1) How is Pres. Duterte intending to accelerate economic growth? What
government tool is he using? (6pts.)
President Duterte is accelerating economic growth by increasing
spending on much-needed infrastructure. The government tool he is
using is the “Build, Build, Build” program. This program involves
extensive infrastructure development, which aims to improve
transportation, communication, and other infrastructure projects.)
2) What challenges the government side of the Philippine flow of goods
and services? (3 pts.)
The flow of goods and services in the Philippines faces several
challenges, such as corruption, the regulatory system, infrastructure,
government procurement, and a highly price-sensitive market.
Corruption is a big problem and makes it hard for businesses to
operate fairly. There are many strict rules and regulations, requiring
special licenses and permits for some products. Poor infrastructure, like
traffic jams and slow internet, also makes things difficult. Additionally,
doing business with the government is complicated due to lots of
paperwork, and U.S. products are often too expensive for many
Filipinos, requiring companies to adjust their prices.
3) In the Laffer curve illustrated, can tax be increased indefinitely? Why or
why not? (3 pts.)
No, taxes cannot be increased indefinitely according to the Laffer
curve. The Laffer curve illustrates the concept that there is an optimal
tax rate that maximizes revenue. Beyond this optimal point, increasing
or higher tax rates will discourage work and investment, and that will
actually lead to a decrease in total tax revenue.
4) Is purchase/rental of real estate covered by disposable or discretionary
income? (3 pts.)
The purchase or rental of real estate is generally covered by
disposable income, not discretionary income. Disposable income is the
amount of money individuals have left after paying taxes, and it is
used to cover essential living expenses, including housing costs.
Discretionary income, on the other hand, is the portion of disposable
income that remains after covering all necessary expenses and can be
used for non-essential items like entertainment, vacations, and luxury
goods.