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Applied Economics Module 4
Applied Economics Module 4
CES, CLMD
MembMembers:: Dr. BienvenidoDr.BienvenidoU.Tagolimot,U. Tagolimot,Jr. Jr.
EPS -ADM Regional ADM Coordinator
Ray Butch M. Mahinay
Dr. Neil Improgo
EPS-Designate- AP
Regional EPS-LR
Vivian D. Echalico
EPS-LR
Printed in the Philippines by: Department of Education – Regional Office 10
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DepartmentTelefax:(088)of880Education-7071,(088)–Bureau880-7072of Learning Resources (DepEd-BLR)
OfficeE-mail Address:region10@depedZone1,UpperBalulang.gov.ph Cagayan de Oro City 9000
Telefax: (088) 880-7071, (088) 880-7072
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APPLIED ECONOMICS
Quarter 2 – Module 4:
Socio-Economic Impact Study
ii
TABLE OF CONTENTS
General Instructions……………………………………………………… 2
What I Know ………………………………………………………………………3-5
Lesson 11 – Various Socio-economic Factors Affecting
the Community…………………………………………………13-18
Lesson1 3 – Strategies to Minimize Negative Impact or Maximize
Assessment …………………………………………………………………….26-28
Answer Key…………………………………………………………………………29
References ………………………………………………………………………...30
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WHAT I NEED TO KNOW
Impact of Business
After studying and working on all activities in this module, you will be
able to:
1. Identify and explain the various socioeconomic factors affecting
business and industry (ABM_AE12II-e-g-11)
2. Analyze and evaluate the viability of a business and its impact on the
community (ABM_AE12II-e-g-12)
1
To achieve the objectives of this module, do the following:
As you read this module and do all the activities, you will develop and
improve many skills, which hopefully, make you a better learner.
Before you begin, however, there are a few things you must
do:
1. Read slowly and carefully the first two parts of this module. The
first part tells you what this module is all about and what to
expect from it. The second part tells you what you are expected
to learn.
2. Do not proceed to the next page unless you are done with the
previous one.
8. At the end, you prepare all your outputs. You are expected to
pass them to your teacher. This is usually a learning portfolio,
containing all your activities done.
2
WHAT I KNOW
3
9. It is an effect of transactions that happened to parties outside the
transactions of buyers and sellers.
A. Externalities C. Internalities
B. Middle Management D. None of these
10. What do you called the spill over effects that enhance the welfare of
a third party?
A. Negative externality C. Both A and B
B. Positive externality D. None of these
11. If the third party’s welfare is reduced, what do you call the spillover
effect?
A. Negative externality C. Both A and B
B. Positive externality D. None of these
12. The following are the third parties that benefit the spillover effect of
the transactions of buyers and sellers, EXCEPT,
A. Capitalist C. Environment
B. Community D. Individuals
D. Using non-renewable raw materials like oil and minerals have high
environmental costs
4
14. What are the positive spillover effects of huge plantations and
mining companies?
A. Construction of infrastructure like roads
B. Other business enterprises may encourage to establish their
presence nearby to cater the needs of the community
15. What would be the long term effect of protecting the environment
through the use of ecologically friendly technologies?
a. The firm can operate with a steady supply of raw materials for a
longer period
b. The fruits of our natural resources can be sustained for the next
generations to enjoy
c. A and B
d. None of these
WHAT’S IN
5
WHAT’S NEW
1. Business □ 2. Industry
_________________________ ___________________________
_________________________ ___________________________
_________________________ ___________________________
3.Consumer 4. Capital
_______________________ _______________________
_______________________ _______________________
_______________________ _______________________
5. Income
6
WHAT IS IT
7
Other factors affecting business may include the following:
a. Payment of Government Taxes
Barangay, Municipal, or City permits, and real estate taxes, are
paid in local government units while value added tax, import-export
duties, income taxes are due to national government. Taxes paid by
business enterprise are considered a component of production cost
because it is added to capital outlay of the business in the
operation.
A person who may have education or skills has a greater tendency to land
a job or may acquire permanent occupation that generates income. It is
therefore important to consider the implications of these socioeconomic
factors on your business decision-making. Your decisions should be sensitive
to the prevailing economic conditions (ex. when pricing and stocking your
business). Consumers have the tendency to avoid expensive items during
periods of economic failure. Moreover, customers in the different social
classes have different tastes and preferences. Be sure not to ignore the
consequences of these socioeconomic parameters in deciding what products
you are going to produce or sell.
WHAT’S MORE
Directions:
A. Recall any businesses you know which are operating in your
locality. Name at least 5 different kinds of these businesses and
write them down on the table below and indicate what particular
product/s they are selling.
9
Name or Kind of Business Product Sold
1.
2.
3.
4,
5.
1._____________________________________________________
______________________________________________________
______________________________________________________
2._____________________________________________________
______________________________________________________
______________________________________________________
3._____________________________________________________
______________________________________________________
______________________________________________________
4. .____________________________________________________
______________________________________________________
______________________________________________________
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5._____________________________________________________
______________________________________________________
______________________________________________________
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_________________ 8.
