APPLIED ECONOMICS

Quarter 2 -Module IX.1

EFFECT OF THE VARIOUS SOCIOECONOMIC

FACTORS AFFECTING BUSINESS AND

INDUSTRY

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Applied Economics – SHS
Quarter 2 – Module IX.1: Effect of the Various Socioeconomic Factors Affecting
Business and Industry

Republic Act 8293, section 176 ​states that: No copyright shall subsist in any work
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Every effort has been exerted to locate and seek permission to use these materials from

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ownership over them.

Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin

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 SOCIOECONOMIC IMPACT

Just like investors, suppliers, consumers, households, government and international

trade have also the socioeconomic impact in the business/ industry. Let us now discuss the
effect of socio-economic factors affecting business and industry.

“Explain the effect of the various socio-economic factors affecting business and

industry.”

Power of Taxation is an inherent power of the state, acting through the legislature, to
impose and collect revenues to defray the necessary governmental expenditures.
International Trade is an organized way for countries to conduct business and trade
activities with each other.
Structural changes refer to the transformation of the agricultural sector as the stimulus
of growth to development of the industrial sector. (Todaro, Economic Development).

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 Socio - economic Impact Study is a type of systematic analysis used to identify and
evaluate the potential effects a proposed development may have on the social and
economic aspects of the lives of the members of the community
Demographics is the study of quantifiable characteristics of a population such as age,
gender, work experience, educational attainment, income, and other related variables.
Socioeconomic is the field of study which examines how economic activity and social
processes affect each other.

Answer the following questions.

Question Answer
Government:

1. What roles do the government and

its rules have in the establishment
of businesses?

2. How do the government and its

rules affect the establishment of
businesses?

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 3. Should the businesses be given
complete freedom by the
government?

International Trade:

1. How important it is for the

Philippines to build ties with
powerful countries?

2. How can our ties with other

countries help our economy?

3. How does our relationship with

other countries affect common
Filipinos?

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 Figure 1 shows the government’s participation and role in the economy. Government
collects taxes from both households and firms. These are inflows, which in turn are brought
back to the economy as government expenditures. The flow is a cyclical process where the

participants benefit by giving and receiving something to and from the economy. Taxes are
seen as inflows for government, and government expenditures are outflows to support basic
services. Government spending, in theory, should be able to help the poor by providing free
basic services to uplift their standard of living.

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 Department of Finance
BUREAU OF INTERNAL REVENUE
Revenue Collection by Region
For The Year 2018 & 2019
(In Million Pesos)

Increase
Particulars 2018 2019
(Decrease)
N.C.R. - NATIONAL CAPITAL

1,630,613.40 1,805,223.75 174,610.35

REGION
C.A.R. - CORDILLERA
5,202.10 6,440.32 1,238.22
ADMINISTRATIVE REGION
REGION I - ILOCOS REGION 12,477.28 14,084.05 1,606.77
REGION II - CAGAYAN VALLEY 8,283.24 8,859.75 576.51
REGION III - CENTRAL LUZON 40,104.49 41,977.43 1,872.94
REGION IV - A CALABARZON 61,866.29 71,927.88 10,061.59
Region IV- B MIMAROPA 5,397.17 6,581.81 1,184.64
REGION V - BICOL REGION 7,700.24 9,090.97 1,390.73
REGION VI - WESTERN VISAYAS 9,443.75 18,962.28 9,518.53

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REGION VII - CENTRAL VISAYAS 60,794.70 69,400.25 8,605.55
N.I.R. - NEGROS ISLAND REGION 9,308.88 7,046.72 -2,262.16
REGION IX - ZAMBOANGA
4,725.34 5,786.09 1,060.75
PENINSULA
REGION X - NORTHERN
9,214.48 11,106.46 1,891.98
MINDANAO
REGION XI - DAVAO REGION 32,847.99 37,618.48 4,770.49
REGION XII - SOCCSKSARGEN 6,468.08 6,757.15 289.07
REGION XIII – CARAGA 4,302.73 5,143.11 840.38
A.R.M.M. - AUTONOMOUS REGION
1,723.16 2,664.17 941.01
IN MUSLIM MINDANAO
I.BIR OPERATION 1,916,695.62 2,128,670.67 211,975.05
II.

