| Income Tax | How to compute income tax of a working citizen. |
| Solution: | For total income tax: 1] Get exemption status from problem 2] Check row for next lower value of income 3] Get difference of income and the lower income and multiply by percentage stated 4] Add to amount stated in top of column For amount taken home: 1] Get total income tax 2] Subtract from original income 3] Subtract all other deductions For percent taken from income: 1] Get total income tax 2] Divide by original income then mult by 100 For percent taken home: 1] Get amount taken home 2] Divide by original income then mult by 100 |
| Exemption Status | Status of a person (depends on the number of dependents he/she has) which results in a decrease in
his/her income tax. z - don't mind Employees without children: Single - no children and no spouse Head of the Family - no children but with other dependents (siblings, parents, etc) Married Employee - with spouse but without children Employees with dependent children (1 to 4): Head of the Family - either widowed, divorced, or with children outside of wedlock Married Employee - married and with children *note: pag more than 4 children wala na bawas, you only get deduction for up to 4 children. this is to discourage Filipinos from having too many children. |
| Single (sample probs.) | "Mr. M, a single fresh graduate earns P amount monthly, compute for monthly income tax.." |
| Head of the Family | "Ms. Santos, a single woman in her thirties, supports her mother and earns P amount monthly.." Use HF (ung walang number) "Mr. Perez, whose wife died last yr, has 3 children and is paid P amount on the 15th and on the 30th of every month. Compute for monthly income taken home" >>Multiply P by 2 to get monthly income then use amount taken home (2nd solution). Use HF 3 |
| Married Employee | "Mrs. Epsi, a married businesswoman w/o children, earns P amount every month. Compute for.." Just use ME (not me, as in, ME..) "Mr. Banat, a married guy with 2 children, earns P amount yearly. Compute for his monthly income tax percentage. >>Divide P by 12 then get percent taken from income (3rd sol'n). Use ME 2. (Wla naman cgurong problem na yearly ung income) (use me 2 amp) |
| Agricultural Sector | Sector of the Philippine Economy which is concerned with gathering and manipulating resources |
| Branches | Farming - concerned with crop and livestock production and breeding Fishing - concerned with gathering food resources from the sea, sometimes also breeding fish Mining and Quarrying - concerned with extraction of valuable minerals and resources from the earth Agriculture changes due to the climate, location, type of land, and the technology available. These factors define what kind of agriculture you can practice, and up to what level you can attain. |
| Development of Agriculture | Traditional agriculture - makes use of agriculture for own sustenance Modernizing agriculture - starts to use technology, agriculture for business Modern agriculture - large-scale agricultural companies **all in all, the country is probably in the modernizing stage. There are a few large agricultural firms like Dizon Farms and Dole but most of the agricultural firms are in modernizing. |
| Land, Tenant, Owner | Usually, an owner of a piece of land will employ tenants, or people who are willing to work
the land and produce something out of it. The relations between tenants and owners is sometimes
sketchy and unfair.. > Cash tenants > Fixed portion of harvest tenants (either fixed % or fixed amount) > Cash and fixed portion of harvest tenants (combination) It's either the workers are paid in cash or are given a fixed part of the harvest they collected. If it's by %, pag madami ung harvest madami ung makukuha mo pero pag konti lang ang liit ng makukuha mo. Kung fixed amount naman, wala kang chance makakuha ng malaking amount ng harvest kahit na gaano pa kadami ung naani mo. Pde rin combination of cash and crops |
| Agrarian Reforms | Increasing injustice and unfair systems has led the farmers to look for reforms in the said system.
