APPLIED

ECONOMICS

GROUP NO. 1

ABADILLA, MEYNARD KAYNESS

GUILLERMO, JUSTIN JOZEF

ALBUS, MARY JOY

ILAGAN, ALLIA VIMYR

JACA, KATHLYN

LOQUINARIO, NINA CLAIRE

RIZO, KIMBERLY

SACRISTIA, PRINCESS

ABM 2B8
MR. ROMEO PEREZ III
 HISTORICAL GRAPH FOR CONVERTING BRITISH
POUNDS INTO PHILIPPINE PESOS FROM
JANUARY-DECEMBER 2018

BRITISH POUND PHILIPPINE PESO

2. Research on the dollar to peso exchange rate from the time of the presidency of Diosdado
Macapagal to the presidency of Noynoy Aquino. List down the rates over the years and try
to find reasons for abrupt increases or even decreases in the exchange rate.

PERIOD ADMINISTRATION RATE US$

1961 - 1965 Diosdado Macapagal P 3.95
1965 - 1969 P 3.95
1969 - 1983 Ferdinand E. Marcos P 11.00
1983 - 1986 P 14.00
1986 - 1992 Corazon C. Aquino P 25.75
1992 - 1998 Fidel V. Ramos P 28.00
1998 - 2000 Joseph E. Estrada P 50.00
2001 - 2004 Gloria M. Arroyo P 56.65
2004 - 2010 Gloria M. Arroyo P 45.80
2010 - 2016 Benigno Aquino III P 46.46

It's just really weird that I haven't seen a graph like this available anywhere else on the internet,
because there's so much that can be learned from it. Look at how all the significant movements in
the graph can be traced to events in Philippine history (which is, looking back at it, composed
almost entirely of bad news):
 1961: President Diosdado Macapagal allows the peso to float on the free currency
exchange market, unpegging it from the US dollar to stimulate economic development. Its
value sinks from P2 to P3.7 to the dollar.
 1970: I can only assume this is due to the First Quarter Storm, where a series of heavy
demonstrations and protests and marches take their toll on the country. The value of the
peso slips from P4 to P6 to the dollar.
 1983: Ninoy Aquino assassinated, and Marcos' shit hits the fan. The country rapidly
deteriorates, culminating in the EDSA Revolution. Value of the peso dives from P8 to 20 to
the dollar over a few years.
 1989: A series of ugly coup attempts threatens the Aquino administration, including a
bloodbath in January 1989. Peso descends from P21 to P27 to the dollar over two years.
  1997: The Asian Financial Crisis occurs, and I can't understand it no matter how many
times I check Wikipedia, but the peso crashes from P26 to P41 to the dollar in a single
frickin' year.
 2000: Economic mismanagement and political instability during the Estrada
administration, plus charges or corruption leading to an impeachment trial. Peso nosedives
from P40 to P50 to the dollar.
And finally, there's 2005 to the present, the only time in history that the Philippine peso has
significantly strengthened in value, albeit with a sharp rebound in 2008. I'm at a loss to attribute
this to any single event, but history has shown that movements of that scale do not happen without
a reason.

3. What difference would it make if your parents did not save? What consumption have you
sacrificed in terms of consumption in order to save on your weekly allowance? What were
you able to buy with your accumulated savings? What is now the benefit of saving for and
investing in those purchases?

If our parents won’t save enough money there would be big difference; maybe we can’t
have something to buy, maybe we can’t go whenever we want because we don’t have enough
money, maybe we can’t studied in a university or school that we want, maybe we can’t live a
comfortable life, maybe we can’t eat healthy foods, maybe we can’t have everything that we have
because my parents wont afford all the things we need to live life. We'll sacrifice our daily
allowance for our study, because it is the least thing that we really need to, another thing we can
also buy a budget friendly meal than to an expensive one, also we can just walk in the morning
when we will going to school and also in the afternoon going back to our home, we may save
almost 70 % of my daily allowance. We can buy a new tee-shirt or a new bag. Saving some money,
you have is an advantage because a can afford to buy what I want by my own money. It is also a
good start to build a savings or investing because it may help us on the future.

4. Assume that your family's budget is only P200 a day. Figure out with the help of your
mother what it can buy. How much can you set aside for monthly rental or housing loan
repayment with the foregoing budget? Imagine the kind of house your family can afford to
rent with the amount in the foregoing How do you compare this house with what you see in
the slum areas.

If our family's budget is only Php 200 a day, and our monthly rental is Php 2,100 then we
should save Php 70 a day for paying the rent. Therefore in 30 days, we would have Php 2,100
which is the exact amount of our rent. The apartment that were renting is not that spacious but in
one room there will be spaces for a dining area, kitchen, and the bedroom area. The space for the
dining area will also facilitate as the living room and there will be a separate room for a bathroom.
If I will be comparing our apartment to the houses in the slum areas, then both spaces will be small
but in the slum area, it will be smaller. Our apartment is also organized, clean and can maintain a
moderate degree of temperature, unlike in the slum area, houses are side by side, so the temperature
is more likely to be warm. It might also not be organized for there is not much space to put things
inside their house and probably not that clean because most of the slum areas I see are not throwing
their trash at the right place.

5. Repeat question 4 assuming this time that the daily budget is much less at P100.

If our family's budget is only Php 100 a day and our monthly rental is Php1000 then we
should have Php 35 a day so we can reach the amount in the said value. The apartment has small
kitchen, bathroom, bedroom and living room. It may not be comfortable enough but as long as
your family is complete there will be no problem. If I will be comparing our apartment to the
houses in the slum areas, then both spaces will be small but in slum area, it may be smaller. Our
rental house is well organized, and it may be not comfortable enough but for sure you can live with
a happy family. As long as we did the right thing every day.

