ECONOMIC DEVELOPMENT

CASE STUDY: GROUP 1 (BSA-2B)

Allejaga, John Dhel

Arevalo, Chamberlaine D.
Estrellado, Timothy John T.
Labrador, Christine Joy A.
Lara, Christine Pearl F.
Padilla, Jessica Mae B.
Vitanzos, Erika B.

August 31, 2019

Prof. Ramse Osano, Jr,

CASE 1. Give four (4) arguments as to why Inflation is necessary good.

Argument 1: Decrease the debt of the government.

By the help of inflation, regardless of stagnant economy, Government's minimize

its debt. The increase income of the firms causes to tax revenue raises, which is the
governments’ revenue. As the inflation affects a nation, the government was certainly
helped by the cost rising in paying its payables. It is a necessarily good because it does
only required the price up by the power of the Government to apply it. as the debt of the
government decreases, paid all the payable as forecasted in a period of time, the
annual budget of the country will be focus and direct to public services and others that
everyone would receive the benefits of it.

Argument 2: Encourage investing and spending

When there is inflation, it is predictable that the purchasing power will rise now
because people would want to buy now rather than later. It means consumers will stock
earlier of stuffs specially those basic necessities that results to more savings. Spending
sooner than later can boost the economic growth. And for businesses, they might make
capital investment in an earlier and short period of time that can last longer which is
good in the economic growth. So it shows that inflation is good in both party which is the
investors and consumers.

Argument 3: Boosting Economic Growth

There are two reasons why inflation is good, one is that when consumers expect
that prices are continuously rising, people will buy now rather than pay more after. The
demand will increase and in result businesses would likely to hire new workers boosting
the growth of our economy. Next is when it removes the risk of deflation--where
unemployment arises in which greatly affects the economic growth.

Argument 4: Higher income

When the profit of a state is in high rate it means that that state is in good
condition. Not only do companies find the need to offer better salaries to new hires,
they’ll also have to pay more attention to fairly compensating their existing employees in
order to retain the talent they already have. This means if you are looking for a new job
as inflation is rising, you could get paid more at a new company, but you might also
have an increased opportunity for a raise.

CASE 2. Who is fully employed? An encoder and graduate of Computer Science who
are able to type 90 words per minute and has complete fingers or an encoder and a
graduate of Office degree and is able to type 90 words per minute and has congenital
disorder.

The person that is on a full employment status is the person who is graduate of
Office Degree that has a disability because evethough he/she is a person with
disabilities, he/she still do his job properly like a normal people can do. The definition of
a Full employment is a situation in which everyone who wants a job can have work
hours they need on fair wages, meaning they give people the chance to have a work as
long as they can or a job that he/she can use to eliminate themselves from the poverty
line. In this case both of them have a good skills but they only differs from the physical
aspect. The second employee doesn't have complete set of fingers, we all know that in
our society now a days people with disabilities doesn't have enough chances of being
employed compared to a normal person. We tend to judge and decline them because
we are thinking that they can't be an asset of our economy. This case is an example of
giving PWD a chance to prove themselves to others by the means of giving them a job.
Achieving full employment

CASE 3. 2 Ha Land: Industrial Complex or Agricultural Land? Which of the 2 will give a
full employment of the land?

To fully utilize the given 2-hectare land, it is best to make use of it as an

Agricultural Land. The bases are to its effect; it’s economical, profitable in ways that isn’t
harmful to the environment, and also, it elevates the Agriculture Sector of the country.
 There are various activities to perform in land for agricultural purposes, which is
focused on cultivation of the soil, planting crops (and can/are to be market to the food
industry), growing of trees, raising of livestock, aquaculture and other farm activities
(PSA, 2019). Aside from those things mentioned above, there are other choices too that
every land owner can make the best of their own hectares, one of those is dividing it to
let other small farmers who wish for an allotment rent it out and still keeping some part
of the land for the owner’s own crops to be market to local shops.

Despite of the reduced role in GDP of the Philippines, Agriculture provides

employment for rural people, the primary livelihood of people subject to underdeveloped
and developing country. And as of January 2019, according to the Philippine Statistical
Authority, employment rate in the Agriculture Sector is comprised as one of the largest
group making 22.1 percent of the total employed in January 2019, second to the
Services Sector and above the Industry sector.