NON-BIR OPERATIONS 45,784.93 53,259.13 7,474.2

III. NON TAX REVENUES 161.96 173.44 11.48

GRAND TOTAL 1,962,642.51 2,182,103.23 219,460.72

Table 1. BIR Collection for 2018 and 2019 (in million of pesos)
Source: BIR website:www.bir.gov.ph
Table 1 shows the BIR (Bureau of Internal revenue) collection for 2018 and 2019 in
million of pesos. In totality, the Philippines experienced an increase in collection. It also
shows that the National Capital region has the biggest share, while the smallest contribution
comes from the Autonomous Region in Muslim Mindanao.

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 The sector with the highest allocation is education, comprised of the budgets of the
Department of Education (DepEd), State Universities and Colleges (SUCs), the Commission
on Higher Education (CHED), and the Technical Education and Skills Development Authority
(TESDA). Its cash-appropriations in the proposed 2019 budget amounts to P659.3 billion,
higher by P72.2 billion or 12.3% than its cash-based equivalent in the 2018 budget.
Consistent with Build Build Build, the Public Works Department (DPWH) is allocated P555.7
billion, registering a P225.5 billion or 68.3% increase. Lastly, the ARMM is allocated P32.3
billion, P7.9 billion or 32.4% higher than last year. It will support the livelihood, peace and
order, and rural development projects in the region.

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 In a mixed-market economic system where resources are owned by government and
private entities, public services are supposed to be maintained and fulfilled by the
government. However, the government does not always have the financial capacity to
maintain such services. One option is to enlist the help of private entities in fulfilling said
services.
Public-Private Partnerships or PPPs are government projects funded and operated
by private firm or entities. In exchange, the government guarantees that the private
counterpart gets the value of its investment plus a reasonable interest. PPP projects include

the construction and maintenance of airports, and massive transportation systems like the
Light Railway Transport and Philippine National Railways.

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Take a look at the picture below.

Davao, Iloilo, Laguindingan, New Bohol ,and Bacolod Airports are potentially capable
of holding international flights that will help decongest NAIA 1, 2 and 3. These expansions
will boost tourism in the said provinces and will help improve the flow of goods and services.

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 The LRT 6 projects seek to connect Metro Manila with Bacoor, Imus, and Dasmarianas

Cavite. This will entice people who live in Cavite and work in Metro Manial to use the
transport system because it is cheaper, more convenient, and is much faster than any other
transport system. The cooperation period is 30 years, and the projects estimated cost is Php
65.09 million.

The Philippine National Railways (PNR) is in a state of disrepair. It has limited

coaches, its rails need maintenance, and it can no longer keep up with the passengers’
demands. The North South Railway Project (NSRP) is a PPP which seeks to revitalize and
upgrade the PNR. NSRP’s estimated cost is Php 170.7 billion.

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 The government collects taxes from households and firms to fund public services. This
ensures the harmonious relationship between government and business. Although taxes
serve as outflows for business, they should also be seen as tools for nation building, without
them, development is impossible.

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The Pantawid Pamilyang Pilipino Program was initially a project of former President Gloria
Macapagal Arroyo, and was later adapted by the Aquino and Duterte administrations. It is a

conditional cash transfer which seeks to improve the health, nutrition, and education of poor
households, particularly of children aged 0 to 18. Eligibility for enrolling in the program
required an economic condition equal to or below the poverty threshold, and having at least
one child aged 0-15 and or/ a pregnant woman in the household at the time of registration.
Enrolled households must also comply with a set of stipulations, including regular medical
checkups for mothers-to-be, and an 85% school attendance rate for children.

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 Figure 2. Household coverage by Island Group as of September 2015

Figure 2 shows that Mindanao has the most coverage, followed by Luzon and
Visayas.
Education increases the level of output of individuals joining the labor force.
Table 3 below provides the Philippines adult literacy rate.

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Table 3.Philippines Adult literacy Rate(1980-2015)

Figure 3. Philippines’ Adult literacy 1980-2015

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 In 2015, adult literacy rate for Philippines was 98.2%. Adult literacy rate of the
Philippines increased from 93.6 % in 1990 to 98.2 % in 2015 growing at an average annual
rate of 0.81%.

What is adult literacy rate?

Adult (15+) literacy rate (%) total is the percentage of the population age 15 and
above who can, with understanding, read and write a short, simple statement on their
everyday life. Generally, ‘literacy’ also encompasses ‘numeracy’, the ability to make simple
arithmetic calculations. This indicator is calculated by dividing the number of literates aged
15 years and over by the corresponding age group population and multiplying the result by
100.