Usually, they complain about not being given just compensation for their hard work. This pushes them
to ask for agrarian reforms An example is Land Reform. Basically, this aims to redistribute the land equally so that the farmers may also possess a bit of land. Land Reform is still active today and still trying to give land to the farmers. |
| Role of the Agricultural Sector | The Agricultural Sector is the backbone of any Economy and ours is no exception. Firstly, it employs lots of workers and gives jobs to many Filipinos. Although in more stable, richer economies, most of the workers are employed by the industrial sector, the agricultural sector is very important. Also, our economy requires more workers in the agricultural sector before we can start to move into industrialization. Also, it's a source of foreign currency. Most of our country's exports come from the agricultural sector. Since we lack technology, we cannot compete with the other countries which produce quality finished products and so we rely on the agricultural sector to provide exports at least in the way of raw materials. So in other words, agricultural sector ung nagpapasok ng dollars sa bansa natin. Lastly, the most direct role of the agricultural sector is to provide food for our nation. The production of crops and livestock, and fishing for food may seem simple but without it, wla tyong kakainin lahat. In other words pde mo sabihing lahat tyo dependent on the agricultural sector. |
| Industrial Sector | Sector of the Philippine Economy concerned with taking raw materials and converting them into finished products or commodities |
| Role of the Industrial Sector | Mostly concerned with manufacturing and construction. The Industrial Sector aims to increase the part of the country's economy that it supports through its operations. This process is called industrialization. Basically a good industrial sector is a big source of income for the country. |
| Size of industry | Cottage - small scale businesses usually based at home (homemade pastries, buko pie, etc) Medium - small shops which employ few and require smaller capital (flower shop, gift box shop) Large - major manufacturing companies with large labor force and large capital (gawa auto, etc) **The number of industries falling into a particular size determines how the industrial sector is going to run. An industrial sector which relies heavily on small-medium scale businesses will surely progress very slowly and can possibly also digress. This will mean it requires less resources from the country's agricultural sector but it also means that countries with modern agriculture will be stuck with so much surplus resources. Also, this kind of industrial sector will be next to useless in providing labor opportunities for people. It requires less capital but will also result in low labor force and also a low cost of labor. **On the other hand, economies run by large scale businesses will definitely industrialize faster but it requires so much capital that it might have to look for other ways of producing this capital, by resorting to overworking the agricultural sector in order to export resources, for example. The main advantage of large-scale industries is that it offers lots of job opportunities. A single business, which has a lot of departments, will already be able to provide jobs for at least a hundred filipinos and this is really good. It ultimately results in a thriving economy. But then again, the Philippines does not have a lot of capital and it might take a long time for this to get started. |
| Current problems faced by the IS | 1. Lack of technology - let's face it, low-tech ang ating bansa 2. Limited Capital - capital is low so we can't have as much large-scale industries as we want 3. Limited Market - ung products natin, sino lang nakakagamit nun, kya sino lang ang bibili? 4. Low cost of labor - kya konti lang ang willing magtrabaho sa mga factories, di kac sapat un sweldo **Para naring chain reaction yang mga problema na yan eh. Dahil kulang ung technology, we need larger labor force, eh ayaw nila magtrabaho kac ang baba ng sweldo. Mababa un sweldo kac ang baba ng capital ng bansa, di kumikita. Kaya hindi kumikita, kac walang bumibili ng mga produkto natin. Sino ba naman bibili ng rattan na upuan, o kya ng sarao jeep? meron silang sarili nila. mas superior pa products nila. kaya inferior ung atin kac kulang sa technology. Kaya di kumikita at kya lumiliit sweldo.. wala parang nagtuturuan lang ng dahilan |
| Financial Sector | Sector of the Philippine Economy which handles deposits, investments, stocks and money in general. |
