. PSHS Social Science 5: Economics | Page 3 of 4  Actual Time Spent: ____min(s) This assessment is RECORDED. To summarize the lesson, provide what is asked below. 1. From the lesson above, list down the most common economic goals of all countries and explain each goal the Philippine context. Poor Good Satisfactory Excellent (2-4) (5-6) (7-9) (10) Content/information Some All required All required provided is very content/information content/information content/information is little. Most contents is provided and is is present and is present and is are inconsistent with somewhat accurate. accurate. Some completely accurate. each other. Some contents are contents are All contents are inconsistent with inconsistent with the consistent with each There are each other. each other. other. incomplete sentences, run-on There are some Most sentences are Sentences are sentences, and have incomplete complete, there are complete and have little variation in sentences, there are few run-on good variation in word word choices. There few run-on sentences, and have choices. There are no are frequent errors, sentences, and have good variation in spelling errors. common words some variation in word choices. There misspelled word choices. Most are few spelling common words are errors. spelled correctly. Suggested Time: 12 mins | Actual Time Spent: ____min(s) References Arnold, R.A. (2012). Principles of economics. Cengage Learning Asia Pte Ltd Azarcon, E.C, et.al. (2008). (2nd Edition). Principles of economics with taxation and agrarian reform: A Modular Approach. Valencia Educational Supply Fajardo, F.R. (1995). Economics. Rex Printing Company, Inc. Samuelssn, P.A. and Nordhaus, W.D. (2011).(19th Edition). Economics. McGrawhill Education Asia Prepared by: Ruby Cres J. Gayda Reviewed by: Edgar F. Almero, Ed.D. Position: Special Science Teacher IV Position: Special Science Teacher V Campus: PSHS – CVisC Campus: PSHS – WVC PSHS Social Science 5: Economics | Page 4 of 4