Economics and taxation

1. Prepared by: Rommel Gonzales,Kimberly Mallari& Wendy Manaig

4. They are using their muscles to earn a living.
They are using their creativity, resourcefulness and
critical thinking.

6. 1. Labor is Perishable
2. Labor and the individual are
inseperable
3.Labor supply does not change
quickly

7. 4. Most employable persons do not like to
move. The following reasons are the
following:
 They want to stay close with their
families
 They are not aware of the demand for
their services elsewhere
 They lack the required skill.
 They cannot afford the cost of moving
from one place to another

9. This type of labor mostly involve the exertion of
physical effort specifically the use of brawn and
muscles. Examples of manual labor are those
performed by construction workers, dishwashers,
farm workers and many.

10. This type is considered as next higher in order
than manual labor. Very little mental effort is
required in clerical work as the job becomes
routine after a while. Examples are Office
clerks, sales clerk

11. The job of the professional requires a higher
degree of intelligence than those clerks. A college
degree is a requirement. Examples are Lawyers,
Physician, Teachers, Engineering, Nurses,
chemist and others

12. Managers of all kinds and types perform
functions which may be referred to as labor
of management. Examples are
Supervisors, Managers, Area managers,
foreman and etc.

13. The entrepreneur is one who
organizes the business and see to it
that the business becomes stable.
The entrepreneur bears the risk of
running the business.

14. A very important ingredient of economic
development is the output of the inventors.
Without them, our world will be a dull place
to live. Inventions like the electrical lamp
and the motor car are only some of the
outputs of scientist which were largely
responsible for bringing the progress to the
people

16. It is one of the factors of
production.

18. Household regards nonmarket activity as a basic
requirement for wholesome living. If income is not
a problem, they would rather spend all their time
on it. But since they have to make some income,
they will have to reduce the time spent on
nonmarket activity so they can allocate some time
for supplying labor to the market.

19. Activity Returns
Market -immediate return in
the form of income
Nonmarket -goods and services
produced in the
home
-higher future income
-leisure

20. If there are increase in wage rates and
they feel that the returns they get from
doing nonmarket activities are lower, they
will tend to switch over some hours to
market activity.

21. When the household’s wage rate is higher, more
income will be available to the household for
spending. When the household decides to spend its
money on leisure or other nonmarket activity , it
reduces the time available for pursuing a market
activity. This will result to the reduction of the
quantity of labor supplied in the market.

23. Is the total number of man hours or man
days hired by all firms in an economy. The
demand for labor depend on the real wage
rate.

24. Refers to purchasing power of a given
nominal or money wage. The nominal
wage rate is the amount in pesos paid to
a worker for a unit of work.

26. Unemployment and under
employment
Inadequate wages
Industrial and labor-management
conflict
Economic insecurities