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4 Applied Economics
4 Applied Economics
4 Applied Economics
Instructions: Explain the following questions comprehensively. Use Calibri (Body) as your
font, size 12, single space. 50 points each.
1. Assume that your family’s budget is only PHP 200 a day. Figure out with the help of
your mother what you can buy. How much can you set aside for monthly rental or
housing loan repayment with the foregoing budget? Imagine the kind of house your
family can afford to rent with the amount in the foregoing. How do you compare this
house with what you see in the slum areas?
If I total our monthly budget, it will be 200 multiplied by 30 equals 6000, and I
will need my mother's assistance in deciding what I can buy with that money. Since we
are a family of six, renting an apartment or even a room is very expensive for today's
generation, so if the room costs 3000 pesos, the house is likely to be small, but the
important thing here is that we stick together, so there is no problem with us where we
live.
So, based on what I've seen in the slums, the houses appear to be ancient, made
of light materials, and of poor overall quality, but some of them have free water and
electricity, which is very convenient for us. When compared to the house we rent, it is
also made of light materials and is old, but it is far preferable to the house in the
downturn areas, and we must pay it monthly so that our budget of 6000 minus 3000
equals 3000. So our budget for food and other necessities will be 3000, and if I budget it,
I might buy the most important things that we need every day, which are food and
water, and in cooking, we might use wood because gas is very expensive. I'll buy rice
that will last us a month, and the money left over will be our budget for other
necessities such as shampoo, soap, and so on.
As a result of this circumstance, I/We will do our best to improve our home,
because my sister is a civil engineering graduate and my second sister is a graduating
student studying law, so there will be a good chance that we can find a better job to
help our parents with our daily financial needs and buy the items we want while
remaining financially stable.
2. Research on the dollar to the peso exchange rate from the time of the presidency of
Diosdado Macapagal to the presidency of Rodrigo Duterte. List down the rates over
the years and try to find reasons for abrupt increases or even decreases in the
exchange rate.
The Philippine peso, also known as the PISO (Philippine) in Filipino, is the
country's official currency. It is divided into 100 sentimo (also known as centavos).
The Philippine peso is denoted by the symbol "", which was introduced during American
rule in place of the original peso sign "$" used throughout Spanish America. Alternative
symbols include "PHP", "PHP", "PHP", and simply "P".
ECONOMIC CHANGES - When the economy is operating well, the country sees favorable
improvements as a result of low interest rates and the abundance of cash in circulation.
Increased consumer spending will result in lower exchange rates, whereas increased
exports will result in a currency increase.
CHANGES IN INTEREST RATES - People will save more if interest rates are higher, and
vice versa. There will be swings in the value of the currency depending on how much
interest the banks and moneylenders are offering.