The film shown was indeed very comprehensive and educational. It provides a lot of learning about the different aspects of the economy. It is reviewed that the three ranges of firms are proprietorship, partnership and corporations. However, the ones given emphasis are on the diverse competition in the market. First is the perfect competition that is composed of many small firms with homogenous products. The sellers in this kind of market are price takers and can have an easy entry and exit. They earn normal and profit is somewhat low.
The next is its opposite extreme, which is monopoly. This is comprised of one single seller who takes almost all sales. They have the power to put the product’s value above the market price and this depends on the elasticity of demand. Monopoly exists for some barriers that hinder other firms from entering the market; examples of these are patent, and mergers. Another type is oligopoly that is composed of small number of firms and thus they have almost all the revenue in the market. Lastly is the monopolistic competition, which has many firms, competing with different products. Yet, they not much power to raise the price like the monopoly.
In addition, the anti-trust and anti-competitive behaviour was discussed. It serves as an act against monopoly. The Federal Trade Commission and the US Department of Justice are the ones in charge with the system. They have the power to review any merger and decide whether to block, allow or allow but set some conditions before approval.
Competition certainly is the ultimate way to favour consumers. Firms tend to incline into making market strategies to differentiate their products from others. These strategies, I say, is much favourable for the buyers to avail high quality and cost-effective products. I believe the perfect competition and monopolistic competition offers these advantages among the consumers in the market. This is one good thing about them.
The goal of anti-trust also gives the people a great favour. If huge firms would keep on merging and results to giant monopoly companies, they would probably control the market themselves. Buyers would be just mere price takers and left with no options in buying the products. They have no choice but accept the value they have to pay even if it is above the market range. Also, the small firms would be deprived with their chance of earning for their operations are smaller than those huge ones. They would have a hard time covering up for their loss.
Truly, the government is making its ways to equate the flow of market competitions. It is a good thing that they see to it that even small firms would have their opportunity in making profit and that consumers would avail the products at a justifiable prices and quality. A healthy market competition is what everyone needs for a healthy economy.

Article: "Corruption in the Philippines"

Corruption in the Philippines is a large problem and integrated in the society for years. Everybody seems to accept it. The ‘bigger’ corruption can be found in the government offices and the house of representatives, and even in the senate of the Philippines. Many ‘officials’ are corrupt and get money that is not actually theirs, but belongs to the people of the Philippines. There are many jokes about the so called “pork barrel” issues in the house of representatives. They all are able to get some for specific projects they initiate but put a lot of the money in their own pockets or the pockets of assistants, contractors and the like. Of course there are also ‘honest’ politicians in the Philippines, but because of the political system in this country, many are NOT. I will not discuss this here, I only like to report about corruption on a small scale.

Reaction: "Redeem the Pearl of the Orient Seas"

The Pearl of the Orient Sea, a country which is very known for its luscious natural resources, hospitable citizens and people of strong and good values. These are but some things that we can celebrate and be happy about our own country. Yet as time passes by, depictions on Philippines does not only limit to positive compliments anymore, negative portrayals are being thrown to it. The one considered massive issue nowadays is the corruption in the country. The one in which the Philippines is very much famous of, it’s even included in the top list.

I know, everyone seems very alarmed and surprised of what our Fatherland has become. The country that was once a captive of different foreign land, now know how to imprison its own self. The government, who is the one responsible on managing the wealth of the country, consumed all and remain nothing for the poor. People pay taxes, obey the rules of the land and yet receive nothing but less of what they deserve to have in terms of their economic welfare.

The mindsets of the people in authority have been ruined. They say there are many anti-corruption programs yet nothing changes. From the very head of the national government down to the small units of local officials, so long as they have the power, they corrupt. Well, I am speaking in a general term, I suppose; but this is what I observe.

I want to share one experience that really flared me up. I witnessed a real “kotong” scenario. My dad and I were driving our way from the mall when a complete uniformed police officer approached and signalled for us to stop. My dad got out of the car and talked to the police officer. I got curious and silently listened to what they were discussing. I’ve heard there are violations and all that which must be paid a fine in the PROPER traffic regulation office and attend some seminars perhaps. The discussion continued but one thing that alarmed me was when the officer whispered to my dad that they could somewhat negotiate it with money instead. Well, we could do nothing with it but to follow since my dad drove for 4 hours to come here in the city that day to do some business transactions and will soon travel back after. He instructed my dad to secretly put the money in his licence card and hand it to him. He even made some loud talks about the fine and the seminar such that everyone could hear and think that he is doing his duty properly as a police officer. I got so pissed that I mumbled and tactlessly murmured inside the car. We left the scenario with me kept on thinking how evil those acts are.

