compilation of assignments

7/31/2019 Compilation of Assignments

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Compilation of Assignments

In

Macroeconomics

Submitted by:

Sedigo, Jocell P.

Josue, Cedric C.

Barlaan, Alex Nichole N.

Acantilado, Shiela Mae

Perater, James

Tilanduca, Lendon

ACA, 8:45-10:20AM, C402

Submitted to:

Mr. Wilson Bation

Instructor


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May 14, 2012


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Prayer

Roman 5: 3-4

Not only so, but also rejoice in our suffering because we know that suffering producesperseverance, perseverance character and character hope.

Lord God, we thank you for another day that you have given to us. Whatever you

have in stored for us today, we accept it with all our hearts. Whatever sufferings we

face, we rejoice in it for it forms us to become the person who You want us to be. As we

learn new things today, may we remain enthusiastic and as we wholeheartedly embrace

sufferings, keep the hope burning within us. This we pray in Your most high name, Lord

Jesus Christ. Amen.

Proverbs 27:1

Do not boast about tomorrow, for you do not know what a day may bring forth.

Lord God, thank you for giving us another fruitful discussion today. May we be

reminded that whatever we learned today is not just for ourselves but also for the

betterment of other peoples lives. May we also be reminded that knowledge cannot be

with us forever but Your unfailing love lives within us for eternity. In the name of the

Father and of the Son and of the Holy Ghost. Amen.

Proverbs 3:5

Trust in the Lord with all your heart and lean not on your own understanding.

Loving Heavenly Father we thank you for this another day that we are gathered

together. We ask for your blessing and pray for your guidance in the matters at hand

and may you clearly show us how to conduct our work with a spirit of joy and

enthusiasm. May you give us presence of mind and grant us peace through all our

days. We thank you for giving us a wonderful life. Thank you for our families, ourfriends, and our mentors who have been very supportive in our growth as individuals of

your Kingdom. May you help us to work together and encourage each other to

excellence. This we ask in the name of the Lord Jesus Christ. Amen.


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John 3:16

For God so loved the world that he gave his one and only Son, that whoever believes in

him shall not perish but have eternal life.

Loving Heavenly Father we thank you for what has been accomplished heretoday. We thank you for giving us another knowledge which we will treasure for the rest

of our lives. May the things we have learned serve as a catalyst for us to move forward

and actualize ourselves even more. We know that you are the God of all wisdom and

you are willing to move us forward. This we ask in the name of the Lord Jesus Christ.

Amen.

Jeremiah 29:11

For I know the plans I have for you," declares the LORD, "plans to prosper you and notto harm you, plans to give you hope and a future.

Dear Lord, please help us on our day. We may be able to learn everything today.Please guide us that we may avoid sin and be of help to others. Amen

Psalm 27:4One thing I ask of the LORD, this is what I seek: that I may dwell in the house of the

LORD all the days of my life, to gaze upon the beauty of the LORD and to seek him inhis temple.

Dear Lord. Thank you for all the graces you have given to us. Please guide us as we gohome that we may avoid evil. Please help us in our studies and in our daily lives. Weadore you Lord. Amen.
http://www.biblestudytools.com/jeremiah/29-11.htmlhttp://www.biblestudytools.com/psalms/27-4.htmlhttp://www.biblestudytools.com/psalms/27-4.htmlhttp://www.biblestudytools.com/jeremiah/29-11.html


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TESTS: Income Distribution and

Poverty

IDENTIFICATION

1. It shows the cumulative share of income earned by each quintile of households.

2. It includes your annual wages or salary, as well as any interest, dividends,

profits, rent, and government transfer payments you received.

3. It includes housing and other real estate, checking and savings accounts,

certificate of deposit, stocks and bonds, and other valuable assets.

4. It is the other term for one-fifth and it is used to measure income distribution.

5. Poverty is defined in two ways, what are these?

6. Persons employed at or just above the minimum wage

7. An effective anti child poverty program8. Enables the very poor and the working poor to buy enough food

9. This theory of the causes of poverty was popular until the occurrence of the

Great Depression.

10.He is an economist who favors the Liberal View and carrot approach.

