JONATHAN M.

GUTANG

Definition of economics

=the branch of knowledge concerned with the production, consumption, and transfer of wealth.
Branches of Economics

=The two main branches of economics are microeconomics and macroeconomics.

Methodologies of economics
=methodological individualism, methodological holism, institutional individualism,
methodological institutionalism.
The Law of Scarcity
=The Law of Scarcity simply states: If what we desire “appears” to be in limited supply, the
perception of its value increases significantly. ... You don't need to go any further than a
television commercial or piece of written advertising to see the most commonly used semantics
incorporating the principles of scarcity.
basic economic problems
=What to produce, how to produce, and for whom to produce.

The economic system

=An economic system, or economic order, is a system of production, resource allocation
and distribution of goods and services within a society or a given geographic area. ... An
economic system is a type of social system. The mode of production is a related concept.
The circular flow of economy
=The circular flow model demonstrates how money moves through society. Money flows from
producers to workers as wages and flows back to producers as payment for products. In short,
an economy is an endless circular flow of money. ... Economists have added in more factors to
better depict complex modern economies
Demand and Supply Analysis
*Functions
= Demand and Supply Functions. The relationship between a unit price and the quantity
demanded is articulated by a so-called demand equation and its graph is referred to as a
demand curve. In general, the quantity demanded of a commodity increases as the commodity's
unit price decreases, and vice versa
Demand and Supply Analysis
*Schedule
A demand schedule is a table that shows the quantity demanded at different prices in the
market. A demand curve shows the relationship between quantity demanded and price in a
given market on a graph. ... A supply schedule is a table that shows the quantity supplied at
different prices in the market.
*Curve
= A demand curve shows the relationship between quantity demanded and price in a
given market on a graph. ... A supply schedule is a table that shows the quantity supplied at
different prices in the market. A supply curve shows the relationship between quantity supplied
and price on a graph.
*Determinants
=The price of the good or service. The income of buyers. The prices of related goods or
services—either complementary and purchased along with a particular item, or substitutes and
bought instead of a product. The tastes or preferences of consumers will drive demand.

*Law of Demand and Law of Supply

=The law of demand says that at higher prices, buyers will demand less of an
economic good. The law of supply says that at higher prices, sellers will supply more
of an economic good. These two laws interact to determine the actual market prices and
volume of goods that are traded on a market.

If I am an economists, what are the measures that I will going to do on this

pandemic in order to boost the economy, knowing that there is a travel ban and
limited resources?

According to my research
The survival of businesses throughout the tourism ecosystem is at risk without continued
government support and although governments have taken impressive action to cushion the blow to
tourism, to minimise job losses and to build recovery in 2021 and beyond, more needs to be done,
and in a more co-ordinated way. Key policy priorities include: Restoring traveller confidence
Supporting tourism businesses to adapt and survive

Promoting domestic tourism and supporting safe return of international tourism

Providing clear information to travellers and businesses, and limiting uncertainty (to the extent
possible)

Evolving response measures to maintain capacity in the sector and address gaps in supports

Strengthening co-operation within and between countries

Building more resilient, sustainable tourism

While flexible policy solutions are needed to enable the tourism economy to live alongside the virus
in the short to medium term, it is important to look beyond this and take steps to learn from the crisis,
which has revealed gaps in government and industry preparedness and response capacity. Co-
ordinated action across governments at all levels and the private sector is essential.

The crisis is an opportunity to rethink tourism for the future. Tourism is at a crossroads and the
measures put in place today will shape the tourism of tomorrow. Governments need to consider the
longer-term implications of the crisis, while capitalising on digitalisation, supporting the low carbon
transition, and promoting the structural transformation needed to build a stronger, more sustainable
and resilient tourism economy.

Concept of Elasticity

Price elasticity of demand and supply

•Degree of price elasticity of demand and supply
= The price elasticity of demand is the percentage change in the quantity demanded of a good
or service divided by the percentage change in the price. The price elasticity of supply is the
percentage change in quantity supplied divided by the percentage change in price

Degree of price elasticity of demand and supply

= The price elasticity of demand is the percentage change in the quantity demanded of a good
or service divided by the percentage change in the price. The price elasticity of supply is the
percentage change in quantity supplied divided by the percentage change in price.

Determinants of price elasticity of demand and supply

= The four factors that affect price elasticity of demand are (1) availability of substitutes, (2) if
the good is a luxury or a necessity, (3) the proportion of income spent on the good, and (4) how
much time has elapsed since the time the price changed. If income elasticity is positive, the
good is normal.

*Income and cross price elasticity of demand

= Income and cross price elasticity of demand

Reflect about the prices of commodities and services during pandemic

= as what I observe in this pandemic situation some of the price was increase larger than the items
due to needs and lacks of stack during this pandemic situation. Although the COVID-19 epidemic is
primarily a public health concern, the necessary measures enacted to contain the spread of the
virus, especially the restrictions placed on the movement of people and goods, were likely to have a
significant impact on all levels of the agricultural market chain. The Food and Agriculture
Organization of the United Nations (FAO), International Fund for Agricultural Development (IFAD),
the World Food Program (WFP), and the United Nations Children’s Fund (UNICEF) decided to
conduct a rapid assessment on the impact of the COVID-19 outbreak on food security and nutrition.
The results of the impact assessment was envisioned to inform key government agencies in
identifying the appropriate measures and programmes that will ultimately help ensure food security
for all, at all times.

