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Module 6 quarter 1 aplied economics

Monitoring and Evaluation (Cagayan National High School)

Studocu is not sponsored or endorsed by any college or university


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SHS

Applied Economics
Quarter 1 : Module 6
CONTEMPORARY ECONOMIC
ISSUES AFFECTING THE FILIPINO
ENTREPRENEUR

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Applied Economics

Quarter 1 – Week 6
Module 6: CONTEMPORARY ECONOMIC ISSUES AFFECTING THE FILIPINO
ENTREPRENEUR

Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the
Government of the Philippines. However, prior approval of the government agency or office
wherein the work is created shall be necessary for exploitation of such work for profit. Such
agency or office may, among other things, impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.)
included in this book are owned by their respective copyright holders. Every effort has been
exerted to locate and seek permission to use these materials from their respective copyright
owners. The publisher and authors do not represent nor claim ownership over them.

Regional Director: Gilbert T. Sadsad Assistant


Regional Director: Jessie L. Amin
Schools Division Superintendent: Loida N. Nidea Education
Program Specialist: Mariben D. Berja

Development Team of the Module

Writers: MARY GRACE I. PETRONIO, Nabua National High School


Name Editors: RACHELLE A. ESGUERRA, Camaligan National High School
ROSA S. REGISTRADO, Nabua National High School
Name Reviewers: FRANCIS HASSEL N.PEDIDO, Pamplona National High School
Name Illustrator: EVAN LEE P. LEONEM and ALVIN G. ALEJANDRO
Name Layout Artist: ABEGAIL S. ARENDAENG, Dalipay High School Milaor Distrct

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Migration, fluctuations in the exchange rate, oil price increases,
unemployment, peace and order, and the recent experienced of global
pandemic are just few of the mentioned contemporary economic issues
that affect the purchasing power of the people. These resulted to a
lower turnover of investment, higher interest rates, higher commercial
rentals, payment for minimum wage, and higher taxes paid to the
government by most of the Filipino entrepreneurs are the challenges
they are facing nowadays.

MOST ESSENTIAL LEARNING COMPETENCY:

Analyze the effects of contemporary economic issues


affecting the Filipino entrepreneur.

At the end of the module, you should be able to:


1. Identify the different contemporary economic issues in the
Philippines.
2. Examine the effects of the different contemporary
economic issues affecting Filipino entrepreneurs.
3. Demonstrate the effects of contemporary economic issues
affecting the Filipino entrepreneurs.

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Are you ready to start learning?

1. Interest rate - is the amount a lender charges for


the use of assets expressed as a percentage of the
principal.
2. Investment - is an asset or item acquired with
the goal of generating income or appreciation. In
finance, an investment is a monetary asset
purchased with the idea that the asset will provide
income in the future or will later be sold at a higher
price for a profit.
3. Minimum Wage - a wage fixed by contract or
especially by law as the least that may be paid
either to employees generally or to a particular
category of employees.
4. Rent – refers to the use of property for a certain
amount.
5. Tax - is a compulsory financial charge or some
other type of levy imposed upon a taxpayer (an
individual or legal entity) by a governmental
organization in order to fund government spending
and various public expenditures.
6. Wage - is a monetary remuneration computed on
an hourly, daily, weekly or by piece of basis paid
by an employer to an employee in exchange for
work done.

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PRE
- TEST

DIRECTION: Read the questions carefully and choose the correct answer. Write your
answers in a separate sheet of paper.

