ACTIVITY #1

US ECONOMY

Despite facing challenges at the domestic level along with a rapidly transforming global
landscape, the U.S. economy is still the largest and most important in the world. The U.S.
economy represents about 20% of total global output, and is still larger than that of China.
Moreover, according to the IMF, the U.S. has the sixth highest per capita GDP (PPP). The U.S.
economy features a highly-developed and technologically-advanced services sector, which
accounts for about 80% of its output. The U.S. economy is dominated by services-oriented
companies in areas such as technology, financial services, healthcare and retail. Large U.S.
corporations also play a major role on the global stage, with more than a fifth of companies on
the Fortune Global 500 coming from the United States.

Even though the services sector is the main engine of the economy, the U.S. also has an
important manufacturing base, which represents roughly 15% of output. The U.S. is the second
largest manufacturer in the world and a leader in higher-value industries such as automobiles,
aerospace, machinery, telecommunications and chemicals. Meanwhile, agriculture represents
less than 2% of output. However, large amounts of arable land, advanced farming technology
and generous government subsidies make the U.S. a net exporter of food and the largest
agricultural exporting country in the world.

The U.S. economy maintains its powerhouse status through a combination of characteristics. The
country has access to abundant natural resources and a sophisticated physical infrastructure. It
also has a large, well-educated and productive workforce. Moreover, the physical and human
capital is fully leveraged in a free-market and business-oriented environment. The government
and the people of the United States both contribute to this unique economic environment. The
government provides political stability, a functional legal system, and a regulatory structure that
allow the economy to flourish. The general population, including a diversity of immigrants,
brings a solid work ethic, as well as a sense of entrepreneurship and risk taking to the mix.
Economic growth in the United States is constantly being driven forward by ongoing innovation,
research and development as well as capital investment.

The U.S. economy is currently emerging from a period of considerable turmoil. A mix of factors,
including low interest rates, widespread mortgage lending, excessive risk taking in the financial
sector, high consumer indebtedness and lax government regulation, led to a major recession that
began in 2008. The housing market and several major banks collapsed and the U.S. economy
proceeded to contract until the third quarter of 2009 in what was the deepest and longest
downturn since the Great Depression. The U.S. government intervened by using USD 700 billion
to purchase troubled mortgage-related assets and propping up large floundering corporations in
order to stabilize the financial system. It also introduced a stimulus package worth USD 831
billion to be spent across the following 10 years to boost the economy.
The economy has been recovering slowly yet unevenly since the depths of the recession in 2009.
The economy has received further support through expansionary monetary policies. This
includes not only holding interest rates at the lower bound, but also the unconventional practice
of the government buying large amounts of financial assets to increase the money supply and
hold down long term interest ratesa practice known as quantitative easing.

While the labor market has recovered significantly and employment has returned to pre-crisis
levels, there is still widespread debate regarding the health of the U.S. economy. In addition,
even though the worst effects of the recession are now fading, the economy still faces a variety
of significant challenges going forward. Deteriorating infrastructure, wage stagnation, rising
income inequality, elevated pension and medical costs, as well as large current account and
government budget deficits, are all issues facing the US economy.

Reaction
The United States have a very growth economy base on what I read recently and theyre bigger
than chinas economy . United States economy has a greatly income taxation and land reform .
The economy of united states is considered to be one of the best economies of all time . But the
economic condition of the United States at present extentively understood to be the most critical
since 1930s . so far the achievement and steps taken by the government have been insufficient.
the escalating financial disaster , meltdown in housing projects and increase joblessness

PHILIPPINE ECONOMY

The Philippines remained a strong performer in the region, despite slow global
growth. Coming from a slow start in the first half (H1) of 2015 due to weak government
spending, the economy bounced back in H2, bringing full year growth to 5.8 percent in 2015.
Among the major economies in the region, the Philippines is behind China and Vietnam only.

Sustained high non-agricultural growth and effective government programs are helping to
improve the welfare of the poor. Recent estimates suggest that extreme poverty decreased
gradually between 2012 and 2014. Extreme poverty is estimated to have decreased from 10.6
percent in 2012 to nine percent in 2014. After a decrease of only 0.3 percentage points between
2009 and 2012, poverty fell more rapidly between 2012 and 2014, according to revised
purchasing power parity (PPP) estimates. However, high rates of structural poverty remain,
especially among households depending on agriculture.

Prospects and risks

In the near-term, economic growth is likely to remain strong and is projected to accelerate
to 6.4 percent in 2016 before tempering slightly to 6.2 percent in 2017. Faster growth in 2016
would be driven by favorable domestic factors. Private consumption would remain robust, aided
by low inflation and spillovers from increased spending due to the upcoming general elections.
Investments will likely support growth as implementation of private sector, budgeted
infrastructure, and public-private partnership (PPP) projects accelerates.

These growth projections incorporate a number of risks which have remained broadly the
same since the October 2015 edition of the Philippine economic update. The key risks are
uneven recovery of high income economies, slower than anticipated growth of large emerging
market economies, financial market volatilities, slower remittance growth from oil exporting
economies, the continuation of El Nio in H1 2016, delays in PPP projects, and uncertainty
around the outcome of the election.

