soc sci
SOC SCI
Market price - amount a buyer pays for a product
National product - the money value of goods and services the economy produced in a period of time
Two basic approaches
National product approach
National income approach
Personal consumption expenditures (C ) - household consumption
Durable goods (furniture, cars, and appliances)
Non durable (food, toiletries, clothes)
Services (telephone, water, and electricity)
Government expenditures on goods and services (G) - philippine government is the biggest single spender in the economy
Capital formation (I) - commonly known as investment
Net export (X - M) - difference of the total value of merchandise exports, “balance of trades”
National account - national product, and national income accounts
Gross domestic expenditures (GDE) - Sum of the market values of all final products
(GDE = C+G+I)
Gross domestic product (GDP) - sum of private consumption expenditures
(GDP = C+G+I + (X - M)
Gross national product (GNP) - the biggest national income account
(GNP = GDP = NET FACTOR ABROAD)
Net national product - measures economic performance minus depreciation allowance
Depreciation allowance - payment for the use of capital acquired in the past
Indirect taxes - taxes on consumed goods and services
National income - gnp should be equal to gross national income
Nominal gnp - current price gnp
Real gnp - constant price gnp
Price index - number that shows how much an average price has changed overtime
Externality - a side effect or consequence of an industrial or commercial activity
Human development index - measure of how well a country has performed
Real gdp per capita - average value of output produced by each person in the country in one year
ECONOMIC GROWTH AND DEVELOPMENT
Different blueprints
Ramos - philippines 2000
Estrada - angat pinoy 2004
Benigno aquino III - daang matuwid
Duterte - malasakit pagbabago at patuloy na pag-unlad
Economic growth - most desired macroeconomic goal
Frictional unemployment - move from one company to another to find a better job
Price stability - when market prices, hardly fluctuattte
Economic growth - authentic if the country’s productivity rate is highest than its population growth rate
Economic stagnation - economic growth is only as much as population growth
Economic retrogression - population grows faster than the economy
Economic development - long period of time
Sustained increase in real production
National development - covers all dimensions of the society
Primary economic factors - human resources, physical capital, natural resources, and technology
Non economic factors - preach and order situation, political stability, geographical location, etc.
NEDA - national economic and development authority - planning agency
Neda board and secretariat - two distinct entities of NEDA
NEDA BOARD - powers and functions of the NEDA
NEDA SECRETARIAT - the authority in macroeconomic forecasting
Principle of subsidiarity - government plays only a subsidiary role in nation building
Decentralization - spreading socioeconomic opportunities from traditional centers to the country side
Indicative planning - private sector participation in state development
AmBisyon natin 2040 - collective long term vision and aspirations of the filipino for themselves crafted in 2015
Filipinos are strongly rooted - filipino families live together / work-life balance
Filipinos are comfortable - no one is poor, no one is ever hungry/ families live together in comfortable homes
Filipinos are secure - expect to live long and enjoy a comfortable life upon retirement
FINANCIAL SECTOR AND MONETARY POLICY
Money - anything which the market accepts as payment
Barter system - system of trading
Credit card payment - short-term loan
Digital wallet - functional provided it has the enough cash load
Medium of exchange - money is convenient and effective
Standard of value - money makes trade and commerce easy
Store of value - money is a form of wealth
Standard of deferred payment - money makes it possible
National statistical coordination board - deifnes money supply
Demand deposits - savings and checking accounts held by banks
Time deposit - interest-bearing bank
Fixed deposits - high-interest-yielding term deposits
Recurring deposits - special kind of term deposit offered by banks
Income - directly proportional to consumption
interest rate - inversely related to the demand for money
Interest rate - go with the step of inflation rate
Transactional motive - people’s desire to buy goods and services
Precautionary motive - people’s desire to meet emergency needs
Speculative motive - people’s desire to keep money as a safe asset
Financial institutions - comprise the monetary sector/banks and non banks
Banks - entities that engage in lending funds obtained in the form of deposits
Universal banks - institutions that offer all services/ 21
Commercial banks - biggest lenders of investment funds and limited services / 22
Thrift banks - composed of savings and mortgage banks / 57
Rural banks - established to accelerate countryside development / 492
Cooperative banks - organized by the members on a cooperative basis / 40
Islamic banks - banking activities comply with sharia(islamic law) - only AAIIBP
Non banks - do not offer full scale bank activities
Intermediation - banks links the depositors and the borrowers \