APPLIED-ECONOMICS.pdf

APPLIED ECONOMICS
First Quarter
LEARNING ACTIVITY SHEET
11

Republic of the Philippines
Department of Education
COPYRIGHT PAGE
Learning Activity Sheet in Applied Economics in Context
Grade 11
Copyright @ 2020
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Note: Practice Personal Hygiene protocols at all times. i

TABLE OF CONTENTS
COMPETENCY Page No.
Differentiate economics as social science and applied science
In terms of nature and scope 1
Examine the utility and application of applied economics to solve
economic issues and problems 5
Analyze market demand, market supply and market equilibrium 9
Determine the implications of market pricing on economic
decision making 17
Differentiate various market structures in terms number of sellers,
types of products, entry exit to market, pricing power and others 21
Analyze the effects of contemporary economic issues affecting
the Filipino entrepreneur 25
Note: Practice Personal Hygiene protocols at all times. ii

Note: Practice Personal Hygiene protocols at all times. 1
APPLIED ECONOMICS
Name of Learner: ______________________________ Grade Level: ______________
Section:_______________________________________ Date:___________________
Economics as an Applied Science and as Social Science
Background Information for Learners
Economics as applied science applies economic theories to predict or provide solutions to the
problems faced by the economy.
On the other hand, economics as social science studies the behavior of individuals and how
they react to the different economic issues like the problem of scarcity.
Learning Competency with Code
Differentiate economics as social science and applied science in terms of nature and scope
ABM_AE12-Ia-1
Activity 1
True or False. Write the word True if the statement is true; write False if the statement is
false.
1. Economics as social science has something to do with our everyday lives.
2. One a man is applying a job to sustain its basic needs shoes is an example of
economics as social science.
3. There two branches of economics the microeconomics and the macroeconomics.
4. Applied Economics is an application of conclusion from the different economic
theories.
5. Using economic theories, applied economics tries to address the central problem of
economics which is scarcity.
6. The word economics derived from the Greek word” Oikonomus” meaning household
management.
7. Adam Smith is the Father of economics.
8. Economics is applied in in our daily lives.
9. Scarcity is the central economic problem.
10. To address the unlimited needs and wants of the people with the limited resources is
one of the significant concerns in economics.

Activity 2
Differentiate economics as an Applied Science and as a Social Science. Write your answers
inside the circles.
Activity 3 Article/News Review
Answer the following questions. You may use news articles, live/recorded interviews
provided by the TV stations and your opinion in answering the questions. Don’t forget to
write the complete references, website or TV station where it was lifted.
1. What is the status of the Philippine Economy while in combat with Covid 19 pandemic?
What are the impacts of this pandemic in the different sectors of the economy?
Summary of the Article/interview:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Reference/s:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Reaction/Opinion:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
E
C
O
N
O
M
I
C
S
Applied
Social
Science

2. Applying Economics as a social science how did the people reacted to the different
measures done by the government? How this Covid 19 pandemic affected the lives of the
Filipino people?
Summary of the article/interview/news:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Reference/s:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Reaction/Opinion:
3. Knowing Applied Economics and embracing the new normal, what are the initial plans and
moves of the government to combat the effects of the pandemic to the economy?
Summary of the article/interview/news:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Reference/s:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Reaction/Opinion:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Activity 3 Rubric:
Exemplary
(20)
Above average
(18)
Adequate
(15)
Inadequate
(13)
Organization Writing shows
high degree of
coherence and
logical reasoning.
Writing is
coherent and
organized
logically.
Writing is
coherent and
logical, but
some points are
missing
Writing lacks
logical
organization
Content Content shows in
synthesis of
Content shows
good points of
Content is good
but with limited
Content is
acceptable but

ideas. It
excellently
addresses the
question.
ideas. It provides
sufficient answer
to the question.
ideas. ideas are
underdeveloped
Grammar Essay is free
from errors
Essay is
grammatically
correct with
minimal errors
Essay is
grammatically
correct with
few errors
Errors are
frequent
Reflection:
Complete the statement below.
In this activity, I learned that ___________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
References:
Viray, Edilberto B.,Jr. and Jesusa Avila-Bato, Applied Economics, Anvil Publishing,2018
Dinio, Rosemary R. and George A. Villasis,Applied Economics, Rex Bookstore,Manila,2017
Answer Key:
Activity 1
1. True 6. True
2. True 7. True
3. True 8. True
4. True 9. True
5. True 10. True

