WAGE DETERMINATION
x, who is just sitting in aircondition room,
COMPETITIVE LABOR MARKET
A market in which a large numbers of
similarly qualified workers independently offers
their labor and services to a large number of
employer none of whom can set the wage rate
ECONOMIC THINK TANKS
Many people thinks that economics is
solution to poverty
FACTORS THAT CHANGES LABOR DEMAND
1. Changes in product demand
2. Changes in productivity
3. Changes in the price of other resources
CHANGES IN PRODUCT DEMAND
an increase for demand of product will also be
an increase for demand of resources
CHANGES IN PRODUCTIVITY
If the approach changes (increase/decrease
demand) as far as labor is concern. It is good if
the changes toward in increase activity. If there
is a slow down in activity the more
unemployment will happen
CHANGES IN THE PRICE OF THE RESOURCES
Some business willslow down in production
if the price of the product is high
MONOPSONY
A market structure in w/c only a single buyer
of a good or service or resource is present (ex.
Hearing aid, eye glasses)
WAGE DIFFERENCES
Is the difference between the wage received
by one worker or group and that received by
another worker or group
Ex. Mr.
receive Php 100,000 per month. While Mr.
Pedro, cleaning all the rooms, receive only Php
7000 a month
It is because of the educational attainment that
Mr. X has. Here in the Philippines, we value
those employees who has better educational
background than those who hasnt. The higher
the salary that you will earn the bigger the
responsibility you will have.
MINIMUM WAGES
The minimum wage of the worker is 365/
day. If he dont accept the payment of Php
5000/month, w/c is below the minimum wage,
others will take it. That is why they are forced to
received minimum wage.
INCOME INEQUALITY
FACTORS OF INCOME INEQUALITY
1. ABILITY
Ex. Lebron James and other basketball
players received $20M a year. While
Mang Kiko, who is a seller of fishball,
received Php 2000 a month
2. EDUCATION & TRAINING
Ex. Mr. joseph, who finished college as
an accountant. He will end up being a
CPA.
Mr. Tan, who did not finish his
studies because of financial problem.
He will edn up as a janitor
3. DISCRIMINATION
Here in the Philippines, discrimination is
not practice. But in the states, we are
discriminated.
Ex. Kapag pinanganak kang bulag, putol
ang kamay, hindi ka tatanggapin sa
bangko
 Ex. Miss Universe. Puro magaganda lang
yung pinipili, paano naman yung mga
pinanganak na di kagandahan? Di
naman nila kasalanan na ganun sila
pinanganak.
4. PREFERENCE & RISK
There are people who are afraid of
risk but there are people who are fond
of risk.
Ex. Hindi nila pinili na magtrabaho sa
manila dahil ayaw nilang mawalay sa
pamilya nila.
5. UNEQUAL DISTRIBUTION OF WEALTH
Ex. Anak ni henry Sy. Nung pinanganak
sila ay sigurado na sila na milyunaryo na
sila
6. LUCK, CONNECTION & MISFORTUNE
Luck
Ex. Kapag nanalo sa lotto
Connection
Ex. Anak ng mayor tatanggapin agad
kapag nag apply kahi hindi qualified
Misfortune
Ex. Naaksidente yung tatay nila. Kaya
ngayon naghirap na sila.
Hindi natanggap sa trabaho
THE ECONOMICS OF POVERTY
Scavengers people who gathers garbages in
the dumpsite and said it for a few pesos
POVERTY
Is the situation wherein a peso can hardly
buy his basic needs
POVERTY RATES
The percentage of the population w/ income
below the official poverty income level establish
by the government
INCIDENT OF POVERTY
Poverty may happen to everyone, white,
black, urban, rural. But in America, poor people
live in a container. While in the Philippines, the
poor people live in the street.
INTERNATIONAL ECONOMICS
INTERNATIONAL TRADE
This is a way of trading in a global perspective
they engage in import and export
TRADE DEFICIT
Occurs when imports exceed exports
INTERNATIONAL RESERVES
Composed of:
Dollars
Gold
Foreign money
Commercial papers
It is the reserve of dollars in the country
w/c will be used for external transaction
of a country
IMPORT
Truck
Petroleum
Heavy equipment
Why we export good to other countries?
We have to sell other products to other
countries because that country doesnt have
products that we imported
The country must engage to international
trade to boost their trade.