CHAPTER 7 Pricing and Output Under Pure Competition
CHAPTER 7 Pricing and Output Under Pure Competition
CHAPTER 7 Pricing and Output Under Pure Competition
LAND REFORM
• It is an integrated set of measures designed to eliminate obstacles to economic and social
development arising out of defects in the agrarian structure.
ECONOMIC ASPECT
• The position of agriculture in national economy.
• The economy relies heavily on the agriculture sector.
• Large portion of the total working population is employed in agriculture and a large
percentage contribution of the GDP (Gross Domestic Product).
• One method of motivating the farmers to increase their production is to make them own
the land until they were free from the control of the landlords.
• Agrarian reform was strengthening to create an economic environment that will encourage
farmers to produce more and market more of what they produce.
RELIGIOUS ASPECT:
- The Filipino masses are longing for the possession of land and it resulted into multiple
revolts.
- Filipinos rarely found any help and support from the church.
- That’s why church became the enemy of land reform.
COVERAGE OF CARP
• Government owned lands devoted to or suitable for agriculture.
• Alienable and disposable lands of the public domain devoted or suitable for agriculture.
• Public domain lands in excess of the specific limits as determined by congress.
• Private lands devoted or suitable for agriculture regardless of the agricultural products
raised or that can be raised thereon.
HISTORY
• The Philippines, even before being colonized by different countries, already have developed
an organization for their communities.
• The land owned by the communities is known as the barangay.
• In these barangays, everyone regardless of status had access on the land and mutually
shares resources to the rest of the community.
• They believed in and practiced the concept “STEWARDSHIP” where relationship between
man and nature is important.
• BARTER TRADE- exchanging their goods to others.
• MARAGTAS CODE- selling of the Panay Island to the 10 Bornean datus in exchange for
golden salakot and a long gold necklace.
• When the Spanish came they introduced “PUEBLO” an agriculture system wherein native
rural communities were organized into pueblo and each pueblo and each Christianized native
family is given 4-5 hectares of land to cultivate.
• These native families are merely landholders and not landowners.
• The land assigned to them was the property of the Spanish King where they pay their
colonial tributes to the Spanish authorities in form of agricultural products that they produce.
• Americans sought to put an end to the miserable conditions of the tenants by passing
several land policies to distribute land ownership among the Filipino tenants and farmers.
• During the Japanese occupation, peasants and workers organized HUKBALAHAP
(Hukbong Bayan Laban sa mga Hapon) as an anti-Japanese group. They took over vast
tracts of land and gave the land to the people.
MANUEL L. QUEZON
- Passed RA 4054 or the Rice Tenancy Law.
- First law on crop sharing legalized the 50-50 share of landlord and the tenant with
corresponding support to the tenants protecting them against abuses of the landlords
MANUEL ROXAS- Republic Act No. 34
- Enacted to establish a 70-30 sharing arrangement between tenant and landlord.
- The 70% of the harvest will go to the person who shouldered the expenses for planting and
for the work of the animals.
- It reduced the interest of landowners’ loans to tenants at not more than 6%.
RAMON MAGSAYSAY
- He realized the importance of land reform program.
- He convinced the elite controlled congress to pass several legislations to improve land
reform situation in the country.
FERDINAND MARCOS- Code of Agrarian Reforms or RA No. 6389 and its companion bill RA
No. 6390.
- Implementation of the agrarian reform in the Philippines.
CONSTITUTION
Set of fundamental principles or established precedents according to which the state or other
organization is governed.
Body of rules and principles in accordance with which the powers of sovereignty are exercised.
PURPOSE
It serves as the fundamental law of the land.
It is the supreme law onto which all laws are based on.
It provides the essential framework of government since the essential branches of the government
which are executive, legislative and judiciary branches.
MALOLOS CONSTITUTION
La Constitucion Politica de Malolos.
It was written in Spanish
Following the declaration of independence from Spain by the Revolutionary Government, a
congress was held in Malolos, Bulacan in 1899 to draw up a constitution in Asia.
The document declares that the people have exclusive sovereignty.
The document declares the separation of church and state, and all calls for the creation of an
Assembly of Representatives which would act as the legislative body.
It also calls for a Presidential form of government with the president elected for a term of four years
by a majority of the assembly.
The Malolos Constitution established Spanish as the official language of the Philippines.
The 1899 Political Constitution of the Republic was approved by President Emilio Aguinaldo on
January 21 1899 and served as the Constitution of the First Philippine Republic
It provides a parliamentary form of government, but the president, not a prime minister, acts as a
head of the government.
Legislative power is exercised by the Assembly of Representatives of the Nation.
Judicial power is lodged in a Supreme Court.
1935 CONSTITUTION
It was written in 1935, approved and adopted by the Commonwealth of the Philippines (1935-
1972).
Later used by the Third Republic of the Philippines (1946-1972).
It was written with an eye to meeting the approval of the United States Government.
It provides that the Philippines shall be known as the Republic of the Philippines upon the
proclamation of Philippine Independence.