APPLIED ECONOMICS
Name of Learner: _______________________________ Grade Level: ____________
Section:______________________________________ Date:___________________
Applied Economics in Addressing Economic Issues
We analyze and propose solutions to the several issues and problems confronting the
Philippine economy by applying different theories in economics. The basic economic
problems confronting the Philippines are scarcity, population growth, unemployment,
inflation, high levels of inequality, environmental poverty, weak infrastructure, and natural
disaster.
Applied Economics is about utilizing economic theories to explain economic events,
government actions and recommend courses of actions for business, household, and
government. Different application we have to use to solve these issues are trade-offs,
opportunity cost, variations in benefit and cost, proper allocation of resources by answering
the three basic economic questions; what, how and for whom to produce and other alternative
way by the government to solve our economic problems.
Examine the utility and application of applied economics to solve economics issues and
problems. ABM_AE12-Ib-2
Activity 1
Instruction: Application of trade-offs in scarcity of resources. In not more than four
sentences explain the following scenarios.
1. What are some of the trade-offs faced by the Philippine government deciding whether
to establish more national high schools in faraway provinces.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
2. Give at least four examples of trade-offs when scarce resources are used.
a. __________________________________________________________________
b. __________________________________________________________________
c. __________________________________________________________________
d. __________________________________________________________________

Activity 2
Instructions: Application of opportunity cost and variations of benefit and cost.
1. What are the opportunity costs of a student who decide to study college?
2. Show how cost-benefit analysis can be used in explaining the family size among
poor households.
Activity 3
Other application use to solve economic issues and problems
1. With the given economic questions, determine what is being referred to by the
following statements:
a. Consider production possibilities and efficient use of resources
b. Technology, human resources, and both
c. Consider distribution of income (rich v. poor)
2. The Pantawid Pamilyang Pilipino Program (4 Ps) is a conditional cash transfer
program that aims to alleviate poverty. What are the positive and negative sides of the
program?
3. Compose a slogan on the importance of environmental protection.
4. Rubric
Explanation 4 3 2 1 Points
A complete
response with a
detailed
explanation
Good solid
response with
clear
explanation
Explanation is
unclear
Mises key
points
Demonstrated
Knowledge
Shows
complete
understanding
of the
questions, ideas
and procedures
Shows
substantial
understanding
of the
questions, ideas
and process
Response
shows some
understanding
of the questions
Response
shows
complete lack
of
understanding
Requirements Goes beyond
the requirement
of the problem
Meet the
requirement
Hardly meet
the requirement
Does not meet
the requirement
Total

Reflection
Write your brief description of your experiences by answering the following questions.
1. What is the most important thing you learned personally?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. How do you feel that the activity relates to the real-world situations and problems?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
3. What difficulties you encountered when answering the activities?
___________________________________________________________________________
___________________________________________________________________________
________________________________________________________________________
___________________________________________________________________
References:
Carnaje, Gideon. Applied Economics, 1253 G. Araneta Avenue, Quezon City, Philippines:
Vibal Group, Inc., 2016
Tullao, Tereso Jr. Applied Economics for a Progressive Philippines, Quezon City,
Philippines: Phoenix Publishing House, Inc., 2016
Answer Key
Activity 1
Possible answer:
1. Government has limited amount of funds to spend on different levels of education and
various social services. More government spending on high school education might require
less spending on elementary education and college education or might even require reduced
spending on health care and highways.
2. a. Drinking a bottled water instead of a soda
b. Watching movies at home versus watching movie in theater
c. Buy new dress or two new t-shirts
d. Vacation in Baguio or Boracay
Activity 2
1. a. The money you would have earned if you worked instead
b. Lose four or more years of salary while getting your degree