The government believes that education is deemed important that is why the highest
budget allocation of the government is given to the education department. It is strongly
believed that the power of education is a way ticket to escape from poverty and education is
a right that all should be given a chance.

Let us now take a look at the pupil-teacher ratio in primary education.

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 Figure 4. Pupil-teacher ratio in the Philippines (2001-2013)

Table 4. Pupil-teacher ratio in the Philippines (2001-2013)

In 2013, pupil-teacher ratio in primary education in Philippines was 31.4 students per
teacher. Though the pupil-teacher ratio in primary education fluctuated substantially in recent
years, it tended to decrease through 1991 - 2013 period ending at 31.4 students per teacher
in 2013.

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 The PDP 2017-2022 targets a 7-8 percent growth in Gross Domestic Product (GDP)
in the medium term by pursuing the government’s 10-point socioeconomic agenda, which is
ultimately aimed at reducing the poverty incidence to 14 percent by 2022 from 21.6 percent
in 2015. As for job creation, PDP 2017-2022 wants to reduce unemployment to as low as 3-5
percent by 2022 from 5.5 percent last year. PDP 2017-2022 is the first medium-term
development plan anchored on the long-term vision dubbed as “AmBisyon Natin 2040.”
Launched last year, AmBisyon Natin 2040 aims at tripling the per capita income to $11,000
in 24 years by sustaining an annual GDP growth of at least 6.5-percent along with the
implementation of policies that would make the Philippines a high-income country by 2040.

Based from a survey conducted in 2016, majority of the Filipinos aspire for a “simple
and comfortable life,” which NEDA had said reflected a middle-class lifestyle – earning
enough, educating all children until college, owning a car, owning a medium-sized house,
finding time to relax with family and friends, owning a business, and being able to travel
around the country. Last October, EO 5 was signed, which adopted the AmBisyon Natin
2040 as the long-term vision for the Philippines, such that “by 2040, the Philippines shall be
a prosperous, predominantly middle-class society where no one is poor.”

One of the aims of the government is the reduction of the unemployment rate in the
Philippines.

Let us now take a look with the data below.

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 Figure 5. Unemployment Rate in the Philippines (2017-2020)
The unemployment rate in the Philippines jumped to 17.7 percent in the June quarter
2020 from 5.1 percent in the same quarter a year earlier. This was the highest jobless rate
on record, amid ongoing coronavirus outbreak that led to an economic shutdown in the

country. The number of unemployed persons surged, while the number of employed
dropped by 8 thousand to 33.76 million. Meanwhile, the labor force participation rate
slumped to the lowest on record of 55.6 percent. Among employed persons, workers in the
services sector made up 57.1 percent of the total, followed by those in the agriculture sector
(25.9 percent) and industry (17 percent).

However despite all of these dilemmas, government continuously gives assistance

through Social Amelioration Program and other related services to help Filipinos survive with
the situation.

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 Figure 6. Philippine Population (2010-2020)
The total population in the Philippines is estimated at 108.8 million people in 2019,
according to the latest census figures and projections from Trading Economics.

Figure 7. Government Spending 2017-2020

Government Spending in the Philippines increased to 563,543.97 PHP Million in the first
quarter of 2020 from 280,571.37 PHP Million in the fourth quarter of 2019.

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1. Why does the government needs the help of private entities to implement certain
projects? Discuss.
Due to financial crisis, the government seeks for an alternative way to fund the
increasing needs of the public through the Public Private Partnership. The reason of the
government is that by handing down to the private sector other services by the
government, technology and innovation will be introduced in providing better public
services through improved operational efficiency.
2. How important is the role of efficient tax collection in a country’s economy?

______________________________________________________________________
______________________________________________________________________
____________________________________________________

3. Are public-private partnership beneficial to the economy? Explain.

______________________________________________________________________
______________________________________________________________________
____________________________________________________

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I. True or False.
_________1. The government’s primary duty is to provide its citizens with basic services
such as health care, free education, and security among others.
_________2. Tax is the process of collecting fees.
_________3. The circular flow is the cyclical process where the participant benefit by
giving and receiving something to and from the economy.
_________4. Government spending, in theory, should be able to help the poor by
providing free basic services to uplift their standard of living.
_________5. The power of taxation is an inherent power of the state, acting through the
legislature, to impose and collect revenues to defray the necessary

governmental expenditures.

