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NAME: Jinalyn T.

Cerbito

RATING: ______________

I.

In not less than seven sentences, discuss the following:
(10 pts. Each)
1. Importance of economics in your course
2. “There is no such thing as free lunch.”
3. Human’s needs as insatiable

II.

Analyze the following economic issues whether it is
essentially beneficial or not in our economy: (20 pts.)
1. Mining in the Philippines
2. OFW
3. Salary Hike
4. Fuel price rollback

III.

Explain the following factors of production: (30 pts.)
 Entrepreneur
 Capital
 Labor

Answers:
I.
1.
The field of economics encompasses the study of the
entire economic system, both at the micro and macro level.
Hotel economics is one such area where the subject matter of
economics has gained its growth in obtaining for the hotel
industry needed aspects, right from its initiation, establishment,
and growth. The hotel industry though considered to be a
service sector has proved its might in different dimensions
providing employment, revenue to the government and also
acting as a promoter of culture by developing the most vital
industry which is tourism. Tourism has emerged as a most

Abraham Maslow’s hierarchy proposes a linear progression through physiological needs. we usually have to give up another thing that we like. The idea that there is no free lunch at the societal level applies only when all resources are being used completely and appropriately. their relative level of importance. 2. and how to satisfy those needs. In order to reflect upon whether our economic system is effectively meeting our needs. An adage “There is no such thing as free lunch” demonstrates opportunity cost. If there appears to be no direct cost to any single individual. If not. when economic efficiency prevails. safety. Making decisions requires trading off one goal against another. there is a social cost. If one individual or group gets something at no cost. somebody else ends up paying for it. love and belonging. What is the economy for if not meeting human needs? Human needs are the basis of every economic activity we undertake. Similarly. we need to first of all understand what our needs are. Or you can only get something for nothing if you have previously gotten nothing for something. The importance of this field has grown over the years leading many institutes to provide education in this field. a 'free lunch' can be had through a more efficient utilization of resources. and esteem to self- . To get one thing that we like. It is seen that the industry as a whole generates not only a sizeable percentage of employment but also contributes to the GNP of a country. Commonly represented as a pyramid of needs. 3.instrumental phenomenon in the economic and social development of the society. It also acts as a subsidiary in providing accommodation to the tourist who visit the country by providing the most luxurious accommodation to the one like the motel where basic necessities are provided even to a poor tourist. but someone has to pay the cost of producing these benefits. someone can benefit for "free" from an externality or from a public good.

Aside from the moral and philosophical dimensions of this issue. which holds more than a third of the country’s gold and houses all its insurgencies. Foreign remittances are actually the second largest source of foreign reserves in the Philippines. Some scholars have conjectured that OFWs have helped close the gap between the poor and the wealthy in the Philippines by contributing to a growing middle class. 3. mining operations are susceptible to attacks and extortion from rebel groups.” They sacrifice a lot by working in what are often unfavorable conditions. it has not always been the friendliest place to do this kind of business. with each of the subsequent levels only taking priority when the previous level of need has been met. The government has long offered generous incentives — extremely low taxes. has plenty to mine. 2. Unfortunately. Proponents on the business side says it will help ease our worsening income inequality and stimulate consumer spending. For Maslow there was a strict order to meeting the various human needs. 1. Noncomplying companies have lost millions of dollars’ worth of equipment to vandalism and arson. both sides argue that raising the minimum wage would have sweeping effects on the economy. Because of the system of helping their families. In 2006. . of course.actualization. The Philippines. state-funded security. The most basic of needs lay the base of the pyramid. II. Loaded with mineral wealth (worth about $840 billion). low accountability — to entice foreign investment. it boasts some of the largest untapped gold and copper deposits in the region. This is why migrant workers are called the “new heroes. remittances ranked even higher than foreign direct investment in terms of percentage of GDP. In Mindanao. they are also helping the entire country.

. inspired by an unhealthy desire to establish arbitrarily a symmetry with the other factors. These entrepreneurs are seen as innovators. The adverse impact of the oil price rout on oil-exporting economies looks likely to offset. The latter provide factors of production which they sell to the entrepreneur at prices which they naturally try to make as high as possible. the stimulus it could provide for oil-importing countries against a backdrop of weak economic growth and low inflation. It is conventionally contrasted with such other factors of production as entrepreneur and capital. Some people doubtless will say that he provides the function of enterprise and receives as remuneration a sum which varies according to the results. Capital is distinct from land or non-renewable resources in that capital can be increased by human labor. total physical capital may be referred to as the capital stock which is not to be confused with the capital stock of a business entity.  Labor is the human input into the production process. but if consumption is deferred an increased supply of consumable goods will be available later. The benefit to consumers from lower fuel prices outweighs the negatives for energy producers. if not exceed. They obtain remuneration for their activity in a very different manner than do laborers or lenders of capital. The entrepreneur proceeds quite otherwise. But this is a tortured way of presenting the thing. At any given moment in time. instead of selling something to the enterprise he identifies himself with the enterprise. developing new ways to produce and new products. It is a measure of the work done by human beings.  Capital is a type of good that can be consumed now.4.  Entrepreneurs are people who organize other productive resources to make goods and services. III.