Seriously, people, with my almost 20 years of existence in this temporal world, this issue keep on turning and juggling back, like there is no end to it. People in power may think, “ah, gawain naman ‘to nila Boss, ba’t di natin gawin?”. It seems like they are the ones being deprived of their rights. They do the same and corrupt for they think that it’s very biased on their part to just let the others do the act. Are not they thinking of us common citizens of the Philippines? Haven’t it got in their minds that above anyone else, we are the ones being deprived? Taking into consideration all the Filipino citizens, they are not making it even anyhow.

The Philippines critically needs some restructuring and redeeming to do. With the new set of government officials today, Filipinos keep on hoping that somehow there will be a positive change. We put our trust to them for we do not have any hold with their actions. It is only with them and their own conscience to start that change and rebuild the truthfulness and honour in the government. As for us citizens, we just continue to do our tasks and responsibilities in paying the lifeblood of the economy. May those wrong mindsets be put to a stop and together we will regain the integrity and lead progress of the Pearl of the Orient Seas.

Legalization of Marijuana

Anyone who has ever read Milton Friedman's Free To Choose (a book everyone interested in Economics should read at some point in their life) knows that Friedman is a staunch supporter of the legalization of marijuana. Friedman isn't alone in that regard, as he joined over 500 economists in signing An Open Letter to the President, Congress, Governors, and State Legislatures on the benefits of legalizing marijuana. Friedman isn't the only well known economist to sign the letter, it was also signed by Nobel Laureate George Akerlof and other notable economists including Daron Acemoglu of MIT, Howard Margolis of the University of Chicago, and Walter Williams of George Mason University.
Text of Letter Signed By 500+ Economists:
We, the undersigned, call your attention to the attached report by Professor Jeffrey A. Miron, The Budgetary Implications of Marijuana Prohibition. The report shows that marijuana legalization -- replacing prohibition with a system of taxation and regulation -- would save $7.7 billion per year in state and federal expenditures on prohibition enforcement and produce tax revenues of at least $2.4 billion annually if marijuana were taxed like most consumer goods. If, however, marijuana were taxed similarly to alcohol or tobacco, it might generate as much as $6.2 billion annually.
The fact that marijuana prohibition has these budgetary impacts does not by itself mean prohibition is bad policy. Existing evidence, however, suggests prohibition has minimal benefits and may itself cause substantial harm.
We therefore urge the country to commence an open and honest debate about marijuana prohibition. We believe such a debate will favor a regime in which marijuana is legal but taxed and regulated like other goods. At a minimum, this debate will force advocates of current policy to show that prohibition has benefits sufficient to justify the cost to taxpayers, foregone tax revenues, and numerous ancillary consequences that result from marijuana prohibition.


Reaction:

