Economic growth — practice question

Source material: Traffic congestion in the Philippines Manila, the Philippines' capital, is very crowded and has almost no unused land left for construction. It is widely known for heavy traffic jams (congestion). Journeys of only a short distance can take people hours. The Philippine government worries that congestion could harm health, put off multinational companies (MNCs) from investing in the country and slow economic growth. It would also prevent the country from reaching full employment and would lower labour productivity. Entrepreneurs and workers regularly reach their firms stressed and exhausted. More Philippine workers are relocating to Manila to work in the growing computer, retail and education industries. One benefit of the Philippine economy is its youthful and well-educated population. Improvements in the skills of Philippine workers are making it simpler for workers to move from declining industries into expanding ones. Growth in the country's population is raising the number of cars on Philippine roads. Low parking charges and the ease of finding parking also encourage driving, as does the poor standard of public transport. Manila has too few trains but too many buses. By 2017, deregulation had pushed the number of bus companies in the city to over 1100. Taxes in the Philippines are relatively high, but disposable income has increased. Consequently, consumer spending, including spending on cars, has grown. Some of the cars bought are imported. Table 1.1 shows consumer expenditure and imports in selected countries in 2017.