You are on page 1of 2

QUEZON CITY, Philippines � Before the implementation of Tax Reform for

Acceleration and Inclusion or TRAIN Law, a P3,200 income tax was being deducted
from the monthly salary of CJ Oliveros, an electrical engineer.

Although he is now exempted from paying this obligation under the law, Oliveros
still appeals for wage hike due to impending increase in prices of fuel and
commodities.

�Sana hindi lang kaming mga professional, pati �yung mga nasa baba. Lahat sana
magkaroon ng increase this year kasi kung tataas talaga �yung mga presyo, sana
lahat para masaya lahat,� he said.

(I hope that it�s not just professionals but also those on the ground. If prices
will really go up this year, I hope everyone will have an increase so that everyone
is happy.)

Labor group, Buklurang Manggagawang Pilipino said it will scrutinize first the
effects of the law prior to submitting a wage hike petition.

�Tatamaan talaga �yung mga manggagawa lalo na �yung mga minimum wage earner na
wala silang pakinabang sa tax exemption ngayon dahil matagal na silang exempted.
Matagal na silang exempted,� said Leody de Guzman, national president of Bukluran
ng Manggagawang Pilipino.

(Workers will be hit by this especially minimum wage earners since they will not
benefit from tax exemption because they have always been exempted. They have long
been exempted.)

The group continues to appeal to President Rodrigo Duterte for an additional P1,200
monthly income for minimum wage earners.

In the meantime, the Associated Labor Unions-Trade Union Congress of the


Philippines (ALU-TUCP) will monitor the movement in prices of goods and commodities
to find out if the said law will have a big effect on ordinary citizens.

ALU-TUCP spokesperson, Alan Tanjusay said, �Kahit hindi pa June, pag nakita naming
na nahihirapan na �yung ating mga kababayan dahil sa pagtaas ng commodities at mga
services, of course, kahit wala pang one year, magpa-file kami ng wage increase
petition.�

(Even if it�s not June yet�if we see that our fellowmen are having difficulties due
to increase in prices of commodities and services�of course, even if it�s not yet
one year, we will file a wage increase petition.)

However, the Employer�s Confederation of the Philippines or ECOP said it is still


too early to discuss the wage increase.

�We�ll never see what kind of increases, how it affects consumer price index. I
guess, we will not see anything until the end of this year. So, it�s really too
premature,� ECOP president, Donald Dee. � Mai Bermudez | UNTV News & Rescue

Essay Q1: WHY WILL PRICES GO UP AFTER A MONEY SUPPLY INCREASE?


In short, prices will go up after a drastic increase in the money supply because:

If people have more money, they�ll divert some of that money to spending. Retailers
will be forced to raise prices, or run out of the product.
Retailers who run out of product will try to replenish it. Producers face the same
dilemma of retailers that they will either have to raise prices, or face shortages
because they do not have the capacity to create an extra product and they cannot
find labor at rates which are low enough to justify the extra production.
Inflation is caused by a combination of four factors:

The supply of money goes up.


The supply of goods goes down.
Demand for money goes down.
Demand for goods goes up.
We�ve seen why an increase in the supply of money causes prices to rise. If the
supply of goods increased enough, factor 1 and 2 could balance each other out and
we could avoid inflation. Suppliers would produce more goods if wage rates and the
price of their inputs wouldn�t increase. However, we�ve seen they will increase. In
fact, it�s likely that they�ll increase to such a level where it will be optimal
for the firm to produce the amount they would have if the money supply had not
increased.

This gets us to why drastically increasing the money supply on the surface seems
like a good idea. When we say we�d like more money, what we�re really saying is
we�d like more wealth. The problem is if we all have more money, collectively we�re
not going to be any more wealthy. Increasing the amount of money does nothing to
increasing the amount of wealth or more plainly the amount of stuff in the world.
Since the same number of people are chasing the same amount of stuff, we cannot on
average be wealthier than we were before.

Essay Q2:
1.In the computation for the slope, the price is in the numerator while the demand
or quantity is in the denominator.
2.In the computation for elasticity (as in the case of price elasticity of demand),
the numerator has the quantity while the denominator has the price.
3.Elasticity is computed using a percentage change so the quotient is unitless.
4.Slope is computed using the units for quantity and price (i.e. how many dollars
per scoop of ice cream).

Read more: Difference Between Slope and Elasticity | Difference Between


http://www.differencebetween.net/business/economics-business/difference-between-
slope-and-elasticity/#ixzz53TtpJK1Z

Essay Q3: This coin is the first in Philippine history to have a hole. Due to its
small value, it has been used as a washer, as earrings, and various other kinds of
ornaments. The hole actually shaves off part of the production cost by requiring
less metal to mint a coin. It also helps differentiate the 5 centavo coin from the
10 and 1 centavo coins which are similar in size.