The original 1935 Constitution provides for a Unicameral Legislative and a 6-year term for the
President.
In 1940 it was amended to have a Bicameral Congress composed of a Senate and House of
Representatives, as well as the creation of an independent Commission on Elections.
It also limited the President to a 4-year term with a maximum of 2 consecutive terms.
Ratified on May 17,1935, establishes the Commonwealth of the Philippines.
It is based in the separation of the 3 branches of the government.
Executive power is vested in the President.
Legislative power is vested in a Unicameral National Assembly.
Judicial power is exercised by the Supreme Court.
1943 CONSTITUTION
The 1943 Constitution provided strong executive powers.
The Legislature consisted of a National Assembly and only those considered as anti-US could
stand for election.
Premier Hideki Tojohad promised the Filipinos “the honor of independence” which meant that the
commission would be supplanted by a Formal Republic.
The Philippine Independence Committee was tasked with the drafting of the new Constitution was
composed of the Pre-war National Assembly and of individuals with experience as delegates to the
convention that had drafted the 1935 constitution.
Their draft was established under the Japanese occupation.
It was ratified in 1943 by an assembly of appointed provincial representatives of the KALIBAPI
(Kapisanan ng Paglilingkod sa Bagong Pilipinas).
Upon ratification by the KALIBAPI Assembly, the second Republic was formally proclaimed (1943-
1945)
Jose P Laurel was appointed as President by the National Assembly and inaugurated into office in
October of 1943.
The 1943 Constitution remained in force in Japanese controlled areas of the Philippines, but was
never recognized by the United States.
1973 CONSTITUTION
Ang Saligang Batas ng Pilipinas was ratified by the Citizens Assemblies on January 17, 1973.
It provides for a shift from Presidential form of Government to a Parliamentary system.
The president serves as a symbolic head of the state.
Executive power is exercised by the Prime Minister with the assistance of the assistance of the
Cabinet.
Legislative power was vested in a Unicameral National Assembly.
In 1976 the National Assembly was replaced by the virtue of PD 1033.
The 1973 Constitution as amended provides semi-parliamentary form of government, where the
president no longer acts as a symbolic head but acts as the head of the state.
Legislative power is vested in a Unicameral Batasang Pambansa.
The prime minister acts as the head of the cabinet.
CHARACTERISTICS
Stated by De Leon (2005)
A. ENFORCED CONTRIBUTION
Tax cannot be imposed as voluntary contribution or donation.
All citizens, with respect to their ability, have to pay taxes.
The National Internal Revenue Code of the Philippines (Republic Act 8284)
B. Payable in money.
A tax must be discharged alone in money which must be in legal tender.
C. Proportionate in Character.
Taxes are based on the ability to pay.
E. Imposed by the state which has jurisdiction over the person or property.
The state cannot apply its power of taxation to individuals or entities outside its legal jurisdiction.
b. Property Tax
- Refers to the amount imposed on property, whether real or personal, in proportion either to its value
or in accordance with some reasonable method or appointment. (real estate tax)
c. Excise Tax
- Refers to any tax which does not fall within classification of a poll tax or property tax. It is charged
or imposed upon the performance of an act, the enjoyment of a privilege and in engaging an occupation.
(estate, donors, and income taxes: VAT and all business taxes)
• PURPOSE OF TAXATION
To raise revenue or provide funds to promote the general welfare and protection of its citizens, and
to enable the government to finance its multifarious activities; also to satisfy the following objectives:
a. Equitably distribute the wealth of the nation, referring to the case of estate and donor’s taxes
b. Protect new industries in which the rate of taxation may be increased to regulate the
proliferation of unnecessary industries and competition with foreign investments.
c. Uplift social conditions as in the case of regulatory taxes in the exercise of police power.
• BASIS OF TAXATION
Based on the reciprocal duties of protection and support between the state and its inhabitants. In
return for his contribution, the taxpayer receives benefits and protection from the government. This
termed as the “benefits received principle”
• CHARACTERISTICS OF A SOUND TAX SYSTEM
a. Fiscal Adequacy- sources of revenue must be adequate or enough to defray the expenses of the
government.
b. Theoretical Justice- taxes must be based on the ability to pay.
• CLASSIFICATION OF TAXES
I. AS TO SUBJECT MATTER OR OBJECT
a. Personal, Poll or Capitation Tax
b. Property tax
c. Excise tax
II. AS TO PURPOSE
a. General, Fiscal, or Revenue Tax
- Imposed for the general purpose of the government to raise funds for its needs
(income tax, and almost all taxes)
b. Special or Regulatory Tax
- Imposed for a special purpose to achieve some social or economic ends, irrespective of whether
revenue is actually raised or not.
(protective tariffs or customs duties on import goods to protect local product industries)
I. AGUINALDO SHRINE
- It is a National Shrine of the Philippines located in Kawit, Cavite
- It is where the Philippine Declaration of Independence from Spain was declared on June 12,
1898.
