1. Suppose the President of the Philippines is strong on defense and he is bolstering the Armed Forces of the Philippines (AFP) at whatever cost. How can you use economic logic to make him aware of the opportunity cost associated with this objective?

2. During this pandemic unemployment plays a serious hardship on out of work individuals and families. What are the costs of unemployment for Filipinos? (keep PPF in your answer.

3. Why in the US, Japan, and the European Union, it is important to fully use their economic resources and their technology to maximize their output (GDP)? Do you think GDP is the only level of output that is important, or there are any other types of output that we should produce? Do you think that the distribution of this output is just as important as its total amount?

4. Do you think that the total output of the Philippines and other ASEAN countries should be distributed according to income or according to some other standard such as basic human needs? Explain your answer.

5. Does the efficiency of the price mechanism ensure that our market-based economy is an equitable one? Why or why not?