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SENIOR HIGH SCHOOL – GRADE 12

Applied Economics (week 2)
Quarter 1

Module 2: Opportunity Cost and Resource Allocation

What I Need to know

In this module, the competencies expected that you will learn are found in the Module

Content.
The learners demonstrate an understanding of key concepts of the cost of any choice we make; the
opportunity cost when making our own choices as individuals and as a society; the different methods of
allocating society’s resources; the role of entrepreneur in a market economy and the resource allocation in
the Philippines.

What do I know
Pre – Assessment:
Direction: Answer the question. Write your answer on a separate sheet of paper.
Why do most Metro Manila residents travel to Baguio City by bus, while wealthy businessmen are
more likely to travel by air? Use the concept of opportunity cost in your answer.

What Are You Expected To Learn

In this module, you will learn to:
a. define basic terms in opportunity cost;
b. study the opportunity cost and individual choices;
c. study the opportunity cost and business opportunities and social sciences ;
d. explain the market allocation of resources;
e. know the role of the entrepreneur

What’s In
Lesson: The Cost of Any Choice We Make
Content
The opportunity cost of any choice we make is the value we place on the best opportunity
that will have to be given up if that action is taken.
When you choose to use your money to buy a movie ticket, you give up the opportunity to buy
something else that you value – perhaps a book or a new pair of socks. And when you choose to use your
time to see a movie, you give up the opportunity to do something else that you value – perhaps exercising
or studying for an upcoming exam.

Trade – offs Do Not Have to Be “All or Nothing”

A choice is a trade-off-exchanging one thing for something else or exchanging more of one thing
for less of something else.

Opportunity Cost and Individual Choices

Opportunity cost is the one we must consider when making out own decisions.

The higher the opportunity cost of doing something, the less likely it will be done.

The lower the opportunity cost of doing something, the more likely it will be done.

Example: Which classes are you more likely to miss? The opportunity cost of missing a class in which an
exam will be given is high. You are not likely to miss this class.

Opportunity Cost and Business Opportunities

Many entrepreneurs perhaps without them realizing it, make use of the idea of opportunity costs
when anticipating what products will be profitable to produce in the future.

Opportunity Cost and Social Choices

Better education for all Filipinos is a goal that we can all agree on. Greater access to good
schools would be needed to achieve this goal.

What Is It

Education is a “Basic Right”

“Kindergarten through 12th grade education is free. So a college education should also be free and
guaranteed to every Filipino.”

Water Is “a Necessity of Life”

“People need water. Its price must be kept very low.”

Who Gets What Of Available Resources

Opportunity costs arise because resources are scarce. Because resources are scarce, taking one action
usually means giving up something else, and societies will always have alternative uses for its resources.
All societies have to confront the following questions:

1. What should be produced with society’s resources?

Land is used to produce both rice and corn
2. How should they be produced?
Rice can be produced using various combinations or resources.
3. Who should get what is produced?
When one person or group gets a good or service, someone else will have to live without
it.

Circular Flows in the Market Economy

Economists use economic models to explain facts and observations about how the world is put
together. Business firm may be a sole proprietorship (owned by one individuals who makes all
the business decisions), a partnership (owned by two or more individuals), or corporation
(owned by shareholders who own stock in the firm)

The Role of the Entrepreneur

An economy that relies heavily on markets will have much need for entrepreneurs. In a
market economy, it is change in consumer taste that ultimately leads to a change in what is
produced and, in turn, a reallocation of resources.

What Have I Learned So Far?

Answer the questions and write in a piece of paper.

Attending high school is time-consuming and requires a lot of effort. So why do many young
people decide to attend high school. Use the concept of opportunity cost in your answer.
What other enhancement activity can I engage in?

Direction: Read and answer the question.

The Price System and the Sari-sari Store Phenomenon
Ask an economist a question about certain aspects of the Philippine economy, and he will immediately
think about certain types of markets. Consider the traditional neighborhood sari-sari store, a kind of
general store that meets the quick shopping needs of Filipino consumers (sari-sari means “varies” in
Filipino). How do sari-sari store owners get the goods they sell, and how do they know what goods to
sell and at what price?
What I can do

Assessment:

Problems and Applications

1. “Fast-food or quick service restaurants fulfill a valuable role by catering to time-pressured

customers,” Discuss this statement. Use the concept of opportunity cost in your answer.

