BASIC CIRCULAR FLOW

A diagram that shows the

relationship of the different
economic players, their interaction
and the flow of goods/services.

expenditure

Firm

Goods and
services
household
Factors of
production
income

Financial
Institution

Government

Population, by Region
Census Years 1990, 1995, 2000 and 2007

Area
Philippines
National Capital Region

2007 (Aug 1)
88,574,614

2000 (May 1)

a1/a2/

76,504,077

1995 (Sep 1)

b1/b2/

68,616,536

1990 (May 1)
c/

60,703,206

11,553,427

9,932,560

9,454,040

7,948,392

Cordillera Administrative Region

1,520,743

1,365,412

1,254,838

1,146,191

Ilocos Region

4,545,906

4,200,478

3,803,890

3,550,642

Cagayan Valley

3,051,487

2,813,159

2,536,035

2,340,545

Central Luzon

9,720,982

8,030,945

6,932,570

6,199,017

8,263,099

11,743,110

9,339,618

7,750,204

IVB - Mimaropa

2,559,791

2,299,229

2,033,271

Bicol Region

5,109,798

4,686,669

4,325,307

3,910,001

Western Visayas

6,843,643

6,211,038

5,776,938

5,393,333

Central Visayas

6,398,628

5,706,953

5,014,588

4,594,124

Eastern Visayas

3,912,936

3,610,355

3,366,917

3,054,490

Western Mindanao

3,230,094

2,831,342

2,567,651

2,459,690

Northern Mindanao

3,952,437

3,505,708

3,197,059

2,197,554

Southern Mindanao

4,156,653

3,676,163

3,288,824

4,006,731

Central Mindanao

3,829,081

3,222,169

2,846,966

2,032,958

ARMM

4,120,795

2,803,045

2,362,300

1,836,930

2,293,480

2,095,367

1,942,687

1,764,297

2,279

2,851

2,830

5,212

Southern Tagalog
IVA- Calabarzon

Caraga

1/

Filipinos in Philippine
Embassies/Consulates and Missions
Abroad

Source: National Statistics Office.

Employed Persons by Major Industry Group

January 2008 - October 2010
(in thousands)

Industry Group

Oct
2010

Jul
2010

Apr
2010

Jan
2010

Oct
2009

Jul
2009

Apr
2009

Jan
2009

Oct
2008

Jul
2008

Apr
2008

Jan
2008

Total

36,488

36,237

35,413

36,001

35,478

35,508

34,997

34,262

34,533

34,593

33,535

33,693

Agriculture

12,265

12,244

11,512

11,806

12,072

11,940

12,313

11,846

12,320

12,103

11,904

11,792

10,769

10,760

10,073

10,351

10,563

10,476

10,841

10,446

10,860

10,695

10,450

10,409

1,496

1,484

1,439

1,455

1,509

1,464

1,472

1,400

1,460

1,408

1,454

1,383

5,375

5,409

5,487

5,322

5,154

5,273

5,088

4,856

5,078

5,130

5,000

4,981

Agriculture, Hunting and Forestry

Fishing
Industry
Mining and Quarrying
Manufacturing
Electricity, Gas and Water
Construction
Services

197

194

212

193

169

177

166

152

176

154

151

152

3,058

3,003

3,063

3,009

2,937

2,947

2,841

2,849

2,897

2,960

2,883

2,963

163

141

137

157

160

145

130

134

123

146

123

126

1,957

2,071

2,075

1,963

1,888

2,004

1,951

1,721

1,882

1,870

1,843

1,740

18,550

18,585

18,414

18,872

18,250

18,294

17,595

17,560

17,135

17,360

16,630

16,919

Wholesale & Retail Trade, Repair of

Motor Vehicles, Motorcycles &
Personal & Household Goods

7,158

7,030

6,885

7,064

6,901

6,725

6,681

6,635

6,528

6,599

6,322

6,333

Hotels and Restaurants

1,119

1,037

991

1,104

1,012

1,064

976

988

941

984

924

964

Transport, Storage and

Communication

2,711

2,704

2,741

2,735

2,735

2,694

2,628

2,660

2,587

2,525

2,575

2,674

412

420

383

384

375

376

389

337

373

369

366

364

Real Estate, Renting and

Business Activities

1,239

1,166

1,061

1,119

1,100

1,090

1,023

1,044

985

969

953

904

Public Administration & Defense,

Compulsory Social Security

1,771

1,835

1,959

1,823

1,771

1,772

1,794

1,659

1,690

1,741

1,661

1,612

Education

Financial Intermediation

1,165

1,238

1,156

1,146

1,168

1,157

1,068

1,157

1,096

1,076

1,028

1,083

Health and Social Work

465

457

447

432

412

428

408

435

406

386

384

390

Other Community, Social &

Personal Service Activities

855

866

984

949

868

876

907

857

796

847

843

846

1,954

1,831

1,804

2,114

1,908

2,110

1,718

1,785

1,733

1,863

1,572

1,747

Private Households with

Employed Persons
Extra-Territorial Organizations &
Bodies

Source: National Statistics Office (NSO).

Labor Supply
Economics is the study of how people use
their scarce resources in an attempt to satisfy
their unlimited wants and needs.

 The utility or satisfaction derived from

consumption serves as the foundation of
demand.
Another valuable source of utility is LEISURE
time spent relaxing with friends, sleeping,
eating, watching TV, and in other recreation.
Leisure is like normal good that, like other
goods, is subject to diminishing marginal
utility.

3 USES OF TIME
Market work
selling your time in the labor market
Nonmarket work
using time to produce your own goods
and services.

Leisure
using your time in nonwork pursuits

Wages and Individual Labor Supply

Substitution and Income Effects
Backward-Bending Labor Supply Curve

Backward-Bending Labor Supply Curve

16

14
12
10
Series 1

Column2

Column1

4
2
0

20

30

40

48

55

60

58

55