6. Assume that your family's budget is equal to the minimum wage of P490 a day. Figure out
with the help of your mother what it can buy. How much is left for house rental, medical
services, tuition, etc.? Is the budget enough to make both ends meet? Is your family better
off with its actual budget as compared with the minimum wage? Again, ask your mother
how she allocates your family budget How much do you think a family should earn to provide
for at least, the most basic needs (e.g. food, housing)?

 House Rental- 24℅

 Utilities- 10℅
 Food - 17℅
 Medical Services- 10℅
 Savings & Insurance 9℅
 Tuition- 15℅
 Transportation- 10℅
 Donations/Charity- 6℅

For us, it is better off with its actual budget as compared with minimum wage, because
from this actual budget, family should earn or save money to provide at least the basic needs. After
assuming that the family's budget is equal to the minimum wage of Php490 a day, I can say that
the budget is enough to make both ends meet.
7. Ask your parents how much taxes they pay annually. Figure out with their help what
they could otherwise buy with said amount.

 Meynard Abadilla – My mother is a good housewife example that’s why she has nothing
to pay for a tax. My father works is a government security guard specifically he monitors
premises to prevent theft, property destruction, violence or rules and safety violations in
our market town near our house. My father’s tax per month is 2,000 and if its annually its
24,000. If I figure out my father’s tax it will help us to buy some groceries for our everyday
food, additional money for the electricity bills, and save for the emergencies and calamities
that maybe happen in the future.

 Justin Guillermo – My father's income is 25 thousand a month and his income tax is 12,000
per a month, so that, his annually tax is 12,000. That amount of money can buy our food,
our school expenses, our electrical bills and water bills, and other stuff.

 Mary Joy Albus – My mother works in a small eatery at Lucena bayan and she is a low-
wage earner, so she doesn’t pay taxes annually. My father is a service driver, but he has an
extra income from our farm and small motorcycle parts business so he said he pays more
or less than 3,000 pesos a month, and almost 36,000 pesos annually; that amount of money
can buy our groceries, pay our monthly tuition and a money that can be save and use for
our future.

 Allia Ilagan – My mother works as an COMELEC officer at our hometown and her tax per
month is Php 13,000 making it Php 156,000 annually. My father doesn't have any tax
because he had taken down his business in motorcycle parts and only does sound system
which happens. My mother said to me that she would rather use it to pay bills for electricity,
credit cards and other things that needs to be paid. She would also use it for our groceries
and some of the money to save up for some emergencies.

 Kathlyn Jaca – My father works as Administrative Aid at our hometown and her tax per
month is Php 5,000 making it Php 60,000 annually. My mother has already passed away,
so she doesn't have tax anymore. My father said that he would rather use it to pay bills and
for my tuition.

 Nina Loquinario – My father was a manager in a small business enterprise in Lucena City
and his tax per month is Php 10,000 making it Php 120,000 annually. My mother doesn't
have any taxes to pay, because is only a housekeeper. My father said to me that he wants
to use it for the other expenses in our house instead and save up money for our educational
needs and also for some emergencies.

 Kimberly Rizo – My Mother is an OFW and I'm not sure if they have a tax. and if they
have her agency paid that. while my father is a self-worker and he doesn't have any taxes
because his earnings is only good for our daily needs. he only spent taxes when he's going
to get cedula.

 Princess Sacristia – My mother works as a keeper in computer shop and videoke rental and
she said that tax is just Php 350 annually for barangay and she doesn’t have any taxes.
While my father is a collector and entrepreneur, he doesn’t have any taxes as well. They
would rather use it to pay bills for electricity, internet, credit cards and others. My mother
saves money for emergencies to my family, for my relatives and other things that we need.
8. Enumerate 5 common public goods and services government provides with the taxes we
pay. Are the benefits of these public goods and services worth the taxes your parents pay?
Explain.

Public goods and services are economic products that are consumed collectively like;

 Highways
 Sanitation
 Schools
 National defense
 Police and fire protection.

Public goods are those goods and services provided by the government because a market
failure has occurred, and the market has not provided them. Sometimes it is in our benefit to not
allow for a market allocation. In the case of police, national defense and public education it can be
argued that private provision of these services would be less desirable for a variety of reasons. All
members of society should benefit from the allocation of public goods and services, but the reality
is that some need them more than others. For example, the wealthy do not need welfare and the
elderly still pay for school taxes. This leads to the certain argument about paying for public goods
and services taxes. Our society, depending on locality, has provided such public goods and services
as public education, sanitation, police services, fire protection, infrastructure maintenance like
roads, bridges, communications networks and others. Some goods can be provided, or may be
provided as this is often debatable, by the market but society is better served by providing the
service or good publicly. Consider the case of education as an example. While it may be possible
to efficiently and cheaply provide education privately, the good of society is better served by public
provision.
SEPTEMBER
2018

OCTOBER
2018

NOVEMBER
2018

DECEMBER
2018
 MAY
2018

JUNE
2018

JULY
2018

AUGUST
2018
HISTORICAL GRAPH FOR CONVERTING BRITISH
POUNDS INTO PHILIPPINE PESOS AS OF 2018

JANUARY
2018

FEBRUARY
2018

MARCH
2018

APRIL
2018