Applied Economics

Quarter 1 – Module 6
Analyzing the Effects of
Contemporary Economic Issues
Affecting the Filipino Entrepreneur

1
Applied Economics
Alternative Delivery Mode
Quarter 1 – Module 6: Analyzing the effects of contemporary economic issues affecting
the Filipino entrepreneur

First Edition, 2020

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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Author: Carmela P. Abuan
Editor: Susan B. Pastera
Reviewers: Antonietta D. Duca
Illustrator: Mark D. Petran
Layout Artist: Mara Jamaica B. Floreno
Management Team: Ma. Gemma M. Ledesma, CESO V
Elena P. Gonzaga
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Lorlenie M. Ortillo, CESO VI,
May P. Pascual
Analie J. Lobaton
Susan B. Pastera

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5000 Iloilo
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 Applied Economics
Quarter 1 – Module 6:
Analyzing the Effects of
Contemporary Economic Issues
Affecting the Filipino Entrepreneur
Introductory Message
For the facilitator:

Welcome to Applied Economics for Grade 12 Alternative Delivery Mode (ADM)

Module on Analyzing the Effects of Contemporary Economic Issues Affecting the
Filipino Entrepreneur!
This module was collaboratively designed, developed and reviewed by educators both
from public and private institutions to assist you, the teacher or facilitator in helping
the learners meet the standards set by the K to 12 Curriculum while overcoming
their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration their
needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to manage
their own learning. Furthermore, you are expected to encourage and assist the
learners as they do the tasks included in the module.

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For the learner:

Welcome to the Applied Economics 12 Alternative Delivery Mode (ADM) Module on

Analyzing the Effects of Contemporary Economic Issues Affecting the Filipino
Entrepreneur!
The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a learner
is capable and empowered to successfully achieve the relevant competencies and
skills at your own pace and time. Your academic success lies in your own hands!

This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of the

lesson. This aims to help you discover and
understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or skill
into real life situations or concerns.

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 Assessment This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in developing

this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!

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 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master analyzing 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.

 The module is all about analyzing the effects of contemporary

economic issues affecting the Filipino entrepreneur.

After going through this module, you are expected to:

Lesson 1: Identify contemporary economic issues in the country; and
Lesson 2: Analyze the effects of contemporary economic issues affecting the
Filipino entrepreneur.

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 What I Know

There are four (4) market structures in the market, what are they?
1.
2.
3.
4.
There are four (4) characteristics or terms in which we can differentiate a market
structure from each other. They are?
5.
6.
7.
8.
There are additional two terms added to differentiate a market structure from each
other. They are?
9.
10.

Lesson
Analyzing the effects of

1
contemporary economic issues
affecting the Filipino entrepreneur

Now that you have already learned the different terms inorder to identify and
differentiate a market structure in the previous lesson, you will identify the
contemporary economic issues of the country.

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 What’s In

Answer the following questions below on the space provided before each number.

_______1. The market structure which needs a very huge amount of capitalization
because it needs to construct factories, hire many laborers, advertise more and are
interdependent with each other.
A. Perfect competition C. Oligopoly
B. Monopolistic competition D. Monopoly
_______2. The market structure where there are stringent government regulations
before you can enter into it.
A Perfect competition C. Oligopoly
C. Monopolistic competition D. Monopoly
_______3. Mr. Reyes would like to engage into a business. He wants to put up a
gasoline station in their city but he has difficulties in processing his papers with
the different government offices because of the “under the table” system. What do
you think is the underlying problem in the city?
A. Poverty C. Corruption
B. Lack of education D. Unemployment
_______4. If Mr. Reyes will be granted the permit to run a gasoline station in the
city, this will solve one of the problems of the city and this is
___________________________.
A. Poverty C. Corruption
B. Lack of education D. Unemployment
_______5. Because of the pandemic that is happening nowadays, even in a wet
market selling vegetables, stocks get rotten and sales decline. What do you think is
the underlying problem behind this situation?
A. Poverty C. Corruption
B. Lack of education D. Unemployment
_______6. There are so many Overseas Filipino Workers who were repatriated to the
country because of the pandemic. What do you think will happen to these
repatriated OFWs? What will be the problem that will be brought to our country?
A. Poverty C. Corruption
B. Lack of education D. Unemployment
_______7. Many of the young people today works at a very young age as laborers.
They cannot work in a reputable company because of ________________________.
A. Poverty C. Corruption
B. Lack of education D. Unemployment
_______8. Farmers, fishermen and those living in rural areas are classified as poor
because of this problem.

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A. Poverty C. Corruption
B. Lack of education D. Unemployment
_______9. This problem is very common among government officials. Even the
former presidents of the country are being sued because of this problem.
A. Poverty C. Corruption
B. Lack of education D. Unemployment
_______10. There are so many individuals today who opt to settle to a job with a
lower than minimum wage as prescribed by the law because they are
________________.
A. Poverty C. Corruption
B. Lack of education D. Unemployment

What’s New

Now, let us examine the lyrics of the song by Judas entitled “Dukha”.
https://youtu.be/uz-re19CjUM?t=20

DUKHA
Ako ay isang anak mahirap
Lagi na lang akong nagsusumikap
Ang buhay ko’y walang sigla
Puro na lang dusa
Paano na ngayon ang buhay ko.

Sa akin ay walang tumatanggap

Mababa raw ang aking pinag-aralan
Grade 1 lang ang inabot ko
No read no write pa ako
Paano na ngayon ang buhay ko.

KORO:
Isang kahig, isang tuka
Ganyan kaming mga dukha
Isang kahig, isang tuka
Ganyan kaming mga dukha.

What do you think are the problems being stated in the song? Identify and
write it down in the space provided below.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

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 What is It

According to the Atlantis Report, the economy of the Philippines is the

world’s 34th largest economy by nominal Gross Domestic Product (GDP). 13 th
largest economy in Asia, the 3rd largest economy in the ASEAN after Indonesia and
Thailand.
It is considered a highly industrialized country transitioning from an
agricultural to servces and manufacturing in the year 2018. GDP at Purchasing
Power Parity (PPP) was estimated to be at ＄990 billion exporting semi-conductors
and electronic products, transport equipments, garments, copper products,
petroleum products, coconut oil and fruits. Major trading partners include Japan,
China, United States, Singapore, South Korea, Netherlands, Hongkong, Germany,
Taiwan and Thailand.
It has been named as one of the Tiger Cub Economies together with
Indonesia and Thailand. Currently one of the Asian’s fastest growing economies.