- The shrine is the ancestral home of Emilio Aguinaldo
- The house was built in 1845 made from wood and thatch and reconstructed in 1849.
- Here Aguinaldo was born.
- On June 12, 1898, the independence from Spain was proclaimed from the window of the grand hall.
- The Declaration of Independence was read by its author, Ambrosio Rianzares Bautista.
- The Declaration of Independence was ratified in the Malolos Congress on September 21, 1898.
- Aguinaldo donated his home to the Philippine Government on June 12, 1963.
- Aguinaldo died of February 6, 1964, at the age of 94.
- The same year, the Government declared the mansion as National Shrine on June 18 through
Republic Act of 4039 signed by President Diosdado Macapagal.
D. RELIGION
- The Philippines is one of the two predominantly Roman Catholic (80.58%) nations in Asia
Pacific.
- From the census in 2014, Christianity consisted of about 90.07% of the population.
- While Islam compromised for about 5.57% of the total population.
- 4.73% who reported other or none composed of the total population.
E. VISUAL ARTS
- Early Philippine painting can be found in red slip (clay mixes with water) designs embellished on
the ritual pottery of the Philippines such as the Manunggul Jar.
- Evidence of Philippine pottery- making dated as early as 6000 BC have been found in Sanga-
Sanga Cave, Sulu and Cagayan’s Laurente Cave.
- Further evidence of painting is manifest in the tattoo tradition of early Filipinos, whom the
Portuguese explorer referred to as the “Pintados” or the painted people of the Visayas.
- Some of the most elaborate painting was done by early Filipinos that survive to the present day the
Maranaos who are well known as the Naga dragons and the Sarimanok carved and painted in
beautiful Panolong of their Torogan or King’s House.
F. INDIGENOUS ART
- The Itneg people are known for their intricate woven fabrics.
- The Binakol is a blanket which features designs that incorporate optical illusions.
- Other parts of Highlands in the Cordillera Region or in Local term Kalgorotan displays their art
tattooing.
- Weaving bags like the sangi a traditional backpack and carving woods.
- The Ilongot make jewellery from pearl, red hornbill beaks, plants and metals.
- Elito Circao- a folk artist of Pantabangan and pioneer in using indigenous materials.
- The Lumad people of Mindanao such as the B’laan, Mandaya, Mansaka and T’boli are skilled in
dyeing abaca fiber.
- Kut-kut- a technique combining ancient Oriental and European art process.
- Indigenous people of Samar Island between early 1600 and late 1800 A.D.
- It is an exotic Philippine art based on early techniques: sgraffito, encaustic and layering.
I. PERFORMING ARTS
A. DANCE
- Philippine folk dances include the Tinikling and Cariñosa.
- In the Southern Region of Mindanao, Siningkil is a popular dance showcasing the story of a
prince and princess in the forest.
- Bamboo poles are arranged in a tic-toc-toe pattern in which the dancers exploit every position of
these clashing poles.
B. MUSIC
- The early music of the Philippines featured a mixture of Indigenous, Islamic and a variety of Asian
sounds that flourished before the European and American colonization in the 16th and 20th
century.
- Flutes, ukelele, violin, trumpets and drums.
- They performed dances to celebrate festive occassions.
- Groups that perform folk songs and dances are Bayanihan, Filipinescas, Barangay-Barrio,
Hariraya, the Karilagan Ensemble.
- Antonio Molina and Filipe de Leon are Filipino musicians known for their nationalistic themes.
- Jovita Fuentes- opera singer.
J. LITERATURE
- Started with traditional folktales and legends.
- The main themes of Philippine Literature focus on the country’s pre-colonial cultural traditions
and socio-political histories of its colonial and contemporary traditions.
- Ibong Adarna written by Jose dela Cruz or “Huseng Sisiw”.
- Francisco Balagtas famous poet and author of Florante at Laura.
- Jose Rizal famous for his novels Noli Me Tangere and El Filibusterismo.
K. CUISINE
- Filipinos cook a variety of foods influenced by Indian, Chinese influences indigenous ingredients.
- The Spanish colonizers and friars in the 16th century brought with them produce from Americas
such as chilli peppers, tomatoes, corn, potatoes, and the method of sautéing with garlic and
onions.
- Rice is a staple in the Filipino diet.
- Adobo, lumpia, pancit, and lechon belly.
L.SPORTS
Arnis- national sport in the Philippines.
- basketball, boxing, football, billiards, chess, bowling, vollyball, horse racing, sepak takraw,
cockfighting, dodgeball, badminton and tennis
- Manny Pacquiao, Flash Elorde and Francisco Guilledo are popular in boxing.
- Carlos Loyzaga, Robert Jaworski and Ramon Fernandez are famous in basketball.
- Efren Reyes and Francisco Bustamante are famous in billiards.
- Rafael Nepomuceno is famous in bowling.
- Eugene Torre and Renato Naranja are famous in chess.
- Mark Munoz famous in MMA.
- Palarong Pambansa- Olympic games of students, started in 1948.