Contemporary Economic Issues Facing the Filipino Entrepreneur Savings and Investment- are necessary to build the future. Savings is to investment as food is to the body nourishment process. As food and the nourishment process sustain body growth, so do savings and investment to the growth of the economy's productive capacity. Investment- An asset or item that is purchased with the hope that it will generate income or will appreciate in the future. Interest rate- Changes in interest rates affect the public's demand for goods and services and, thus, aggregate investment spending. A decrease in interest rates lowers the cost of borrowing, which encourages businesses to increase investment spending. Rental- In economics, rent is any payment to a factor of production in excess of the cost needed to bring that factor into production. Minimum wage- It is the lowest wage, determined by law or contract, that an employer may pay an employee for a specied job. Taxes- A compulsory contribution to state revenue, levied by the government on workers' income and business prots or added to the cost of some goods, services, and transactions. Directions: Using the meaning above, explain in your ideas the different questions below. 1. What are the keywords that contrast savings and investment? 2. What is an investment for? 3. How does government investment complement private investment? 4. What is savings to investment? 5. What condition prevents the poor from affording decent housing? 6. Why do they lack even the credibility to borrow money from lending institutions (e. g. banks) for housing? 7. Why do the poor spend more than what they earn? 8. What are taxes for? 9. What are the distorting effects of taxes and why? 10. What are the ultimate e'ects on society of shortfalls of tax collection? 11. What depresses wages and creates unemployment? 12. What can be a lasting solution to the problems of inadequate wage and unemployment? 13. What is the minimum wage mandate and what purpose does it serve? 14. Why can't the minimum wage be a lasting solution to the problems of inadequate wage and unemployment