Answers:

1. Lorenz Curve

2. Income

3. Wealth

4. Quintile

5. Absolute poverty, relative poverty

6. Working Poor7. Two parent household8. Food stamp program


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9. The Poor are Lazy

10. William Julius Winston

MULTIPLE CHOICES (Theories)

1. All enhances the demand for a particular individual except

a. Intelligence b. skills c. wage d. education

2. These are the determinants of income distribution except

a. Income tax b. income from government transfer payments

c. Differences in wages and salaries d. Property Income

3. How many percent does the middle class receive from the total income?

a. 15 to 75 % b. 20 to 80 % c. 25 to 85 % d. 30 to 70 %

4. According to The Forbes 2007 Top 10 List of American Billionaires, who has the

highest net worth on the list?

a. Larry Page b. David Koch c. William H. Gates III d. Sheldon Adelson

5. All of the following are said to be poor except:

a. Old people b. long term unemployed c. black people d. None

6. Who said that God must love the poor he made so many of them?

a. George Bush b. Charles Murray c .Abraham Lincoln d. None

7. Poverty can be defined in a:

a. Relative concept b. Absolute Concept c. Both d. None

8. The following are economists in the Super Bowl of poverty theory debate except:

a. Charles Murray b. M.O. Lorenz c. William Julius Winston d. None


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9. All are theories of the causes of poverty except:

a. Poor are Lazy b. Poverty breeds Poverty c. Heritage of Slavery d. None

10. He says the solution to poverty is to Cut Off the public assistance

a. Charles Darwin b. Charles Muray c. Charles Murray d. Charlie Muray

Answers:

1. C

2. A

3. B

4. C

5. D

6. C

7. B

8. B

9. D

10.B

MATCHING TYPE

1. The money that you make by working hard ===== Carrot

2. If you dont work, you dont eat =============== Stick

3. Certificate of deposits, stocks and bonds======== Wealth

4. Ive been rich and Ive been poor; rich is better == Sophie Tucker

5. Drew the first Lorenz curve in 1905 ========== M.O. Lorenz

6. Believes in the Liberal View ================ William Julius Winston

7. Believes in the Conservative View ============ Charles Murray

8. Solution according to the Conservative view ==== Cut em Off

9. Poverty is different in every nation =========== Relative Poverty


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10. Free medical care provided to the poor ======= Medicaid

TRUE OR FALSE

1. The richest fifth of all American families receives almost 35 percent of our total

income.

2. About 2 to 3 million Americans are homeless.

3. President John F. Kennedy said that Short of genius, a rich man cannot imagine

poverty.

4. One reason for the greater concentration of wealth in the hands of the rich is the

slashing of federal income tax rates paid by the very rich.

5. The two major programs added in the mid-1960s under President HarrisonsGreat Society Program were Medicare and Medicaid.

6. Poverty can be defined in two concepts, the absolute and relativism.

7. Most poor people in the United States are Hispanic.

8. Lyndon Johnson favored the Conservative View.

9. Carrot Approach is to Liberal View as Stick Approach is to Conservative View.

10.The Heritage of Slavery is different from that of the Poor are Lazy.

Answer:

1. False

2. True

3. False

4. True

5. False

6. False

7. False

8. False

9. True


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10. True

FILL IN THE BLANKS (Theories)

1. The two largest sources of wealth, exclusive of inheritance, have been the

fortunes made in the ____________ and the starting up of ____________.

2. It was said that only ___________ spending is means tested.

3. The farther the Lorenz curve from the line of perfect equality, the ____________

the distribution of income becomes.

4. Wage rates are determined by the forces of __________ and ___________.

5. The Lorenz curve tells us how income is ______________ distributed.

6. The theories of the causes of Poverty are: [give 5] (6 to 10)

Answers:

1. Stock Market ; New Companies

2. Medicaid

3. Less equal

4. Demand; Supply

5. Actually

6. The Poor are Lazy, the Heritage of Slavery, Employment Discrimination, Black

Male Joblessness, Poverty breeds Poverty, Inadequate Human Capital.