II. Essay (5 points)

1. What is the effect of the government in the business/industry as one of the
socioeconomic factors?
___________________________________________________________________
___________________________________________________________________
____________________________________________________

2. Since there is an increasing unemployment, population growth and higher government

spending, what do you think will be the end plan of the government so that revenue

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 collection will be maintained or there will be increased collection to suffice the needs of
the people?
______________________________________________________________________
______________________________________________________________________
______________________________________________

THE ROLE OF INTERNATIONAL TRADE IN THE ECONOMY

The role of international trade in the economy is to widen existing markets and to
apply both comparative and absolute disadvantages where countries benefit, such that
opportunity cost is minimized. Comparative advantage is an economic concept in which an
economic factor can produce certain good or service at a lower opportunity cost than other
actors. If Country A has a comparative advantage in producing Good A, and Country B has a
comparative advantage in producing Good B, they can both benefit by specializing in their
respective goods, then trading with each other.
Our country’s number 1 import and export products are electronics. We can make
integrated circuits at a lower cost than any other country in Asia, that is why China imports
these ICs from us. At the same time, we import finished electronic products from the same
country. This illustrates the theory of comparative advantage happening between the

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Philippines and China, where both countries benefit from the situation. This is the result of
international trade. It gives the opportunity to excel and specialize in one or several products
while minimizing opportunity cost.
Consider the following tables.

Integrated
Country Gadgets TOTAL
Circuits
A 40 5 45
B 20 100 120
TOTAL 60 105 165
Table 5. Comparative Advantage (2 countries producing 2 goods before trade)

Table 5 shows the application of Comparative Advantage between two countries

producing the same goods at different levels of output. Country A can make 40 units of
integrated circuits in 10 man-hours, but can produce only 5 gadgets in the same number of
man-hours. Country B can produce 20 integrated circuits in 10-man hours, but can produce
100 units of gadgets in the same amount of time. The total output of Country A is 45, while
Country B’s is 120. Both countries total output of integrated circuits is 60, while their output
gadgets is 105.

Country Integrated Circuits Gadgets TOTAL

40 5 45
A 40 140

B 20 100 120

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 100 140
60 105 165
TOTAL
80 200
Table 6. Comparative Advantage (2 countries producing 2 goods after trade)

Another contribution of international trade to the economy is that it allows

industries to reach economies of scale​. Firms achieve economies of scale when they are
able to increase their production output, yet keep their input cost at a minimum, thereby
decreasing per unit production cost. The rationale behind this is that by producing more
goods, the firms fixed cost (e.g. rent) are spread out over a larger number of units, bringing
average per-unit cost down. Firms can be driven towards attempting to achieve economies
of scale by competition. When rival firms compete with each other by offering their goods
and services at the lowest price possible, smaller and less efficient firms are often unable to
keep up with the competition, while larger, more efficient firms can expand to achieve
economies of scale. The point at which economies of scale are achieved is called the
minimum efficient plant size​.

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 HOW BUSINESSES AND INDUSTRIES IMPACT INTERNATIONAL TRADE

● Local Impacts in International Trade​- businesses impact would be structural

changes and technical innovation. This can be seen mostly in developing nations
which start as an agricultural base then gradually change into economies that
manufacture goods and services.

● Lewis model​-there is an increase in savings and investments as a perceived change

in structure that acts as a fuel for development.

● Hollis Chenery ​looks at changes in different industries, which is based on his

empirical study that includes both cross sectional and time series analysis. His study
includes the change in agriculture to industrial sector, a change in tastes and
preferences of consumers on food and necessities to desires and wants, urbanization,
decrease in the size of the family, and quality of education.

● Adopting structural changes in international trade changes the landscape of our trading
partners. Before, we were just interested on trading goods and services. But change
brought us to a new level of development. Our trading partners are venturing now into
Public-Private Partnerships where they become investors in government projects
where pipeline ventures already started. Build-Operate-Transfer (BOT) schemes are
prevalent in these projects. This is where the investors put up the project, and then

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 they operate at a profit. After getting their return on investment, that’s the time that they
transfer the venture.

