GRADE 11 APPLIED
ECONOMICS
QUARTER 1 – MODULE 6:
Effects of Contemporary
Economic Issues affecting the
Filipino Entrepreneur
LESSON 1:
1. Analyze the effects of
contemporary economic
issues affecting the Filipino
entrepreneur.
After going through
this lesson, you are
expected to:
1. Enumerate the
contemporary economic
issues; and
2. Analyze its effects to the
Filipino entrepreneur.
LESSO
Analyze the Effects of
N
Contemporary Economic Issues
6 Affecting the Filipino
Entrepreneur
Being an entrepreneur is a not an
easy task. It entails uncertainty
and risk, especially in the time of
pandemic or the so-called COVID-
LESSO
N
6
How are entrepreneurs affected
by these economic issues
happening in the Philippines,
and how do they cope up?
Let us recall the Types of Market
Structures and give their
characteristics
Types of Market
Structures
Perfect Monopolist
Competiti ic Oligopol Monopol
on Competitio y y
n
Characteristics Characteristics Characteristics Characteristics
1. What can you say Re
about the picture? nta
? t
te s
l
ra re
s?
te
In
tment
2. Define each word
Mini
wage
from the above picture?
?
Inves
mum
?
3. How can you relate
the words to the
picture?
Business, as they say, is
like a gamble.
It takes a brave heart to
invest their resources with
no guarantee that there
will be a return of
investments.
In this lesson, let us discuss the
contemporary issues affecting the Filipino
entrepreneur.
INVESTMENT INTEREST
It is defined as RATE
This is the amount of
building up the interest due per
capital stock for period, as a
more future proportion of the
production and amount lent,
consumption. deposited or
borrowed.
When the entrepreneur has no enough
investment, he will resort to borrowings
or borrow from financial institutions like
bank. The borrowers bear interest rates.
Effects to
Entrepreneur:
Low interest rates attracts
more entrepreneurs to
invest,
while high interest rates
lessen the opportunity of
the entrepreneurs to start
their business in the
As an inventor,
what will you do if
RENTALS you don’t own land
or space to be
used for your
business?
The answer is rent
or lease a land or
space.
But how does
rental affect your
business
Effects to Entrepreneur:
In Income
Statement, Also consider the
rental fee is in location; its is
expense account more costly to
which means the rent in urban
bigger the areas than in
place/space, the rural areas.
higher the cost.
For example, the
rental fee of 100
square meter of
land in Pasig City is So, the size and
P50,000.00 per location matters
month, but in when planning to
Pampanga with rent.
same area is only
P25,000 per month.
MINIMUM It refers to the
WAGE
What is
lowest wage
permitted by law
minimum wage below which if
and how it is paid by employer
determined? will subject him to
penalty from the
government.
In the Philippines, the Department of
Labor and Employment (DOLE) issued
wage order for minimum wage earners
effective January 1, 2020.
Mininum wage
But how was rates are
minimum determined by
wage factors such as
determined? poverty threshold,
(i.e., Inflation, prevailing wage
employment figures, rates as
Gross Regional determined by the
Domestic Product, Labor Force Survey,
among others) and socio-economic
The National Wages and
Productivity Board (NWPC) wage
Order No. RBIII-2
the prevailing minimum wage for
non-agricultural establishments
employing 10 or more workers in
the region 3 except Aurora shall
pay their employees at P420.00
while in theper day of Aurora,
Province
workers in the non-agricultural
sector will receive minimum salary
Tax is the lifeblood
of the economy.
It fuels the social
services provided
by the
TAX government to its
citizen.
Effects to
entrepreneur
High taxes tend to lessen investment
because this is considered an
additional cost on the part of the
entrepreneur.
Low taxes mean fewer government
projects such as school buildings,
roads, bridges and providing social
services to people.
How can entrepreneur gain
from tax?
Government gives consideration to
new entrepreneurs with tax holiday
up to 6 years and vat exemption for
purchase of supplies of the firm that
is going to export 100% of its
product.
TEST YOUR SELF
Activity 1: Thumbs Up! Thumbs
Down!
Read each statement very carefully.
Write Thumps Up if you agree with the
statement, and Thumbs Down if you
disagree with the statement.
_____1. Low rental fees means more
business will be created.
_____2. High interest in external
borrowings attracts potential
investors.
Activity 1: Thumbs Up! Thumbs
Down!
_____3. Increase in minimum wage will
increase the buying power
of workers.
_____4. High tax rates means less
investors.
_____5. Entrepreneur always consider
the following when making business
decision: rental fees, tax rates,
minimum wage rate, amount of
investment and the interest rate.
Activity 2: Yes or No
_____1. Wage refers to income received
by the professionals like teachers,
doctors, lawyers and nurses.
_____2. Loans and borrowings bears
interest.
_____3. DOLE is a government agency
authorized to review and regulate
minimum wage in the country.
_____4. Lease is the other term used for
capital.
_____5. Capital and fixed assets are
examples of investment.
THANK YOU