c. Choosing to not go to a party hangout with friends or catch up on much some
needed sleep.
2. The cost-benefit analysis can explain why fertility rate among women in poor families
tend to have large families because they consider additional children as investments
that can assist them in the future. They attach a higher value on the future
contributions of these children on household welfare. The opportunity cost of having
children is low since women in poor households are usually not working. With low
cost and high benefits, there is an incentive to have more children in these households.
Activity 3
1. a. What to produce?
b. How to produce?
c. For whom to produce?
2. Positive
a. Parents are more optimistic about situation and their children’s future
b. Households heads, spouses and other adults are more encouraged to work and set
up their own business
c. Reduction of severe situation among beneficiary children
d. 4Ps beneficiaries consume more rice and cereals than non-beneficiaries
e. Higher gross enrollment rate for beneficiary high school students
f. Households spend more on basis nee such as food, education and medicine that
stimulate the growth of the local economy.
Negative
a. Fewer workers in the agricultural sector
b. The denial of the beneficiaries 4Ps program to commence hard work as they now
get regular financial assistance
c. Gives rise to corruption in poor areas where ATM cards of beneficiaries are
monitored by local government officials.

APPLIED ECONOMICS
Name of Learner: _______________________________Grade Level: __________________
Section:______________________________________ Date:________________________
Demand, Supply and Market Equilibrium
The analysis of supply and demand is a persuasive tool in understanding economic and
business realities, issues, and problems. The idea underlying in the model is the price at
which a product or a resource can bought or sold in various markets which is determined by
the interaction of buyers and sellers who are making choices under the conditions of scarcity.
The Law of Demand states that as the price goes up, the quantity demanded goes down and
vice versa, considering other things is constant (ceteris paribus). Meaning price and quantity
demanded has a negative or inverse relationship.
On the other hand, the Law of Supply states that as the price goes up, quantity supplied goes
up too and as the price goes down, the quantity supplied goes down too, considering other
things are constant (ceteris paribus). Meaning price and quantity supplied has a direct
relationship
Learning Competency with code
Analyze market demand, market supply and market equilibrium (ABM_AE12-Ic-3)
Activity 1 Analysis of Demand
Directions: Below is the demand schedule for hamburgers. Use this demand schedule for
activity 1. and 1.2.
Price (peso per unit)
Quantity Demanded
(units per week)
0 100,000
10 90,000
20 80,000
30 70,000
40 60,000
50 50,000
60 40,000
70 30,000
80 20,000
90 10,000
100 0

1. Graph the movement along the demand curve when the price of hamburgers falls
from P/60 to P/40 per unit. Explain the movement of the demand curve
2. Graph the shifts of the demand curve when buyer would choose to buy 70,000 instead
of 60,000 hamburgers at price P/40. Explain the shift of the demand curve.
3. The law of demand holds that people buy more at lower prices than a higher price.
But some goods are bought largely because they have “snob appeal.” For example,
some students in your school gain prestige by buying expensive brand name items.
Does knowingly buying an item because it is expensive violate the law of demand?
Activity 2. Analysis of Supply
Directions: Below is the supply schedule for hamburgers. Use this supply schedule for
activity 2.1. and 2.2
Price (pesos per unit) Quantity Supplied
(units per week)
0 0
10 10,000
20 20,000
30 30,000
40 40,000
50 50,000
60 60,000
70 70,000
80 80,000
90 90,000
100 100,000
1. Graph the movement along the supply curve when the price of hamburger rises from
P/40 to P/60 per unit. Explain the movement of the supply curve.
2. Graph the shifts of the supply curve when the seller would choose to sell 50,000
instead of 40,000 hamburgers at price P/40. Explain the shift of the supply curve.
3. Many lanzones and rambutan farmers open temporary roadside stands during harvest
season, even though prices are usually low at that time. In this case, as the price of
their product falls, farmers sell more, not less. Is this an exception to the law of
supply?
Activity 3 Market Equilibrium
Directions: Refer to the supply schedule above for the data needed in graphing price
adjustments and market equilibrium.
1. At this price, the quantity demanded is 60,000, which is greater than the quantity
supplied, 40,000. Graph the shortage occurs at any price below the intersection of the
demand and supply curves. Explain the market shortage on the part of the buyer.

