SS Exam

Agriculture
Philippines - dominantly agricultural
climate and temperature - resources from Earth's bounty
Latin - "ager cultura" - cultivation of fields
production involving plant cultivation and raising animals (includes fisheries and forestry)
6000BC
foraging for food - move from place to place - nomads
Beginning of civilization - settlements
base for the development of societies
Provides:
food
raw materials
exports
employment
farming, fishing, mining
progressive agriculture can support other sectors
Half of Philippine land reserved for agriculture (30 million ha)
RICE AND CORN
no significant improvement in Philippine agricultural production
production falls - prices increase
Backward agriculture
plows, carabaos
modern agriculture - machinery and tractors
farming is still manual
Inadequate support services
Irrigation; farm to market roads
access to credit with minimal interest - USURY
subsidies
support for research
calamities
tenurial relations
flawed government programs
Globalization
GATT - general agreement on tariff and trade
WTO - world trade organization
FREE TRADE - borderless
removal of subsidies
QR - quantitative restrictions - all agricultural products
Marcos - Green Revolution
modernize agriculture
HYCs and HYVs - High Yielding Crops/Varieties
Masagana 99
Contract Growing arrangements
foreign companies pass work to small farmers
AFMA - Ramos
Agriculture and Fisheries Modernization Act
foreign participation
GM Crops - genetically spliced
Monsanto - BT Corn
Landlessness - landowners
kasama system - 50 to 90 % of crops go to landowner
Land Reform
Magsaysay - land distribution
Marcos - Tenant Emancipation Act
Aquino - CARL
Farmers - poverty

Industry and Labor
Agriculture, industry, services
industry - production beyond subsistence level
- level of integration of economic sectors
market - distribution
Industrial sector
mining, manufacturing, construction, utilities
30% of production
capacity to process and transform raw materials to create products
advance country's economy
Stages
Primary Products
Intermediate
Finished Products - consumer or capital goods
Utilization of agricultural products by manufacturing - forward and backward integration
Industrialized - less natural resources; high production of intermediate, capital, and consumer goods
Non-industrialized - rich in resources; low technology
Mining - extractive; Mining Act;
Manufacturing - largest share; create new products; downward trend
Construction - infrastructures;
Utilities - basic services
Characteristics
Petty production
medium-large scale
labor creates value of things
Potential labor force - 15-65 year olds
Labor force - seeking work, employed
labor force participation rate = total/potential
wage and salary workers - receive payment for work; private or public firms; government
own-account workers - self-employed; own businesses
unpaid family workers - assist relatives/parents
Underemployed - looking for additional source of living
visible - less than 40 hours a week
undertimed
invisible - more than 40 hours a week
cannot be seen
LFS - labor force survey
NSCB - national statistical coordination board
Problems:
Job scarcity - lack of jobs; unemployment
brain drain
Underemployment
Job Insecurity
LOC - labor-only contracting
agency supplies company with workers
contractualization
job sharing - 2 or 3 share 1 job
time/piece rating - paid according to hours/number of pieces
task system - particular quantity to be produced
Low wages
stagflation - unemployment, decrease of production, increase in prices

Services and the Informal Sector
Production, distribution, consumption
Wholesale and retail trade - distribution of goods
Transportation, communication, storage - warehouses, airlines, phone companies, etc
Finance, insurance, real estate, businesses - create money
financial intermediaries
banking - lending, payment, etc
insurance - sale of plans for future use; pre-need - eventualities
real estate - buying and selling land
Community, social, personal services - barbers, household help, etc
does NOT create new products by itself
Simon Kuznets
pre-industrial - agriculture
post-industrial - services
Portfolio investments - thrive on speculation
stocks and bonds
unproductive - no new products; does not create jobs; no transfer of technology in production
"low risk borrowers"
Call Centers - "sunshine industry"
Informal Sector
underground economy
unregistered with government
no taxes
statistical discrepancy in the GNP
half the labor force
severe poverty; lack of livelihood
INTENSE EXPLOITATION
Kalakalan 20
SSS

National Income
production indicators
Gross National Product
Gross Domestic Product
Economic activities - circular flow
national income - forms of value
nominal - current market prices
real - given base year
Price Index: year/base year x 100 gle
Money GNP= Price x Quantity
Real GNP=(MGNP/PI) X 100

Gross National Product - total value created by Filipinos
measure of country's output of final goods
with OFWs
Measuring:
EXPENDITURE APPROACH
C + I + G + (X-M) + NFIA
Consumption - final expenditures
Investments - addition to stock of capital goods (Gross Domestic Capital Formation)
Government - disbursements: projects and programs
Exports - Imports = Net income from international trade
Net Factor Income Abroad = transactions with rest of world (Investment incomes, earnings)
Income Approach - distributive shares approach
Wages+Profits+Rent+GovtIncome+(Export-Import)
Industrial
Agricultural+Industrial+Services
Gross Domestic Product
total production within geographical boundaries
foreign corporations
no OFWs
GDP = GNP-NFIA
Comparison of GNP and GDP
economic growth
GNP Per capita
level of industrialization
investments
NEDA - National Economic DEvelopment Authority