BASIC ECONOMIC PROBLEMS OF THE COUNTRY

UNEMPLOYMENT •POVERTY •POOR QUALITY OF

INFRASTUCTURE •INCOME INEQUALITY
UNEMPLOYMENT COMMON CAUSES
• The number of people entering the job market has been greater than the
number of jobs created.
• The rural-urban migration increases due to employment opportunities.
• May of the unemployed individuals are college graduates.
WHAT CAN BE DONE TO SOLVE UNEMPLOYMENT PROBLEM?
1. Appropriate economic policies for labor-intensive industries.
2. Improve the educational system of the country especially in the rural
areas.
3. Minimize rural-urban migration by improving the economic
environment in rural areas.
 POVERTY COMMON CAUSES
•Increase in population
•Increase in the cost of living
•Unemployment
•Income inequality
WHAT CAN BE DONE TO SOLVE THE POVERTY PROBLEM?
1. Reduce unemployment
2. Appropriate policy on labor income
3. Provision of unemployment benefits for those who will be unemployed due to
natural or man made calamities. Ex. Typhoon, Bombing of terrorists, Earthquake
WHAT CAN BE DONE TO SOLVE THE POVERTY PROBLEM?
Increase social services like education, health care and food subsidies
for sustainable poverty reduction
Appropriate policy on labor income. Self- existing
SustainableSubsistence
Supply, demand and equilibrium
demand- is the quantity of a good that consumers are willing and able
to purchase at various prices during a given period of time.
- the demand for a good that the consumer chooses, depends on the
price of it, the prices of other goods, the consumer's income and her
tastes and preferences.

-We defined demand as the amount of some product that a

consumer is willing and able to purchase at each price. The prices
of related goods can also affect demand. If you need a new car, for
example, the price of a Honda may affect your demand for a Ford.
price - is the quantity of payment or compensation given by one
party to another in return for one unit of goods or services.
Quantity demand - is a term used in economics to describe the
total amount of a good or service that consumers demand over a
given interval of time.The relationship between the quantity
demanded and the price is known as the demand curve, or simply
the demand.
demand schedule - is a table that shows the quantity demanded
of a good or service at different price levels. A demand schedule
can be graphed as a continuous demand curve on a chart where
the Y-axis represents price and the X-axis represents quantity.
demand curve- is a graph depicting the relationship between the
price of a certain commodity and the quantity of that
commodity that is demanded at that price. Demand curves can
be used either for the price-quantity relationship for an
individual consumer, or for all consumers in a particular market.
law of demand
The law of demand dictates that when prices go up, demand goes down –
and when prices go down, demand goes up. For instance, a baker sells
bread rolls for $1 each. They sell 50 each day at that price. However, when
the baker decides to increase to price to $1.20 – they only sell 40.
supply- is the amount of a resource that firms, producers, labourers,
providers of financial assets, or other economic agents are willing and
able to provide to the marketplace or to an individual.
-Supply can be in produced goods, labor time, raw materials, or any other
scarce or valuable object.
law of supply- is a fundamental principle of economic theory which states that,
keeping other factors constant, an increase in price results in an increase in
quantity supplied. In other words, there is a direct relationship between price
and quantity: quantities respond in the same direction as price changes.
- law of supply is the microeconomic law that states that, all other factors being
equal, as the price of a good or service increases, the quantity of goods or
services that suppliers offer will increase, and vice versa.
economic equilibrium- is a situation in which economic forces such as supply
and demand are balanced and in the absence of external influences the values
of economic variables will not change.
-Market equilibrium occurs when market supply equals market demand.
If the market price is above the equilibrium price, there will be downward
pressure on the price as suppliers reduce their production and lower
their prices to create more demand until market equilibrium is reached.
A surplus exists when the price is above equilibrium, which encourages
sellers to lower their prices to eliminate the surplus.
A shortage will exist at any price below equilibrium, which leads to the
price of the good increasing. For example, imagine the price of dragon
repellent is currently $6 per can.
TAHNK YOU