Policies: A retrospective and forward look on how to create more and better jobs

With solid macroeconomic fundamentals and significant fiscal space in place, the
Philippines can now accelerate the reforms needed to achieve more inclusive growth to
reduce poverty and boost shared prosperity. Trends in recent years point to the beginnings of
a more inclusive growth pattern, which needs to be sustained over a longer period before the
poor can feel the impact of higher growth and better governance in their daily lives. In the last
six years, the government preserved macroeconomic stability, promoted transparency, and
directed the growing fiscal space towards pro-poor infrastructure and social services.

What is needed now is to consolidate the reforms made, embark on the next set of reforms
and move ahead at full speed. In the short-term, deepening reforms in budget execution will
allow the country to use its growing fiscal space to increase investments in both human and
physical capital, with positive contributions to near-term growth and quality of jobs. Over the
medium-term, accelerated structural reforms are needed to enhance competition in sectors with
high impact on jobs (such as rice, shipping, and telecoms), securing property rights through more
systematic and administrative adjudication of land rights, and simplifying business regulations to
encourage the growth of firms of all sizes, while increasing tax effort and reforming the budget
execution system in order to sustainably ramp up public investments in infrastructure and social
services. In all these, priority is needed in Mindanao, where decades of conflict and weak,
Manila-centric policies have kept it from reaching its potential. To accelerate reforms in the
future, the government, business, labor, and civil society need to work more closely together to
support a package of reforms that will help the country move full speed ahead to create more
and better jobs.

REACTION

Philippines economy nowadays have a good starts , The Philippines is the one of main product
that commonly buy in market . as we lifting our country form the previous economic situation ,
Not including the whole world of economy ,we are experiencing a smaller amount of problems
in our economy than the recent and the past few years . However the one factors that affects
Philippines economic growth is the price control it is a price changed example is for goods or
service in a market . I think the main reason is to prevent the food shortage or rice shortage , to
insure an income for providers of a certain goods .

Activity #2

Answer the following questions

1. What kind of economic system is used in the Philippines? Explain your answer.

The Philippines adopts a mixed economic system whereby the economy includes a variety of
private economic freedom, including industries that are privately owned, together with
centralized planning and government regulation. as an industrialized country, the Philippines is
moving from an economy that was based on agriculture to an economy dominated by
manufacturing services.

2. What is the difference between our economic system and the United States economy.
Explain.

The difference between our economic system and the united States economy is the economy of
the Philippines is the 36th largest in the world, according to 2016 international monetary fund
statistics, and is one of the largest economies in the ASEAN. The Philippines is also one of the
emerging markets. While the united states the united states is the worlds largest according to
purchasing power party (PPP), representing 22% of nominal global GDP and 17% of gross world
product (GWP) our country uses Mixed System while US uses Capitalist System.
3. Can we always use a comparative advantage in trading other countries ? Cite example .
Yes we can. If another nation has a lower opportunity cost to produce a godd or a service than it
would be wise to trade for it, so we can produce items that have a low opportunity cost for us to
create. This will allow our nation's economy to operate more efficiently. Look what we trade
with China. Also The North American Free Trade Agreement was designed specifically to help
maximize trading opportunities.

ACTIVITY #4

1 .Why is the demand curve downward sloping and the supply curve upward sloping?

The supply curve slopes upward because the volume suppliers in an industry are willing to
produce increases as the price the market pays increases. Under typical circumstances, the
revenue and profit derived by a supplier increases as the market price rises.

2 . How does population influences changes in demand? Cite your own example.
If the population increase , the demand for normal or other goods increases because each
member of the family or population has need to filled . Increase in population often leads to an
increase in demand, and a decrease in population often leads to a decrease in demand.

3. Why do producers sell more products when the price is high?

Price is a function of demand. As demand goes up, supply remaining constant, price goes up.
Then producers supply more because profits are higher. At some point either price increases so
that demand falls or supply increases to meet or exceed demand and prices fall. When prices fall
consumers may buy more, but producers produce less because profits are lower. At equilibrium
supply demand and price all come together.
4. How do technologies affects change in supply ? cite your answer .
Production of a good involves taking inputs, applying a process to them, and producing an
output. Well, production technology is involved in the process part. Increases in the level of
production technology can make that process more efficient. For example, imagine that you run a
basic T-Shirt screen printing business out of your home. Now lets say you decide to invest in a
workshop installed with the latest production technology. With this use of technology, the
operation becomes more efficient and you are able increase the supply of T-shirts. If you decide
to expand even further, some added technological improvements might be warranted. This
further increases your ability to supply t-shirts since it reduces your labor costs. By automating
the process, reliance upon labor is lessened and those resources are released for utilization
elsewhere.
5.If we have sources of oil in the Philippines, what do you think will be its effect on the prices
and quantity of fuel?
Any oil supply will increase the Price .
6. Give examples of goods that can be considered as surplus in a nearby mall. ?
Clothes
7. Why do experience surpluses?
Because the items are lower than the actual Price , and the quality is the same as new .
8. Why do we experience shortages?
Occurs when there is excess demand- that is quantity demanded is greater than quantity
supplied. In this situation, consumers won't be able to buy as much of a good as they would
like. In response to the demand of the consumers, producers will raise both the price of their
product and the quantity they are willing to supply.
9. News reports talk about rice shortages in our country. In your opinion, are we really
experiencing rice shortage? Explain.

No , Yep theres a lot of rice wasted in the past typhoon but base on the research we are on the
top 3 importer of rice in the world . and Based on preliminary trade figures, deliveries to Asian
countries were expected to have grown by 2 million tons to reach a total of 18.9 million tons.