ST.

ALOYSIUS GONZAGA PAROCHIAL SCHOOL

GUINAYANGAN, QUEZON

Name:
Subject: APPLIED ECONOMICS
Grade Level and Section: Grade 12-FORTITUDE
Date:

Content
 Module 5: Supply-Demand and the Philippine and Philippine Economic Problems

At the end of the lesson, the students should be able to:

1. Discuss why it is necessary for the government to impose taxes?
2. Give the importance of savings and investment that affect the economy
3. Solve the minimum wage

HOOK
Our Father

In the name of the Father, and of the Son, and of the Holy Spirit

Our Father, who art in heaven……

ENGAGE
Last module we already discuss Supply-Demand and the Philippine Labor Market and this week we are
going to discuss the Supply Demand and Philippine Economic Problems, for further information open your
book on page 43-53.
The Philippine Peso and Foreign Currencies
Kung makikita nyo sa data mula sa BSP ang rate ng Philippine Peso sa pera abroad ay magkakaiba merong mas
malaki yong rate ng pera nila like United States (USD), meron din naman na mas maliit yong value ng pera nila
sa pera natin Indonesia (RUPIAH). Kaya napaka importante din ng meron tayong ugnayan sa ibang bansa, tulad
ng ASEAN, and UNITED NATION, sapagkat mas mabilis na tayong makipag kalakalan at syempre maraming
bansa ang pwede natin hingan ng tulong pinansyal. (mahihiraman ng pera upang maibangon ang ekonomiya).
Open your book on page 43 for further information.
BSP (https://www.philippinenewslinks.com/bsp/bsp-rate.html
Housing Shortage and the Real State Boom in the Philippines

The global financial turmoil and high inflation have slowed down the Philippines raging real estate boom.
Although luxury condominium prices continue to rise, the residential sector is definitely slowing.

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GUINAYANGAN, QUEZON

The average price of a luxury 3 bedroom condominium in Metro Manila rose 13.35% to Q2 2008 from a year
earlier. Adjusted for inflation, residential prices increased only 3.3% over the year.

The slowdown comes on the heels of a recovery from the Asian Crisis. Condo prices rose by an average of
14.2% (11.2% in real terms) in 2007, following a rise of 9.3% in 2005 and 2006, (around 2% in real terms),
according to data from Colliers International.

Demand from Overseas Filipinos, which contributed strongly to the rise in residential real estate prices, is now
weakening due to exchange rate movements and the global financial turmoil. A slight slowdown in economic
growth and higher interest rates are also pulling housing demand down.