2. At this price, buyers want to purchase 40,000 hamburgers less than the 60,000
hamburgers producers are willing to offer. Graph the market surplus occurs. Explain
the market surplus among the sellers.
Activity 4 Problem and application
Directions: Analyze the situation carefully, explain your answer in not more than five
sentences.
1. What happens to the equilibrium price and the equilibrium quantity of photographic
film if the price of digital cameras decreases and the price of photographic developer
increase while all other things remain constant?
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
2. Gather news articles on the price of basic commodities including rice, sugar, pork,
and chicken. Make a presentation on what is happening to their prices using demand
and supply analysis.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Rubric
Explanation 4 3 2 1 Points
A complete
response with a
detailed
explanation
Good solid
response with
clear
explanation
Explanation is
unclear
Misses key
points
Demonstrated
Knowledge
Shows
complete
understanding
of the
questions, ideas
and procedures
Shows
substantial
understanding
of the
questions, ideas
and process
Response
shows some
understanding
of the questions
Response
shows
complete lack
of
understanding
Requirements Goes beyond
the requirement
of the problem
Meet the
requirement
Hardly meet
the requirement
Does not meet
the requirement

Reflection:
Write your brief description of your experiences by answering the following questions.
1. What is the most important thing you learned personally?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. How do you feel that the activity relates to the real-world situations and problems?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
3. What are the difficulties you encountered when answering the activities?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
References:
Carnaje, Gideon. Applied Economics, 1253 G. Araneta Avenue, Quezon City, Philippines:
Vibal Group, Inc., 2016
Tullao, Tereso Jr. Applied Economics for a Progressive Philippines, Quezon City,
Philippines: Phoenix Publishing House, Inc., 2016
Viray, Edilberto B.,Jr/ and Jesusa Avila-Bato,Applied Economics, Anvil Publishing,2018

Answer Key
Activity 1
Quantity demanded (thousands of units per week)
Quantity demanded (thousands of units per week)
Explanation of movements along the demand curve
The demand of hamburgers can be represented by a curve that slopes downward. As the price
rises from P/0 to P/100, the number of hamburgers that buyers would choose to purchase per
week falls from 100,000 to 0.
2.
Quantity demanded
Quantity Demanded
Explanation of shifts of demand curve
An increase in demand for hamburgers is indicated by a rightward shift of demand curve. A
decrease in demand is indicated by a left-ward shift of the demand curve.
3. Brand name items are associated with higher quality. Some people have greater preference
for high-quality products. Knowingly buying a high-quality product which happens to be

expensive is not a violation of the law of demand. The law of demand says that people buy
more at lower prices than at higher prices, holding other factors affecting demand- for
examples, taste and preferences- constant.
Activity 2
1.
Quantity supplied (thousands of units per week)
Explanation of movements along the demand curve
The supply of hamburgers can be represented by a curve that slopes upward. In the figure as
the price rises from P/0 to P/100, the number of hamburgers sellers would choose to sell per
week increase from 0 to 100,000.
2. Shifts of the supply curve

Explanation of the shifts of the supply curve
An increase in the supply of hamburgers is indicated by a rightward shift of the supply
3.This is not a violation of the law of supply. The law of supply says that people sell more at
higher prices than at lower prices, holding other factors affecting supply for example,
productivity, cost of production and number of sellers.
Activity 3
Explanation of market shortage
At a price below the interaction of the demand and supply curves, a market shortage occurs.
Competition among buyers will push the price up to the equilibrium price, P/50, the price at
which the quantity demanded equals the quantity supplied (50,000).

