LET Secondary Social Sciences — Economics & TaxationFlash Cards

What is economics and why is it important for elementary teachers?

Economics is the study of how individuals, firms, and governments make choices about using scarce resources. Elementary teachers need to understand economics because it appears in Araling Panlipunan lessons throughout the K-12 curriculum and helps develop pupils' civic awareness and decision-making skills.

Scarcity

The fundamental economic problem where resources are limited but human wants are unlimited. This forces individuals and societies to make choices. Example: A family with limited budget must choose between buying new school supplies or new clothes for their child.

What is opportunity cost? Provide a classroom example.

Opportunity cost is the value of the next-best alternative given up when making a choice. Classroom example: If a student chooses to study for a test instead of playing computer games, the opportunity cost is the enjoyment and relaxation from gaming that they gave up.

List the four factors of production and their corresponding returns.

1. Land (natural resources) - earns rent 2. Labor (human work) - earns wages 3. Capital (machines, buildings, tools) - earns interest 4. Entrepreneurship (organizing resources, risk-taking) - earns profit

Compare command economy and market economy systems.

Command Economy: Government decides what to produce, how to produce, and for whom to produce. Central planning dominates. Market Economy: Prices and competition guide decisions. Private ownership and free enterprise dominate. The Philippines has a mixed economy, combining market freedom with government regulation.

State the Law of Demand and provide a Filipino market example.

Law of Demand: As price rises, quantity demanded falls (inverse relationship). Example: When the price of rice increases from ₱40 to ₱50 per kilo, families tend to buy less rice and may substitute with other staples like corn or sweet potato.

What causes shifts in demand? Give three examples relevant to Philippine consumers.

Demand shifts are caused by changes in: 1. Consumer income - OFW remittances increase, demand for appliances rises 2. Consumer preferences - Health awareness increases demand for organic vegetables 3. Population - More students in an area increase demand for school supplies 4. Prices of related goods - Jeepney fare increases, demand for tricycle rides rises 5. Future expectations - Expected rice shortage leads to current stockpiling

Differentiate between a monopoly and perfect competition with Philippine examples.

Perfect Competition: Many small sellers, identical products. Example: Farmers selling rice in Divisoria market - no single seller can control price. Monopoly: One seller controls the market. Example: MERALCO in Metro Manila's electricity distribution - consumers have no alternative provider.

What are the four functions of money?

1. Medium of Exchange - accepted for buying goods and services 2. Unit of Account - measures and compares value (priced in pesos) 3. Store of Value - holds purchasing power over time 4. Standard of Deferred Payment - basis for loans and credit transactions

What is the role of Bangko Sentral ng Pilipinas (BSP)?

BSP serves as the Philippines' central bank with key functions: - Issues peso currency (bills and coins) - Regulates the financial system and banks - Sets monetary policy to control inflation - Supervises commercial banks and financial institutions - Manages foreign exchange reserves

Inflation

A general rise in the price level of goods and services over time, reducing purchasing power. Example: If inflation is 5%, items that cost ₱100 last year now cost ₱105. Your ₱1000 can buy less than before. Causes include excessive demand, rising production costs, or imported inflation through exchange rates.

What is GDP and why is it important for understanding the Philippine economy?

GDP (Gross Domestic Product) is the total value of all goods and services produced in the Philippines in a given period. It measures economic performance and growth. GDP per capita (GDP ÷ population) indicates average standard of living. Higher GDP generally means more jobs, better infrastructure, and improved public services including education funding.

Identify the four types of unemployment with Philippine examples.

1. Frictional - temporarily between jobs (fresh graduate job hunting) 2. Structural - skills mismatch (jeepney driver displaced by modern transport) 3. Cyclical - due to economic downturn (factory workers laid off during recession) 4. Seasonal - tied to seasons (farm workers during off-season, beach resort staff during monsoon)

What are the Philippines' major exports and imports?

Major Exports: Electronics/semiconductors, garments, coconut products, tropical fruits (bananas, pineapples), nickel, copper Major Imports: Oil/petroleum, chemicals, machinery, electronics components, vehicles Note: OFW remittances are a major source of foreign exchange, supporting the peso and funding imports.

What is a tax and why do governments collect taxes?

A tax is a mandatory payment to the government from individuals and businesses. Governments collect taxes to fund public services including: - Education (teacher salaries, school buildings) - Healthcare (public hospitals, health programs) - Infrastructure (roads, bridges, airports) - Social services (4Ps, senior citizen benefits) - Defense and law enforcement

List the major types of taxes collected in the Philippines.

National Taxes (BIR): Income tax, VAT (12%), percentage tax, excise tax, donor's tax, estate tax Customs Taxes (BOC): Import duties, customs fees Local Taxes (LGUs): Real property tax, business tax, professional tax Special Taxes: Documentary stamp tax, capital gains tax

What is VAT and how does it affect elementary pupils' families?

VAT (Value Added Tax) is a 12% tax on most goods and services in the Philippines. Families pay VAT when buying school supplies, groceries, clothing, and dining out. VAT is included in the final price, so a ₱100 item actually costs ₱88.39 plus ₱11.61 VAT. Some basic commodities like rice and medicine are VAT-exempt to help families.

Which government agencies collect taxes in the Philippines?

1. Bureau of Internal Revenue (BIR) - collects national taxes like income tax, VAT, excise tax 2. Bureau of Customs (BOC) - collects import duties and customs taxes 3. Local Government Units (LGUs) - collect local taxes like real property tax and business permits

Identify the three sectors of the Philippine economy with examples.

Primary Sector: Agriculture, fishing, mining, forestry (rice farming, tuna fishing, nickel mining) Secondary Sector: Manufacturing, construction (garment factories, electronics assembly, building construction) Tertiary Sector: Services (BPO, retail, tourism, banking, transportation, education). The service sector is now the largest contributor to Philippine GDP.

How can elementary teachers integrate economics concepts into classroom activities?

1. Classroom Economy - pupils earn 'class money' for good behavior and academic performance 2. Budgeting Games - plan spending for school projects or family scenarios 3. Market Simulation - set up sari-sari store or school canteen activities 4. Connect to Filipino Life - discuss tingi economy, cooperative stores, OFW remittances 5. Civic Education - explain what taxes fund, especially public schools and teachers' salaries

What economic values should elementary teachers emphasize to pupils?

1. Thrift and Savings - importance of saving money for future needs 2. Honesty in Business - fair dealing and truthfulness in transactions 3. Respect for Labor - valuing work and workers' contributions 4. Economic Empathy - understanding poverty and inequality 5. Civic Responsibility - paying taxes and using public services wisely 6. Wise Consumption - distinguishing needs from wants

Explain the concept of 'mixed economy' using the Philippines as an example.

A mixed economy combines market freedom with government regulation. The Philippines exemplifies this: Market Elements: Private businesses, price competition, consumer choice Government Elements: Public utilities regulation, social services (4Ps), public education, healthcare programs, labor laws, environmental protection This balance aims to harness market efficiency while addressing market failures and social needs.