Here are some ways those economic problems in the Philippines relate to economics:
- Low economic mobility and poverty/income inequality are issues of how resources and goods/services are distributed throughout society. Economics studies how scarce resources are allocated to meet societies' needs and wants. Unequal distribution of resources can lead to these problems.
- Unemployment occurs when there is a mismatch between the skills/abilities of the labor force and the demands of the job market. Economics examines how markets for goods, services, and labor function. When there are imbalances or inefficiencies in labor markets, unemployment may result.
- All three problems ultimately stem from issues of production, consumption, and the overall functioning of the economy. Economics analyzes
7. Macroeconomics
• Macroeconomics is a division of economics that is
concerned with the overall performance of the entire
economy
• It studies the economic system as a whole rather than the
individual units that make up the economy.
• It focuses on the overall flow of goods and resources and
studies the causes of change in the aggregate flow of
money, movement of goods and services and general
employment of resources.
• It about the nature of economic growth, the expansion of
productive capacity, and the growth of national income
8. Microeconomics
• It is concerned with the behavior of individual entities
such as the consumer, the producer, and the resource
owner.
• It is more concerned on how goods flow from business
firm to the consumer and how resources move from the
resource owner to the business firm.
• It is also concerned with the process of setting prices of
goods that is also known as Price Theory.
9. Activity
1. A Php340 billion deficit in the Philippine budget is
expected in the year 2018. (Macroeconomics)
2. Unemployment rate has dropped because of the increase
in the number of OFWs. (Macroeconomics)
3. Rental on land could not be increased by landowners
because of the Rent Control Act of 2009
(Macroeconomics)
4. Prices of Suzuki vehicles are predicted to go up in
November 2019. (Microeconomics)
5. Oxygen clothing is a fast-selling product in the local
market. (Microeconomics)
6. Prices of pineapples tend to increase during the summer
season. (Microeconomics)
10. Basic Economic Problems of Society
1.What to produce and how
much?
2.How to produce?
3.For whom to produce?
11. Economic Systems
The economic system is the means
through which society determines the
answers to the basic economic problems
mentioned.
•Traditional Economy
•Command Economy
•Market Economy
12. Traditional Economy
•Decisions are based on traditions and
practices upheld over the years and passed
on from generation to generation.
•Methods are stagnant and therefore not
progressive.
•Traditional societies exist in primitive and
backward civilizations
13. Command Economy
•This is the authoritative system wherein
decision-making is centralized in the
government or a planning committee.
•Decisions are imposed on the people who
do not have a say in what goods are to be
produced.
•This economy holds true in dictatorial,
socialist, and communist nations
14. Market Economy
•This is the most democratic form of economic
system.
•Based on the workings of demand and supply,
decisions are made on what goods and services
to produce.
•People’s preferences are reflected in the prices
they are willing to pay in the market and are
therefore the basis of the producers’ decisions
on what goods to produce.
15. Activity
1. Economy is stagnant, making use of practices used in
the olden times (Traditional)
2. Economy is backward because no new technologies or
production methods are introduced (Traditional)
3. It is the most democratic form of economic system.
(Market)
4. People’s preferences are reflected in the prices they
are willing to pay in the market (Market)
5. The products or goods to produce depends on the
decision of the government (Command)
6. People cannot choose or decide on what product to
buy (Command)
16. Coronavirus Disease (2019) COVID-19 now poses a
more serious downside risk to the global economy. The
World Health Organization (WHO) declared the COVID-19
outbreak a pandemic on March 11 to signify its severity and
global coverage and urged countries to take ‘urgent and
aggressive action.’ As a result, several countries have taken a
variety of measures from mass testing, travel/border
restrictions, to lockdowns in a bid to contain the virus.
Governments and central banks have likewise been adjusting
the monetary and fiscal policy to mitigate the economic
impact. This means that we are now in the second chapter of
the crisis where the pandemic has translated into an
economic crisis
17. What are your suggestions to the government in
addressing the social and economic impact of the COVID
– 19 pandemic to the economy and the people based on
the following sectors?
• Travel and Tourism
• Exports and Imports
• Consumption
• Agriculture
18.
19. Economic Resources
Economic Resources also known as factors of
production are the resources used to produce goods
and services. These resources are, by nature, limited
and therefore, command a payment that becomes the
income of the resource owner.
• Land
• Labor
• Capital
20. Land
Land refers to the soil and natural
resources that are found in nature and
are not manmade. Owners of lands
receive a payment known as rent.
21. Labor
Labor refers to the physical and human
effort in production. It covers manual
workers like construction workers, machine
operators, and production workers, as well
as professionals like nurses, lawyers, and
doctors. Th term also includes jeepney
drivers, farmers, and fishermen. The income
received by labors is referred to as wage.
22. Capital
Capital refers to man-made resources
used in the production of goods and
services, which includes machineries and
equipment. The owner of capital earns an
income called interest.
24. Examples of economic problems in the
Philippines:
• Low economic mobility
• Poverty and income inequality
• Unemployment
How are they related to economics?
