Application of Demand and Supply Analysis Flashcards
Labor supply (labor force)
is the portion of the population who are 15 years old and over willing and able to work, which include (1) those who are actively seeking work but have not found work and (2) those who are employed.
The country’s ______________________ value is determined by the labor supply’s contribution to producing products and services.
gross domestic product (GDP)
refers to the total monetary or market value of all finished goods and services produced within a country’s borders in a specific period
Gross Domestic Product (GDP)
the real GDP divided by the population, refers to how much the economy produces on average per resident.
Output per capita
are highly skilled workers working in low-paying or low-skill jobs and part-time workers who prefer to be full-time
Underemployed
occurs when the economy has relatively low unemployment.
Full employment
refers to people who have no jobs and are looking for work.
Unemployed
four (4) types of unemployment and explain.
- Frictional Unemployment - is created during the time required to bring together labor suppliers and demanders. This type of employment does not last long, resulting better match-up between employees and job.
- Structural Unemployment - occurs when job seekers do not have the skills demanded, posing more problems than frictional unemployment since the unemployed may need retraining to develop the skills required.
- Seasonal Unemployment - occurs due to seasonal changes in labor demand during the year.
- Cyclical Unemployment - occurs when there is an increase in unemployment due to the recession phase in the business cycle, although it decreases during the expansion phase.
refers to the lowest allowed wage paid to workers under the legislation and government policies
Minimum wage
The government’s mandated __________ depend on the cost of living in the specific region or sector. The setting of such rates protects workers from being underpaid by their employers and guarantees a sufficient income to meet their basic needs.
minimum wage rates
When wage increases, the number of laborers decreases as employers hire more employees when wages go down.
Labor demand
__________follows the law of supply – when wage increases, the labor supply also increases, and vice versa.
Labor supply
A ____________ could lead to efficient resource allocation.
competitive equilibrium
is the equilibrium point where labor demand and supply meet at a certain wage and quantity of labor
Market- clearing
The _____________ is below market clearing.
labor shortage
What are the difference betweeen labor shortage and labor surplus?
The labor shortage is below market clearing, and the labor surplus is above the market clearing.
The __________ refers to the value of a nation’s currency versus the currency of another country or economic zone
exchange rate
the ____________ is above the market clearing.
labor surplus
refers to a fall in the value of a currency in terms of its exchange rate versus other currencies
Currency depreciation
refers to an increase in one currency’s value to another
Currency appreciation
What are the Effects of peso depreciation against US dollars?
- Peso depreciation (weaker currency) causes imported products and services more expensive.
- Peso depreciation drives inflation since there is a price increase in imported products, including crude oil.
- Exporters and OFWs (with their dependents) receive more pesos for every US dollar exchanged.
- Foreign tourists think it is attractive to visit the country since their US dollars can now buy more pesos.
refers to the ability of the household to pay the housing market price and available financing schemes.
Housing affordability
is an intervention process that corresponds to setting the price ceiling on rent.
Rent control
During the Asian Financial Crisis in the late_______, construction hit low levels in the country
1990
The _____________________ of the government provides housing for informal settlers and other families who do not have enough income to buy or rent houses with rates in the prevailing market.
National Shelter Program
the _______________, the government-owned and subsidized housing loan provider
Pag-IBIG Fund
