CONTEMPORARY ECONOMIC ISSUES Flashcards
what is investing (economic)
It is purchase of goods
that are not consumed
today but used in the
future to create wealth.
what is investing (finance)
Is a monetary asset
purchased with the idea
that the asset will provide
income in the future or
appreciate and be sold at
a higher price.
Net Investment = Gross Investment - ?
Net Investment = Gross Investment - Depreciation
It provides the basis
for economic growth?
Net investment
What are the main determinants of investment?
The Expected Return on the Investment
Business Confidence
Changes in National Income
Interest Rate - Reason why investment is inversely related to interest rate.
a. If interest rate rise, the opportunity cost of investment rises.
b. If interest rate rise, firms may anticipate that consumers will reduce their
spending, and the benefit of investing will be lost.
- General Expectations
- Corporation Tax
- Level of Savings
What is the accelerator effect
happens when an increase in national income
(GDP) results in a proportionately larger rise in capital investment
spending.
A 12% tax must be collected for almost all kinds of product sales, services, and leases
Value Added Tax
What is Salary and Wage Taxes?
As a Business owner responsible to the welfare of your employee, you must withhold
and remit to the proper government agencies employee income withholding taxes, SSS
Premiums, Pag-ibig and Medicare.
What kind of tax is used in Cockpits, Movie houses, Clubs, Boxing Tournaments, Basketball games, Horse racing,
Carnivals and other amusement businesses.
Amusement Tax
What is excise tax?
A business that involves in the manufacture of alcohol, tobacco, and petroleum products,
importing of automobile or jewelry and mining.
Tax used for importation of industrial Machinery and
Equipment.
Import tax
what is Individual income tax
Your income from a sole proprietorship business
Corporate income tax
A business that is structure as a Corporation
Real estate tax
Business that owns real estate or land
When you passed away, your heirs pay taxes on money and property that
you have leave to them.
Estate or Inheritance Taxes
The percentage of the capital that the lender charges the borrower for using their
property or money.
interest rate
An agreement in which a payment is given for the use of
other people’s good, service, or property for an agreed-upon
period of time.
rentals
As the Philippine economy develops and cities expand, there is a greater need
for housing in metropolitan areas.
economic growth and urbanization
As the population grows, so does the competition for available homes, allowing
landlords to boost rates without losing potential renters.
population growth
The housing supply has struggled to keep up with the rising demand.
limited supply
Real estate developers and investors may buy properties with the purpose of reselling them at a profit or renting them out at a premium.
real estate speculation
Tax taken from an individual’s income throughout the year.
Philippines’ 0%–35%
Personal income tax
Tax collected at every stage of production.
Philippines’ : 12%
value added tax
Tax on a corporation’s profits.
Philippines’ : 25%
corporate income tax
