Republic of the Philippines

DEPARTMENT OF EDUCATION
Region IV-A CALABARZON
DIVISION OF RIZAL
Morong National Senior High School
APPLIED ECONOMICS

NAME: _________________________________ DATE: ____________________

GRADE: ____________ STRAND: _________________
SUBJECT: Applied Economics TEACHER: JOSE JOHN SM. VOCAL

LEARNING ACTIVITY SHEET

Contemporary Issues Facing the Filipino Entrepreneurs
Background Information for Learners
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.
Learning Competency with Code
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.

Investment Economic rent Rent Income Tax

Minimum wage Capital gain Tax Tax Value added Tax Minimum
Percentage Tax wage legislation

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.

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.