It was in 2004 that the Philippine real estate sector started recovering from the slump brought on by the 1997
Asian Crisis. But condominium projects are now rising all over Manila, so prices and rents will likely stabilize
in the second half of 2008, and inflation-adjusted prices are likely to fall.
Dito naman sa housing shortage yong kakulangan ng mga commercial buildings like condominium na malaking
tulong din sa ekonomiya natin yong mga high rise buildings like apartment nga and condominium. Dahil
syempre malaking tax ang binabayaran nila so san napupunta ang tax diba?.
Rent and Price Structure
I am giving you one example for this. Commercial buildings is for rent, and ang karamihan sa nag re rent nito
ay for business purposes. Another example is Mall mapapansin nyo s amall andami dami dyan may department
store, supermarket, beauty store, drugstore, bookstore, lahat ng yan nag re rent ng kanilang pwesto sa loob ng
Mall. May isa o dalaawang may ari ng Mall o building na yon na nagpapatakbo. Pero lahat ng nasa loob ng mall
ay nag re-rent o umuupa lang ng kanilang pwesto para makapg operate ng kanilang business. Open your book
on page 46.
Savings and Investment
In business investment mean building up a capital. So kapag sinabi na mag e invest ka dapat matalino ka rin ano
ba yong investment o ano ba yong negosyo na mamumuhunan ka?. Unang una sa pagtatayo ng negosyo, dapat
matalino ka sa pagpapasya. Sa business dapat may Plan A, at Plan B ka. Kung mag iinvest ka sa isang negosyo
madami ka din isa-sa alang-alang ang lugar, ano ba yong magandang business sa napili mong lugar. Kapag
nagtayo ka ng negosyo sa isang lugar na alam mo naman na hindi magiging-in yon sa mga tao yong product
mo, malaki yong chances ng pagkalugi mo. Sa savings naman hindi mo pwede sabihin lang na kelangan ko mag
save ng pera kasi saan ka kukuha ng savings mo kung wala ka naman investment. Hindi mo pwede sabihin na
magta trabaho nalang po ako, hindi ako mag nenegosyo para hindi ako mag invest ng pera. Working is also a
part of investment, ano yong ini-invest mo by working different company? Yong time effort, at yong pagod mo,
tandaan na ang binabayaran sayo ng company ay ang iyong pinag trabahuhan and working is a form of
investment . Sa isang bansa napakahalaga ng savings and investment para mapatakbo ang isang bansa at para na
rin hindi bumagsak ang ekonomiya. Investment ay kelangan ng isang bansa to build new companies or para
makakuha ng iba’t-ibang investor locally and internationally while savings naman is kelangan in case na
magkaron ng crisis so may fund tayo para maisuporta sa pangangailangan ng bansa. Yong savings din minsan
nagagamit natin pagbili ng mga equipments sa ibang bansa para naman magamit sa future production. Open
your book on page 46 for some example.
Rent
Na discuss natin yong rent and price structure, dito naman sa rent
papasok yong unaffordable housing problem. So isang halimbawa
na dito sa ka-Maynilaan na magpasa hanggang ngayon ay problema
pa rin ang squatters area. Although binibigyan sila ng relocation site
sa mga probinsya, bumabalik at bumabalik pa rin sila sa Maynila,
dahil ang dahilan ng karamihan ay may bahay lang sila sa relocation
site, pero gutom naman ang kanilang aabutin. Karamihan sa
naninirahan sa squatters area ay yong mga nagbakasali sa Maynila na
magkaron ng magandang trabaho pero ang ending nila is yong

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GUINAYANGAN, QUEZON

kinikita nila sa bawat araw ay sapat lang din upang maitawid yong gutom nila sa bawat araw. Dito din papasok
yong cost of living sa Maynila malaki yong sahod ng mga emoleyado, pero malaki din naman ang gastusin, upa
sa bahay, pambili ng pagkain at iba pa na kung malaking pamiya kayo na ninirahan sa Maynila at isa lang ang
nagta trabaho hindi kakayanin, kaya ang ending sa mga squatters area sila naninirahan. Buksan nyo yong aklat
nyo sa page 48-49 the makikita nyo sa figure 2.12 na 9% lang ng kinikita ng bawat indibidwal ang inilalaan sa
Housing samantalang 60% ay inilalaan sa pagkain.
Minimum Wage
Tandaan na according to labor law, specially sa Non-Government

Organization or PRivate Sector, ang pagtatrabaho ng isang indibdwal

ay dapat 8 hours lamang at ang karagdang mga oras ng pagta trabaho ay
dapat na may karagdagang kabayaran. Government is entitled to rendered
8 hoours working, dahil wala naman sila overtime pay unless may mga
agencies ang government na kinakailangan mag overtime, mostly sa
Mga empleyado ng government na nagta trabaho ng overtime ay walang
volunteer ang kanilang overtime means walang bayad. Makikita nyo
naman sa ibaba ay ang halimbawa kung paano ang tamang pag compute
kapag nag o-overtime sa private companies. Refer also to book page
51-52.

How to Compute your Overtime Pay

All employees required to work beyond the normal 8 hours are entitled to overtime. Overtime pay rates depend
upon the the day the work is performed, whether it is ordinary working day, special day, regular holiday or rest
day.

Ordinary day Overtime

On an ordinary day, the overtime rate per hour is determined as follows:

Let say the employee hourly rate is Php 57.00/hour, then the overtime rate is Php 71.25
Php 71.56 = (Php 57.00 X 1.25%)

On Rest day Overtime

Let say the employee hourly rate is Php 57.00/hour To determine the overtime rate per hour:
Overtime rate/hour = (hourly rate on rest day and special holiday X 169%)
Php 96.33 = (Php 57.00 X 1.69%)

On Special Holiday Overtime

Let say the employee hourly rate is Php 57.00/hour To determine the overtime rate per hour:
Overtime rate/hour= (hourly rate o n rest day and special holiday X 169%)
Php 96.33 = (Php 57.00 X 1.69%)

