Part I. Essay: Please answer the following questions.

Write your answer in the

space provided.

1. What does laissez-faire mean? How does this affect our present economic
condition in the Philippines?

Laissez-Faire is a policy established wherein companies and businesses can

operate with very little intervention from the government. The Philippines is currently
in a laissez-faire status, wherein they value the decisions of private sectors; thus, it
encourages private sectors to control their finances freely while helping shape the
economy. 

2. What do you think is the importance of Econometrics in Applied Economics?

Elaborate your answer.

Econometrics assists economists in analyzing statistical data from our

economy. It facilitates the monitoring of trends and developments in our economy.
The government frequently utilizes econometrics to establish policies and the
corporate world to set and change expenses and pricing.

Part II. Answer the following questions

A. Write about any economic problem currently being experienced in the

Philippines and apply any of the economic theories. Use news articles as the basis
of the economic issues you will write about.

Neoclassical economic theory holds that supply and demand drive the
production, price, and consumption of commodities and services. The epidemic has
had an enormous impact on our economy, and reviving it is a challenging but still
achievable process. It will take a long time to recover from the economic damage
caused by the pandemic. Though many improvements have been observed and a
continued rising trend is predicted, there is no guarantee of what our future contains,
especially amid the pandemic.

https://www.philstar.com/business/2022/01/12/2153237/economic-issues-facing-next-
president