It is the world’s epicenter of call centers because of the Business Process

Outsourcing (BPO) companies who trusted the Filipino workers here since Filipinos
speak English language fluently.

It ‘s revenues from the OFW’s remittances from all over the world has also
put the country’s economy into a stable condition.

However, there are still so many problems being faced by the country. To
name a few, these are poverty, lack of education, unemployment and corruption.

The following data below are taken from the Philippine Statistics Authority
website.

Proportion of Poor Filipinos registered at 21.0 percent in the First Semester

of 2018
Reference No.: 2019-053

Release Date: 10 April 2019

Food and Poverty Thresholds

In the first semester of 2018, a family of five needed no less than PhP 7,337, on
average, to meet the family’s basic food needs for a month. This amount is the food
threshold. On the other hand, no less than PhP 10,481, on average, was needed to
meet both basic food and non-food needs of a family of five in a month. This amount
is the poverty threshold. These are 10.9 percent higher than the food and poverty
thresholds from the first semester of 20151.
Food threshold is the minimum income required to meet the basic food needs,
satisfying the nutritional requirements set by the Food and Nutrition Research
Institute (FNRI) to ensure that one remains economically and socially productive. On
the other hand, poverty threshold is the minimum income required to meet the basic

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food and non-food needs such as clothing, fuel, light and water, housing, rental of
occupied dwelling units, transportation and communication, health and education
expenses, non-durable furnishing, household operations and personal care and
effects.
Poverty among Filipino families and individuals
Poverty incidence among Filipinos families in the first semester of 2018 was
estimated at 16.1 percent. This is defined as the proportion of families whose income
is below the poverty line to the total number of families. This was estimated at 22.2

percent1 in the same period in 2015.

The poverty incidence among Filipino individuals in the first semester of 2018 was
estimated at 21.0 percent. This is referred to as the proportion of the population
living below the poverty line to the total population. During the same period in 2015,
poverty incidence among Filipinos was recorded at 27.6 percent 1.

The subsistence incidence among Filipino familieswas estimated at 6.2 percent 1 in

the first semester of 2018.This is alternatively called as the proportion of Filipino
families whose incomes fall below the food threshold. In the same period in 2015,

the proportion of families who are food poor was recorded at 9.9 percent.
The subsistence incidence among Filipino individuals was estimated at 8.5 percent
in the first semester of 2018, and 13.0 percent1 in the first semester of 2015. It refers
to the proportion of Filipinos whose incomes fall below the food threshold.
In addition to the thresholds and incidences, the PSA also releases other poverty-
related statistics in the report such as the income gap, poverty gap and severity
of poverty. The income gap measures the average income required by the poor in
order to get out of poverty, expressed relative to the poverty threshold. The poverty
gap refers to the income shortfall (expressed in proportion to the poverty threshold)
of families with income below the poverty threshold, divided by the total number of
families. The severity of poverty is the total of the squared income shortfall
(expressed in proportion to the poverty threshold) of families with income below the
poverty threshold, divided by the total number of families. This is a poverty measure
that is sensitive to income distribution among the poor.

In the first semester of 2018, on average, incomes of poor families were short by 26.9
percent of the poverty threshold.
LISA GRACE S. BERSALES, Ph. D.
Undersecretary
National Statistician and Civil Registrar General

Farmers, Fishermen and Children consistently posted the highest poverty

incidence among basic sectors - PSA
Reference No.: 2017-150
Release Date: 30 June 2017

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The Philippine Statistics Authority (PSA) releases its latest report today on the
country’s official poverty statistics for the basic sectors for 2015. PSA report provides
the estimates of poverty incidence for 9 of the 14 basic sectors identified in Republic
Act 8425 or the Social Reform and Poverty Alleviation Act using the income and
sectoral data from the merged Family Income and Expenditure Survey (FIES) and
Labor Force Survey (LFS).

5 of the 9 basic sectors have higher poverty incidence than the general
population

Among the nine basic sectors, farmers, fishermen and children belonging to families
with income below the official poverty threshold or poor families posted the highest
poverty incidences in 2015 at 34.3%, 34.0% and 31.4%, respectively. These sectors
consistently registered as the three sectors with the highest poverty incidence in
2006, 2009 and 2012. Also, 5 of the 9 basic sectors consisting of farmers, fishermen,
children, self-employed and unpaid family workers, and women, belonging to poor
families, had higher poverty incidence than the general population estimated at 21.6%
in 2015.

Table 1. Poverty Incidence for Basic Sectors: 2006, 2009, 2012 and 2015

Source: Philippine Statistics Authority

a/ Considering data available in the Philippine Statistical System, poverty estimates

for self-employed and unpaid family workers, which serve as a proxy indicator for
informal sector workers, have been generated since the June 2012 release of the 2009
Poverty Statistics for the Basic Sectors.
Notes:

1/ Basic sectors are not mutually exclusive, i.e., there are overlaps for sectors (women
may also be counted as senior citizens, farmers, etc.)
2/ Income derived from the FIES, which was used for classifying poor or non-poor basic
sectors, refer to the total family income and not necessarily the income of the individual
in a particular sector. Hence, total income of a family with two family members who
are both working, one is a farmer while the other is a fisherman, for example, is divided
among the family members to get the per capita income of each member including the
farmer. If the per capita income is below the poverty threshold, then all the members
of the family are considered poor.

3/ Poverty estimates for the three other basic sectors, i.e., indigenous people, persons
with disabilities, and victims of calamities and disasters were not generated as
information on these were not available in the merged FIES and LFS, the major data
sources for the estimation of poverty statistics for the basic sectors. On the other hand,
poverty estimates for the remaining two sectors, i.e., nongovernment organization, and
cooperatives are not generated as they are not applicable due to the nature of the sector
(i.e., not individuals).

Poverty incidence among employed and unemployed Filipinos who belong to

poor families registered at 18.0% and 16.4%, respectively, in 2015

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Similar in 2006, 2009 and 2012, employed individuals belonging to poor families
posted higher incidence in 2015 with 18% compared to the unemployed with
16.4%. It may be noted, however, that the difference between the poverty incidence
among employed and unemployed has declined through the years.

