Many people from the Philippines work in another country, often in industries that provide merit goods and public goods. In 2020, the Philippine government raised more tax revenue. Some was spent on policy measures to increase life expectancy and some on policy measures to reduce unemployment. The country's unemployment rate was also affected by a rise in the country's foreign exchange rate.

Mark scheme

Marking points from the official mark scheme (May/June 2023). The mark or mark type is shown in brackets.

1. [2] Two from: wages / GDP per head; working conditions; job opportunities / job security; qualifications required; family ties; language spoken; immigration restrictions; personal safety/ freedom from persecution; living standards / cost of living; better welfare / healthcare / education provision.
2. [4] Logical explanation which might include: A merit good e.g. education / fruit (1) is beneficial / is under-consumed / people unaware of benefits / so underproduced without government intervention / government encourage consumption (1). A public good e.g. defence / streetlighting / police / sea defences / roads (1) would not be produced by the private sector / needs to be financed by the government/ non-rival/ non-excludable (1).
3. [6] Coherent analysis which might include increased government spending on: Healthcare (1) could raise quality / accessibility of healthcare (1). Education (1) may result in people leading healthier lives (1) more exercise (1) better nutrition (1). Benefits (1) may increase access to basic necessities / reduce poverty (1). Green energy (1) may reduce pollution (1). Infrastructure (1) could reduce traffic accidents (1) reduce traffic congestion (1) reduce stress (1). Police (1) reduces deaths through crime (1). Increased government spending (in total) (1) may increase employment / raise income / raise standards of living (1).
4. [8] Why it might: reduce price of imports; this could lower inflation as raw material costs may fall and more competitive pressure for firms to keep price rises low; enables a country to buy more imports for any given quantity of exports; could reduce a current account surplus which may enable more products to be consumed. Why it might not: increase the price of exports; this could reduce exports and export revenue; economic growth could fall; unemployment could rise; could increase a current account deficit.