Measuring The Size Of The Economy Flashcards
What are the 4 Sectors that contribute to the economy of the ph
- Agricultural
- Industrial
- Informal
- Service
Info on agri sector
1.Cultuvating, harvesting crops and animals
2. Primary sector because of raw materials
3. 8.82% income
4. 22.52 employed
What are the four compenents in agricultural sector
- Farming
- Fisheries
- Forestry
- Animal husbandry
What are the institutions for agri sector
- Dep. of agriculture
- provide, public investments, support services, for promoion of agricultural development and upheld policies - Deparment of agrarian reform
-uphel agrarian reform like land ownership and distribution, agricultural productivity - Department of enviromental and natural resources
-conserving, managing, developing enviroment and natural resources.
What is industrial sector
- processes products from agricultural sector to finished products
- 30.75% income
- 19.7%employment
Problems in agri sector?
1.climate change
2. Pollution and environmental depletion
3. Inadequacy of capital
4. Lack of support from gov and new gen
5. Inadequacy of infrastructure
Generalize the componens in industrial sector
Overall way of living and generation or production of something with machines
Problems in industrial sector
- Skill gap
- Dependence on importa
- Enviromental concerns
- Lack of national industry
- Inadequacy of infrastructures
Institutions for industrial sector
- Department of trade industry
- enables innovative competitive job generating business - Technical educ and skills development
- develop filipino workforce
Service sector
- source of labor, skills and knowledge for economic activity
- largest employmenr share 58.5%
- largest gdp contribution
- business outsourcing
Institutions for service sector
- Department of interior local gov
- promote peace and order and safety - Department of labor and employmenr
- formulate policies - Department of agrarian reform
- Dep. Of enviromental & natural resources
- Department of agriculture
What is informal sector
- units producing or distributing goods and services unregisterd
-not taxed not recorded - contributes to economy by persinal taxes
5 components of informal sector
- Home worker
- Online business
- Small scale
- Medium tier
5, black market
Problems in informal sector
- Decreasing tax
- Job security
- Low wages
- Security benefit issues
5, fake illegal products
economic growth, unemplyment and infkation
3 things considered in the status of an economy
Economic growth?
- measure by gross domestic product of a country
- 3% or more increase is good for the economy
Unemployment?
- measure of none working people available for work
- unemployment rate of 5% under is acceptable for an economy
inflation?
- increase level of prices
- measure by consumer index
- rise in price becomes problematic if faster than rise of wage
- 1-2% inflation is acceptable for an economy
How do we measure a country’s overall income and growth
- Gdp
- Gnp
- value of all final goods and servuces within a country for a year
- within borders of a country
GDP
Formula for gdp?
Y = C + I + G + NX
Export - import
+ statistical discrepancy
What are not included in gdp?
- Intermediate goods
2, transfer pay,engs
3, used goods
4, illegal goods
Net income from the rest of the world ( all citizens in a country)
GNP
Formula for GNP?
GNP = GDP + Net primary income
Prices unadjusted for inflation
Nominal gdp
Prices adjusted to inflation
Real GDP
Level of economic imporvment between current and prev rate
Growth rate = current gdp - prev gdp / prev gdp x 100
Causes of unemployment?
Cats for sale
- Cyclical unemployment
- changes in economic tstaus of a countr - Frictional unemployment
- voluntary change in employment - Structural unempkyment
- lack of skills forms need ti employ
Cause of inflation
Dogs cant bite
- Demand pull
- positive change in ourchasing power so they demand more
- demand higher than market supply - Cosy push inflation
-change in price production inputs infleunce price production process - Built in inflation
- expectation that other products will increase since a product closely related to it increase ( complemntarh goods)
Sum of all expenses on final goods
Expenditure approach
Sum of the payments for the different factors of production ( land labor capital
Income approach
Difference between the value of goods from the stage of production and the codts of goods at the stage of production
Value added approach
