APPLIED ECONOMICS_ACTIVITY SHEETS

NAME: Date:
Professor: Section: Score:

ACTIVITY 4.1

1. Discuss how SM impacts positively on the community and the country.

2. Form a group and choose a business whose owners are well known for their advocacies. Report
on these advocacies.

3. Interview a typical mother or housewife in a low – income community on how she budgets the
income of her family. Further ask if said family budget can still provide for some amenities (e.g.,
cellphone load, DVDs) and if so, how much and what kind. Look around the said community and
find the kind and number of micro enterprises serving its consumer needs. Identify their market
problems and figure out what you would do if you were in their shoes.

4. Look for successful small business in your neighbourhood. Interview the owner, find out the
reasons for putting up the business, the problems encountered, and the reasons for putting up
the business, the problems encountered, and the reasons for its success.

5. Observe and talk to the small producers/sellers in your barangay (farmers, fishermen, and vendors
cottage industries). Is there any lack of public infrastructure facilities that limits their operation?
How has this inadequacy limited their business activities and profit? What support services do
they lack and how has this limited their business activities and profit? Have they experienced
registration and licensing delays and how have they limited their business activities and profit?
What are the possible ways to explore to minimize or even avoid the aforementioned impact?

6. Identify at least 10 goods that you always consume at home. How many are imported from our
neighbor (e.g. China, Thailand) and produced locally? Find locally made consumer goods that
compete with these imports. If you can find at least one or two, compare their prices and quality.
What will happen to the peso price of these imported consumer goods should the exchange rate
continue to decrease in absolute values, that is, if the peso appreciates in value? Explain. What will
happen to the remittances converted to pesos of our overseas contract workers (OCW) under the
scenario of peso depreciation? Explain.

7. Research on business opportunities. Look for a business where the industry is not yet saturated
with so many firms. You can apply the Herfindahl – Hirschman Index discussed in the chapter.
Once you have identified a business, prepare a business proposal.
The business proposal should include the following.
a) A description of the good or service to be offered;
b) Target market of your product;
c) Proposed location and reason for the choice of this location;
d) Long – term objectives of the business;
e) Estimated capital requirements;

Judy Mar F. Valdez, CPA, MICB, RCA

 APPLIED ECONOMICS_ACTIVITY SHEETS

f) Sources of capital
g) Form of business organization: Sole proprietorship, Partnership, or Corporation;
h) Suggested pricing of the product
i) Mode of promotion or advertising used;
j) Technical requirements: Machine, Building, Tools needed; and
k) Socio – economic Impact: Positive Effects of the Project and Negative Effects of the
Project

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Judy Mar F. Valdez, CPA, MICB, RCA