Applied Economics
Applied Economics
Applied Economics
How does each factor ultimately contribute to the increase in commodity pricing?
The commodity pricing can be increased with the factors such as population,
employment, and wages. If the population increases, there will be more demand for products.
Since there is an increase in demand for products, businesses need to employ more laborers to
keep up with the demand. As a result of the additional labor, there will be more products
available, which will reduce the rise in demand. With the increase in employment, employers
need to give more wages since there is an increase in production which will be added to the
product cost. Hence, there will be an increase in commodity prices.
Standard minimum wages safeguard workers from unfairly low pay. The
minimum wage is legally mandated and it is frequently fixed to cover the basic needs of a
worker and their family. It varies per region according to the provision of an increase in
the cost of living or the amount needed to live in each region and the level of economic
development. This is because the prices of goods also vary from different areas due to
social and economic circumstances.
One of the benefits of having a standard minimum wage per region is providing
more effective protection to low-paid workers which encourages enterprise bargaining to
increase productivity. Also, it may make workers competitive regionally which will result
in productivity improvement that leads to higher output, revenues, and incomes. This all
will be favorable to the creation of more jobs.
With all the benefits of having a regional standard minimum wage, there come
problems arise. One of them is that it may lead to an overpopulated area. A mass of
workers may come to the region with the highest minimum wage and seek job
opportunities there, like in NCR. This resulted in overpopulation which created more
problems like illegal settling.
Paying taxes is a social responsibility for the country. Taxes are needed because
governments collect this money and use it to finance social products in health, education,
and governance. The government will use the money we pay to develop and improve
government services and the quality of life for Filipinos both inside and outside of our
nation. Without taxes, the government would be unable to meet the demands of society.
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