Table 2. Poverty Incidence for Employed and Unemployed Population: 2006,

2009, 2012 and 2015

Source: Philippine Statistics Authority

a/ PSA releases poverty estimates for the employed population starting with the June
2012 release of the 2009 Poverty Statistics for the Basic Sectors in response to the
need to measure the country’s performance towards meeting the Millennium
Development Goals (MDG) target on achieving full and productive employment and
decent work, i.e., indicator 1.6 or the proportion of employed people living below the
national poverty thresholds. Similarly, poverty incidence for unemployed population
was generated for comparison.
b/ Poverty incidence among employed population refers to the proportion of employed
individuals who belong to poor families to the total number of employed individuals.
On the other hand, poverty incidence among unemployed population refers to the
proportion of unemployed individuals who belong to poor families to the total number
of unemployed individuals.

LISA GRACE S. BERSALES, PH.D.

Undersecretary
National Statistician and Civil Registrar General

Filipino Families Are Most Deprived in Education

Reference No.: 2018-187

Release Date: 14 November 2018
The Philippine Statistics Authority (PSA) releases today the multidimensional poverty
statistics based on an initial methodology . It is called the multidimensional poverty
index (MPI) and serves to complement the income-based measure of poverty. The
MPI is a measure that intends to capture deprivations on various dimensions. Thus,
the MPI provides information on which dimension the Filipinos are most deprived in.
In the initial methodology, there are 13 indicators identified across the following four
dimensions:
I. Education dimension

I. Education III. Housing, Water and

dimension Sanitation dimension
• school attendance • ownership of assets
• educational • toilet facility
attainment • source of water supply
• tenure status of dwelling

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 • housing materials
• electricity

II. Health and IV. Employment dimension

Nutrition dimension • underemployment
• hunger • working children not in
• food consumption school
• health insurance

Share of Each Dimension to MPI2

The Education dimension had the largest share or contribution to overall deprivation
(MPI) at 36.5 percent and 36.9 percent in 2016 and 2017, respectively. The Health
and Nutrition dimension comes next with a contribution of 26.2 percent in 2016 and
27.5 percent in 2017.The share of Housing, Water and Sanitation to MPI was 26.4
percent in 2016 and 27.4 percent in 2017. Employment dimension, on the other
hand, had the least share to MPI.

Incidence of Deprivation among Families per Indicator

Among the 13 indicators, educational attainment consistently had the highest incidence
of deprivation among families for 2016 and 2017 at 59.3 percent and 49.4 percent,
respectively. These mean that 6 out of 10 families in 2016 and 5 out of 10 families in
2017 were deprived of basic education; that is, 6 out of 10 families had at least one family
member aged 18 years old and above who did not complete basic education in 2016 and
5 out of 10 in 2017. Conversely, hunger had the least incidence at 0.3 percent and 0.6
percent in 2016 and 2017, respectively.

In 2017, the following indicators had the highest incidence of deprivation among families
for the other dimensions:

Indicator Dimension
Health insurance at 32.1 percent Health and nutrition
Housing, water and
Ownership of assets at 34.3 percent
sanitation
Underemployment at 6.6 percent Employment

It must be noted, though, that there was an increase in incidence of deprivation from
2016 to 2017 in the following indicators and dimensions:

Indicator Dimension
Housing, water and
Tenure status of dwelling
sanitation
Hunger Health and nutrition

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 Highlights of the April 2020 Labor Force Survey

a. Unemployment rate rose to 17.7 percent accounting to 7.3 million

unemployed Filipinos in the labor force in April 2020. This is a record high in
the unemployment rate reflecting the effects of Corona virus disease 2019
(COVID-19) economic shutdown to the Philippine labor
market. Unemployment rate in January 2020 was 5.3 percent while in April
2019, it was recorded at 5.1 percent.
b. Labor force participation rate among Filipinos 15 years and older is
estimated at 55.6 percent in April 2020, the lowest in the history of Philippine
labor market.
c. Employment rate in April 2020 fell to 82.3 percent from 94.7
percent in January 2020. In April 2019, it is posted at 94.9 percent. This
translates to 33.8 million employed persons in April 2020 from 41.8
million in April 2019.
d. Average number of hours worked per week also fell to 35.0 in April 2020, a
drop from 41.8 hours per week in April 2019.
e. Employed persons with job but not at work is reported at 38.4 percent or
13.0 million of the total employed.
f. All regions reported double-digit unemployment rates. The highest
unemployment rate was in Bangsamoro Autonomous Region in Muslim
Mindanao (BARRM) at 29.8 percent. It is followed by Region III (Central Luzon)
and Cordillera Administrative Region (CAR) with unemployment rates recorded
at 27.3 percent and 25.3 percent, respectively.
(Sgd.) CLAIRE DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

Technical Notes
 Starting April 2005, the new unemployment definition was adopted per NSCB
Resolution Number 15 dated October 20, 2004. As indicated in the said resolution,
the unemployed include all persons who are 15 years and over as of their last
birthday and are reported as: (1) without work and currently available for work and
looking for work; or (2) without work and currently available for work but not looking
for work due to the following reasons:
1. Tired/believed no work available
2. Awaiting results of previous job application
3. Temporary illness/disability
4. Bad weather
5. Waiting for rehire/job recall

 Starting April 2012 LFS, the codes for industry adopted the 2009 Philippine
Standard Industrial Classification (PSIC). Prior to this, codes for industry used
the 1994 PSIC.
 Question on vocational course was introduced in the April 2012 LFS
questionnaire.
 Starting April 2016 round, the Labor Force Survey (LFS) adopted the 2013
Master Sample Design, with a sample size of approximately 44,000 households.

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 The 2012 Philippine Standard Occupational Classification (PSOC) was adopted
starting April 2016. The 1992 PSOC had been used prior to April 2016.
 In July 2016, the 2008 Philippine Standard Classification of Education (PSCED)
that was used in the 2015 Population Census (2015 POPCEN) has been
adopted. The categories for highest grade completed were also revised
considering the K to 12 program in the education system.
 In April 2017 round, Computer Aided Personal Interviewing (CAPI) using Tablet
was utilized in the LFS enumeration.
 Overseas Filipino Workers are not considered part of the labor force in the
Philippines. Hence, in the LFS, data on economic characteristics of household
members who are overseas workers are not collected. For the LFS reports, they
are excluded in the estimation of the size of working population, that is,
population aged 15 years and older, and in the estimation of the labor force.
 Starting with the January 2020 LFS round,
the population projections based on the 2015 Population Census (POPCEN
2015) has been adopted to generate the labor force statistics. For comparability,
population projections based on the POPCEN 2015 was likewise used in the April
2019 labor force statistics.
 The April 2020 LFS was conducted from 20 April to 16 May 2020.