On Special Holiday and at the same time rest day overtime

Let say the employee hourly rate is Php 57.00/hour To determine the overtime rate per hour:
Overtime rate/hour = (hourly rate o n rest day and special holiday X 195%)
Php 111.15 = (Php 57.00 X 1.95%)

On Regular Holiday Overtime

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 ST. ALOYSIUS GONZAGA PAROCHIAL SCHOOL
GUINAYANGAN, QUEZON

Let say the employee hourly rate is Php 57.00/hour To determine the overtime rate per hour:
Overtime rate/hour = (hourly rate o n rest day and special holiday X 260%)
Php 148.20 = (Php 57.00 X 2.60%)

On Regular Holiday and at the same time Rest day Overtime

Let say the employee hourly rate is Php 57.00/hour To determine the overtime rate per hour:
Overtime rate/hour = (hourly rate o n rest day and special holiday X 338%)
Php 192.66 = (Php 57.00 X 3.38%)

On Double Holiday Overtime

Let say the employee hourly rate is Php 57.00/hour To determine the overtime rate per hour:
Overtime rate/hour = (hourly rate o n rest day and special holiday X 390%)
Php 222.30 = (Php 57.00 X 3.90%)

On Double Holiday and at the same time Rest day Overtime

Let say the employee hourly rate is Php 57.00/hour To determine the overtime rate per hour:
Overtime rate/hour = (hourly rate o n rest day and special holiday X 507%)
Php 288.99 = (Php 57.00 X 5.07%)
Source: payrollhero.ph/ot_pay#:~:text=On%20an%20ordinary%20day%2C%20the%20overtime

Taxes
Lahat tayo nagbabayad ng tax sa simpleng bagay na binili natin may katumbas ng tax ito. But if we discuss the
broad definition of tax, saan nga ba napupunta ang tax na binabayaran ng mga mamamayan?. Unang una sa mga
proyekto ng pamahalaan tulad ng infrastructure, health, education etc. Kung magbibigay naman tayo ng
pinagmumulan ng taxes aside from sa mga binibili natin is, businesses, individual tax who’s income is higher
than 20,000, media or artists like yong mga kilala nating artista na malaki ang kinikita na sa mga movies nila or
commercial malaki din ang binabayaran nila na tax, tax sa lupa or private land property. Makikita sa mga
larawan ang mga proyekto na mula sa tax ng bayan.

ACTIVITY
Activity 1
Answer the following questions: Write your answer in a sheet of paper.
1. Assume that your family’s budget is only Php200 a day. Figure out with the help of your mother/guardian
what it can buy. How much you set aside for monthly rental or housing loan repayment with the foregoing
budget? Imagine the kind of house your family can afford to rent with the amount in the foregoing. How do you
compare this house with what you see in the slum areas.
2. Assume that your family’s budget is equal to the minimum wage of Php490 a day. Figure out with the help of
your mother what it can buy. How much is left for house rental, medical services, tuition etc.? Is the budget
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GUINAYANGAN, QUEZON

enough to make both ends meet? Is your family better off with its actual budget as compared with the minimum
wage? Again, ask your mother how she allocates your family budget. How much do you think a family should
earn to provide for at least, the most basic needs (e.g. food, housing)?
3. Ask your parents how much taxes they pay annually. Figure out with their help what they could otherwise
buy with the said amount.
4. What is the relationship between supply and demand in the Philippine Economy?
5. Why is it necessary for the government to impose taxes?

REFLECTION
How savings channeled into investments can affect the economy?

TRANSFER
Write your answer on the back of this paper.
1. Identify goods/products which used to be in demand but whose sales declined in the past year. What
happened to the prices of these goods. What could be the reasons why demand for these goods fell? Explain
your answer.
Example I-phone is in demand but not everyone can afford to buy this gadget because of high price.
1. Illustrate the housing situation in the squatter’s area.

See you on our next module!

Glory Be

In the name of the Father, and of the Son, and of the Holy Spirit

Glory be to the Father, and to the Son and to the Holy Spirit…

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ST. ALOYSIUS GONZAGA PAROCHIAL SCHOOL
GUINAYANGAN, QUEZON

Parents signature over printed name