1. The interest rate or the amount of interest due per period, as a proportion of the amount lent,
deposited or borrowed (called the principal sum) is not true to all of the given statements
below EXCEPT .
A. It is given to all borrowed money in the same rate.
B. Higher interest rates are given to all borrowed money when there is an
economic decline.
C. It is a good opportunity for barrowers to barrow money when banks or other lending
institutions offer higher interest rates.
D. It is the right time to invest when your capital is borrowed and with higher
interest rate.
2. All the statements below is the given definition of Investment EXCEPT .
A. , It can be an asset also or item acquired with the goal of generating income or
appreciation.
B. An investment is the purchase of goods that are not consumed today but are used in
the future to create wealth.
C. An investment is a monetary asset purchased with the idea that the asset will
provide income in the future or will later be sold at a higher price for a profit.
D. An investment can be taken from any borrowed capital with higher interest rates.
3. These are examples of investment EXCEPT .
A. Machines, Equipment, Tools used in the operation of the business
B. Land, Building, Commercial Space for the business.
C. Human resources such as waiters, product specialists, cashiers, security guard etc..
D. Expensive technologies inappropriate for the business.
4. According to the labor law, employers must give his/her employees at least the minimum
wage, minimum wage is defined as .
A. The minimum amount of money being paid to employees common to a
particular region.
B. The minimum benefits being given to employees common to a particular region.
C. The minimum amount of work being given by the employers to his/her
employees common to a particular region.

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D. The minimum amount of time being paid to employees common to a
particular region.
5. Tax is one of the entrepreneur’s obligations which is the financial
charge or some other type of levy imposed upon a taxpayer.
A. Conditional B. Occasional C. Compulsory D. Special
6. The fixed amount of money paid or received regularly for the use usually of business space is
called .
A. Taxes B. Rent C. Wage D. Interest rate
7. The effect of economic issues in investment is
A. Higher investment with lower turnover of capital.
B. Higher investment with higher turnover of capital
C. Lower turnover of capital with higher investment
D. None of the above
8. Which statement is correct about Wage?
A. Payment may be calculated as a fixed amount for each task completed in an hourly
basis.
B. Payment may be calculated as a fixed amount for each task completed in a weekly
basis.
C. Payment may be calculated as a fixed amount for each task completed in a daily
basis.
D. All of the above
9. Which statement is beneficial to an employee?
A. Higher wage with minimal benefits.
B. Higher wage with the maximum benefits an employer can offer.
C. Minimum wage with minimum benefits
D. Lower wage with minimum benefits.
10. Which statement is beneficial to an employee during the time when there is an
economic decline?
A. Higher wage with minimal benefits.
B. Higher wage with the maximum benefits an employer can offer.
C. Minimum wage with minimum benefits
D. Lower wage with minimum benefits.

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RATING LEVEL AND DESCRIPTION
10 – 8 Points EXCELLENT !
Congratulations! You can proceed to
the next page and continue to learn the
lesson.
7 – 5 Points BETTER!
You can go back to those lessons
that you’ve missed and continue
4 – 3 Points VERY GOOD!
You can improve your knowledge and
continue to learn the next
lesson.
0 – 2 Points NEEDS IMPROVEMENT!
This module will help you to learn better
with the new lesson. You can do it. Let’s
open the next page.

TASK NO.1: YOU COMPLETE ME!


DIRECTION: Your task is to complete the table below with information from the topic
previously discussed to you. Write your answers in a separate sheet of paper.

Market CHARACTERISTICS
Structure Number of Barriers to Type of Control over
Firms entry or exit Product price
Perfect
Competition
Monopoly

Monopolistic
Competition
Oligopoly

Can you still remember our previous lesson? Let’s see! Can you try this?

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TASK NO.2: ROW BY ROW!
DIRECTION: Your task is to write down in the first row of boxes at least five economic issues
we are recently experiencing in our country. Indicate in the second row of boxes
what would be its possible effects in our purchasing power as consumers.. Use a
separate sheet of paper for your answers.

People can only


e.g Inflation buy few products
ECONOMIC ISSUES
CONTEMPORARY

Are you ready to share your work? Let us compare it with one another!

Great! You can start now.........................GOODLUCK!


