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1st Quarter: Module 10

Various Socio-economic impacts of business on the following sectors:
consumers, supplier, investors, government, households, and
international trade.

*Bonifacio Global City. (2020, June 13). Retrieved June 17, 2020, from https://en.wikipedia.org/wiki/Bonifacio_Global_City

Perlita B. Ariota
Module Writer

Department of Education • Republic of the Philippines

 Competency

Explains the effect of the various socio-economic factors affecting business

and industry.

To the Learners

Hi there! I am sure everything is okay. Despite of the various exercises that you
did in the previous module, I am sure you enjoyed doing them. You went out from
that small space by applying the things that you have learned. So, here you go. The
module 10 will help you learn another knowledge which is connected to the
previous lessons. I know you are now very eager to that new knowledge.

EXPECTATIONS

Smart student like you learns so fast and can quickly understand the
facts that I am going to share. Read everything including the examples so you
may understand them well. I am sure you can answer all the tasks that will be
given. By answering the different tasks, you may apply what you have read and
ready to apply in the real world.

If it is vague, don’t hesitate to send message to Billy Brits or you may

ask your teacher.
I have prepared some guidelines on how you can maximize this module.
1. Go to your workplace, free from noise, or anything that may distract
you in learning.
2. Avoid eating while answering to keep your module neat and nice to
look at.
3. Don’t make any marks or writing on it. Just pretend that this module
is your face.
4. Don’t skip any page so you may not miss any activity or exercises.
5. Read carefully all the directions before you answer any activity.
6. Write your name, strand and section on the upper left corner of your
answer sheet.

PRE-TEST

Directions. Please read the question and write the letter of the correct answer.

1.How can you bring impact to consumers?

A. Be innovative and focused on bringing some new product to the market.
B. Persuade the consumers away from the existing seller by offering something
new, that the consumer will be satisfied
C. Come up with new features that are not found from the products of the
competitors
D. A, B, and C
2. Who will benefit for the revenues paid by the owner of the new business?
A. Consumers B. government
C. Supplier D. sellers
3. SM Bagumbong will soon open. This explains…
A. Impact on suppliers and investors B. Impact on the government
B. Impact on households D. A, B, and C
4. New businesses mean more money for the owner and the employees they hire.
A. Impact on suppliers and investors B. Impact on the government
C. Impact on households D. Impact on suppliers
5. Online selling became a trend especially during the quarantine. Who benefited from
this aside the sellers?
A. The revenue B. The riders
B. The community D. The households
6. According to the news, online sellers, don’t have any license to operate a
business. What will be affected if most of us are on online business and we don’t have
any license?
A. the revenue B. the riders and the sellers
C. the community D. the households
7. The following are considered government impact on service except:
A. Poor road condition B. High costs of electricity
B. Slow internet D. Adequate infrastructures
8. Which of the following instances explains household impacts on business
during and after the pandemic?
A. The purchasing power of consumer declined.
B. Revenues also declined
C. Branded stuff sales increased
D. Suppliers of different products increased
9. Another strategy to get customer from your competitor aside from innovating
your product or service.
A. Better quality and more options for the consumers
B. Big tarpaulins
C. Numerous advertisements
D. Take artists as your endorser
10. During the pandemic, many business establishments stopped, as a result many
lost their jobs. Their families suffered a lot, especially the children. This explains the:
A. Impact to the community B. Impact on Households
C. Impact on suppliers D. Impact on the Consumer

LOOKING BACK

Read the following questions carefully and answer the following based in your own
understanding of our previous lessons.

1. When one wishes to put up a business, which is not applicable to be done?

APPLIED ECONOMICS-Q1-MODULE 10 3
2. You are inside a subdivision and you want to put up a sari-sari store because you
are in a corner lot, what will you consider first?

3. When you have skilled and knowledgeable staff, what asset of business do you have
in business?

INTRODUCTION OF THE LESSON

With our condition now, putting up a business is not that easy. We need to
consider everything. Because business is not just all about profits. We need to
consider the following: the welfare of our consumers, environmental issues, (involve
about packing of goods, are you going to use a Styrofoam, a plastic or simply box),
uplifting to the quality of life, and contributing to the economy.

Okay, you need to read this carefully so you may understand and be able to
answer easily the tasks which will be given to you. I will explain to you how a business
can impact the consumer, the supplier and the investors, the government and
households.

What is it

Impact on the Consumer

If the new product has the following. For sure there is big impact on the
Consumer
1. An innovative product that comes with new features that cannot be
found in the existing competing goods. It can be in the form of better appearance, new
ingredients, and new convenient way of making the product available. In short, a new
product or service that consumers will be happy and satisfied.
2. Introduce the product or service with a lower price. This is an advantage
to the consumers/buyers who have limited budgets.
3. All goods and services with better quality.

Impact on the Suppliers and Investors

A new business means another opportunity for other business. Example an

online business needs suppliers for the different goods they are going to sell. At the

same time, they also need the transport services that will deliver their goods.

APPLIED ECONOMICS-Q1-MODULE 10 4
 Demand for goods provided by the supplier will increase and need to produce

more, as a result they need more sellers, more transport services. More capital will be

needed for the production of goods.

