Module 0 Flashcards
a large number of interrelated activities, which include the production, distribution, and consumption of goods and services
Economy
also called “economic system”
Economy
Main Actors in the Economy
HOUSEHOLDS
FIRMS
GOVERNMENT
Rest of the World (ROW)
no outside economic activities to the ROW
Closed Economy
no exports, no imports, and no capital flows
Closed Economy
composed of households,
firms, and the government
Closed Economy
Formula for GDP (Closed Economy)
Gawa Dito sa Pinas
GDP = C + I + G
Gross domestic product (GDP), consumption (C),
investment (I), government expenditures (G)
interacts freely with the ROW
Open Economy
buys and sells goods and services in world product markets
Open Economy
buys and sells capital assets in world financial markets
Open Economy
composed of households, firms, government, ROW
Open Economy
Formula for GNP (Open Economy)
Gawa ng Pinoy
GDP = C + I + G + (X-M)
Gross domestic product (GDP), consumption (C),
investment (I), government expenditures (G), exports
(X), imports (M)
Is the Philippines trade deficit (net-importer) or
trade surplus (net-exporter)?
This occurs when the value of the country’s imports exceeds the value of its exports. The Philippines imports significant amounts of goods such as fuel, machinery, electronics, and industrial raw materials, while exporting electronics, agricultural products, and manufactured goods. The country has struggled to balance its trade due to its reliance on importing key inputs for industries and energy.
- Provide labor to firms and receive wages in return.
- Save their excess income through the financial market.
Households
- Produce goods and services consumed by households.
- Invest through financial markets.
Firms
- Collects taxes from households and firms.
- Engages in public expenditure and interacts with financial markets for debt and investment.
Government
the study of the allocation of scarce resources, including how markets
function and how incentives affect people’s, businesses’ and institutions’
behavior
Economics
involves acquiring necessary resources (e.g., finance, staff, buildings, equipment) to carry out activities at the lowest possible cost (OECD Glossary of Statistical Terms).
Economy
The three fundamental economic functions are:
PDC
Production: Creation of goods and services.
Distribution
Consumption : Use of these goods and services by individuals or firms.
Supply curve is for?
Producers (S = P)
Demand curve is for?
Consumer (D = C)
Provides raw materials used as inputs for production (e.g., fresh water, fuel, wood, air, food).
Resource Supplier
Offers non-material benefits such as spiritual enrichment, cognitive development, and recreation (e.g., tourism, aesthetic value, cultural services).
Services supplier
Receives waste generated by economic activities, including pollution and greenhouse gasses (GHG).
Waste Assimilator
