Application of Demand and Supply Part 1 Flashcards
Developing countries, like the Philippines, have relatively less human and physical capital.
Philippine Labor Market
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.
Labor supply (labor force)
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
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
created during the time required to bring together labor suppliers and demanders.
Frictional 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.
Structural Unemployment
occurs due to seasonal changes in labor demand during the year.
Seasonal Unemployment
occurs when there is an increase in unemployment due to the recession phase in the business cycle
Cyclical Unemployment
refers to the lowest allowed wage paid to workers under the legislation and government policies
Minimum wage
similar to product demand and follows the law of demand
Labor demand
follows the law of supply – when wage increases, the labor supply also increases, and vice versa.
Labor supply
equilibrium point where labor demand and supply meet at a certain wage and quantity of labor.
Market-clearing
below market clearing
labor shortage
above the market clearing
labor surplus
refers to the value of a nation’s currency versus the currency of another country or economic zone
exchange rate
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
causes imported products and services more expensive.
Peso depreciation
cash required to cover the repayment of interest and principal on a debt for a particular period
Debt service
receive more pesos for every US dollar exchanged
Exporters and OFWs
attractive to visit the country since their US dollars can now buy more pesos.
Foreign tourists
refers to the ability of the household to pay the housing market price and available financing schemes.
Housing affordability
intervention process that corresponds to setting the price ceiling on rent.
Rent control
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 government-owned and subsidized housing loan provider, has a fixed rate of 4.5% for 30 years for the socialized housing units.
Pag-IBIG Fund (Home Development Mutual Fund)