2.
Explanation of market surplus
At a price above the intersection of the demand and supply curves, a market surplus occurs.
Competition among sellers will push the price down to the equilibrium price P/50, the price at
which the quantity demanded equal the quantity supplied (50,000)
Activity 4
1.Photographic developer is an input used in firm production. An increase in its price raises
the cost of production, thereby causing the supply curve of photographic film to shift to the
left.
An increase in the price of photographic film does not shift the supply curve. Rather, it causes
a rightward movement along the supply curve.
An increase in the number of stores selling photographic film will cause the supply curve to
shift to the right.

APPLIED ECONOMICS
Name of Learner: ____________________________ Grade Level: __________________
Section:_____________________________________ Date:________________________
Market Pricing
We determine the implications of market pricing on economic decision making. When the
price decreases, consumer tend to buy more, but when the price increases, the amount
consumer can afford to buy tends to go down. The higher the price, the higher the quantity
supplied.
Learning Competency
Determine the implications of market pricing on economic decision making. ABM_AE12-
Id-4
Activity 1
Instructions: Complete the table below by determining the quantity demanded at a given
price.
Price Per bottle(P) Number of bottles (Qd)
P 0
2
4
6
8
10
Illustration:
Given:
Required:
Solution:

Activity 2
Instructions: Assuming the supply function is given as: Qs=+5P Determine the quantity
supplied of fish in kilos at a given prices
Price of Fish (per Kilo) Supply (in kilos)
P 20
40
60
80
100
Illustration:
Given:
Required:
Solution:
Activity 3: Problem Solving
Instructions: Using the following demand function, solve for the demand schedule of
consumer Robert given the following prices for bottled water:
Qd=60-P/2
Prices Qd
P 0
2
4
6
8
10
12
14
16

Based on this schedule, construct a demand curve for Robert.
Illustration:
Given:
Required:
Solution:
Rubric
Activity Advanced Competent Developing Beginner
-Students got 90%
and above of the
total items
-Student shows
mastery of the
competency
(20)
Students got 85-
89% of the total
items.
Student shows
understanding of
the competency.
(17)
Students got
75-84% of the
total items.
Students show
less
understanding
of the
competency
(14)
Students got
74% and below
Students show
poor
understanding
of the
Competency
(10)
1
2
3
Reflection:
In this activity I have learned that________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

References:
Dinio, Rosemary P. and Villasis, George A., Applied Economics, Manila Philippines
Answer Key:
Activity 1 Determine the Number of Bottles.
Price Per bottle Number of bottles
P 0 6
2 5
4 4
6 3
8 2
10 1
Activity 2: Determine the Quantity Supplied of Fish.
Price of Fish (per Kilo) Supply (in kilos)
P 20 200
40 300
60 400
80 500
100 600
Activity 3 Problem Solving
Prices Qd
P 0 60
2 59
4 58
6 57
8 56
10 55
12 54
14 53
16 52

APPLIED ECONOMICS
Name of Learner: ________________________ Grade Level: _____________________
Section : _______________________________ Date : ___________________________
Market Structures
Market can be classified as either Perfectly Competitive Market (PCM) or Imperfectly
Competitive Market (ICM).
Perfectly Competitive Market (PCM) is a market characterized by the following:
a. There are many buyers and sellers.
b. The products are homogeneous.
c. There is perfect mobility of resources.
d. There is perfect knowledge of economic agents of market conditions such
as present and future prices, costs, and economic opportunities; and
e. Market price and quantity of output are determined exclusively by forces of
demand and supply.
Imperfectly Competitive Market (ICM) is a market which does not fulfil the conditions of perfect
competition. And there are different types of Imperfectly Competitive Market, these are:
a. monopoly which a single seller has control of entire supply of goods and services.
b. Oligopoly where there are few numbers of sellers in the market selling products which are
differentiated.
c. monopsony means there is one buyer and many sellers: and
d. monopolistic competition occurs when there are many sellers offering
products that are similar but not identical.
Differentiate various market structures in terms of:
a. number of sellers
b. types of products

