Professional Documents
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Quarter 4 – Module 6:
Effects of Contemporary Economic
Issues Affecting the Filipino
Entrepreneur
What I Need to Know
This module was designed and written with you in mind. It is here to help
you analyze the effects of contemporary economic issues affecting the Filipino
entrepreneur. The scope of this module permits it to be used in many different
learning situations. The language used recognizes the diverse vocabulary level of
students. The lessons are arranged to follow the standard sequence of the course.
But the order in which you read them can be changed to correspond with the
textbook you are now using.
What I Know
In this part of the module, the teacher would like to know the idea of the
learner about the lesson. If your score is 15 points, you can skip the lesson but if
you got 14 points and below, continue answering the module.
MULTIPLE CHOICE. Read each statement very carefully. Write the correct answer
in your answer sheet.
1. What do you call to the payment for the use of land?
A. rent B. spending C. income D. capital
2. It refers to income less spending.
A. taxes B. capital C. savings D. investments
3. It is building up the capital stock for more future production and consumption
A. interest rate B. investments C. income D. capital
4. It can be classified as machineries, equipment, buildings and construction.
A. spending B. savings C. capital D. assets
5. It refers to the lowest wage permitted by law below which if paid by employer
will subject him to penalty from the government.
A. minimum wage C. maximum wage B. maximum salary
D. minimum salary
6. Payment for public goods and services by citizens.
A. savings B. debt C. tax D. capital
7. It is consumed to fuel day to day expenditures
A. debt B. spending C. capital D. investments
15. What will happen if there are influxes of investment in the country? A. It will
create jobs.
B. It will result to colonial mentality.
C. More foreigners in the country.
D. Foreigners will invade the country.
Lesson Analyze the Effects of Contemporary
Economic Issues Affecting the
6 Filipino Entrepreneur
What’s In
Before we start the next lesson, let us recall the types of market
structures and give their characteristics.
Types of Market
Structures
In this part, the teacher presents the new lesson to the learner.
From the previous lesson, the importance of knowing the characteristics of
market structure is very important. As a newbie in business, you were looking for
profitable market, where you will invest your resources. Having resources cannot
guarantee an entrepreneur that it will be a big success. In this activity, answer the
following questions about the picture presented.
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
module, let us discuss the contemporary issues affecting the Filipino
entrepreneurs.
INVESTMENT AND INTEREST RATE
In putting up business, it is necessary to know the initial investment of the
entrepreneur so that he able to assess if he needs additional investment. What is
investment? It is defined as building up the capital stock for more future
production and consumption. When the entrepreneur has no enough investment,
he will resort to borrowings or borrow from financial institutions like banks. The
borrowings bear interest rates. This is the amount of interest due per period, as a
proportion of the amount lent, deposited or borrowed.
Effects to entrepreneur:
Low interest rate attracts more entrepreneurs to invest, while high interest
rates lessen the opportunity of the entrepreneurs to start their business in the
country.
RENTALS
As an investor, what will you do if 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 operations?
Effects to entrepreneur:
Effects to entrepreneur:
Over and above minimum wage is the voluntary productivity-based pay, which
encourages workers and enterprises to become more competitive and
TAXES
Tax is the lifeblood of the economy. It fuels the social services provided by the
government to its citizen. But how does tax affect the entrepreneur?
Effects to entrepreneur:
What’s More
The teacher would like to solidify your understanding about the topic being
discussed.
Activity 1: Thumbs Up! Thumbs Down!
Read each statement very carefully. Write the word Thumbs Up if you agree with the
statement, and Thumbs Down if you disagree with the statement. Write your
answer on the space provided before the number.
__________1. Low rental fees mean more businesses will be created.
__________2. High interest in external borrowings attracts potential investors.
__________3. Increase in minimum wage will increase the buying power of workers.
__________4. High tax rates mean less investors.
__________5. Entrepreneurs always consider the following when making business
decisions: rental fees, tax rates, minimum wage rate, amount of investment and the
interest rate.
Column A Column B
_____1. Rent A.
_____2. Minimum wage
_____3. Tax
_____4. Investments
B.
C.
D.
E.
Activity3: Yes or No
Check the box of the correct answer.
Yes No
In this part of the module, the teacher would like to know how you can apply
the lesson in real life situation.
On one whole sheet of paper, discuss how you can help the newly set-up
businesses in your community in coping up with the pandemic (COVID-19).
(Essay. 5 PT. RUBRIC 5 points Comprehensive and analytical 4 points Well written
and some includes analysis 3 points Well written but lacks analysis 2 points Weak
essay 1 point Poorly written and lack strength).
Assessment
True or False. Write the word True is the statement is correct and False if the
statement is incorrect. Write you answer in the space provided before the number.
__________1.Low interest rates on borrowings tend to attract more investors.
__________2.It is advisable to rent a big space for a new business with limited
capital. __________3.Setting up minimum wage is solely regulated by the
company/employer.
__________4. Good infrastructures attract investors.
__________5.Electricity facility is an example of investment.
__________6.High interest rates mean more investors.
__________7. Tax is the lifeblood of the economy.
__________8.Social services provided by the government to its citizens come from
investments.
__________9.High taxes tend to lessen investment.
__________10.Tax holiday is given to new investors to attract more investments.
__________11.If the interest rate is low,the value of dollar tends to increase.
__________12. If the interest rate is high, the value of Peso tends to decrease.
__________13. High tax rates lead to less job creation.
__________14. Minimum wage results in the increase of unemployment.
__________15. Interest rate – investments; tax evasion – tax
Additional Activities
In this part, the teacher provides another activity to enrich the knowledge or skill of
the learner about the lesson.