2. Suppose that there is a sudden new trend for high school students all over the Philippines to ride
bicycles more. How would the price system decide “who should get what is produced? How
would the inputs used in bicycle production be affected?

What I can show

Concepts I learned:
a. ____________________________________________________________
b. ____________________________________________________________
c. ____________________________________________________________

Realizations after finishing the topics

a. ____________________________________________________________
b. ____________________________________________________________
c. ____________________________________________________________

Most enjoyable part of the lesson

a. ____________________________________________________________

Prepared by:
Mrs. Luzviminda P. Llorca
Applied Economics Teacher
 Distinguish logarithmic functions, logarithmic equation, and logarithmic inequality
 Convert logarithmic expressions to exponential expressions and vice versa
 Illustrate the law of logarithmic
 Solve problems involving logarithmic functions, equations and inequalities

What I Know
ACTIVITY 1
Find the equivalent logarithmic or exponential form of each given equation.
Logarithmic Form Exponential Form
log6 3/36 = -2
(2/3)-3 = 27/8
161/4 = 2
log√5 = 2

PROPERTIES OF LOGARITHMS
Each term in the logarithmic expression defined in (b) is called a common logarithm.
EXAMPLE: Find the solution set of each logarithm equation or inequality
log3 (x + 4) + log3 (x – 4) = 2
Solution: log3 (x + 4) ( x – 4) = 2
log3 (x + 4) ( x – 4) = 2 Product law
2
(x + 4) ( x – 4) =3 Converting into exponential form
2
x – 16 =9 simplifying
2
x – 25 = 0 subtracting 9 from both sides
(x + 5) (x – 5) = 0 by factoring
x = -5 or x = 5

What’s In
EXPAND EACH LOGARITHM
EXAMPLE:
1) log2 uv2w3
Solution: = log2 uv2w3 = log2 u + log2 v2 + log2 w3
= log2 u + 2log2 v + 3log2 w

2) log9 x3 / y2
Solution log9 x3 – log9 y2
3log9 x – 2log9 y
3) log4 5xy / 2x + y
= log4 5xy – log4 (2x + y)
= log4 5 + log4 x + log4 y – log4 (2x + y)

2
EXPRESS THE FOLLOWING AS A LOGARITHM OF A SINGLE EXPRESSION
EXAMPLE: 12 log3 x + 12 log3 2 – 3 log3 y
= log3 x12 z12 / y3

What’s More

ACTIVITY: GO ONLINE
Use the internet to establish the proofs of the following:
a) Product law b) Quotient law c) Power law

What I can show

Concepts I learned:
d. ____________________________________________________________
e. ____________________________________________________________
f. ____________________________________________________________

Realizations after finishing the topics

d. ____________________________________________________________
e. ____________________________________________________________
f. ____________________________________________________________

Most enjoyable part of the lesson

b. ____________________________________________________________

3
Prepared by
Mrs. Luzviminda P. Llorca
Gen. Math Teacher

a. b. c. d. e. f.
g. h. i. j. k. l.
m.
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y f. g. h. i. j.

Last Name First Name M.I

LRN
WEEK 1
(For Monday/Tuesday/Wednesday)
Pre - Assessment
Let’s find out how much you know about the functions. Answer the exercise below
1. Determine whether each of the following is a Function or Not.
a. F = {(0, -1), (2, -5), (4, -9), (6, -13)}
b. R = {(a, 0), (b, -1), (c, 0), (d, -1)}
c. G = (5, -10), (25, -75), (50, -100)
d. T = {(-2, 0), (-1, 1), (0, 1), (-2, 2)

2. Does the diagram below illustrate a function? Why or why not?

X Y
12 0
7 9
4 10
1 4
-2 -1
-5 8
8 6
3. Identify whether the relationship that exists between each of the following pairs indicates a
Function or Not.
a. A jeepney and its plate number
b. A student and his ID number
c. A teacher and his cellular phone
d. A pen and the color of its ink

4. Find the value of Y in the equation Y = 3X – 2 if X = -1

a. Y = -5 c. Y = (5)
b. Y = 5 d. Y = .5

5. If f(x) = x+8, find f(4)

a. 8 b. 4 c. 12 d. -12

6. It is a relation defined as a set of ordered pairs

a. Relation b. function c. values d. not function

7. The variable x is :
a. Dependent variable b. equation c. value of x d. independent variable

8. The variable ___________ is the dependent variable

a. A b. b c. x d. y

9. The number assigned to a given variable determines the value of the function at that number
a. Devaluating function b. evaluating function c. function d. relation