TASK NO.3: READ AND COMPREHEND
Filipino entrepreneurs today are facing the effects of the economic issues we are
experiencing now., To mention a few, these includes migration, fluctuations in the exchange
rate, oil price increases, unemployment, peace and order and the recent pandemic which
unexpectedly resulted to a decline in the economic growth globally.
Some of these effects can be traced primarily on the Investment of many entrepreneurs
which is an asset intended to produce income or capital gains Investment can be an asset also or
item acquired with the goal of generating income or appreciation. In an economic sense, an
investment is the purchase of goods that are not consumed today but are used in the
future to create wealth. In finance, an
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investment is a monetary asset purchased with the idea that the asset will provide income in the
future or will later be sold at a higher price for a profit. In other words, some of these are stocks,
bonds, mutual funds, interest-bearing accounts, land, derivatives, real estate, artwork, old comic
books, and jewelries can be examples of investments.
Many of the Filipino entrepreneurs are investing in their
businesses. However, they got lower turnover in return or worst
they are now facing bankruptcy.
Another challenge is when an entrepreneur borrowed the
capital he/she invested for his/her business. The interest rate or
the amount of interest due per period, as a proportion of the amount
lent, deposited or borrowed (called the principal sum) is high. The
total interest on an amount lent or borrowed depends on the
principal sum. The interest rate, in some time becomes higher and
higher or are compounded for non payment on time thereby
accumulating to higher or bigger amount.
Another dilemma of the Filipino entrepreneurs is the rent or
the fixed amount of money paid or received regularly for the use
usually of business space. The higher amount of money paid for
the rent is also one of the effects brought about these economic
issues.
Wage is a monetary compensation (or remuneration,
personnel expenses, labor) paid by an employer to an
employee in exchange for work done. Payment may be calculated as a fixed amount for each
task completed (a task wage or piece rate), or at an hourly or daily rate (wage labour), or based
on an easily measured quantity of work done. Entrepreneurs are obliged to pay their employees
with at least the minimum wage rate given for a particular region. Economic issues might
turn it as a burden on the part of the entrepreneurs to give the minimum wage or higher than what
is being required for reason that their business can no longer generate more income to manage
their operating expenses like the wages of their employees.
Tax is also one of the entrepreneur’s obligations which is the compulsory financial charge
or some other type of levy imposed upon a taxpayer (an individual or legal entity) by a
governmental organization in order to fund government spending and various public
expenditures. Taxes which consist of direct or indirect taxes and may be paid in money or as its
labour equivalent. The higher the income the higher the tax they are going to pay the
government.

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TASK NO.4: CAN YOU COMPLETE THE LINE?
DIRECTION: Your task is to identify the contemporary economic issues in the given pictures
below by completing the words using the given letters.. Write your answers in a separate sheet of
paper.

. 1. M r t n.
Source: https://www.bing.com/images/search?q=migration+of+people+in+the+philippines&qs

2. f a n.
Source: https://www.bing.com/images/search?view=detailV2&ccid

3. U p y n .
Source: https://www.bing.com/images/search?view=detailV2&ccid

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4. l r c h
Source: https://www.bing.com/images/search?q=oil+price+increases&qs

5. P e and d
Source: https://www.bing.com/images/search?view=detailV2

TASK NO. 5: MATCHING EFFECTS!


DIRECTION: Your task is to examine the given contemporary economic issues in the first
column and identify what would be the effect it may bring to the Filipino entrepreneurs in the
second column. Write your answers in a separate sheet of paper.

COLUMN A COLUMN B

1. The recent demand for technological advancement Wages


in businesses.
2. Unavailability of affordable commercial spaces. Interest rate
3. Higher taxes imposed by the government on Rent
businesses.
4. Higher demand for labor payment Investment
5. Banks providing higher loan interest. Tax

TASK NO.6: EXAMINE THE EFFECTS!


DIRECTION: Your task is to examine the effects of contemporary economic issues to the
Filipino entrepreneurs by briefly discussing it based on your understanding using the given
questions below as your guide. Use a separate sheet of paper for your answer.

10

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1. Because of these contemporary economic issues, what can happen to
the investments made of the Filipino entrepreneurs to their
businesses?

2. When Filipino entrepreneurs made an investments out of borrowings


from the bank or any financial institution, during the experienced
economic issues what will happen to it?

3. What would be the effects of these economic issues to the


entrepreneurs who are only leasing a space for their business?

4. What will happen when the goevernment imposes higher tax


for any businesses because of the experienced economic decline for the government to able
to support its operation?

5. What will happen when the government impose strict compliance in their
regulation of mandating employers to provide minimum wage for thier workers?

