Podcast
Questions and Answers
What does the equation $GDP = C + I + G + (X - M)$ represent?
What does the equation $GDP = C + I + G + (X - M)$ represent?
- Factors contributing to unemployment
- Relationships among economic variables (correct)
- Consumer behavior analysis
- Monthly investment projections
What aspiration do Filipinos hold regarding their quality of life?
What aspiration do Filipinos hold regarding their quality of life?
- To rely solely on foreign investments for prosperity
- To have a life that is precarious and uncertain
- To achieve a life that is rooted, comfortable, and secure (correct)
- To eliminate all forms of economic planning
What impact did the COVID-19 pandemic have on socio-economic achievements?
What impact did the COVID-19 pandemic have on socio-economic achievements?
- It rolled back some economic gains and exposed fragility (correct)
- It led to increased consumer spending
- It eliminated all unemployment in the country
- It improved per capita income significantly
Which of the following is necessary for economic recovery as per the content provided?
Which of the following is necessary for economic recovery as per the content provided?
What does the unemployment rate formula represent?
What does the unemployment rate formula represent?
What often governs rental costs through a contract between the lessor and lessee?
What often governs rental costs through a contract between the lessor and lessee?
Which of the following factors can drive changes in rent?
Which of the following factors can drive changes in rent?
What is one of the challenges facing Filipino entrepreneurs due to higher wages?
What is one of the challenges facing Filipino entrepreneurs due to higher wages?
What is the first financing option mentioned that an entrepreneur can consider?
What is the first financing option mentioned that an entrepreneur can consider?
What act was enacted by the Philippine Congress to establish a mechanism for minimum wage determination?
What act was enacted by the Philippine Congress to establish a mechanism for minimum wage determination?
Which issue has significantly affected health care and education in the Philippines?
Which issue has significantly affected health care and education in the Philippines?
What can result from heavier foot traffic in a business area?
What can result from heavier foot traffic in a business area?
What is required for an entrepreneur if the mandated minimum wage increases?
What is required for an entrepreneur if the mandated minimum wage increases?
What is the primary basis for imposing Percentage Tax according to the National Internal Revenue Code?
What is the primary basis for imposing Percentage Tax according to the National Internal Revenue Code?
Which tax is classified as an indirect tax that may be shifted to the consumer?
Which tax is classified as an indirect tax that may be shifted to the consumer?
What is a characteristic of the Law of Demand?
What is a characteristic of the Law of Demand?
What range of percentage tax applies to specific industries and businesses?
What range of percentage tax applies to specific industries and businesses?
Which of the following is NOT a component of demand?
Which of the following is NOT a component of demand?
What type of tax is the corporate income tax primarily classified as?
What type of tax is the corporate income tax primarily classified as?
What must be assessed when determining if an entity pays Percentage Tax?
What must be assessed when determining if an entity pays Percentage Tax?
What are national taxes filed at the regional offices of the Bureau of Internal Revenue?
What are national taxes filed at the regional offices of the Bureau of Internal Revenue?
What is the primary problem that scarcity presents in economics?
What is the primary problem that scarcity presents in economics?
Which factor of production is classified as a man-made resource?
Which factor of production is classified as a man-made resource?
What is an opportunity cost?
What is an opportunity cost?
In the Circular Flow Model, which group provides labor and resources to the factor market?
In the Circular Flow Model, which group provides labor and resources to the factor market?
What do laissez-faire policies advocate regarding government involvement in the economy?
What do laissez-faire policies advocate regarding government involvement in the economy?
Which of the following correctly describes the relationship between scarcity and economics?
Which of the following correctly describes the relationship between scarcity and economics?
Which basic economic question addresses the issue of resource allocation?
Which basic economic question addresses the issue of resource allocation?
When choosing between walking and riding in a car to school, what type of economic concept is being demonstrated?
When choosing between walking and riding in a car to school, what type of economic concept is being demonstrated?
What happens at the market equilibrium?
What happens at the market equilibrium?
A price floor typically results in which of the following?
A price floor typically results in which of the following?
How do advancements in technology affect market forces?
How do advancements in technology affect market forces?
What role do substitutes play in demand?
What role do substitutes play in demand?
What happens when producers expect a surge in factor prices?
What happens when producers expect a surge in factor prices?
What is the effect of income on demand?
What is the effect of income on demand?
In relation to other goods, how might manufacturers adjust their production?
In relation to other goods, how might manufacturers adjust their production?
What could be considered a government policy affecting the quantity supplied?
What could be considered a government policy affecting the quantity supplied?
Which of the following statements about complementary goods is accurate?
Which of the following statements about complementary goods is accurate?
What market condition results from a price ceiling?
What market condition results from a price ceiling?
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Study Notes
Adam Smith and Economic Principles
- Advocated for laissez-faire policies, promoting minimal government intervention in the economy for business and societal benefit.
- Increased production of one good requires a decrease in another due to limited resources.
Scarcity and Opportunity Cost
- Scarcity arises from finite economic resources, defining the central problem of economics.
- Factors of production include land (natural resources), labor (efforts and skills), capital (man-made resources), and entrepreneurship (management of production).
- Opportunity cost refers to the value of the alternative forgone when a choice is made.
Circular Flow Model
- Households supply labor and resources to the Factor Market in exchange for wages, while businesses utilize these resources to produce goods and services in the Product Market.
- The cycle involves households purchasing goods and services, facilitating continuous economic activity.
Basic Economic Questions
- Determines what and how much to produce and for whom.
- Economic decisions impact lifestyle aspirations, reflecting the Filipino goal of comfort and security (matatag, maginhawa, at panatag).
Economic Data and GDP
- GDP formula: GDP = Consumer Spending + Investment + Government Spending + (Exports - Imports).
- Trends in poverty reduction and per capita income improvement can be disrupted by crises such as the COVID-19 pandemic.
National Governments and Public-Private Partnerships
- The Mandanas-Garcia Ruling in 2018 significantly changed governance in the Philippines.
- Increased private sector participation can effectively allocate public resources for human capital investment.
Challenges for Entrepreneurs
- Investment and financing can come from personal funds or external sources, impacting operational stability and growth.
- Minimum wage laws establish government-mandated pay levels which affect business expenses and profitability.
Taxation Insights
- Income Tax: Paid at the municipal/city level for personal income or corporate entities depending on business structure and income.
- Value-Added Tax (VAT): Indirect consumption tax applicable to the sale of goods/services in the Philippines.
Supply and Demand Dynamics
- Law of Demand: Describes consumer behavior—quantity demanded (Qd) varies inversely with price (P).
- Market Equilibrium occurs when quantity supplied (Qs) meets quantity demanded (Qd).
Market Forces and Movements
- Factors influencing market forces include technological advancements, input prices, and price of related goods.
- Producer expectations and government policies greatly affect supply decisions.
Determinants of Demand
- Income changes can increase consumer purchasing power.
- Substitutes satisfy similar needs, while complementary goods are typically consumed together.
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