APPECON FINALS

Labor- a very important resource to improve the economy

- the knowledge and skills from the labor

Two types of Underemployment

1. Visible Underemployment- are those workers or individuals that work less than 40
hours a week

2. Invisible Underployment- are workers or indiviuals that work 40 hours a week or

more

Thomas Malthus- is the one who introduced or composed Malthucian theory. He

says that population is progressing to geometrical progression, meaning 1,3,5
whereas in food production they are growing in agrimetrical progression, growing
faster than food services and it is deemed dangerous.

Malthucian Theory- is a theory that is all about population growth

Export is greater than import-positive effect on the Philippines economy- also called
surplus

Import is greater than export- negative effect on the Philippines economy- also
called trade deficit

Preventive checks- reduce the birth rate. Ex. Contraceptives and pills
Positive checks- increase the death rate. Ex. Natural Disaster and Wars

Inflation- sustained or continuing increase in price

P=MV/T whereas P is Price; M stands for the supply of money; V stands for the
velocity or speed of the money; T stands for Trade (pcs,liters,meters)

UITF- Unit Investment Trust Fund is a collective investment scheme where your
money is pooled together with other investors’ money into one fund managed by a
professional fund manager. The goal of a UITF is to achieve a specific investment
objective.

Losers during inflation- Employees, Pensioners, Creditors like GSIS, SSS and others,
Lenders

Gainers during inflation- Debtors, people who have flexible income such as
businessmen, speculators
Bargain hunting- is the activity of looking for goods that are good value for money,
usually because they are being sold at prices that are lower than usual. It is also used
to describe a person who looks for a place to buy something at a price that is
cheaper than usual.

Demand- Pull Inflation- Demand-pull inflation occurs when demand for goods and
services exceeds supply in the economy, causing prices to rise. Kung daghan namalit,
motaas ang price

Cost-push inflation, also known as wage-push inflation, occurs when overall prices
increase due to increases in the cost of wages and raw materials.

Hyperinflation is rapid and excessive price increases in an economy, typically at rates

exceeding 50% each month over time. It can be caused by excessive money supply,
demand-pull inflation, or both.

Curb Inflation- To reduce inflation, the government can increase taxes (such as
income tax and VAT) and cut spending. This improves the government’s budget
situation and helps to reduce demand in the economy. Both these policies reduce
inflation by reducing the growth of aggregate demand.

Monetary policy- Monetary policy is the way a central bank or a government

controls the money supply and interest rates in an economy.

Fiscal Policy- Fiscal policy refers to the use of government spending and tax policies
to influence economic conditions, especially macroeconomic conditions. These
include aggregate demand for goods and services, employment, inflation, and
economic growth.

MONETARY POLICY (EXAMPLE)

1. Exercise of fiat authority to issue paper money

2. Control of the bank’s reserve requirements
3. Use of Discounts or re-discount supply
4. Use of open market operations
5. Selective credit controls
6. Use of moral suasion

FISCAL POLICY (EXAMPLE)

1. Utilization of public expenditure

2. Taxation
3. Public debt
4P’s- Pantawid Pamilyang Pilipino Program

International trade is the purchase and sale of goods and services by companies in
different countries. Consumer goods, raw materials, food, and machinery all are
bought and sold in the international marketplace.

International trade allows countries to expand their markets and access goods and
services that otherwise may not have been available domestically. As a result of
international trade, the market is more competitive.

MPC stands for

MPS stands for