The three main socio-economic status
_________________ 9. of buyers or consumers
_________________10.
WHAT I CAN DO
a. CONCEPT REPRESENTAION=50%
b. NEATNESS AND CLARITY =50%
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LESSON 2: VIABILITY OF A BUSINESS AND ITS IMPACT ON THE
COMMUNITY
WHAT’S IN
WHAT’S NEW
13
WHAT IS IT
14
But doing local business is not just about making profit but also a way
for community involvement of investors by creating more jobs, increase tax
base, provide product diversity for healthy competition, and in some ways
creating a community identity for tourism and other potentialities in the
localities. Hence, small business in the localities is affecting the income
generation of households within those localities which in turn also have impact
in the nation’s economy. Households also enable businesses to tailor
products and services to best suit them as consumers.
Successful entrepreneurs start their businesses by determining viable
business model or idea with high community impact potential like choosing the
right product to produce or sell that is innovative and service oriented.
. No matter how small or big a business is, to be prosperous, investors must
ask the following question to begin with:
1. How will you get the raw materials or supply?
2. What is the potential market size or demand?
3. Who are your competitors?
4. Who are your target customers?
5. What is your potential selling price?
It is also very important to establish Organizational Control that
includes control in developing rules, guidelines, procedures, limits or other
protocols for directing the work and processes of employees and department
of the business by the management.
C. Business Impact in its Operation
1. Impact to the Consumer – bringing some new and innovative
products or service to the market is always welcome to consumers who
is looking value for his money.
15
5. Impact on the local government’s programs – CSR or the Corporate
Social Responsibility has become a growing trend among businesses
today. Small and big corporations increased focus on projects like
scholarships, housing, tree planting, and other related programs for the
communities which are usually anchored on the Local Government
Units (LGU) programs.
WHAT’S MORE
right taxes.
________3.To make profit, every business must sell more products as the
owner wishes.
WHAT I CAN DO
17
2. State your plans with the business that you want to put up.
Please include the name of your business, nature of business,
product offerings and initial capital.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
__________________________________________________________
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LESSON 3: RECOMMENDATIONS AND STRATEGIES TO MINIMIZE AND
WHAT’S IN
WHAT’S NEW
Directions: On the upper part is the “Heaven”. Write down on what strategies
you could think to maximize a business’ positive impact on society. On below
is the “Earth”. Write down the strategies on how to minimize a business
negative impact on society.
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Work on Heaven and Earth
“HEAVEN”
“EARTH”
CATEGORY 5 4 3 2 1
Presentation use of the use of some use or any use real use of
chosen chosen of medium of medium, any
medium to medium to to engage or does not medium.
engage the engage audience attempt to No
audience’s audience attention. engage audience
attention. attention. audience engageme
attention. nt
Preparedness Student is Student Student is Student did Student
22
WHAT’S MORE
Distribution of Outputs
Consumption
Investment
Government Consumption
Exports
Spillover Effects
Community
National Economy
Society at large
Environment
23
WHAT I HAVE LEARNED
Directions: Read the questions below and illustrate your answer in a box
and explain it briefly as possible on the spaces given.(10 points each logical
answer).
ILLUSTRATING IDEAS
Directions:
1. As Filipino youth, discuss the advantages and disadvantages of
establishing an industrial plant in your community.
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
____________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
_________________
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3. Based on your observation, how does international trading help the
socio-economic condition of our country?
_______________________________
_______________________________
_______________________________
_______________________________
_______________________________
_______________________________
_______________________________
_______________________________
_______________________________
________
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ASSESSMENT
3. What do you called the spill over effects that enhance the welfare of a
third party?
A. Negative externality C. Both A and B
B. Positive externality D. None of these
4. If the third party’s welfare is reduced, what do you call the spillover
effect?
A. Negative externality C. Both A and B
B. Positive externality D. None of these
5. The following are the third parties that benefit the spillover effect of
the transactions of buyers and sellers, EXCEPT,
A. Capitalist C. Environment
B. Community D. Individuals
26
B. Sourcing labor services, technical professionals, and managers in
huge plantations and mining companies may opt to build
communities within their business complex that has educational,
health, social, and cultural religious facilities.
D. Using non-renewable raw materials like oil and minerals have high
environmental costs
7. What are the positive spillover effects of huge plantations and mining
companies?
A. Construction of infrastructure like roads
B. Other business enterprises may encourage to establish their
presence nearby to cater the needs of the community
C. Sourcing labor services, technical professionals and managers
D. All of the above
E. Only A & C
27
11. An activity which makes one’s living or makes money by
manufacturing, developing, buying and selling products (goods
& services)?
A. Business B. Households C. Government D. Marketing
12. Classified as a social unit that has similarities regarding the
communities norms, religion, values and identity
A. Business B. Community C. Poverty D. Traders
14. This refers to the exchange of goods and services between countries.
A. Exporting Goods C. International Trade
B. Importing Services D National Economic Trading
15. Provide permits, security, and protection policy to businesses in
exchange for taxes paid for the economy.
A. Community C. Government
B. Household D. Investors
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ANSWER KEY
.15 C .15 C
.14 D .14 C
.13 D .13 C
.12 A .12 B
.11 A .11 A
.10 B . 10 C
.9 A .9 A
.8 B .8 C
.7 C .7 D
.6 C .6 D
.5 C .5 A
.4 B .4 A
.3 A .3 B
.2 C .2 A
1. A 1. B
PRE-TEST
29
POST-TEST