Employment Situation in October 2019

Reference Number: 2020-056
Release Date: May 12, 2020

More than 60 percent of the population 15 years old and over are in the labor
force
Of the estimated 73.5 million population 15 years old and over in October
2019, approximately 45.2 million persons were in the labor force, that is, either
employed or unemployed (Table 1 and Table 3). This translates to a labor force
participation rate (LFPR) of 61.5 percent. Region X (Northern Mindanao) had the
highest reported LFPR with 66.8 percent while the lowest LFPR reported was in
Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) at 53.4
percent (Table 1 and Figure 1).

Employment rate registers at 95.5 percent

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The total number of employed persons in October 2019 was estimated at 43.1
million (Table 2). The reported employment rate or the proportion of employed
persons to total labor force was 95.5 percent(Table 1).
Region IX (Zamboanga Peninsula) had the highest employment rate with 98.1
percent. Seven of the 17 regions registered employment rates lower than the
national figure of 95.5 percent. These regions are the following: Bangsamoro
Autonomous Region in Muslim Mindanao (BARMM) (93.4%),Region IV-A
(CALABARZON) (94.2%),Region I (Ilocos Region) (94.8%),Region V (Bicol Region)
(95.2%),Region III (Central Luzon) (95.3%),National Capital Region (NCR) and Region
XIII (CARAGA) (95.4%). (Table 1 and Figure 2).

More males are employed than females

More than sixty percent (61.3%) of the estimated 43.1 million employed persons
in October 2019 were males. The largest number of the employed persons was in age
group 25 to 34 years with 27.7 percent of the total employed. The 35 to 44 age group
comprised the second largest group (23.0%), while the 45 to 54 age group made up
the third largest group (18.7%). Employed females were reported at 38.7 percent of
total employed persons (Table 3 and Figure 3).

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More than half of employed persons are in the services sector
Employed persons in the services sector remained the highest group estimated
at 57.7 percent of the total employed in October 2019. In October 2018, it was
estimated at 56.8 percent.
The share of the industry sector to total employment posted a decrease of 0.2
percentage points, from a contribution of 19.1 percent in October 2018 to 18.9
percent in October 2019. In the agriculture sector, a combined share of agriculture,
forestry, hunting and fishing sub-sectors showed a 0.6 decrease, from 24.1
percentin October 2018 to 23.5 percent in October 2019. (Table 4 and Figure 4).
Among workers in the services sector, those engaged in wholesale and retail trade;
repair of motor vehicles and motorcycles made up the largest percentage with 19.8
percent of the total employed (Table 4).

More than one-fourth of employed persons are in elementary occupations

Across occupation groups, workers in elementary occupations made up the largest
percentage of 26.0 percent of the 43.1 million total employed population. Service and
sales workers were the second largest group of workers with 18.6 percent. Skilled
agricultural, forestry and fishery workers were the third largest group accounted
at 12.0 percent (Table 5 and Figure 5).

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Majority of employed persons are wage and salary workers
Employed persons were categorized as wage and salary workers, self-employed
without any paid employee, employer in own family-operated farm or business and
unpaid family workers.
Wage and salary workers are those who work for private households, private
establishments, government and government-controlled corporations and those who
work with pay in own family-operated farm or business. In October 2019, wage and
salary workers registered at 64.2 percent. Those who worked in private
establishments made up 50.8 percent and those working in government and
government-controlled corporations were accounted for 9.2 percent of the total
employed persons. (Table 6).
Classified according to broad industry group, 55.9 percent of unpaid family workers
were in the agriculture sector. In contrast, sixty percent (60.8%) of wage and salary
workers were in the services sector. More than half (54.0%) of those who were
employer in own-family operated farm or business were in agriculture. Also, more
than fifty percent (56.6%) of self-employed without any paid employee were in the
services sector (Table 7 and Figure 6).

Majority of employed persons work full-time

Employed workers are classified as either full-time or part-time workers. Full-time
workers are those who work for 40 hours or more while part-time workers work for
less than 40 hours. Full-time workers comprised 68.7 percent of the total employed
persons in October 2019. Those who worked for 40 to 48 hours made up a larger
proportion of 48.2 percent, while those who worked more than 48
hours comprised 20.5 percent. Part-time workers comprised 30.5 percent of the
total employed. In October 2019, part-time workers increased while full-time
workers decreased in terms of numbers and percentages. Mean hours worked per
week also decreased, from 42.8 in October 2018 to 41.8 in October 2019 (Table
8).

14
Underemployment rate is registered at 13.0 percent
Underemployed persons were estimated at 5.6 million in October 2019. This number
represented 13 percent of the total employed persons (Tables1 and 2).
Underemployed persons are employed persons who express the desire to have
additional hours of work in their present job or to have additional job, or have a new
job with longer working hours.
Among the broad industry group, underemployed persons were highest in the
services sector at 44.9 percent,37.8 percent in the agriculture sector and 17.3
percent in the industry sector (Table 9 and Figure 7).
Visibly underemployed, or those persons who had been working for less than 40
hours a week accounted for 60.5 percent, a large percentage (77.4%) of which were
in the agriculture sector (Table 9).

Unemployment rate is recorded at 4.5 percent

Of the total 45.2 million15 years old and over who are economically active, 2.1
million were unemployed which placed the country's unemployment rate to 4.5
percent (Tables 1 and 2).
The regions with unemployment rates higher than the national figure of 4.5
percent are as follows: Bangsamoro Autonomous Region in Muslim
Mindanao (BARMM) (6.6%),Region IV-A (CALABARZON) (5.8%), Region I (Ilocos
Region) (5.2), Region V (Bicol Region) (4.8%), Region III (Central Luzon) (4.7%),
National Capital Region (NCR) and Region XIII (Caraga) (4.6%) (Table 1 and Figure
8).
Unemployed persons were highest in age group 15 to 24 years at 46.1 percent. More
males (61.4%) were unemployed than females (38.6%) (Table 3).
Across educational groups, 37.0 percent of unemployed persons were either
undergraduate or graduate of junior high school or the old curriculum, 37.8
percent reached college wherein 27.9 percent were graduates, 6.8 percent were
elementary graduates, 3.6 percent were Senior High School graduates, and 4.4
percent were graduates of post secondary courses (Table 10).

