BASIC ECONOMIC PROBLEMS AND

SOCIO-ECONOMIC DEVELOPMENT
OF THE PHILIPPINES IN THE 21ST
CENTURY
PRESENTER: GROUP 2
BRING YOUR
P R E S E N TAT I O N TO
THE NEXT LEVEL
 State and generalize the Basic
Economic Problems;

OBJECTIVES Elucidate the Basic Economic

AT THE END OF THE LESSON Problems
THE STUDENTS WILL BE of the country
ABLE TO:
Understand the Socio-economic
development of the Philippines
 BASIC
ECONOMIC
PROBLEMS
 WHAT TO PRODUCE? FOR WHOM TO PRODUCE?

Every economy must determine

Goods and services will be
what goods and services are to be
distributed to buyers on the basis of
produced and in what quantities of
their ability and willingness to pay
each, to produce.
their existing market price.

HOW TO PRODUCE?

The company must decide on how

to use the resources to produce
goods and services.
 SECTORS
AND THEIR 1. 2 3 4
ECONOMIC CONSUMERS WORKERS PRODUCERS GOVERNMENT

PROBLEM
ON
 CONSUMERS

Households have limited

income and they need to
decide how to spend their
finite income.
 WORKERS
Householders will also
face decisions on how
much to work.
 PRODUCERS
A producer needs to remain
profitable (revenue higher
than costs). So it will need to
produce the goods that are in
high demand and respond to
the changing demands and
buying habits of consumers
 GOVERNMENT
The government has finite resources
and its spending power is limited by
the tax it can collect. The
government needs to decide how
they collect tax and then they need to
determine whom they spend money
on.
 BASIC
ECONOMIC
PROBLEM IN THE
PHILIPPINES
 1 2 3 4

UNEMPLOYMENT POVERTY POOR QUALITY OF INCOME

INFRASTRUCTURE INEQUALIT
Y
UNEMPLOYMENT
In January 2022, the country’s
unemployment rate was reported at
6.4 percent. This translates to 2.93
million unemployed Filipinos,
projecting a decline of 1.04 million
from the 3.96 million reported in
January 2021.
 POVERTY
According to a poverty
survey of more than 15
million Filipinos carried
out by the Department of
Social Welfare and
Development (DSWD).
POOR QUALITY OF
INFRASTRUCTURE
The Philippines ranked 56th out of 137
economies worldwide in the latest World
Economic Forum Global Competitiveness
Report, basically holding steady versus its
ranking of No. 57 last year. The country
maintained its score of 4.4 on a scale of 7.
 INCOME
INEQUALITY
Income is the money that an
individual earns from work or
business received from
investments. Income inequality
refers to the gap in income that
exists between the rich and the
poor.
Major causes of Income Inequality in the Philippines

POLIT ICAL CULTURE I NCOME TA XES-

1. Political culture can be
considered one of the major causes
of income inequality in the
Philippines, the “palakasan” and
“utang na loob” that cannot be
avoided especially after the
election.
3.A Filipino worker receiving
minimum wage is exempted from
the payment of income tax but for
those Filipino workers earning
more than the minimum wage are
taxed 32 percent

IN DIRECT TAXE S
2. is a regressive tax which the poor
people shoulder the burden of
paying higher taxes like the Value
Added Tax.
 PHILIPPINE
SOCIO-
ECONOMIC
DEVELOPMENT
• The Philippines has emerged as
one of the most dynamic
economies in the East Asia
Region
• The Philippine economy has
grown at a rapid pace over the
past five years.
• Strong capital investment and
robust domestic demand have
helped secure the Philippines'
position as the leading growth
performer.
THANK
YOU