Category: Economics

➤ Why do regulatory requirements and permits hinder small business growth?
Complex licensing, overlapping local (LGU) and national rules, and slow processing create compliance costs for small firms. Businesses spend time and money on permits, BIR registration, DTI requirements, and barangay clearances. This bureaucratic burden increases startup time, raises informal operations, and discourages formalization that would improve access to credit and government support.

on june 30 2011 the price of 5000 ounces of silver for december 1 2013

Discuss why economists believe that the CPI overstates actual inflation?

➤ Why does consumer surplus increase if price falls to $50 from a higher price?
Lowering price to $50 raises consumer surplus because two effects occur: existing buyers pay less, increasing their surplus, and additional buyers enter the market who value the good at or above $50. The total gain equals the new triangular area plus the rectangle from lower price on prior purchases.

➤ How do export subsidies affect world prices and trade flows?
By increasing exported supply, subsidies tend to lower export prices in destination markets and shift demand toward subsidized goods. That can cause trade diversion, oversupply, and depressed global prices. Importers benefit from lower prices but exporting countries may suffer reduced welfare if the subsidy distorts domestic resource allocation or crowds out other sectors.