15
Majority of persons not in the labor force are women
Thirty-eight percent of the 73.5 million population 15 years old and over in October
2019 were not in the labor force. These include housewives, students, persons with
disability, and those who have retired from their employment. About seventy
percent (67.3%) were women.
By age group, 44.2 percent of persons not in the labor force were in age group 15-
24 years old. Among the 15-24 years old age group 80.3 percent are students or
the reason why not in the labor force is due to schooling (Table 3 and Figure 9).

16
  The labor force population in October 2019 was estimated at 45.2
million. This translates to a labor force participation rate (LFPR) of 61.5
percent.
 Total employed persons were approximately 43.1 million, resulting to a
national employment rate of 95.5 percent.
 More than half (57.7%) of the total employed were in the services
sector, 23.5 percent were in the agriculture sector, and 18.9 percent were in
the industry sector.
 Workers in elementary occupations made up the largest proportion of
employed persons as they comprised 26.0 percent of the total employed
population.
 The total unemployed persons was 2.1 million which translates to an
unemployment rate of 4.5 percent.
 Underemployment rate was estimated at 13.0 percent.

(Sgd.) CLAIRE DENNIS S. MAPA, Ph.D.

Undersecretary
National Statistician and Civil Registrar General

CORRUPTION
According to Merriam Webster Dictionary, it is the dishonest or illegal
behavior especially by powerful people (such as government officials or police
officers. It is an inducement to wrong by improper or unlawful means (such as
bribery).
Global Compliance News identified bribery as corruption.

Bribery of public officials is penalized under Articles 210 to 212 of the Revised
Penal Code.

There are other laws that penalize corrupt acts/practices and prohibit the giving of
gifts to public officers under certain circumstances.

17
Republic Act No. 3019 (The Anti-Graft and Corrupt Practices Act) is the main anti-
corruption law. It enumerates certain acts of public officers that constitute graft or
corrupt practices, or which may lead thereto, as follows:

 Persuading, inducing or influencing another public officer to perform an act

constituting a violation of rules, or an offense in connection with official
duties
 Requesting or receiving any gift, present, share, percentage or benefit, for
himself or for any other person, in connection with any contract or
transaction between the government and any other party, wherein the public
officer in his official capacity has to intervene under the law
 Requesting or receiving any gift, present or other pecuniary or material
benefit, from any person for whom the public officer has secured or
obtained, or will secure or obtain, any government permit or license
 Accepting or having any member of his family accept employment in a
private enterprise that has pending official business with him, during the
pendency thereof or within one year after its termination
 Causing any undue injury to any party, including the government, or giving
any private party any unwarranted benefits, advantage or preference in the
discharge of his functions through manifest partiality, evident bad faith or
gross inexcusable negligence
 Neglecting or refusing to act within a reasonable time on any matter pending
before him for the purpose of obtaining some pecuniary or material benefit
or advantage, or for the purpose of favouring his own interest or giving
undue advantage in favour of or discriminating against any other interested
party
 Entering, on behalf of the government, into any contract or transaction
manifestly and grossly disadvantageous to the same, whether or not the
public officer profited or will profit thereby
 Having financial or pecuniary interest in any business, contract or
transaction in connection with which he intervenes or takes part in his
official capacity, or in which he is prohibited from having any interest
 Becoming interested, for personal gain, or having a material interest in any
transaction or act requiring the approval of a board, panel or group of which
he is a member, even if he votes against the same or does not participate in
the action of the board, committee, panel or group
 Knowingly approving or granting any license, permit, privilege or benefit in
favour of any person not qualified
 Divulging to unauthorized persons valuable information of a confidential
character acquired by his office or by him on account of his official position,
or releasing such information in advance of its authorized release date

Republic Act 6713 (The Code of Conduct and Ethical Standards for Public Officials
and Employees) prohibits public officials and employees from soliciting or
accepting, directly or indirectly, any gift, gratuity, favour, entertainment, loan or
anything of monetary value from any person: (a) in the course of their official
duties; or (b) in connection with any operation being regulated by, or any
transaction which may be affected by, the functions of their office.

18
Presidential Decree No. 46 (Giving of Gifts on any Occasion) punishes the act of
giving, or offering to give, to a public official or employee, a gift, present or other
valuable thing on any occasion, including Christmas, when such gift, present or
other valuable thing is given by reason of the public official/employee’s position,
regardless of whether or not the same is for past favour or the giver hopes or
expects to receive a favour or better treatment in the future from the public official
or employee concerned, in the discharge of his official functions. Included within
the prohibition is the throwing of parties or entertainment in honour of the public
official or employee, or of his immediate relatives.

Republic Act 7080 (Plunder) penalizes a public officer who acquires ill-gotten
wealth in the total of at least PHP 50 million through overt or criminal acts.

Metro Manila (CNN Philippines, January 23) — Corruption worsened in the

Philippine government in 2019 as it ranked 113th of 180 countries studied on their
perceived political integrity.

Transparency International, a nonprofit watchdog monitoring the status of global

corruption in the public sector, has issued the Corruption Perceptions Index (CPI)
for 2019, showing that the Philippines dropped 14 notches from 99th in year 2018.

In its current ranking, the Philippines obtained a score of 34, down by 2 points
from 36 in 2018.

The CPI scores countries and territories by their perceived levels of public sector
corruption using a scale of zero to 100, with zero as “highly corrupt” and 100 as
“very clean.”

The Philippines’ score indicates that it “continue[s] to struggle to tackle corruption,”

along with other countries in the Asia Pacific region, the report read.

This is the lowest ranking that the country has received since 2012. While the
Philippines also got a score of 34 in 2017, it only ranked 111th out of 180
countries.

In 2016, the country placed 101st, 95th in 2016, 85th in 2018, 94th in 2013, and
105th in 2012.

The index noted that of the 31 countries assessed in the Asia Pacific, the regional
average was at 45, illustrating “general stagnation” in control of corruption in the
region.

“Governments across the region, from China to Cambodia to Vietnam, continue to

restrict participation in public affairs, silence dissenting voices and keep decision-
making out of public scrutiny,” the report read.

“Given these issues, it comes as no surprise that vibrant economic powers like
China (41), Indonesia (40), Vietnam (37), the Philippines (34) and others continue
to struggle to tackle corruption,” it added.

19
New Zealand and Denmark topped the corruption index, with scores of 87 each,
followed by Finland with a score of 86, Singapore with 85, Sweden with 85, and
Switzerland with 85.
The bottom countries are Somalia, South Sudan and Syria with scores of 9, 12 and
13, respectively.
“Governments must urgently address the corrupting role of big money in political
party financing and the undue influence it exerts on our political systems,” said
Transparency International chair Delia Ferreira Rubio.

What’s More

Read carefully each questions below. Encircle the correct letter of your
answer.
1. What is the estimated Poverty incidence of Basic sectors identified by the
Republic Act 8425 or the Social Reform and Poverty Alleviation Act using the
incomee and sectoral data from merged Family Income Expenditures (FIES) and
Labor Force Survey (LFS)?
A. 6 of 14 C. 3 of 14
B. 9 of 14 D. 10 of 14

2. This refers to the proportion of employed individuals who belong to poor families
to the total number of employed individual.
A. Poverty incidence among employed population
B. Employment incidence
C. Corruption incidence
D. None of the above

3. According to the Atlantis Report, Philippines ranked _________ as the world’s

largest economy by nomina Gross Domestic Product (GDP).
A. 13th C. 34th
B. 28th D. 3rd
4. It is the measure that intends to capture deprivations on various dimensions.
MPI stands for ______________________________________________.
A. Multidimensional Poverty Index C. Multidimensional Poverty
Institution
B. Multidivisional Poverty Index D. Methodology Poverty Index
5. What MPI among the four dimensions are Filipinos most deprived of?
A. Housing, water and sanitation C. Employment
B. Education D. Health and Nutrition

6. What is the percentage of Health and Nutrition Dimension on the overall

deprivation contribution to MPI in the year 2017?
A. 36.5% C. 26.2%
B. 36.9% D. 27.5%

20
7. What is the percentage of unemployed Filipinos in the Labor Force in April 2020
due to t he effects of Corona Virus Disease 2019 (Covid 19)?
A. 5 C. 17.7%
B. 5.1% D. 7.3%

8. They are considered ________________ because they are working for forty (40)
hours or more in a week.
A. Underemployed C. Part-time
B. Unemployed D. Full-time

9. They are employed persons who express the desire to have additional hours of
work in their present job or to have additional job, or have a new job with longer
working hours.
A. Underemployed C. Part-time
B. Unemployed D. Full-time
10. The rank of the Philippines in corruption in 2019 in out of 180 countries
according to CNN is _____________.
A. 99th C. 111th
B. 113th D. 94th

What I Have Learned

Choose the correct answer and write the letter on the space provided before
each number.

_________1. Philippines was named as one of the “Tiger Cub Economies” together
with what country in Asia?
A. South Korea and Japan C. Indonesia and Thailand
B. Sout Korea and Thailand D. South Korea and Indonesia

_________2. What are the four basic problems the world is facing right now?
A. Poverty, Unemployment, Corruption and Disaster
B. Poverty, Malnutrition, Corruption and Disease
C. Poverty, Lack of Education, Malnutrition and Corruption
D. Poverty, Lack of Education, Unemployment and Corruption

_________3. What is the average amount of income in a month that a family of five
would need to meet the basic food needs?
A. Php 7,337.00 C. Php 7,733.00
B. Php 10,481.00 D. Php 8,401.00

_________4. 5 of the nine basic sectors have higher poverty incidence than the
general population. These five (5) sectors are: __________________.
A. Farmers, fishermen, children, self-employed and indigenous people

21
B. Farmers, fishermen, children, employed and unaid family workers and women
belonging to poor families.
C. Farmers, fishermen, unemployed, indigenous people and children
D. Farmers, fishermen, women, children and indigenous people.

_________5. According to PSA, Filipinos are most deprived in_______________.

A. Housing, Sanitation dimension C. Health and Nutrition dimension
B. Employment dimension D. Education dimension

_________6. The lowest percentage in history of Philippine Labor Market of Filipinos

15 years an older in April 2020 is _____________.
A. 55.6% C. 58.2%
B. 94.7% D. 7.3%

_________7. The region which has the highest unemployment rate of 29.8% is
A. Bangsamoro Autonomous Region of Muslim Mindanao ( BARMM)
B. Region III
C. Cordillera Administrative Region (CAR)
D. Region VII

_________8. The educational group where unemployed persons reach 37%.

A. College graduate
B. Senior High School graduate
C. Elementary graduate
D. Undergraduate or Junior High School graduate

_________9. An Act which the main anti-corruption law.

A. RA 6713 The Code of Conduct and Ethical Standards for Public Officials
B. RA 7080 Plunder
C. RA 3019 The Anti-Graft and Corrupt Practices
D. PD #46 Giving of Gifts on any occassion

_________10. It is the act that prohibits public officials and employees from
soliciting or accepting, directly or indirectly, any gift, gratuity, favour,
entertainment, loan or anything of monetary value from any person: (a) in the
course of their official duties; or (b) in connection with any operation being
regulated by, or any transaction which may be affected by, the functions of their
office
A. RA 6713 The Code of Conduct and Ethical Standards for Public Officials
B. RA 7080 Plunder
C. RA 3019 The Anti-Graft and Corrupt Practices
D. PD #46 Giving of Gifts on any occassion

What I Can Do

Site a vivid illustration of problems that are happening in your community.

Why do you think these things are happening? Answer on the space provided
below.

22
 Assessment

Place your answer on the space provided before each number.

1-4 The four basic economic problem in the country.
1.
2.
3.
4.

______5. The problems where most of the sectors in agriculture, fishing and people
living in rural areas are classified as one.
A. Poverty C. Unemployment
B. Lack of Education D. Corruption

________6. The problem which usually involves a government official.

A. Poverty C. Unemployment
B. Lack of Education D. Corruption

________7. The region which has highest unemployment rate in the country in April,
2020.
A. Bangsamoro Autonomous Region of Muslim Mindanao ( BARMM)
B. Region III
C. Cordillera Administrative Region (CAR)
D. Region VII

________8. More than one-fourth of employed persons across occupation groups are
______________________.
A. Service and Sales workers C. Elementary occupations
B. Skilled agricultural, forestry, fisheries D. Professionals

________9. This act prohibits public officials and employees from soliciting or
accepting, directly or indirectly, any gift, gratuity, favour, entertainment, loan or
anything of monetary value from any person.
A. RA 6713 The Code of Conduct and Ethical Standards for Public Officials
B. RA 7080 Plunder
C. RA 3019 The Anti-Graft and Corrupt Practices
D. PD #46 Giving of Gifts on any occassion
_________10. An act that penalizes a public officer who acquires ill-gotten wealth in
the total of at least PHP 50 million through overt or criminal acts.
A. RA 6713 The Code of Conduct and Ethical Standards for Public Officials
B. RA 7080 Plunder
C. RA 3019 The Anti-Graft and Corrupt Practices
D. PD #46 Giving of Gifts on any occassion

23
 Additional Activities

As what you have observe in your community, what problems do you see
around? Cite atleast four (4) and explain what would be its possible effects to the
entrepreneur and the economy as well?