MULTIPLE CHOICES (Problems)

1. If there are only five people in a certain economy, and their weekly paychecks

are $100, $300, $600, $1000, and $1600, what is the cumulative percentage of

income generated by the bottom 60% of wage earners?

a. 25.6 % b. 26. 7% c. 27.8% d. 28.9%

Answer: C

Solution:


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The cumulative percentage is the amount of money earned by the bottom three workers(60% of the workforce), divided by the total income earned by all workers:

Bottom three income = 100 + 300 + 600 = 1000

Total income = 100 + 300 + 600 + 1000 + 1600 = 3600

Cumulative percentage income earned by bottom 60% = 1000/3600 = 27.8%

2. Suppose that Renee earns $5,000 in year 1 and $50,000 in year 2, while Hollie

earns $50,000 in year 1 and $5,000 in year 2. Is there income inequality for the

two individuals?

a. Both the annual and the 2-year data indicate equality

b. Both the annual and the 2-year data indicate inequalityc. The annual data indicate inequality, but 2-year data indicate equalityd. The annual data indicate equality, but 2-year data indicate inequality

Answer : C

Feedback: In any single year a great deal of income inequality can exit, but inequality

may be less over longer time.

3. The graph shows four different Lorenz curves (1, 2, 3, and 4). The greatest

increase in income equality would occur with a shift in a Lorenz curve from


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a. 1 to 2

b. 1 to 4

c. 4 to 1

d. 3 to 1

Answer : B

Feedback: Line 1 shows the least equality, while Line 4 (diagonal) shows complete

equality. Moving from Line 1 to Line 4 would result in the greatest increase in income

equality.

4. Based on the graph above, how much is the percentage of income received by

the highest quintile on Lorenz curve 1?

a. 20 % b. 40% c. 60% d. 80%

Answer. D

Solution: Fifth Quintile (100%) Fouth Quintile (20%) = 80%

5. The farmers and workers of Hacienda Luisita have been poor for a long time and

has not owned the land they have taken cared of for quite a time. Which theory

applies?:


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a. Poor are lazy b. Poverty breeds poverty c. Heritage of Slavery d. none

Answer C

6. Men are usually chosen to work over women in Delalala Company because men

do not have maternity leave. Which theory applies?a. Employment Discrimination

b. Male joblessness

c. Poverty Breeds Poverty

d. None

Answer A

7. Mang Jose grew in a slum area. When he got married, he and his wife settled inthe same place as where he grew. His children now have kids also living with

Mang Jose. Which theory applies?

a. Employment Discrimination

b. Male joblessness


d. None

Answer C

8. Mang Juan Tamad always rely on his spouse for their daily needs because he

does not want to work. Even if able, he is not willing. It is basically the reason

why he cannot afford to send his children to school. Which theory applies?

a.Poor are lazy b. Poverty breeds poverty c. Heritage of Slavery d. none

Answer A

9. Aling Nena wants to work in a factory so she could send her children to school.

However, the qualifications requires her to be a high school graduate. She onlyfinished grade 6. Which theory applies?

a. Employment Discrimination

b. Male joblessness



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d. Inadequate Human Capital

Answer: D

10. Sitio Dagwaypera is dependent on the government programs given to them that

is why most of them do not look for a job even if they are able. What can be thesolution to this?

a. Cut assistance off

b. Give them more money

c. Give them jobs

d. Nothing

Answer: A

Fill in the blanks (Problems)

From Numbers 1 to 4

The table on the left shows the distribution of income in Canada and the table on the

right shows the distribution of income in the United States.

CANADA UNITED STATES OF AMERICA

Households Market Income(percentage)

Households Market Income(percentage)

Lowest Quintile 1.2 Lowest Quintile 0.9

Second Quintile 7.4 Second Quintile 7.1

Third Quintile 15.3 Third Quintile 14.3

Fourth Quintile 24.4 Fourth Quintile 24.4

Fifth Quintile 51.7 Fifth Quintile 53.3

1. The third quintile in the United States receives _____% of the total income.2. The fourth quintile in Canada receives ______ % of the total income.3. The highest quintile in the United States receives ______% more than thehighest quintile in Canada of the total income.4. The lowest quintile in Canada receives _____% of the total income5. The lowest quintile in Canada receives ____% more than the lowest quintile inUnited States