11

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What have you learned so far?

CONTEMPORARY ECONOMIC EFFECTS ON THE FILIPINO


ISSUES ENTREPRENEURS

1. Migration 1. Higher Investments


2. Fluctuations in the 2. Higher Interest rates for
exchange rate borrowed capital.
3. Peace and order 3. Higher Rental
4. Unemployment payments for
5. Oil price increases commercial spaces
6. Etc…. used in businesses
4. Higher demand for
employees’ wages
5. Payment for higher
taxes imposed by the
government.

TASK NO. 7: DEMO EFFECTS!


DIRECTION: Your task is to demonstrate the effects of the different contemporary economic
issues faced byFilipino entrepreneurs by creating a comic strip. You can only choose one from
these (higher investments and interest rates, higher rentals, higher wage and taxes paid to the
government). Use a short bond paper for your work. Use the example below as your
reference.

Sources: https://www.bing.com/images/search?view=detailV2&ccid=g7M95AJX&id=B770692005

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Rubric for the Comic strips
INDICATORS Poor Fair Good Excellent
(2 points) (3 points) (4 points) (5 points)
Choice of Scenes Information used Shows most Shows most of Shows events
in the story is important events the important that are
incomplete or related to the topic, related to the relevant and
focused on less highlights topic, however reasonably
important points. unimportant points. there is at least accurate for
one discrepancy/ the topic.
conflict with the
original

Characters It is hard to tell The main The main The main


who the main characters are characters are characters are
characters are, or identified, but clearly identified, clearly
main characters in actions and and their actions identified, and
the comic dialogue are too and dialogue are their actions
general to show very relevant to the and dialogue
relevance to the topic. are very
topic. relevant to the
topic.

Spelling, There are more There are 4-5 There are 1-3 There are no
Punctuation, and than 5 spelling, spelling, spelling, spelling,
Grammar punctuation, and punctuation, and punctuation, or punctuation,
grammar errors. grammar errors. grammar errors. or grammar
errors.
Thought/Speech No Some Most Thought/
Bubbles Thought/Speech Thought/Speech Thought/Speech Speech
Bubbles are Bubbles are Bubbles are bubbles are
present. present present. present.
Artwork No pictures or Some pictures Most boxes are All boxes are
little detail. show detail, but neat with some complete.
detail is detail in all Excellent
inconsistent scenes. detail in all
scenes.

Source: https://www.rcampus.com/rubricshowc.cfm?code=Q3B328&sp=true
Numerical Score Interpretation
Score Numerical Rating Interpretation
10 100% Excellent
9 98%
8 96% Very Good
7 94%
6 92% Good
5 90%
4 88% Fair

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3 86%
2 84% Needs Improvement
1 80%

POST- TEST

DIRECTION: Read the questions carefully and choose the correct answer. Write your answer in
a separate sheet of paper.

1. Tax is one of the entrepreneur’s obligations which is the financial


charge or some other type of levy imposed upon a taxpayer.
A. Conditional B. Occasional C. Compulsory D. Special
2. The fixed amount of money paid or received regularly for the use usually of business space is
called .
A. Taxes B. Rent C. Wage D. Interest rate
3. The effect of Economic issues in investment is
A. Higher investment with lower turnover of capital.
B. Higher investment with higher turnover of capital
C. Lower turnover of capital with higher investment
D. None of the above
4. Which statement is correct about Wage?.
A. Payment may be calculated as a fixed amount for each task completed in an hourly
basis.
B. Payment may be calculated as a fixed amount for each task completed in a weekly
basis.
C. Payment may be calculated as a fixed amount for each task completed in a daily
basis.
D. All of the above
5. Which statement is beneficial to an employee?
A. Higher wage with minimal benefits.
B. Higher wage with the maximum benefits an employer can offer.
C. Minimum wage with minimum benefits
D. Lower wage with minimum benefits.
6. Which statement is beneficial to an employee during the time when there is an
economic decline?.
A. Higher wage with minimal benefits.
B. Higher wage with the maximum benefits an employer can offer.
C. Minimum wage with minimum benefits
D. Lower wage with minimum benefits.
14