● Lastly, the impact of technological progress in international trade can be seen in big
companies fighting it out in giving the best gadgets and technological merchandises
money can offer. This is the impact of emerging markets like our country. We give out
information telling the international community what we desire and changes occur.
Technology develops a taste and preference shift from needs to what we desire, this is
the main reason why we observe improvement and shift of structures.

1. What is the Philippines comparative advantage over our Southeast Asian neighbors?
Its strategic location can become the center for distribution of different kinds of goods
and a trading post for the rest of the Southeast Asian countries aside from the fact
that Filipinos are literate and flexible people that is why a lot of BPOs invest here in
the Philippines.

2. How important is the role of international trade in the economy of the Philippines?
___________________________________________________________________
___________________________________________________________________
___________________________________________________.

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True or False.
___________1. International trade is an organized way for countries to conduct business
and trade activities with each other.
___________2. The role of international trade in economy is to widen existing markets
and to apply both comparative and absolute advantages.
___________3. Comparative advantage is an economic concept in which an economic
actor can a produce certain good or service a higher opportunity cost than
other actors.
___________4. Another contribution in the economy of scale is that it allows industries to
reach economies of scale.

___________5. Firm achieve economies of scale when they are able to decrease their
production output, yet keep their input cost at a maximum, thereby
decreasing per-unit production cost.

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 THE SOCIOECOMONIC IMPACT STUDY
In a socioeconomic impact study, analysis may involve demographics, households,
labor and employment, the market and government services. In demographics, quantifiable
characteristics such as age, gender, work experience, educational attainment, income and
other related variables are involved.

For example: A study in which the respondents are ten students from Far Eastern
University, two from Conservatory of Music, while eight are from the Faculty of Business and

Administration. Five are female and five are male; all are 17 to 20 years old. None is
employed.

A narrative statement demographically describing the respondent would be: There

are 10 valid samples, of which 20% come from the Conservatory of Music and 80% come
from the Faculty of Business and Administration. Fifty percent t(50%) are female and 50%
are male. Their ages range from 17 to 20 years old. All respondents are unemployed.

Let us say the respondents are asked how they perceived the effects of pandemic, to
be damaging to their social and economic well-being. The narrative statement would be 80
percent (80%) of the respondent perceived that pandemic is damaging to one’s social and
economic well -being, while the rest does not agree with it.

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 If the question is about the impact of Conditional Cash Transfer Program on labor,
employment, and poverty, the narrative statement could be: The government‘s Conditional
Cash Transfer Program gives respondents an opportunity to get decent jobs and help
alleviate the poverty. As the government increases its expenditures, it also increases
opportunities for the poor to improve social and economic well-being.

CONDUCTING A SOCIOECONOMIC IMPACT STUDY:

● What is the impact of putting up a mall in a small town like in Panganiban?
● What is the impact of having a school and a hospital inside a mainland coastal
barangay?

The two questions can be answered by conducting a socioeconomic study.

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One of the causes of poverty is the lack of capital to initiate a small business. Let us assume
that the lending firm intends to offer its services to poverty-stricken area composed of 10
families.
The lending firm wants to find out how much is the potential clients will borrow, what
kinds of business they will venture into, their demographic profile, and their capacity to
payback their loans.
Here is the example questionnaire the lending firm might give its respondents. First is
the cover letter:

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Let us now compile the answers of the ten families and interpret them using graphs and
tables. You may improve on some things but be sure to benchmark this sample for future
studies.

Gender Frequency Percentage

Male 2 20%
Female 8 80%
Total 10 100%

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 Figure 8. Gender of Respondents Table 7. Gender of Respondent

Make a table showing the frequency and pecentage of male and female repsondents.
You can make a figure representing the table to appreciate the difference between the
number of male and female respondents. We can conclude that most of the repsondents are
female.

Age Frequency Percentage

20-24 20%

25-29 1 10%

30-34 6 60%

35-39 1 10%

Total 10 100%

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 Figure 9 and Table 8 shows that 60% of the respondent are aged 30-34.

Status Frequency Percentage

Married 80%

Single 2 20%

Total 10 100%

Figure 10. Marital Status Table 9. Marital Status

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 Figure 10 and Table 9 shows that majority of the repsondents are married.

Number of Children Frequency Percentage

1 2 20%

2 3 30%

More than 2 5 50%

Total 10 100%

Figure 11 and Table 10 shows that half of the respondent have more than 2 children.