References

Philippine Statistics Authority

Merriam Websters Dictionary
Global Compliance News
CNN

What I Know

Test I
Choose the best answer and write it on the space provided before each
numbered question

___________1. .It is an economic problem in the community especially those living

in rural areas as farmers, fisherman, laborers, etc.
A. Poverty C. Unemployment
B. Lack of Education D. Corruption

___________2. An economic problem in the country where government officials are

involved and thus degrading the quality of governance and the image of our country.
A. Poverty C. Unemployment
B. Lack of Education D. Corruption

___________3. An economic problem which triggers another economic problem

which is poverty.
A. Poverty C. Unemployment
B. Lack of Education D. Corruption

___________4. An economic problem which is the cause of the problem in

unemployment or underemployment.
A. Poverty C. Unemployment
B. Lack of Education D. Corruption

24
___________5. An economic problem that is the result of pandemic where Overseas
Filipino Workers were repatriated to the Philippines because their employers have
closed their businesses abroad.

A. Poverty C. Unemployment
B. Lack of Education D. Corruption

Test II For five (5) points, discuss the possible effects of these economic problem to
the country as a whole. Can a problem be the reason/cause for another problem?
Explain.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Analyzing the effects of

Lesson
2
contemporary economic issues
affecting the Filipino entrepreneur

In our previous lesson, you have learned the four (4) basic economic problem
of our country and they are Poverty, Lack of Education, Unemployment and
Corruption.
In this lesson you will learn how to analyze the effects of these economic
problem to the Filipino entrepreneur and eventually the country as a whole.

What’s In

Answer the question below with true or false. Write your answers on the
space provided before each number.

_________1. The number one problem in the country is poverty.

_________2. Lack of education is the result of poverty.
_________3. Economic problems do not affect each other.
_________4. The possible effects of poverty is malnutrition and lack of education.
_________5. The economic problems that we are facing now can be given solution if
everybody will cooperate and join hand in hand in eradicating these problems.
_________6. Most, if not all of the government officials are corrupt.

25
_________7. Government officials or persons working in the government can accept
gifts if it is given by those who are satisfied by their service.
_________8. There are a small number of laborers/workers who are
dissatisfied/discontented with their salaries or wages.
_________9. Urban areas are usually crowded/overpopulated places because people
tend to go there because of opportunities for work are many.
________10. Families which are considered rich are those who have bigger families
with children 4-6.

What’s New

It was discussed in the previous lesson the basic economic problems in our
country and this includes poverty, lack of education, unemployment and corruption.
These are the most common problems that can be seen daily in our day to day
activities. There are still economic problems but these four are the most common.
With these economic problems being mentioned above, what do you think are
its effects to the Filipino entrepreneur and the economy of the country as a whole?

Read the lyrics of the song entitled “Magbago Ka” by Freddie Aguilar. Below
the song is a space provided for your realization. Is our country changing for the
better? Is there hope after what is happening to the world nowadays? Explain.

Magbago Ka

Freddie Aguilar

'Di ka man lang nag-isip

'Di ka man lang nagsikap
Pinabayaan mo ang iyong kinabukasan
Ba't ka ganyan
'Di naman sila nagkulang
Ibinigay ang 'yong kailangan
Bakit bumagsak ka sa kalokohan
Nagpabaya ka
Lagi kang naglalasing
Magulang mo'y 'di pinapansin
Nais lang naman nila'y sa 'yong kabutihan
Magbago ka

Magbago ka
Magbago ka
Magbago ka

Kung lalagi kang ganyan

Ikaw ay walang pupuntahan

26
Baka umabot ka hanggang sa kulungan
Mag-isip ka
'Di ka ba naaawa
Sa 'yong mahal na ama't ina
Nabibilang na ang kanilang mga araw
Magbago ka

[Repeat Chorus]
'Di ka ba naaawa
Sa 'yong mahal na ama't ina
Bibiguin mo ba ang kanilang mga pangarap
Magbago ka'Di ka ba naaawa
Sa 'yong mahal na ama't ina
Bibiguin mo ba ang kanilang mga pangarap
Magbago ka

Magbago ka
Magbago ka
Magbago ka

Nang 'di ka magsisi sa huli...

Source: Musixmatch

___________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

What is It

Problems are interrelated with each other. A problem is the cause or effect of
another problem. Let us enumerate our country’s economic problem and its possible
domino effect.

Poverty. This is never been a blind figure in our community. Many are
suffering from this problem. How can we say that a person or a family is experiencing
this kind of problem? Yes, a family can be suffering with this economic problem if
this family cannot buy their basic needs (food, shelter and clothing), as well as cannot
send their children to school, They lived in a squatter area with not enough space
for their shelter/home. And therefore, this problem can be a reason for other
problems. What do you think are these? These can be lack of education, malnutrition,
early marriage of children, unemployment, among others. Aside from these effects,
since poor families rely their income from their unsecured employment, meaning
working but it’s either on a contractual basis or “pakyaw”, they don’t have the
purchasing power or the ability to buy the goods and services being sold in the

27
market. They can buy but on a limited basis because they don’t have the money to
buy it. They have to secure for their food first before buying anything beyond thier
needs. This therefore makes our economy more stiff because if most of our people
are poor, are economy will also be poor.

Lack of education. This problem as stated above is the result of poverty.

Because families who are poor are only securing for their food, their children cannot
be sent to school because they cannot afford it. Although our government has this
Education for All Program, where public schools are all free of its tuition fees and
sometimes even the school supplies are given to students who well-deserved it, still
children oftentimes stop their schooling because of hunger. They go to school
without eating their breakfast or lunch and without even thier “baon”, therefore, they
stop going to school. And because children coming from poor families cannot
graduate usually in high school, they end up as laborers without fixed income or
salaries which in return will make them stay as a poor family. And the cycle
continues except if parents will look for a way to make sure that their children
continue their education. Most of the times both father and mother are working
inorder to provide for the needs and the schooling of their children so that they can
someday get out of the problem.