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Answers and Solutions:1. 14.3% - 7.1% = 7.2%2. 24.4% - 15.3% = 9.1%3. (53.3% - 24.4%) (51.7% - 24.4%) = 28.9% - 27.3% = 1.6 %4. 1.2 %

5. 1.2% - 0.9% = 0.3%


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Reaction Paper

Russian WarMacroeconomics can be seen in the film Russia, Land of the Tsars. One

example could be when the Mongols invaded and successfully conquered Russia

during its early years. The Mongol rulers demand that the Russian people pay a fixed

tribute to them. It can be called as a form of direct tax. The assassination of Gleb by

his brother Svyatopolk the Accursed is also an example. Gleb, not wanting any further

conflict, just sat, prayed and waited for his assassins. He didnt resist since he knew

that the opportunity cost of him dead would be higher. Another could be seen in Ivan

the Terrible marrying plenty of wives. It could be considered as an investment since

he used it to increase his power. There was also a technological change in Ivans

reign. By his order, he established the first printing press in Russia though it was

attacked by the traditional scribes. There is also trade when Ivan established close

ties with England. The Russo-English relation has been formed. As Russia became

more prosperous, the standard of living of the Russians has become higher.

The film shows values of unity. Led by Prince Dmitry Donskoy of Moscow and

helped by the Russian Orthodox Church, the united army of Russian principalities

inflicted a milestone defeat on the Mongol-Tatars in the Battle of Kulikovo in 1380.

Through unity, ones country would triumph over obstacles. Trust is also a very

important value. Distrust can cause atrocity and ones own decline. Ivans distrust on

the city of Novgorod caused him to attack the city due to rumors of Novgorods

defection to Livonia. Because of this, it caused massive supply problems and food

shortage of Russia during the Livonian war. Jealousy is also a cause for atrocity. Ivan

had become jealous of Prince Alexander Borisovich Gorbatyi-Shuisky. Prince

Alexander was the general of Ivan during the Siege of Kazan. Ivan became jealous of

Prince Alexanders fame that beheaded him and his son. One must not act hastily.

One time, Ivan acted without really thinking what would happen. He struck his son

with a cudgel not knowing that it could lead to a dark period in Russia. Upon killing

Ivan Ivanovich, his son, Feodor, his other son, would be appointed the next ruler of


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Russia. Feodor was an intellectually disabled person so when he died, Russia came to

a period known as Times of Trouble. Different values were depicted in the film. A lot

of them involved human error and atrocity but some were very important like unity.


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Mass Production

Jeans, candies, mozzarella cheese, wallets, briefcase, wall clocks, and so much

more. These are just some of the amazingly created and manufactured goods thatthe group witnessed in the last film showing for this summer in our Macroeconomics

class. Multiple goods and services are being offered nowadays to satisfy all of the

human wants. The massive production of different goods gives the people the

opportunity to choose the kind of utility they want. Thus is also a good way for the

producers and manufacturers to show their specialization strategies in the market

through their products as well as increasing their total profits by producing enormous

quantity of goods. As the subject matter states, the choices that individuals,

businesses, and governments make that affects our national and global economy is

what concerns the study of Macroeconomics. So in the macro view, this mass

production involves the entirety of the society since goods will most likely flow like anormal cycle. This is also a good way to somehow limit the condition of scarcity in the

economy. Our market trend is constantly changing and people in the manufacturing

industries are also constantly making ways to improve themselves through the

production of high quality products for their consumers. Technological advantages

would definitely matter when it comes to mass production. The better machine used,

the better quality of the goods produced. The distribution of these goods to the end

users would somehow affect the way they choose to live. Their lifestyle would

inevitably change. Thus, their standard of living will rise since they will consume more

to satisfy their wants. Their cost of living would also go up since it should achieve

their given standard of living. People would tend to buy and buy what they need and

of course, what they want.