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Educational
Frequency Percentage
Attainment

Elementary 5 50%

High School 5 50%

College 0 0%

Total 10 100%

Figure 12 and Table 11 shows that half of the respondents finished elementary while
the other half finished high school.

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Breadwinner Frequency Percentage

Husband Only 8 80%

Wife only 0 0%
Both 2 20%

Total 10 100%

Figure 13 and Table 12 shows that most of the family’s breadwinners are husbands.

Earnings Frequency Percentage

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 1-5,000 0 0%

5,001-9,999 0 0%

10,000-14,999 10 100%
15,000-above 0 0%

Total 10 100%

Figure 14 and Table 13 shows that all families earn Php 10,000-Php 14,999 monthly.

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 Expenses Frequency Percentage

1-5,000 0 0%

5,001-9,999 0 0%

10,000-14,999 0 0%

15,000-above 10 100%

Total 10 100%

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 Figure 15 and Table 14 shows that all the families have monthly expenses of
P15,000 and above.

Kind of Business Frequency Percentage

Selling Fish 5 50%

Sari-sari Store 1 10%

Selling BBQ 2 20%

Selling Fruits 2 20%

Total 10 100%

Figure 16 and Table 15 shows what kinds of business the families would like to put
up. Most of them would like to sell fish.

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46
Amount of Capital Frequency Percentage

5,000 5 50%

10,000 4 40%
More than 10,000 1 10%

Total 10 100%

Figure 17 and Table 16 shows that most of the families would prefer a Php 5,000
loan.

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 Months Frequency Percentage

6 5 50%

12 4 40%
18 1 10%

Total 10 100%

Figure 18 and Table 17 show that most of the families prefer to payback the loan in
six months.

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Summary and Conclusion:
The study was conducted in a community with 10 families. It shows that 8 out of 10
respondents are wives and 2 out of 10 are husbands. Most of them are aged 30 to 34, and
mostly are married.Half out of 10 families have more than 2 children, and most of the income
earners are husbands, and 2 out 10 families are both parents working. Half of the
respondents are elementary graduates. And the other half are high school graduates. None
of them finished college. All families show that their incomes are less than their expenses,
and all families want to get a loan to start a business engaged in selling.This implies their
willingness to earn more income, because most have big families with high expenses.
The study suggests that a family of 4 to 5 members with only 1 breadwinner is
incapable of living descently, and loans for a small business engaged in selling should be
made available.

Recommendations:
The study recommends that the lending firm starts to offer loan applications.
However, it is also recommended to check the financial capacity of the families to pay if they
wish to get a bigger loan. The lending firm should also see to it that it has another plan for
families that cannot pay on time. A post test survey is needed.

1. What should be analyzed in developing a socioeconomic impact study? Discuss.

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 Analysis may involve demographics, households, labor and employment, the market
and government services.

2. What data do you get if you have demographics? Explain.

_____________________________________________________________________
_____________________________________________________________________
_______________________________________________.

3. Is it possible to make a socioeconomic study that is too limited, yet, at the same time
has a high level of significance?Explain.
_____________________________________________________________________
_____________________________________________________________________
________________________________________________.

True of False.
___________1. A socioeconomic impact study is a type of systematic analysis used to
identify and evaluate the potential effects of proposed development may
have on the social and economic aspects of the lives of the members of a
community.
___________2. Socioeconomic impact study involves demographics, households, labor and
employment, market, and government services.
___________3. Socioeconomics is the study of quantifiable characteristics of a population
such as age, gender, work experience, educational attainment, income, and
other related variables.
___________4. Demographics is the fields of study which examines how economic activity
and social processes affect each other.

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___________5. One of the problems usually studied in socioeconomic impact study usually
revolves to poverty.

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MULTIPLE CHOICE:
1. These are the government projects funded and operated by private firms or entities.
a. Public-Private Partnership
b. Mixed-Market economic System
c. Demographics Project
d. Bureau of Internal Revenue
2. This is an inherent power of state, acting through the legislature, to impose and collect
revenues to defray the necessary governmental expenditures.
a. Police Power

b. Power of Taxation
c. Eminent Domain
d. Constitutional Power
3. This is also designed to equitably distribute wealth among the citizens of a country, to
uplift social condition and to protect new industries.
a. Taxation
b. Government
c. Bureau of Internal Revenue
d. Department of Budget and Management
4. This can be seen as the inflows of government.
a. Taxation
b. Tax
c. Fees

