Applied Economics

Download as pdf or txt
Download as pdf or txt
You are on page 1of 2

Discuss how the following factors (population, employment, and wages) contribute to the

increase in commodity pricing. Arrange them in the most cohesive order.

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.

Read and answer the questions below:


1. Why does the government need to have a standard minimum wage per region? Explain
the benefits and problems of having a standard minimum wage per region.

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.

2. Why do we need to pay our taxes?

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.

3. Is TRAIN law beneficial to Filipino entrepreneurs?


The TRAIN law had a high impact on our tax systems. The personal income tax
rates and exemption thresholds were modified by this tax reform which makes it possible
for more people to be tax-exempt. This results in workers having higher take-home pay
for their families, but his alone will not be enough for its negatives. The excise tax alone
has a big effect, especially on the poorest sectors of the country. There are inflationary
effects of higher petroleum prices which affect 60% of poor households. Also, the lower
tax rates won't help the lowest-income groups, especially those who are already free from
taxes under the current tax structure, who would be burdened with an increase in
sugar-sweetened beverages. Moreover, small businesses will be subjected to higher tax
payments since they will be taxed on gross income rather than net income. All in all, I see
this law as anti-poor since it will worsen poverty in the long run because of the rising
prices of goods.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy