Effects of Contemporary

Economic Issues Affecting

the Filipino Entrepreneur
Quarter 1 – Module 6:
•After going through this
module, you are expected to:
1.enumerate the contemporary
economic issues; and
2.analyze its effects to the Filipino
entrepreneurs
WHAT I KNOW
1. What do you call to the payment for the use of
land?
A.rent
B.spending
C.income
D.capital
WHAT I KNOW

2. It refers to income less spending.

A.taxes
B.capital
C.savings
D.investments
WHAT I KNOW

3. It is building up the capital stock for more

future production and consumption
A.interest rate
B.investments
C.income
D.capital
WHAT I KNOW

4. It can be classified as machineries,

equipment, buildings and construction.
A.spending
B.savings
C.capital
D.assets
WHAT I KNOW
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
B. maximum salary
C. maximum wage
D. minimum salary
WHAT I KNOW

6. Payment for public goods and services by

citizens.
A.savings
B.debt
C.tax
D.capital
WHAT I KNOW

7. It is consumed to fuel day to day

expenditures
A.debt
B.spending
C.capital
D.investments
WHAT I KNOW
8. It is the rate of conversion of the Philippine peso
to a foreign currency such as the US dollar.
A. foreign dollar exchange rate
B. foreign exchange rate
C. domestic peso exchange rate
D. domestic exchange rate
WHAT I KNOW
9. It is the amount of interest due per period, as a
proportion of the amount lent, deposited or
borrowed.
A. investment rate
B. accrued interest
C. interest rate
D. compound interest
WHAT I KNOW
10. A person who takes the risks that is necessary to
seek new business opportunities and develop new
ways of doing things.
A.inventor
B.scientist
C.entrepreneur
D.government
WHAT I KNOW

11. It is the lifeblood of the economy.

A.borrowings
B.investments
C.savings
D.tax
WHAT I KNOW
12. Are Filipino entrepreneurs affected by the
widespread of COVID-19?
A.yes
B.no
C.I’m not sure
D.none of the above
WHAT I KNOW
13. As a Filipino entrepreneur, why is it important to consider the
tax rate of the country?

A. Because every single centavo given to tax means additional

burden on the part of the entrepreneur.

B. Because it is an obligation of the entrepreneur to pay tax.

C. Because the tax rate in the Philippines is low compared to other

countries.

D. Because the products in the Philippines is tax-free.

WHAT I KNOW
14. What agency of the government is authorized to
check if the employer follows the rules and regulations
in setting up minimum wage in his company?
A.DOLE
B.BIR
C.DTI
D.DENR
WHAT I KNOW
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.
 MARKET STRUCTURES

PERFECT MONOPOLISTIC
OLIGOPOLY MONOPOLY
COMPETITION COMPETITION

CHAR CHAR CHAR CHAR

1.What can you say
about the picture?
2.Define each word
from the above
picture.
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.
ENTREPRENEUR

•a person who organizes and operates a

business or businesses,
•Being an entrepreneur is not an easy
task. It entails uncertainty and risk,
especially in this time of pandemic or
the so called COVID-19.
INVESTMENT AND INTEREST RATE
• 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.
• 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?
• RENTALS - an amount paid or received as
rent.
 Effects to entrepreneur:
• In Income Statement, rental fee is in expense account
which means the bigger the place/space, the higher
the cost. Also consider the location; it is more costly
to rent in urban areas than in rural areas. For
example, the rental fee of 100 square meter of land in
Pasig City is P50,000.00 per month, but in Pampanga
with the same area is only P25,000 per month. So,
the size and location matters when planning to rent.
MINIMUM WAGE
• MINIMUM WAGE - It refers to the lowest wage
permitted by law below which if paid by employer will
subject him to penalty from the government.
• the Department of Labor and Employment (DOLE)
issued wage order for minimum wage earners
effective January 1. 2020
• REGION 3 (except AURORA) MW- 420.00/ Aurora
413.00 a day
Effects to entrepreneur:

Over and above minimum wage is the

voluntary productivity-based pay, which
encourages workers and enterprises to
become more competitive and productive by
rewarding employees supplementary pay
based on the quality of their performance.
 TAXES
• TAX is the lifeblood of the economy. It fuels the social
services provided by the 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.
 ACTIVITY 1: Thumbs Up! Thumbs Down!
THUMBS UP
__________1. Low rental fees mean more businesses will be created.
__________2.
THUMBS DOWN High interest in external borrowings attracts potential
investors.
__________3.
THUMBS UP Increase in minimum wage will increase the buying
power of workers.
THUMBS UP
__________4. High tax rates mean less investors.
THUMBS UP
__________5. Entrepreneurs always consider the following when
making business decisions: rental fees, tax rates, minimum wage
rate, amount of investment and the interest rate.
 A B
E

B
D
A D
C

C
E
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).
Minimum of 10 sentences