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 d. Penalty
5. This is an organized way for countries to conduct business and trade activities with
each other.
a. International Market
b. International Trade
c. Local-International Import/Export
d. None of the Above
6. It an economic concept in which an economic actor can produce a certain good or
service at a lower opportunity cost that other actors.
a. Comparative Advantage
b. Absolute advantage
c. Relative advantage
d. Economic Scale

7. This is a type of systematic analysis used to identify and evaluate the potential effects
of proposed development that have the social and economic aspects to the lives of the
members of the community.
a. Socioeconomic impact study.
b. Imperical Study
c. Scientific analysis
d. Demographics.
8. It is the field of study which examines how economic activity and social processes
affect each other.
a. Socioeconomics
b. Economics
c. Social science
d. History

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9. These data are those that assign labels like gender, what regions the respondents
belong to, and what barangay the respondents belong to.
a. Nominal
b. Interval
c. Ordinal
d. Ratio
10. The following are the roles of the government EXCEPT.
a. Provide basic social services to its citizens
b. Maintain competition in the marketplace.
c. Their certain action is to destabilized the economy.
d. Redistribute income.

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 ANSWER KEY

Let’s do it#1

2. How important is the role of efficient tax collection in a country’s economy?

Suggested answer: Efficient tax collection creates more revenues for the
government, thus better social and economic services to offer to the public.

3. Are public-private partnerships beneficial to the economy? Explain.

Suggested answer: Yes, because more innovative and technological services will be
made available to the public.
You can Do it #1
I. True or False.
1. True 2. False 3. True 4. True 5. True
II.
1. What is the effect of the government in the business/industry as one of the
socioeconomic factors?

Suggested answer: Every policy and law implemented by the government has an
effect on society and economy. That is why the government is the captain of the
ship, and in its hands lie what direction we will go.

55
 2. Since there is the increasing unemployment, population growth and higher
government spending, what do you think will be the end plan of the government so
that revenue collection will be maintained to suffice the needs of the people?
Suggested answer: The government could concentrate to what is the basic as
what they visualized for 2040 that people be contented to live in a simple and happy
life which is no one will be poor. Regaining agricultural sectors in more technological
but organic ways of farming. Philippines has still its resources that is just waiting to
be cultivated and explored.

Let’s Do it # 2

2. How important is the role of international trade in the economy of the Philippines?
​Suggested Answer: International trade provides an opportunity to make
friends with neighboring countries. Currently, USA, Russia, Japan and other
neighboring countries are continuously helping us to fight the pandemic. As said “No
man Is an Island,” that is, we cannot live on our own and we need the help of others.
International Trade allows industries to reach economies of scale, thus increasing
production output yet keeping input costs at a minimum. This also widens existing
markets and apply the comparative and absolute advantages wherein countries
benefit such that opportunity cost is being minimized.

You can Do it #2

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 1. True 2. True 3. False 4. True 5. False
Lets Do it #3.

2. What data do you get if you have demographics? Explain.

Suggested Answer: A ​ ge, race, ethnicity, gender, marital status, income,

education, and employment.
3. Is it possible to make a socioeconomic study that is too limited, yet, at the same time
has a high level of significance?

Suggested Answer: No, the study’s scope should be neither too broad nor too

narrow.
You Can Do it # 3
1. True 2. True 3. False 4. False 5. True

Check Your Understanding

1. a 6. a
2. b 7. a
3. a 8. a
4. b 9. a
5. b 10. a

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 REFERENCES

Manapat, C.L. 2018. ​Applied Economics for Senior High School. Quezon City: C&E
Publishing Incorporated
Websites:
https://data.worldbank.org/indicator/SE.XPD.TOTL.GD.ZS?locations=PH

https://www.dbm.gov.ph/index.php/secretary-s-corner/press-releases/list-of-press

https://en.wikipedia.org/wiki/Tax_Reform_for_Acceleration_and_Inclusion_Act
https://travelandculture.expertscolumn.com/advantage-and-disadvantage-philippines-geographical-
location​-releases/1118-proposed-2019-budget-to-prioritize-education-and-infrastructure

https://knoema.com/atlas/Philippines/topics/Education/Literacy/Adult-literacy-rate#

https://tradingeconomics.com/philippines/unemployment-rate

https://tradingeconomics.com/philippines/government-spending

https://tradingeconomics.com/philippines/population-imf-data.html

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