I II
ABM ECO REVIEWER FINALS
3 main producing sectors:
1. Agriculture, Fishery and Forestry
2. Industry–A. Manufacturing B.
Construction C. Electricity, Gas and Water
D. Mining and Quarrying
3. Service– A. Trade B. Transportation ,
Communication and Storage C. Banking
and Finance D. Public service (government)
E. Real estate F. Private services
Agriculture, Fishery and Forestry sector
reaps the fruits of natural resources like the
soil, water, and forests
Agriculture is the practice of cultivating
crops, raising livestock, and managing
natural resources to produce food, fiber, and
other essential products.
Types of Agriculture
● Conventional Agriculture, Organic
Agriculture, Agroforestry,
Aquaponics, Precision Agriculture
Conventional agriculture–widely practiced
approach to farming. Involves the use of
synthetic inputs such as chemical fertilizers,
pesticides, and herbicides to maximize crop
yields.
Organic agriculture focuses on minimizing
the use of synthetic inputs and emphasizes
the use of natural resources to promote soil
health and biodiversity conservation.
Agroforestry combines cultivation of trees
with agricultural crops or livestock on the
same land.
Precision agriculture-involves the use of
tools such as remote sensing, GPS, and
variable-rate technology to precisely monitor
and control inputs like water, fertilizers, and
pesticides.
The challenges of Philippine agriculture
1. Small farm size; shrunk due to rapid
population increase.
2. Land Conversions. urban landscape
and land uses have been re-defined–even
agricultural areas are now part of the
so-called Metropolis.
3. Lack or absence of irrigation systems.
is one of the most important factors in
agriculture.
4. Inadequate management programs on
soil, pests and diseases. Impact of climate
change invites infestations as studies have
shown.
5. Reduced farm labor. alienates many of
the Filipinos especially the rural youth.
6. Expensive and inappropriate
agricultural and farming equipment.
Acquisition of advanced and modern farm
tools and equipment remains a privilege.
7. Climate change and natural disasters.
Philippines is one of the top 20 countries
prone to natural calamities notwithstanding
the dramatic decrease of forest covers,
8. Inadequate technology transfer
mechanisms. Our country lacks machinery
and technology to improve our produce.
Fishery an area where fish are caught for
commercial or recreational purposes.
Philippine Fisheries
1. inland capture fisheries–involve
fishing in enclosed freshwater areas
like lakes, reservoirs, rivers,
estuaries, and natural brackish water
(mixed seawater and freshwater)
fishponds.
2. Aquaculture– refers to all fisheries
that involve culturing and raising
aquatic species under controlled
I II
conditions in freshwater, brackish
water, and marine water areas.
3. marine capture fisheries–Marine
capture fisheries are used to harvest
a huge variety of fish for industrial
and recreational purposes—are
divided into two, namely,
● Commercial fishing– use of
fishing vessels that are more
than three gross tonnages.
Uses trawls, long lines, ring
nets, lift nets, and purse
seines to catch large
quantities of seafood for
commercial profit, trade or
business.
● Municipal fishing– done
within municipal waters.
Fisherfolks use motorized or
unmotorized banca boats
and gillnets, hand lines, small
ring nets, and traps.
Destructive Fishing in the Philippines
Cyanide fishing-pouring sodium
cyanide into the fish's habitat or coral reef to
paralyze the fish–started in 1960s as a way
to supply the international aquarium trade.
Blast fishing, or "dynamite fishing",
is another quick and destructive method
because it kills more than just fishes.
Forestry-the management of forested land,
together with associated waters and
wasteland, primarily for harvesting timber.
Deforestation or forest clearance is the
removal and destruction of a forest or stand
of trees from land that is then converted to
non-forest use.
Causes deforestation in the Philippines:
1. Logging: Both legal and illegal
logging contribute to deforestation.
2. Forest Fires: often exacerbated by
dry conditions, destroy large portions
of forests–can be natural or
human-induced.
3. Kaingin Farming (Slash-and-Burn
Agriculture):involves clearing land
by burning vegetation..
4. Mining Operations: Large-scale
mining operations clear forested
areas, leading to water
contamination, ecological
destruction, and loss of biodiversity.
5. Conversion to Agricultural Land:
often results in unsustainable
farming practices, further
contributing to deforestation.
Industrial Sector-processes raw materials
from agriculture, fishery, and forestry into
intermediate products that are further
processed into final products.
Categories of Industrial Sector
1. Manufacturing processing raw
materials or parts into finished goods
through the use of tools, human
labor, machinery, and chemical
processing.
2. Construction, process of building
and forming the structure of a
building or any other component.
3. Electricity, Gas and Water.
includes companies that provide
basic services such as water,
electricity, and gas to customers.
4. Mining. the industry that locates and
extracts metal and mineral reserves
around the world.
Service Sector-produces intangible
supporting and complementing production
in the other sectors as long as among its
own industries.
I II
Categories of Service Sector
Trade refers to the sale and delivery of an