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7. An examples of investment EXCEPT .
A. Machines, Equipment, Tools used in the operation of the business
B. Land, Building, Commercial Space for the business
C. Human resources such as waiters, product specialists, cashiers, security guard
etc..
D. Expensive technologies inappropriate for the business
8. According to the labor law, employers must give his/her employees at least the
minimum wage, minimum wage is defined as .
A. The minimum amount of money being paid to employees common to a
particular region.
B. The minimum benefits being given to employees common to a particular region.
C. The minimum amount of work being given by the employers to his/her
employees common to a particular region.
D. The minimum amount of time being paid to employees common to a
particular region.
9. The interest rate or the amount of interest due per period, as a proportion of the amount lent,
deposited or borrowed (called the principal sum) is not true to all of the given statements
below EXCEPT .
A. Given to all borrowed money in the same rate.
B. Higher interest rates are given to all borrowed money when there is an
economic decline.
C. It is a good opportunity for barrowers to borrow money when banks or other lending
institutions offer higher interest rates.
D. It is the right time to invest when your capital is borrowed and with higher
interest rate.
10. All the statements below is the given definition of Investment EXCEPT
.
A. , It can be an asset also or item acquired with the goal of generating income or
appreciation.
B. An investment is the purchase of goods that are not consumed today but are used in
the future to create wealth.
C. An investment is a monetary asset purchased with the idea that the asset will
provide income in the future or will later be sold at a higher price for a profit.
D. An investments can be taken from any barrowed capital with higher interest rates.

15

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RATING LEVEL AND DESCRIPTION
10 – 8 Points EXCELLENT !
Congratulations! You can proceed to the next page and
continue to learn the lesson.
7 – 5 Points BETTER!
You can go back to those lessons that you’ve
missed and continue
4 – 3 Points VERY GOOD!
You can improve your knowledge and continue to learn
the next lesson.
0 – 2 Points NEEDS IMPROVEMENT!
This module will help you to learn better with the
new lesson. You can do it. Let’s open the next
page.

TASK NO. 8: ALL ABOUT YOURSELF!


DIRECTION: Your task is to complete the table below by supplying the necessary
information about yourself. Write your answer in a separate sheet of paper.
Your strength/s Your Opportunities

Your weaknesses Your threat/s

16

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PRE-TEST TASK NO.5 POST-TEST
1. B 6. B MATCHING EFFECTS! 1. C 6. C
2. D 7. A 1. Investment 2. B 7. D
2. Rent
3. D 8. D 3. A 8. A
3. Tax
4. A 9. B 4. Wages 4. D 9. B
5. C 10. C 5. Interest rate 5. B 10.D

TASK NO. 1. YOU COMPLETE ME – Answer may vary.


TASK NO.2: ROW BY ROW!– Answer may vary.
TASK NO.3: READ AND COMPREHEND
TASK NO.4: CAN YOU COMPLETE THE LINE! - Answer may vary.
TASK NO. 6: EXAMINE EFFECTS! - Answer may vary.
TASK NO. 7:DEMO EFFECTS!– Answer may vary.
TASK NO. 8:ALL ABOUT YOURSELF? - Answer may vary.

BOOKS:

Ediberto B. Viray Jr. and Jesusa Avila – Bato (2018), Applied Economics for Senior High
School
Eloisa M. Macalinao (2016) Applied Economics

ARTICLES:

Tax https://en.wikipedia.org/wiki/Tax
Interest rate
https://en.wikipedia.org/wiki/Interest_rate

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DICTIONARY:

Minimum Wage definition


https://www.merriam-webster.com/dictionary/minimum%20wage
Interest rate definition
https://www.investopedia.com/terms/i/interestrate.asp Investment
definition https://www.investopedia.com/terms/i/investment.asp
https://investinganswers.com/dictionary/i/investment

PICTURES:

Cover picture https://www.bing.com/images/search?view=detailV2&ccid=6Bonh2pG&id=EE1C55EA6


