PACIFIC SOUTHBAY COLLEGE, INC.

Purok Carmenville, Calumpang, General Santos City

 

 FULL EMPLOYMENT AND FULL PRODUCTION

 FULL EMPLOYMENT. Is when society’s available human resources are

being maximized efficiently. It is a condition of an economy in which all
qualified people who want to work can find employment at customary wage
rates. However, it does not imply 100 percent employment since
allowances must be made for frictional unemployment and seasonal
factors. Generally, a 4 to 6% unemployment rate is considered full
employment. There will always be a small percentage of the labor force
who are between jobs. In the Philippines, the rate of unemployment has
lowered to 5.8 % from 6.6 % last 2015.
 FULL PRODUCTION. Is when resources are being allocated in the most
efficient manner. All employed resources are used so that they provide the
maximum possible satisfaction of our material wants. Full production can
include physical resources (land and capital) and human resources(labor
and entrepreneurial ability). Generally, an 85-90% capacity utilization rate is
considered full production of a nation’s capital.

ISSUES ON UNDER EMPLOYMENT:

-Underemployment of resources lowers the productive output of the nation
as a whole. Unemployment and low capacity utilization mean that society is
not allocating its resources efficiently in order to maximize output. 
-An unemployment rate greater than 5% is considered under-employment
of our labor resources.
- A capacity utilization rate less than 85% is considered underemployment
of our capital resources.
-Employment discrimination excludes members of particular groups from
particular jobs.
-Society loses out when people are kept from being fully productive.

 PRODUCTIVE EFFICIENCY:
Production Efficiency. Is an economic level at which the economy can no
longer produce additional amounts of a good without lowering the
production level of another product.
-Productive Efficiency occurs only when we are operating on the
production possibilities curve. It means that the output of one good cannot
be attained without reducing the output of some other good. It is the ability
to produce a good using the fewest resources possible. Thus, this is
 concerned with production of a particular mix of goods and services most
wanted by society.

 LAW OF INCREASING COST. As the output of one good expands, the

opportunity cost of producing additional units of this good increases. You
give up fewer units of candies to get 1 unit of chocolates  up top.
 ECONOMIC GROWTH.  Is an increase in the capacity of an economy to
produce goods and services, compared from one period of time to another.
It can be measured in nominal terms which include inflation or in real terms
which are adjusted to inflation.
 For comparing one country’s economic growth to another, GDP or GNP
(Gross Domestic Products/Gross National Product) should be used as
these take into account the population differences between two countries.

IN SUMMARY:

Resource Utilization is a system of economics where the basic inputs to

production are equitably utilized. The objective to take full advantage of the
scarce resources  source or supply from which benefit is produced.

Economic Resources (Factors of production) may be classified as either,

physical resources (land and capital) or human resources (labor and
entrepreneurial activity),These factors are produced, distributed and
consumed  mainly for the purpose of human satisfaction. However, despite
the desire to suffice all human wants and needs, this would not be possible.
Thus, people ,must make a choice over the things he’s after.

The value of the foregone alternative is what we call OPPORTUNITY COST. 

This cost could be  best demonstrated through Production Possibilities Curve
(PPC) which shows how available resources can be mixed and how choices
affect our consumption. The curve also demonstrates full employment and full
production. As long as we operate long the curve, productive efficiency is met.

CHAPTER EXERCISE:  Answer correctly on the blank.

Name:________________________________                                    
Course/Section:_________________________ 
                  
_____________1. The imbalance between human needs and wants and the means of
satisfying them.
_____________2. The total satisfaction received from consuming a good or service.
_____________3. A compensation based on the number of hours worked multiplied by
an hourly rate of  
                                pay.
_____________ 4. A compensation quoted on a monthly or annual basis.
_____________5. The creation or addition of utility.
_____________6. The allocation of the total number  of product among factors of
production.
_____________7. The utilization of a good or a service for one’ s very own satisfaction.
_____________8. The foregone value of the next best alternative.
_____________9. Represents the frontier of the economy’s production abilities.
_____________10.Happens when a society’s available human  resources are being
maximized efficiently
_____________11. Happens when resources are  being allocated in the most efficient
manner.
_____________12. Is an economic level at which the economy can no longer produce
additional amounts of good without lowering the production level of another product.
______________13. As the output of one good expands, the opportunity cost of
producing additional 
                                  Goods increases.  
______________ 14. Increase in the capacity of an  economy to produce goods and
services, compared 
                                    from period of time to another. 
______________15. Relates the study of human action and how people should make
choices.