10. A functions that can be defined as the set of all x-coordinates in the set of ordered pairs is
a. Range b. Domain c. x – coordinates d. y – coordinates

(For Monday/Tuesday )
Quarter 1: FUNCTIONS AND THEIR GRAPHS

LESSON 1.1: Review On Functions

An Introduction
LESSON OBJECTIVES:
 Define and illustrate functions
 Evaluate function
 Determine the domain and range of functions

In your previous junior high school years you have been introduced and discussed on
functions and relations.
A function is a relation defined as a set of ordered pairs (x, y) where no two or more distinct
ordered pairs have the same first element (x); that is every value of x corresponds to a unique
value of y.
For example:
Find the value of y in the equation y = 3x = 2 if x = -y.
Solution:
Substitute the value of x into the given equation, then solve for y.
Y = 3x -2
= 3(-1)-2
= -5
Evaluating Functions
You have learned in the previous discussion that a function can be presented in a form
of an equation. The number assigned to a given variable determines the value of the function
at that number. This process is known as evaluating functions. When you evaluate a function,
it means that you are giving to solve for the function value given a particular value of the
variable used in the equation.
Example1:
Let f be the function by f(x) = 5x – 3. Find f (-2)
Solution:
F (-2) = 5 (-2) -3 = -13
DOMAIN AND RANGE OF FUNCTIONS
There are two important sets of elements in every function. These are the domain and range.
The domain D of a function can be defined as the set of all x – coordinates in the i
Set of ordered pairs, which the set of all y – coordinates is referred to as the range R. The elements of
the domain and range of a function are usually written in increasing or decreasing manner.
Example1:
Determine the domain and range of the following given functions:
A = {(1, 2), (2, 3), (3, 4)}

ACTIVITY 1.1
Determine the domain and range of the following given functions:
a.) S = {(6, 2), (4, 2), (2, 2)}
b.)
x -4 -1 3 6 9
y 16 1 9 36 81

c.) -4 -3
5 -2
2 4

ACTIVITY 1.2
Let f be a function defined by f (x) = 5x -3.
Find the following: 1) f (1/2) 2) f (3) + f (-3) c.) f (-1)/f (4)

(FOR WEDNESDAY)
Quarter 1: FUNCTIONS AND THEIR GRAPHS

LESSON 1.2 OPERATION ON FUNCTIONS

LESSON OBJECTIVES:
Perform addition, subtraction, multiplication, division, and other composition of
functions

OPERATION ON FUNCTIONS

You can obtain a new function by adding, subtracting, multiplying, and dividing functions.
Accordingly, these new functions are called the sum, difference, product, and quotient of the original
functions.
Given two functions f and g
 their sum, denoted by f + g, is the function defined by (f + g)(x) = f(x) –g (x)
 their difference, denoted by f – g, is the function defined by (f – g) (x) = f (x) – g (x)
 their product, denoted by f . g , is the function defined by (f . g) (x) . g (x)
 their quotient, denoted by f/g, is the function defined by (f/g) (x) = f (x)/g (x)

Example.
Given that f(x) = 2x2 + x -3 and g (x) = x -1, find the following and determine the
domain of the resulting function.
(f + g) (x)
Solution:
(f + g) (x) = (2x2 + x -3) + (x -1)
= 2x2 + 2x -4
The domain of (f + g) (x) is the set of real numbers

ACTIVITY 1.1
Using the same equation find the following and determine the domain of the resulting
function
a) (f – g) (x) b) (f . g) (x) c) (f/g) (x)

COMPOSITE FUNCTIONS

Another operation which involves functions is obtaining the composite functions of

two given functions
Example:
If f (x) = 3x2 – 4x and g (x) = x -1, find (f o g) (x)
Solution
(f o g) (x) = f [g(x)]
= 3(-1)2 – 4(x -1) Replace the variable x in f with the function g
2
= 3x – 10x – 7 Simplify

ACTIVITY 1.2
a) (g o F) (x) b) (f o g) ( -2)

(FOR THURSDAY)
Quiz
DIRECTION: Perform the following functions and determine whether each of the following
functions if even, odd, or neither.
a) F (x) = 4x4 – 5x2 – 10
b) F (x) = 2x5 + 7x3 + 15x
c) G (x) = 6x3 – 4x2 – 8x -1

Prepared by:
Mrs. Luzviminda P. Llorca
Gen Math Teacher
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