Unemployment. If a person is undergraduate, for sure he cannot find a job

with a better salary. This is a very serious problem. If someone does not have a job,
he will end up a very problematic person because he/she cannot provide for the
needs of his/her family neither can sustain it. This will lead someone to a go to a
place where he can find a job or a place where job opportunities are being offered -
to a high urbanized city, a highly industrialized one where a male can apply for a
construction company or any elementary occupation as well as a female can apply
for household works. This is what comes to a mind of someone who is an
undergraduate or has not go to school at all, or stay in his or her place in the rural
area and remain as a farmer or a fisherman. Sometimes, women tend to settle to
prostitution just to earn for a living and so unwanted child are born or abortion
exists. These kind of work do not give opportunity for a better salary even if there is
that so called “Salary Standardization law”. There are employers who let their
employees sign in a payroll with the correct amount of salary as prescribed by the
law but what is actually received by the employee is much lesser than what is stated
in the payroll that they have signed. So that this problem do not come to the
attention of the Department of Labor and Employment (DOLE). Employees especially
these undergraduate individuals do not have the courage to inform the agency of
what is actually they are receiving that is against the law. This problem leads to
another problem and that is overpopulation in the urban areas. Here, room rentals
and bedspacers are in demand that lead to overpricing of the rooms. As the law of
supply and demand, as the demand increases, the price of the products also
increases. Likewise, demand for goods also increase thereby increases the price of
the products. And though prices in urban areas are high, a laborer still opt to stay
because here he/she can be employed and stay employed.
Government officials should appropriate economic policies for labor intensive
industries especially on rural areas so that persons living in the rural areas will not
migrate to urban areas and avoid overpopulation in urban areas.
Corruption. As what we have learned In the previous lesson, this is a
dishonest act or bribery of someone in a position in the governement or those

28
employees working in a government office. This is the reason why there is the delay
in the development and improvement as expected in our country. Because of this
problem, social services and other infrastructure projects that are intended for the
people are not felt and seen per se because the whole amount of a project will not be
spent as a whole because there is this so-called “under-the-table”, “standard
operating procedures or SOPs”. Before a project is finished, tables for processing of
its papers with the different government agencies has its share. Gifts to government
officials and government employees in a higher rank enjoys these gifts in return for
a project approved. Although, there are those government employees who are still
straight and honest enough not to join with what is the “culture” of the office , still
they as one of the members/employees of the office cannot do away with it. Delay of
the projects happen and so economically slows down the growth of the country. And
if the growth of our economy is hindered, then people of our country are also afffected
as well as entrepreneurs and industries.
There are still so many problems our country is facing.
Overpopulation,underemployment, unequal distribution of wealth, poor performance
of agriculture sector of the economy as our economic problem, child labor, lack of
adequate social services, terrorism, prostitution as social problems, and many more.

These problems are interrelated and affects our entrepreneur and our
economy as a whole.

What’s More

Instructions. On the left side of the table are problems our country is facing.
Answer on the right side of the table the correcponding effects of a problem. You
can answer as many as you can. Separate your answer with just a comma.

PROBLEMS/ISSUES OF
EFFECTS
THE COUNTRY
Poverty
Lack of Education
Unemployment
Corruption
Underemployment
Drug Addiction
Prostitution
Pollution
Terrorism
Child labor

29
 What I Have Learned

Choose the correct answer. Write the letters on the space provided before
each number.

__________1. This major problem in our country resulted to problems like lack of
education, malnutrition, a stiff economic condition and unemployment.
A. Poverty C. Unemployment
B. Lack of Education D. Corruption

__________2. Tthis problem makes highly urbanized cities become overpopulated

because people migrate from rural areas to urban cities to seek for better
employment opportunities.
A. Poverty C. Unemployment
B.Lack of Education D. Corruption
__________3. This is the act of accepting gifts and money in return for a project or
papers released the earliest time possible.
A. Poverty C. Unemployment
B.Lack of Education D. Corruption

__________4. An individual cannot have a better job opportunity because of this

problem.
A. Poverty C. Unemployment
B.Lack of Education D. Corruption
__________5. People who has this problem lives in slums and squatters and cannot
even buy for the needs of his family.
A. Poverty C. Unemployment
B.Lack of Education D. Corruption
__________6. Because of this problem there is the delay in delivery of basic of goods
and services.
A. Poverty C. Unemployment
B.Lack of Education D. Corruption

__________7. This problem is the cause of almost all of the problems that we
encounter everyday.
A. Poverty C. Unemployment
B.Lack of Education D. Corruption
__________8. The answer for this problem is that a person should strive harder to
finish his studies thereby increasing/ empowering himself knowledge and
information inorder to get a high paid profession.
A. Poverty C. Unemployment
B.Lack of Education D. Corruption

30
__________9. Because of this problem, a person accepts the challenge of working in
a construction or household occupation as well as receiving salaries/wages below
minimum wage.
A. Poverty C. Unemployment
B.Lack of Education D. Corruption
__________10. Effects of this problem is overpopulation in urban areas ,increasing
the demand for bedspacers, rooms and apartments rental and demands for goods
and services.
A. Poverty C. Unemployment
B.Lack of Education D. Corruption

What I Can Do

Matching type. Match items in column A (problem) with column B (effect). Write
your answer on the space provided before each number.
A B
_____1. Poverty a. Scarcity of resources
_____2. Overpopulation b.. Cannot provide for basic needs
_____3. Corruption c. settle for elementary occupation
_____4. Unemployment d. abortion/unwanted child
_____5. Pollution e. criminality increases
_____6. Lack of education f. malnutrition
_____6. Prostitution g. delay in delivery of goods and services
_____7. Child labor h. health issues
_____8. Underemployment i. unequal distribution of wealth
_____9. Inequality j. unproductive employees
_____10. Drug addiction

Assessment

Talent Showcase
Choose only one of the problems that you have seen in your community.
Focus on this and make a video presentation, a vlog/blog, song, spoken poetry, a
poster of the problem and its corresponding effects in your community.

Rubrics for Scoring the output

5 pts. - Complete, vivid description of a problem and its

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 corresponding effects to the community are clearly visualized.
4 pts. - provided an incomplete, vague description of a problem and its
corresponding effects to the community are not so clearly
visualized
3 pts. - provided a problem but only give a small description of the
problem and its correspoding effects.
2 pts. - provided a problem with no description of the problem and its
Corresponding effects.
1 pt. - did not give a problem but just made something.

Additional Activities

Essay. Answer on the space provided below. Explain briefly.

What can I do to make my community a better place to live where economic

and social problems do not matter anymore?

References
Philippine Statistics Office

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