7EC06AC2A542837CCD73F529FBC67AF&thid=OIF.AAToJPRC2BTX0upla%2beIYA&
mediaurl=https%3a%2f%2fwww.moneysense.com.ph%2fwp- content%2fuploads
%2f2020%2f07%2fbigstock_Economy_Word_Collage_4510229- 800x445.jpg
%3fx89003&exph=445&expw=800&q=contemporary+economic+issues+in+
the+philippines&simid=211477467432&ck=0004E824F442D814D7D2EA656BE78860&
selectedIndex=171&ajaxhist=0
Migration picture https://www.bing.com/images/search?
q=migration+of+people+in+the+philippines&qs=n &form=QBIR&sp=-
1&ghc=1&pq=migration+of+people+in+the+philippines&sc=0-
38&cvid=9F1781536DEC4776834B7ACAAADDAFF5&first=1&scenario=ImageBasicHo
ver&ajf=100
Inflation picture https://www.bing.com/images/search?
view=detailV2&ccid=ezLk5USg&id=1D84EB4980
E5CFE29736EE07E0182EF88C396768&thid=OIP.ezLk5USgiNK8U6pk-
Ac1UgHaEK&mediaurl=https%3a%2f%2fassets.rappler.com%2fE4117D11E6614B65A
5104A00D7C89633%2fimg%2f6F268D948FF641569081C9F8765E5FD9%2fgas-
grocery-price- hike_6F268D948FF641569081C9F8765E5FD9.jpg&exph=360&expw=640&q=inflation+
in+the+philippines&simid=608030295121855250&ck=4A85EE9E73D08F45816A21127
135C09F&selectedIndex=7&ajaxhist=0
Unemployment picture https://www.bing.com/images/search?
view=detailV2&ccid=GQgei2OS&id=CAF10C099
C329E4000214CF3968B5A02E91150D3&thid=OIP.GQgei2OSBd1I-
bQhUwH8KgAAAA&mediaurl=http%3a%2f%2fmedia.interaksyon.com%2fwp- content%2fuploads
%2f2017%2f10%2fjobseekers_reuters.jpg&exph=300&expw=450&q
=unemployment+in+the+philippines&simid=608030286547255688&ck=2B858AAF8D01
1BFAA7DCCCA66BAEF4FF&selectedIndex=3&ajaxhist=0
Oil price increase picture https://www.bing.com/images/search?
q=oil+price+increases&qs=HS&form=QBIRMH&s p=1&pq=oil+price+&sc=8-

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10&cvid=FE9E80E5C3424F0A8A215602C6048335&first=1&scenario=ImageBasicHove
r&ajf=100
Peace and Order picture https://www.bing.com/images/search?
view=detailV2&ccid=o5ParszI&id=416B98D0636
B0AB0DC728F5B37B1CDC5A343C3A1&thid=OIP.o5ParszIyuev9oMBxuttjAHaHY&me
diaurl=https%3a%2f%2fmedia.philstar.com%2fphotos%2f2019%2f02%2f25%2fstartoon
022619_2019-02-25_21-20-
59.jpg&exph=798&expw=800&q=Street+Crime+in+the+Philippines&simid=6080419087
49929994&ck=492EF35FE9B4507A1FCA1E5C38C66247&selectedIndex=0&ajaxhist=0 Comic
strip example https://www.bing.com/images/search?
view=detailV2&ccid=g7M95AJX&id=B770692005
EAA708A4C2ECA6E53F5E7A137D1ADB&thid=OIP.g7M95AJXN6BWJQ6zcWhzjwHaF
O&mediaurl=http%3a%2f%2f1.bp.blogspot.com%2f_McTVwu-VU- s%2fS8yrX8BnTvI
%2fAAAAAAAAAEE%2f6clTswOm8_g%2fs1600%2fre4.jpg&exph=4
30&expw=610&q=comic+strips+about+economic+issues+in+the+philippines&simid=60
8055175791643038&ck=56EF839A1034BC433A8F10A87F6F49A5&selectedIndex=3&
ajaxhist=0

RUBRIC
https://www.rcampus.com/rubricshowc.cfm?code=Q3B328&sp=true

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