Adrian Gabriel D. Maranan Economics 2
BS IHM CLOCA 2B
Exercise 1
Answer the following question based on the concepts and theories learned.
A. Evaluate the following present economic problems by our country.
1. Unemployment
Unemployment is one of the major problems that our country is experiencing because of lack of
job opportunities. Some people have the required skills needed to land a job, but because of lack of
opportunities, they are unable to employ themselves. That is why, people are just finding a job even if it
is not aligned to the course that they completed. If people will continue to be unemployed, then they
will not have the capacity to buy goods and afford services. Because of that, the economy will drop
because there will be no business being experienced, and these businesses will not have the capacity to
pay their taxes. So, everything really follows once there is unemployment.
2. Economic Instability
Economic Instability focuses on the condition of one’s economy and how the local government
pushes measures to uplift one’s economy. When the economy is unstable, it will be difficult to measure
the consumption and the demand of the people which can cause instabilities in the production and
supply of goods and services which may result to surplus or shortage. For example, the problem brought
by the pandemic causes tremors on our economic life which lower our level of spending because of
unemployment and economic recession. If our economy continues to be unstable then we will not feel
the growth and improvement that we all deserve.
3. Low Levels of Growth and Development
This implies when a particular country suffers from economic problem and find it difficult to
develop their economy. Each country or locale varies depending on their economic condition. A
particular country or locale can have a good economic stability than the others. Because of low levels of
growth and development, other country opted to borrow money from other countries. For example, the
Philippines, they borrowed trillion from other countries. Our country will not borrow money if they do
not have the capacity to pay it. They are confident that through our vast resources and the taxes we
paid, we will be able to compensate our debts. Our country has really the potential to grow and develop
but the problem is corruption. These corrupt officials who contributed to the economic slowdown of the
country. Because of their malicious actions, the taxes and the contributions being paid by the people are
not really being allocated for their welfare but for their selfless acts.