c. entry/exit to the market
d. pricing power
e. others
ABM_AE12-Ie-5
Activity 1: Am I Right or Am I Wrong?
Directions: Write Right if the statement is correct and write Wrong if the statement is
incorrect. Write your answer on the space provided before the number.
__________1. Monopoly is a market structure in which there is only one buyer of a product
for which there are no close substitutes.
__________2. Under oligopoly the action of each firm does not affect other firms.
__________3. Monopolistic Competition allows such variety of choices to the sellers.
__________4. In Perfectly Competitive Market the producers have the power to influence the
price of the product.
__________5. Oligopoly is a market structure in which there are few sellers of a product and
additional sellers cannot easily enter the industry.
__________6. The consumers have the power to influence the price of the products and
services in monopsony.
__________7. Monopolists has no power to determine its output level and the price of their
product.
__________8. Government is the consumer in monopsony and the government employees
are the producers.
__________9. Advertisement is very important in perfectly competitive market to encourage
buyers to buy certain products.
_________10. Oil industry is an example of oligopoly.

Activity 2: Where Do I Belong?
Directions: Classify the products and services below. Write what market structure they
should belong. Write your answer on the table below.
Vegetable Rice Gasoline
MRT Shampoo Public School Teachers
Police Sardines Toothpaste
Cement MAYNILAD Gold
Fish Politicians MERALCO
Perfectly
Competitive
Market
Monopoly Oligopoly Monopsony Monopolistic
Competition
Activity 3. Market Structure Board
Fill up the table by giving the needed information regarding market structure.
Market
Structure
Number of
Sellers
Types of
Products/Services
Entry/Exit to the
Market
Pricing Power
Perfectly
Competitive
Market
Monopoly
Oligopoly
Monopsony
Monopolistic
Competition
Reflection:
What I have learned in this activity?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
References:
Dinio,Rosemary P. and Villasis George A, Applied Economics,2017 edition, Rex Book Store
https:/www.economicshelp.com, https:/www.coursehero.com

Answer Key
Activity 1
1. Wrong 6.Right
2. Wrong 7.Wrong
3. Right 8.Right
4. Wrong 9.Wrong
5. Right 10.Right
Activity 2
Perfectly
Competitive
Market
Monopoly Oligopoly Monopsony Monopolistic
Competition
Vegetable
Rice
Fish
MRT
MAYNILAD
MERALCO
Cement
Gasoline
Gold
Police
Politician
Public School
Teacher
Shampoo
Sardines
Toothpaste
Activity 3
Market
Structure
Number of
Sellers
Types of
Products/Services
Entry/Exit to
the Market
Pricing Power
Perfectly
Competitive
Market
Many Heterogeneous/Identical There is
Freedom of
entry/exit
Price Taker
(The producer
and consumer
do not have
power to
influence the
price. They
should follow
the prevailing
price in the
market.)
Monopoly One Unique/One of a
kind/No substitute
There are
barriers to
entry
Price Maker
(The producer
has the power
to influence
the price in the
market.)
Oligopoly Few Differentiated Some barriers
to entry
Price Maker
(The producer
has the power
to influence
the price in the
market.)

Monopsony Many Differentiated (Many
services offered by the
government)
There is
Freedom of
entry/exit
Price Taker
(The pricing
power is on the
hand of the
consumers.)
Monopolistic
Competition Many
Similar products but not
identical
Low Barriers
to entry
Price Maker
(The producer
has the power
to influence
the price in the
market.)