Theory of Production

Production function
=The theory of the production function depicts the relation between physical outputs of a
production process and physical inputs, i.e. factors of production. The practical application of
production functions is obtained by valuing the physical outputs and inputs by their prices.
Law of Diminishing Marginal Returns
=Diminishing returns, also called law of diminishing returns or principle of diminishing marginal
productivity, economic law stating that if one input in the production of a commodity is increased
while all other inputs are held fixed, a point will eventually be reached at which additions of the
input yield.
Stages of Production
=The three stages of short-run production are readily seen with the three product curves--total
product, average product, and marginal product. A set of product curves is presented in the
exhibit to the right.

What are the essentials of people during pandemic

I wouldn’t compare my experience to the experience of most Filipinos. The pandemic has been
much harder for less fortunate people. When the lockdown first happened, malls were closed so
people who had entrepreneurial micro-businesses were very affected. Another challenge for
people who still had to commute for work was that since public transportation ridership
decreased, the fares were increased.
I have three boys, ages seven, five, and one. When school was canceled, they had to stay
home. So that was hard because I was working virtually and trying to keep them quiet and look
out for them. It was a big help to have husband and family here, but still it was difficult to not
have a boundary between work hours and family hours. But for most Filipinos it’s been more
difficult than it’s been for me.
Compare and contrast the supply and demand of these essentials.
As the Covid-19 pandemic is disrupting economies across the globe, policymakers are in search
for suitable stabilisation policy measures. The scope and design of effective policy hinges on the
channels through which the pandemic affects economic activity, in particular on the relative
importance of the forces working on supply and demand (e.g. Baldwin 2020, Hassler et al.
2020). On the one hand, policymakers need to consider measures that shield productive
capacity going forward. These policies are meant to weather disruptions for non-economic
reasons in the supply of goods and services such as broken international supply chains or
reductions in labour efficiency due to Covid-19 containment measures. On the other hand,
policymakers need to consider demand stimulus measures to address potential demand
deficiencies. Demand deficiencies can arise from actual and expected income risk and higher
economic uncertainty.
Compare also the prices before and during pandemic
=Government officials said the inflation uptrend is temporary, but some economists have
warned that prices may stay elevated during this year, eroding the purchasing power of millions
of consumers and complicating economic recovery.

Last week, the Philippine Statistics Authority reported that inflation in January quickened to
4.2% year-on-year, the highest in 24 months. The figure breached the central bank target and
marked the fourth straight month of acceleration.
Analysis of Cost, Profit, and Total Revenue: Accounting vs Economic Costs; Implicit vs
Explicit.
=Examples of variable costs include employee wages and costs of raw materials. The short run
costs increase or decrease based on variable cost as well as the rate of production.
How business attains profit or losses through economic viewpoint
=Economic profit may be used when seeking a comparison to income that potentially would
have been gained from choosing a different option. Individuals starting their own business may
use economic profit as a proxy for their first year of business. With large entities, business
managers can potentially look more intricately at gross, operating, and net profit versus
economic profit at different phases of the business operations. An individual starts a business
and incurs startup costs of P100, 000. During the first year of operation, the business earns
revenue of P 120,000. This results in an accounting profit of P20, 000. However, if the individual
had stayed at her previous job, she would have made P45, 000. In this example, the individual’s
economic profit is equal to.

Government and Economic Regulation

Macroeconomic Indicator
=Macroeconomic indicators, also known as fundamental data releases, are statistics or
readings that reflect the production or output of an economy, government, or sector. ... They
include things like: interest rates announcements, GDP, consumer price index, employment
indicators, retail sales, monetary policy, and more.
Unemployment and inflation
=Low levels of unemployment correspond with higher inflation, while high unemployment
corresponds with lower inflation and even deflation. ... During periods of high unemployment,
customers purchase fewer goods, which puts downward pressure on prices and reduces
inflation.
Monetary Policies and the BSP
=The primary objective of BSP's monetary policy is to promote a low and stable inflation
conducive to a balanced and sustainable economic growth
Fiscal Policies
=Fiscal policy is the means by which a government adjusts its spending levels and tax rates to
monitor and influence a nation's economy. It is the sister strategy to monetary policy through
which a central bank influences a nation's money supply.

If you are the government, what are the plans that you will do in "Balik Probinsya
Program" and the return of OFWs in the country? Do you think it is effective?
=If I am the government the programs that I would do to the ‘’balik probinsya program’’ was to
give an assistance to those OFW people to start a new life in the Philippines and increase the
salary in the Philippines, in the way no one will go the other country and engage of Being an
OFW that may abuse by their boss or agency.

Agrarian Reform
Principles behind agrarian reform
=The core principle in agrarian reform is the primacy of the right of all members of the
agricultural labour force who do not own land, near-landless farmers, farmworkers, small fisher
folk and other direct producers to own and control the land, have full access to other natural
resources and gain full disposition over.
Agrarian reform in the Philippines
= The agrarian reform program under the Arroyo administration is anchored on the vision “To
make the countryside economically viable for the Filipino family by building partnership and
promoting social equity and new economic opportunities towards lasting peace and sustainable
rural development.
Land reform vs agrarian reform
=Land reform is a term that was used earlier to bring about changes in the ownership of land, in
rural areas. ... Agrarian reform includes land reform and also addresses education and training
of farmers for better produce and marketing, rural credit, easier access to markets, and so on.

Comprehensive agrarian reform program

=The agrarian reform program is founded on the right of farmers and regular farmworkers, who
are landless, to own directly or collectively the lands they till or, in the case of other farm
workers, to receive a just share of the fruits thereof.
Do you think Philippines can survive even without importing agricultural products?
=for me it’s a NO, because importing agricultural product give more The benefits of import
include giving developing nations a chance to boost their economy, producing higher quality
products, and increasing revenue by introducing a new product to a locale.