Jerme C. Soqueña BS ECONOMICS 2A Macroeconomics SELF-CHECK QUESTION 1 1. The Philippines faces two economic problems today. The first is the erosion of basic needs, and the second is jobs, which are not adequately provided for. Necessities like food and shelter are ever-growing in cost adding to this are the anti-covid kids which are now part of daily needs. Until policies to increase the supply of these necessities occurs, prices rise as demand increases with more people entering poverty around the country. Some jobs aren't being filled within the country because many Filipino youths prefer to find work overseas and send money back home instead of finding a job locally at lower wages to provide for their families better than if they were unemployed in their own country. 2. In microeconomics, different sectors of the economy are studied independently and in isolation. It is a study of individual units like the study of behaviour of a consumer, equilibrium in a market, equilibrium of a firm in output or labour market etc. The effects of changes in one sector are studied without studying their implications on other sectors. In macroeconomic, however, the economy as a whole is studied and effects of one sector are studied on other sectors as well. For example in microeconomics, we study that increased wages change equilibrium in labour market and fewer workers will be demanded. The analysis in macroeconomic does not end here and we will also study the effects of increased wages on costs of firms, purchasing power of workers, government expenditures(as government is a major employer), cost push inflation, demand pull inflation, competitiveness of firms in domestic and international markets, exports, imports, trade balance and exchange rates etc.