APPLIED ECONOMICS
Name of Learner: ______________________________ Grade Level: ___________
Section:______________________________________ Date:_______________
Contemporary Issues Facing the Filipino Entrepreneurs
Filipinos normally invests for something to increase wealth. They are investing because they
are expecting return on these investments, it could be in the form of dividends, interests, rents
and the likes. In achieving those endeavors, we cannot go away from the reality that Filipino
entrepreneurs are facing multiple challenges in the market. Some of these challenges are
inflation, government policies and regulations, taxes, rent, wages, and other concerns that an
investor should carefully look into in investing or conducting business. Remember that in
every investment you take, there are risks and challenges involve. That is why it is also
important to know your level of tolerance on these risks and challenges.
Analyze the effects of contemporary economic issues facing the Filipino entrepreneur.
ABM_AE12-If-6
Activity 1:
Directions: Identify the described contemporary economic issues facing the Filipino
entrepreneur below. Choose your answer from the words inside the box. Write it on the space
provided before the number.
______1. It is defined as building up the capital stock for more future production and
consumption.
______2. It refers to a payment made to or for a factor of production over and above the
amount expected by its owner.
______3. It is the government control tool to prevent further exploitation of workers.
______4. It is the positive difference between the actual payment made for a factor of
production to its owner and the payment level expected by the owner, due to its exclusivity or
scarcity.
______5. It refers to the lowest wage per hour that a worker may be paid as mandated by the
federal law.
Investment Economic rent Rent Income Tax
Minimum wage Capital gain Tax Value added Tax
Percentage Tax Tax Minimum wage legislation

______6. It is a compulsory contribution to state revenue, levied by the government on
workers income and business profits.
______7. It is paid by the entities exempt from VAT with gross annual sale not exceeding a
limit prescribed by the BIR of 3%.
______8. This is imposed on the sale of capital assets such as real estate properties and
stocks.
______9. It refers to a tax on sale, lease and importation of goods and services of 12%.
______10. It is the common tax filed by employed and self-employed individuals.
Activity 2: True or False
Instructions: Write T if the statement is true and F if the statement is false on the space
provided.
_____1. Savings and investment are necessary to build the future.
_____2. Economic rent exists due to market imperfections.
_____3. The problem of inadequate wage is intertwined with the problem of unemployment.
_____4. Taxes cannot distort savings, investment and consumption as income earners shift to
substitute to avoid the tax burden.
_____5. In short economic, rent is any earned income.
_____6. Taxes is considered as inflows for the government and outflows for firms.
_____7. Rent is one of the fixed costs of a business entity.
_____8. Long-term investments are assets that a company intends to hold for a year.
_____9. Short-term investments that a company has made is expected to be converted into
cash for more than a year.
_____10. Interest rate in a short-term investment is fixed but security risk and gain are low.
Activity 3. Essay
1. Select one of the contemporary economic issues faced by the Filipino entrepreneurs
then, discuss the short-term and long-term effects of these issues.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

2. Describe the distorting effects of taxes to entrepreneurs.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
___________________________________________________.
3. Suggest solutions on how to address the problem on inadequate wage and
unemployment.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Reflection
Complete the statement below.
In this activity, I learned that ___________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
References:
Dinio, Rosemarie P. and Villasis, George A.,Apllied Economics, 2017 edition, Rex Book
Store,Manila,Philippines.
https://quizlet.com/306818801/contemporary-economic-issues-facing-the-filipino-
entrepreneur-through-minimum-wage-flash-cards/
https://prezi.com/p/hushdrgxvcu4/lesson-6-contemporary-issues-facing-the-filipino-
entrepreneur/
https://global.oup.com/uk/orc/busecon/economics/gillespie_econ4e/student/mcqs/ch21/
Answer Key
Activity 1
1. Investment 6. Tax
2. Rent 7. Percentage Tax
3. Minimum Wage Legislation 8. Capital Gains Tax
4. Economic Rent 9. Value Added Tax
5. Minimum Wage 10. Income Tax
Activity 2
1. T 2. T 3. T 4. F 5. F
6. T 7. T 4. F 8. F 9. T

APPLIED-ECONOMICS.pdf

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