Impact on the Government

The more businesses and services open, the more revenues to be collected.

You have learned from the previous module that before you put up a business you

need to pay for the different fees. These means money added to local government to

provide social services, for the development or to pay for the salaries of local officials

and workers. On the national level, government has to impose taxes. These taxes will

be used for national activities and for other budget allocations. They will be used in

paying government officials, for infrastructures, for improving health services and

other projects for the people.

Impact on Households

New business means a lot. An opportunity for those who are looking for a job.

For those who are earning low income may find higher paying jobs with the new

companies. Unemployment will decrease. If most of us has a job or a better high

paying job, standard of living will definitely improve.

Impact on the Community

Communities benefits from businesses. There are many programs sponsored

by local businesses and stakeholders for the community like sports fest, wellness

program, livelihood projects and sometimes, medical and dental mission. These

activities are sponsored by the local businesses.

APPLIED ECONOMICS-Q1-MODULE 10 5
 Taxes being paid by the people who are working and different industries are allocated
to different shares of budget.
2020 budget. (n.d.). Retrieved from https://www.ibon.org/tag/2020-budget/

What’s More (Activity)

I am sure you learned something from what you have just read. To check your
understanding, answer the following: You may call or send your classmates to discuss
each of the given questions.

1. Think of a product that you can innovate or improve so consumers can have
choices.
2. Think of a product or service that has an impact on the suppliers/investors
For the first and second question, you may answer them through a video and send
them to your teacher.
3. How can local business impact the community? Cite specific examples.
4. What will happen if your elder brother will be hired by a bigger company? From a
factory worker to an IT at San Miguel Corporation.

What I have learned.

Oh, it’s a lot. Now I understand why macro and micro businesses have to pay
taxes. I also learned that these businesses have great impact not only to the
government but on households as well. When I saw the 2020 budget I noticed that
Education has the largest allocation

APPLIED ECONOMICS-Q1-MODULE 10 6
 CHECKING YOUR UNDERSTANDING
What I Can Do
Now that everything was explained, read the following questions carefully and
choose the letter of the correct answer. I am sure you will get a perfect score Write
your answer in a separate sheet.

1. Your father was hired by a better company, and you also moved into a bigger
and better apartment. This explains…
A. Impact on the household B. Impact to the community
C. Impact on the community D. Impact on the Investors
2. How can you impact consumers?
A. Be innovative and focused on bringing some new product to the market.
B. Persuade the consumers away from the existing seller by offering something
new, that the consumer will be satisfied
C. Come up with new features that are not found from the products of the
competitors
D. A, B, and C
3. Who will benefit for the revenues paid by the owner of the new business?
A. Consumers B. Government
D. Supplier D. Sellers
4. SM Bagumbong will soon open. There will be …..
A. Impact on suppliers and investors B. Impact on the government
C. Impact on households D. A, B, and C
5. New businesses mean more money for the owner and the employees they hire.
A. Impact on suppliers and investors B. Impact on the government
C. Impact on households D. Impact on suppliers
6. Online selling became a trend especially during the quarantine. Who benefited from
this aside the sellers?
A. The revenue B. the riders
B. The community D. the households
7. According to the news, online sellers, don’t have any license to operate a business.
Who was affected?
A. the revenue B. the riders and the sellers
C. the community D. the households
8. The following are considered government impact on service except:
A. Poor rood condition B. High costs of electricity
C. Slow internet D. Adequate infrastructures
9. Which of the following instances explain household impacts on business during and
after the pandemic?
A. The purchasing power of consumer declined.
B. Revenues also declined
C. Branded stuff sales increased
D. Suppliers of different products increased
10. Another strategy to get customer from your competitor aside from innovating your
product or service.
A. Better quality and more options for the consumers
B. Big tarpaulins
C. Numerous advertisements
D. Take artists as your endorser

APPLIED ECONOMICS-Q1-MODULE 10 7
11. With the pandemic, many business establishments stopped, as a result many
lost their jobs. Their families suffered a lot, especially the children. This explains the:
A. Impact to the community B. Impact on Households
D. Impact on suppliers D. Impact on the Consumer
12. Vegetables such as tomatoes, cabbages were just thrown away along the
highway. This has a great impact to...
A. Government B. Farmers
C. Community D. International Trades
13. Look at the 2020 Budget, Which one has the lowest share?
A. Education B. Infrastructure
C. Social Welfare D. Defense
14. Refer to the 2020 Budget, which one was not enough to help the people who lost
their jobs during the pandemic?
A. Education B. Infrastructure
C. Social Welfare D. Defense
15. With the new normal, especially during the days of quarantine, which one became
useless?
A. Education B. Infrastructure
C. Social Welfare D. Defense

ENRICHMENT

The primary objective of this module is to explain various Socio-economic

impacts of business on the following sectors: consumers, supplier, investors,
government, households, facilitator, it is expected that:
1. I will guide them by answering their questions
2. Give feedback on their different activities to check if they have mastery
on the topic.
3. Be able to supervise and evaluate their tasks by giving them clear
directions.

APPLIED ECONOMICS-Q1-MODULE 10 8