Application of Demand and Supply Part 1

Question 1

Developing countries, like the Philippines, have relatively less human and physical capital.

Answer 1

Philippine Labor Market

Question 2

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.

Answer 2

Labor supply (labor force)

Question 3

total monetary or market value of all finished goods and services produced within a country’s borders in a specific period

Answer 3

Gross Domestic Product (GDP)

Question 4

the real GDP divided by the population, refers to how much the economy produces on average per resident.

Answer 4

Output per capita

Question 5

highly skilled workers working in low-paying or low-skill jobs and part-time workers who prefer to be full-time

Answer 5

Underemployed

Question 6

occurs when the economy has relatively low unemployment.

Answer 6

Full employment

Question 7

refers to people who have no jobs and are looking for work.

Answer 7

Unemployed

Question 8

created during the time required to bring together labor suppliers and demanders.

Answer 8

Frictional Unemployment

Question 9

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.

Answer 9

Structural Unemployment

Question 10

occurs due to seasonal changes in labor demand during the year.

Answer 10

Seasonal Unemployment

Question 11

occurs when there is an increase in unemployment due to the recession phase in the business cycle

Answer 11

Cyclical Unemployment

Question 12

refers to the lowest allowed wage paid to workers under the legislation and government policies

Answer 12

Minimum wage

Question 13

similar to product demand and follows the law of demand

Answer 13

Labor demand

Question 14

follows the law of supply – when wage increases, the labor supply also increases, and vice versa.

Answer 14

Labor supply

Question 15

equilibrium point where labor demand and supply meet at a certain wage and quantity of labor.

Answer 15

Market-clearing

Question 16

below market clearing

Answer 16

labor shortage

Question 17

above the market clearing

Answer 17

labor surplus

Question 18

refers to the value of a nation’s currency versus the currency of another country or economic zone

Answer 18

exchange rate

Question 19

refers to a fall in the value of a currency in terms of its exchange rate versus other currencies

Answer 19

Currency depreciation

Question 20

refers to an increase in one currency’s value to another

Answer 20

Currency appreciation

Question 21

causes imported products and services more expensive.

Answer 21

Peso depreciation

Question 22

cash required to cover the repayment of interest and principal on a debt for a particular period

Answer 22

Debt service

Question 23

receive more pesos for every US dollar exchanged

Answer 23

Exporters and OFWs

Question 24

attractive to visit the country since their US dollars can now buy more pesos.

Answer 24

Foreign tourists

Question 25

refers to the ability of the household to pay the housing market price and available financing schemes.

Answer 25

Housing affordability

Question 26

intervention process that corresponds to setting the price ceiling on rent.

Answer 26

Rent control

Question 27

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.

Answer 27

National Shelter Program

Question 28

the government-owned and subsidized housing loan provider, has a fixed rate of 4.5% for 30 years for the socialized housing units.

Answer 28

Pag-IBIG Fund (Home Development Mutual Fund)