intangible product, called a service,
between a producer and consumer.
1. Transportation, communication
and storage
a. Transportation: provision of
passenger or freight
transport,
b. Communication: focused on
the transmission of
information through various
mediums,
c. Storage: deals with the
warehousing and storage of
goods throughout the supply
chain.
2. Banking and Finance. The
banking industry-foundation of the
financial services group. It is most
concerned with direct saving and
lending, while the
financial services
sector-incorporates investments,
insurance, the redistribution of risk,
and other financial activities.
3. Public Service. any service
intended to address specific needs
pertaining to the aggregate
members of a community.
4. Real Estate. the profession of
buying, selling, or renting land,
buildings, or housing. It also involves
the development, management,
owning, and selling of assets.
Consumer behavior the thought
processes, conditioning behavioral
inclinations, decisions, and actions of focus
groups or target audiences that influence or
compel them to make a purchase.
4 Types of Consumer Behavior
1. Complex buying
behavior–Consumers who like to
opt for expensive, unique, exclusive,
and infrequently purchased products
or services.
2. Dissonance-reducing buying
behavior– are also highly engaged
in their purchase decisions and
associated actions but they find it
quite difficult in finding out the key
differences amongst top brands in
that product niche.
3. Habitual buying behavior– have
very little involvement in the buying
process of products or services.
4. Variety-seeking behavior– make
their purchase decisions while
seeking variety.
3 Factors that Influence Consumer
Behavior
1. Psychological factors– Why and
how a customer buys a particular
product largely depends on the
psychology of the customer.
2. Personal factors–Sometimes
people get attracted to some
recognized brands because of their
personalities.
3. Motivational factors–Sometimes
people get easily influenced by their
close friends or acquaintances and
make an instant purchase decision.
Consumer theory the study of how people
decide to spend their money based on their
individual preferences and budget
constraints.
3 basic assumptions about human
behavior:
1. Utility maximization—Individuals
are said to make calculated
decisions when shopping,
purchasing products that bring them
the greatest benefit,
I II
2. Non-satiation—People are seldom
satisfied with one trip to the shops
and always want to consume more.
3. Decreasing marginal
utility—Consumers lose satisfaction
with a product the more they
consume it.
Theory of Production- relationships
between the prices of the commodities and
productive factors
Production combining various inputs to
produce an output for consumption—the act
of creating output in the form of a
commodity or a service which contributes to
the utility of individuals.
Production function signifies a technical
relationship between the physical inputs and
physical outputs of the firm, for a given state
of the technology. Q = f(L, K)
Production analysis is concerned with the
analysis in which the resources such as
land, labor, and capital are employed to
produce a firm’s final product—classified
into two divisions
● Variable Inputs Inputs that change
or are variable in the short run or
long run are variable inputs.
● Fixed Inputs Inputs that remain
constant in the short term are fixed
inputs.
Cost function is defined as the relationship
between the cost of the product and the
output. Following is the formula for the
same.C = F [Q]---divided into namely two
types −
● Short run cost is an analysis in
which few factors are constant which
won’t change during the period of
analysis.
● Long-run cost is variable and a firm
adjusts all its inputs to make sure
that its cost of production is as low
as possible.
3 Law of Variable Proportions
● Returns to a Factor
● Returns to a Scale–when all the
factors of production are changed in
Isoquants-a geometric
representation of the production
function.
Characteristics of Isoquant
● slopes downward to the right.
● convex to origin.
● smooth and continuous.
● Two isoquants do not intersect.
Types of Isoquants
● Linear Isoquant- perfect
substitutability of factors of
production.
● Input-Output Isoquant- assumes
strict complementarity, that is zero
substitutability This type of isoquant
is called “Leontief Isoquant”.
● Kinked Isoquant- limited
substitutability of K and L. It is also
called “activity analysis-isoquant” or
“linear-programming isoquant”
because it is basically used in linear
programming.
The 10 Most Influential Entrepreneurs in
the Philippines 2023
1. Henry Sy-Sm-Shoe Market
2. Tony Tan Caktiong-Jollibee
3. Socorro Ramos-National Book Store
4. John Gokongwei Jr.-Robinsons mall,
Sun cellular, Cebu Pacific
5. Edgar Sia-Mang Inasal
6. Mariano Que-Mercury Drug Store
7. Cresida Tueres-Greenwich
8. Cecilio Kwok Pedro-lamoiyan Corp.
9. Alfredo M. Yao-Zesto
I II

10. Gregorio G. Sanchez Jr.-Lacto Pafi

Food Supplement

The World’s Most Influential

Entrepreneurs Today, 2023
1. Elon Musk
2. Bernard Arnault
3. Jeff Bezos
4. Larry Ellison
5. Warren Buffett
6. Mark Zuckerberg
7. Sergey Brin
8. Bill Gates
9. Larry Page
10. Steve Ballmer
11. Mukesh Ambani
12. Carlos Slim Helu
13. Amancio Ortega
14. Michael Dell
15. Zhong Shanshan
16. Gautam Adani
17. Jensen Huang
18. Ken Griffin
19. Colin Zheng Huang
20. Ma Huateng