Drugs. Marijuana. Whenever we get to hear the term, we react so negatively. But of course, who wouldn’t? Everyone knows it is ethically wrong especially in the Filipino’s perspective. The use of marijuana has already caused many social problems in the community. When abusively used, this could even cause violence and death; in fact, news and reported information are just but evidences on these. On the contrary, the use of the said drugs was never really gone amidst all the legal prohibitions on this. These has just resulted into a much chaotic society for trafficants still produces and sell drugs, while users continue to enjoy the use of the latter. Recently, the campaign on the legalization of marijuana has become stronger among the foreign countries. Their main point is that since prohibition could not do any better, it is much easier to just cut the exclusion of the drugs and make government income from it through tax.
I believe the proponents have a great point on this issue. The legal prohibition itself does not stop the use of marijuana in the first place. The only ones benefited are those who produce since the value of the said drugs increases abnormally because it is out on a black market. Not only that the government did not gain from the market of this, they only have to get the burden on arresting the pushers and users when in fact there’s a lot of bigger problems the country’s facing nowadays.
Studies show that myths about marijuana are not all true. People before think that the said drug is very dangerous because of the chemicals it contains and can cause severe illnesses. They believe that it is addictive and can even impair learning abilities. However, it is scientifically proven that marijuana’s chemical content are much smaller compared to coffee or with cigarettes out in the market, and that the use of alcohol and caffeine are more dangerous and that are more close to causing learning ability weakness and addiction. Well, if ever there may be reported cases of violence about the use of such, then it’s only when the government could arrest and duly punish people responsible just like any other crimes committed.
Morality, I believe this is what mainly keeps people from opening their horizons in many possibilities such as this case. Most people nowadays are guided by the norms and teachings of the society. However, people also want to seek their own personal will. If the government prohibits the use of marijuana to protect its citizens from harm, then there’s no point in also tolerating them in things like overeating or bungee jumping. In reality, bungee jumping can take lives in an instant and that obesity is an epidemic that kills millions of people every year, yet the government has no right to regulate what they eat and what activities they can join into. Aside from reconciling with the human rights issues, the government could in fact generate more income from this said legalization. These tax revenues could be used on projects for the welfare of every citizen.
The campaign about legalization of marijuana is still in progress. Of course, it is much possible that a lot will not adopt this because of morality issues we are all concerned unto. Well, I say, it’s a matter of personal choice and responsibility. One may choose to use any drugs he wants and still keep it away from the knowledge of the authority and may not be caught. Yet, the accountability to take care of his health and not abuse it is all his, not of the people around him, and most of all not of the government which currently prohibits the use of marijuana. If because of these things, your life will be messed up, there’s no one to blame but yourself. Man, be responsible enough.

reaction paper [december]

article:                                                       Overpopulation

The population of the world grew at an infinitesimal rate for most of human history, about 0.002 percent per year. Not until the 17th century, with advances in science, agriculture, and industry, did world population growth begin to accelerate. Over the next 300 years the world’s population increased fivefold, from about 500 million in 1650 to about 2.5 billion in 1950.

In the second half of the 20th century the population grew even faster, reaching more than 6 billion in 2000, according to the United Nations (UN). These figures mean that the world’s population has grown more in 50 years than it did during the more than 4 million years since our early ancestors first stood upright.

This unprecedented surge in population, combined with rising individual consumption of food, water, and natural resources, has begun to strain Earth’s capacity to sustain human life. Demands for water are draining supplies from aquifers (layers of permeable rock, sand, or gravel that serve as repositories of water) and other water sources. Demand for fish, a food staple in many areas of the world, is contributing to the depletion of fish stocks around the world. Human activities that cause pollution and encroach on natural habitats are responsible for the greatest extinction of plant and animal species since the dinosaurs disappeared about 65 million years ago. Meanwhile, global warming (an increase in Earth’s surface temperature caused largely by the burning of fossil fuels) has begun to change Earth’s climate in ways not yet fully understood. In short the growth in human population and the scale of human activities appear to be redirecting the natural course of our planet. Microsoft ® Encarta ® 2006.

  
reaction:                                                                         

            The population growth seems to be very alarming nowadays. Not only has that it rampantly increased the number of beings, but also the number of problems that it entails. We all know that bulging figures of our population would lead to a much greater demands for our basic needs as human beings. These would basically include food, shelter, clothing, and the like. In agricultural countries such as the Philippines, the startling part of such dilemma is that these greater demands mean greater scarcity with our resources. Instead of using our vacant lands for agriculture and living, we utilize it to accommodate our need for shelter which may probably include those squatter areas that don’t even contribute to the country’s income.

I also believe that with too much population in an area, unemployment could possibly occur. The number of people that needs work would outnumber the needed workers of production firms; thus, resulting to greater unemployment rate of the whole nation. With too many people with just a little number producing enough earnings, the country would not progress at all. It would not be able to provide enough facilities for its citizens and in the end, not only the individual families could be considered as poor but the whole state itself.

Yes, to sum it up, overpopulation is simply having too large number of people with too little resources and too small space for everyone. I believe there’s no other way to aid such predicament but for the government and the citizens themselves join hand in hand in controlling the rampant population growth rate. Many fast developing countries are disciplined in having their family planning control and we could also apply that within our realm. Laws on taxes, resources distribution, and government projects should be properly promulgated and implemented to achieve and maintain the development of the nation amidst of the rapid growth of population.

chapter 4,5 and 6 answers

chapter 4 [in order]: d,b,a,b,a,c,d,a,c,a

chapter 5 [in order]: c,d,b,a,c,c,a,b,d,c

chapter 6 [in order]: b,c,a,c,b,a,b,c,a,b