7.

) As for the free peanuts and expensive water served inside the bar, the reason for this is that
peanuts compliment well with business’ primary/core product which is alcoholic beverages; and
if one were to be served or eat more nuts, they will then have more of the alcoholic beverage
thus creating more profit. To compare the two products, peanuts are relatively costly than water
outside the bar, but then again, water fills up the customer faster and is much cheaper
compared to alcoholic beverages. In this business strategy, the marginal benefit of investing
more into peanuts will further exceed its marginal cost thus implementing the strategy of free
peanuts and expensive water.

6.) Being a Filipino, it is quite unheard of that retired people buys a bigger house in the
Philippines. But as for my own understanding and explaining the reading using my own words, I
would say that the demand for a bigger house has increased due to the hopes of having their
families visit them more because of the new bigger house. The retirees, which are commonly
senior citizens, demands more family visits and entices their own loved ones to visit through the
use of acquiring a bigger house. But the supply of visits that most them receive are low.

5.) With the video as an example, the role of the government has barely continued to support
the supply party in terms of the dynamics of the supply and demand principle. They have
created programs of replanting to help cope with the ever-growing demand of sandalwood, and
have created laws to further protect its standards and safety of the product. Although, the rules
and regulations they have imposed has slowed down the process. In conclusion, the
government of India is continuing to support its supply of sandalwood by a very small margin
that it is uncertain to predict if such programs will help bring back India’s old supply of
Sandalwood.

4.) In recent news, rice has been the most volatile product that our country produces. Due to
changing weather and extreme conditions that our country is susceptible to, the production of
our locally made rice has been affected severely. Not only that, the lack of cold storage facilities
and farm-to-market roads hinders the supply of our own product. Therefore, these reasons
result in fluctuating the price of rice in the market.
Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods
that a country has produced within its borders, and is a measurement for the country's general
economic health. If a nation has a high percentage of GDP, it implies that it is in a solid shape
and is inducing a positive movement of the country (Fernando, 2023). As discussed in the Wall
Street Journal’s video, it has been noted that although GDP may mean a positive outcome if it is
growing, it is not exactly the type of assessment to evaluate a country’s happiness; the
implications of this say otherwise and express that there is a correlation between GDP and the
happiness of a nation.

In light of this, GDP alone does not directly measure happiness, but instead acts as a delegate to
such factors that contribute to social well-being that translate into happiness. These two
examples provide a glimpse of why countries with higher GDP tend to be happier than low GDP
nations: first, happiness increases in most countries with high GDP due to the quality of life
being improved in their nation. As discussed on Khan Academy's website entitled "How well
GDP measures the well-being of society," most migrations in the world involve people moving
from a low-GDP country to a higher-GDP country in pursuit of a better standard of living, which
implies that there is much greater satisfaction in that area. Second, a positive GDP indicates that
it is economically stable and offers more financial opportunities to its residents (Gross Domestic
Product: An Economy's All, 2019). Taking that into consideration, it is discussed that these
opportunities convey more money into the people's pockets and therefore grant them access to
acquiring basic necessities that lead to happiness.

In conclusion, a high GDP in a country may not directly measure happiness, but it greatly
influences various sectors in their economy that lead to satisfaction for their residents. Namely,
these two examples given fairly explains why high GDP countries tend to be happier.

Sources:
Fernando, J. (2023). Gross domestic product (GDP): formula and how to use it. Investopedia.

https://www.investopedia.com/terms/g/gdp.asp

Gross domestic product: an economy’s all. (2019, June 15). IMF.

https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/gross-domestic-

product-GDP#:~:text=In%20broad%20terms%2C%20an%20increase,more%20money

%20in%20their%20pockets.

How well GDP measures the well-being of society (article) | Khan Academy. (n.d.). Khan

Academy. https://www.khanacademy.org/economics-finance-domain/macroeconomics/
macro-economic-indicators-and-the-business-cycle/macro-limitations-of-gdp/a/how-well-

gdp-measures-the-well-being-of-society-cnx