The Circular Flow of Economic Activity

Flashcards covering key concepts regarding the circular flow of economic activity, including terms related to production, exports/imports, and GDP statistics for the Philippines.

What is the definition of Circular Flow in economics?

The flow of activities of households and firms in a circular direction.

What are raw materials?

Unprocessed goods like raw minerals, logs, and wheat, extracted from their sources without undergoing any production process.

What are intermediate goods?

Semi-processed goods that are not ready for final use, such as leather, cloth, and steel.

What are final goods?

Goods that are ready for direct consumption, such as refrigerators, dresses, and pants.

What is an export?

Selling of goods and services from the home country to a foreign country.

What are major exports of the Philippines?

Electronic products, other manufactures, and woodcrafts and furniture.

What is an import?

Buying of goods and services and bringing them into one's home country.

What are the major imports of the Philippines?

Metalliferous ores, mineral fuels, lubricants, telecommunication equipment, and electrical machinery.

What was the GDP growth rate of the Philippines in Q4 2024?

5.2%.

What were the main contributors to the GDP growth in Q4 2024?

Wholesale and retail trade; Financial and insurance activities; and Construction.

What was the GDP growth target for the Philippines for 2025-2028?

6.0% to 8.0%.

What sector posted a year-on-year decline of 1.8% in Q4 2024?

Agriculture, forestry, and fishing (AFF) sector.

Which sector experienced the highest growth in 2024?

Construction with 10.3%.

What was the overall GDP growth for 2024 for the Philippines?

5.6%, below the government’s target range.