As Economics students, we were able to appreciate more the value of every

single material were using in our everyday lives. We have been concerned about the

reality of scarcity and how it can affect our own satisfactions. Its just really around

the corner. The film about massive production of different products made us even

more careful in using things which we thought before as unimportant or even

unnecessary to our lives. Efforts have been exerted to discover and invent state-of-

the-art technologies just to provide us everything that we want. We should learn to

value all of these efforts and never take this for granted. From the simplest product

like the candy to a more complicate one, wall clock, we should also put our efforts to

utilize these things in the right way. Never waste anything because its all done by

great ideas of our fellowmen. Aside from being appreciative to their efforts, we also

salute their patience in the workplace since we all know that being in a manufacturing

plant is a tedious kind of job. Its a repetitive process for the entire day and boredom

is really your enemy. It really takes great patience to stay long in this kind of

environment. Their willingness and capacity to endure this kind of work is what makes

them effective and efficient as workers of these industries. As the end users of these


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standardized products, we should be responsible enough to keep these in shape and

pay the efforts of manufacturers in providing us quality products just to feed our

different human wants.


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Great Depression

It was known in the history of economics that the United States of

America experienced a big regression in their economy that has led to manyeconomic problems. While the countrymen are suffering, President Hoover keeps on

telling them that the solution to such problem is just around the corner. But which

corner is it? Many basic necessities have been wasted because there was no more

money to transport these and if they stock it, it would only expire or no longer be

suitable for consumption.

The country was in need of change, change that would give them true hope.

The current administration (during the Reat Depression) sure does give hope to

countrymen but false hope because by just waiting for the economy to cure itself, it

has allowed more people to suffer and feel the rising poverty. It isnt that bad to truly

believe in Classical Economics but it was quite obvious that time that the economy

was not curing itself and that man needs to work for his own lifes betterment.

It was really depressing to see such documentary. It was also disheartening

because if I were to put myself in their shoes, I would want to hope but I cannot see

any hope. Aside from that, livelihood has been taken away from them. While they

work really hard to sustain themselves, the government is not putting much effort to

resolve everything.

And here comes President Franklin Roosevelt who has given new hope to new

America. Little by little, America was able to recover but many people became abused

(e.g. the dance marathon).

People should not be treated as if they are dummies for they are not.

Presidents, given the highest position should be responsible enough and should take

responsibility for its country and the countrys countrymen.

In economics, it isnt always about the country and how you can prosper it. It is

sometimes about its people and how you provide them resources for them to handle

well.

VALUES: Because of the movie, I was able to appreciate the value of social

responsibility and hope.

I, for one, am a human being. I am also hurt. I also cry and I also want to be

taken cared of. However, in the video shown, human being are not cared for. Instead

of being a leader who can help its members feel lighter, President Hoover came to do

nothing at all. Social Responsibility is not just for presidents. It is also for us. As future


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leaders and laborers of the country, we should always be sensitive to the people

around us. We should not benefit at their expense nor should we disregard them. As

the old saying goes, do unto other what you want others do unto you.

Hope is the only thing greater than fear lovely bones

Indeed it is. Everyone was coated with fear during the great depression but the

LIGHT of HOPE shines brightly in the dark. When everything else was failing, some

people did not give in. Some people hoped. And even if there was no longer

something to hope for, they still hoped. Later, those who hoped were rewarded with

great joy. That is such a wonderful thing to think about.


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Glossary:

Absolute Poverty - People are absolutely impoverished if the minimum amounts offood, clothing and shelter necessary for survival absorb all of their income.

Household - The people of a house collectively; a family including its servants.

Income- includes your annual wages or salary, as well as any interest, dividends,

profits, rent, and government transfer payments you received.

Lorenz Curve a curve that shows the cumulative share of income earned by each

quintile of households.

Poverty - The state or condition of having little or no money, goods, or means ofsupport; condition of being poor.

Poverty line - Standard family income threshold (set by each state and revisedoccasionally) below which the family is officially classified as poor and entitled to welfareassistance

Quintile - the other term for one-fifth and it is used to measure income distribution.

Relative Poverty - People are relatively impoverished if the customary (average)standard of living in their society requires more spending than the income they haveavailable.

Wealth - includes housing and other real estate, checking and savings accounts,

certificate of deposit, stocks and bonds, and other valuable assets.

Welfare - Financial or other assistance to an individual or family from a city, state, ornational government.

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