| Terms | Barter - a trade or exchange of goods and/or services for an equivalent value Intermediation - any 3rd party which links investors and savers to each other Investment - an endeavor, company or object which is given value and expected to be profited from, or the act itself of outlaying money with the object of making profit Money - a medium of exchange which is universally accepted as a standard of value Reserve requirement - the portion of a financial institution's deposits which must not be touched for regulation purposes Savings - any remaining income which is stored by households and businesses alike and stored in a bank Stocks - shares of ownership in companies Underwriting - when a banker/broker buys stocks and bonds in bulk and sells them in smaller amounts to investors or to the public. |
| Financial sector as intermediation | For us, the main use of the financial sector is that it serves as intermediation. This is carried
out in the form of stock brokers, banks, and other similar agencies, companies or persons. A loan refers to money lent by a financial insitution to a business or a person which is meant to be paid back with interest. As we learned from Acctg, interest is simply the cost of borrowing money kaya ung interest, un ung dapat mo bayaran in return for the 'lending' service. Transfer payments are payments made to transfer money from wealthy people to poor people. To evenly distribute the money of the Philippines. |
| The Central Bank or, more appropriately, Bangko Sentral ng Pilipinas and money |
The Bangko Sentral is the national financial institute. This bank keeps the gold deposits of the
country and stores most of the GNP (gross national product) of the country. Basically, it keeps the
money of the Philippines. More importantly, the Bangko Sentral is where money is printed (as bills) or crafted (as coins). The process of creating money is not that simple, though. Of course the BSP must check first if the amount of money which will be printed/crafted is within the limits of how much gold reserves are currently owned by the Philippines. Otherwise, we'll have bundles of bills and stacks of coins but without any real value. Wala tayong ganun na pera ehh so pano mabibigyan ng value un? The Bangko Sentral also sets the interest rates for various stock exchange and loan policies in the country. They regulate how high the interest rates go, to make sure di tayo (masyado) mabaon sa mga utang sa bangko. trivia lang: kaya tyo nagkaroon ng ten peso coin dahil ang printing ng isang 10 peso bill already costs more than 10 pesos. modern economics makes use of fiat money rather than commodity money. for example, ung amount of silver tyka brass sa isang 10 peso coin ay less than 10pesos ung value, pero naka-decree na 10peso ung value nung coin na un. un ang fiat money. ang commodity money, ung mismong halaga ng pera yun ung halaga nya (a 5g gold coin has a value of kung magkano man ang halaga ng 5g of gold, if for example 5g costs 300peso edi para naring 300peso ang halaga ng single coin na un) |
| Philippine Stock Exchange (PSE) | The Philippine Stock Exchange is engaged largely in Investment Banking. Stock exchange is a method
by which business firms acquire capital for their operations by issuing stocks and bonds. Stocks are divided into 3: 1. Favorable - profits from these stocks are prioritized over typical ones. Nauuna sila kumita 2. Typical - all other stocks 3. Treasury bills - stocks sold by the government itself for capital which you get back after some time *ung 1 and 2 sold by businesses and corporations. ung 3 sold by the government. lahat yan, ang profit mo ay ung interest (kac binigyan mo sila ng pera ehh). pero sa 3, for sure me makukuha ka. ang 1 and 2, pag nalugi ung company u invested in, maaaring mas maliit sa binigay mo ung binalik sayo, lugi ka din. |
| Public Sector | Sector of the Philippine Economy which has significant control over resources and commodities of the country. Consists of several agencies. | ||||||||||
| Governments | Basically, the public sector is the government. It branches out like so: 1. National govt. (President, Secretary of Defense) 2. Local govts. (Mayor) 3. Departmental govt. (Dep. of Health, Education, etc) 4. Agencies (NBI, NSO) 5. Government Owned and Controlled Companies or GOCCs (PCSO) |
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| Reasons for involvement in economy | To ensure stability To promote economic growth To provide basic needs, goods and services to the people To deal with externalities To evenly distribute wealth |
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| Differentiation from private sector |
privatization - when the government sells a GOCC to a corporation or a person, thereby sending it to the private sector nationalization - when the government buys a private corporation, making it a GOCC |
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| Externalities | These are the factors of life or aspects of the environment (both positive and negative), which
affect the Philippine Economy as a whole. Examples: + upsurge in foreign investments, discovery of oil deposits, biglang naglingkod na tlga ung mga BUWAYA sa gobyerno Examples: - pagbagsak ng stocks, war and calamities, bagsak mga studyante sa Eco(egh?!) According to Ortuoste: para mo narin sinabing mga things that can happen by chance both good and bad. | ||||||||||