Hhh

• Non-market institution


  Internal and external organizing and correcting factors that provide order to market, serve to work efficiently and effectively, and repair failures in societal institutions and organizations
• Non-market institution


  Interactions between the firm and individuals, interest groups, government entities, and the public that are intermediated not by markets but by public and private institutions
• Key terms in discussing non-market institutions

  • Reciprocity
  • Transfer
  • Redistribution
• Reciprocity


  Exchange of goods or labor between individuals in a community, voluntary giving or taking of objects without the use of money hoping for future return, can take the form of barter, hospitality, gift giving, and sharing
• Reciprocity


  • Borrowing and returning a pen
  • Filipino culture of "utang na loob" (act of kindness expected to be given in return)
• Transfer


  Redistribution of income that is not matched by actual exchange of goods and services, e.g. donation, financial assistance, farm subsidies, inheritance of productive assets
• Redistribution


  Combination of the features of transfer and reciprocity, where the economic exchange involves the collection of goods from members, the sharing of these goods, and then the redistribution of these goods among the same members
• Functionalist Perspective


  Economic institutions as vital component of society because these involved production, distribution, and buying of goods and services
• Functionalist Perspective


  Referred to systems, agencies and organizations, both in the public and private sector
• Functionalist Perspective


  Involved in the production of food, clothing, and other material items that people need and want
• Good governance


  Processes and institutions produce results that meet the needs of society while making the best use of resources at their disposal
• Functionalist Perspective


  Provided institutional arrangement of the different activities of the economy
• Efficiency in good governance


  Sustainable use of natural resources and the protection of the environment
• Social responsibility


  An ethical framework suggesting that an individual has an obligation to act for the benefit of society at large
• Conflict Perspective


  Economic institutions emerged in order to benefit the working class or groups
• Conflict Perspective


  Referred to the ruling class in order to benefit their group at the expense of the ordinary laborers
• Conflict Perspective


  Identified capitalists as the one who perpetuate income inequality and deprive the proletariats to a decent quality of life
• Conflict Perspective


  Large complex societies depend on economic institutions to provide guidance to all their economic activities
• Social movements


  Large informal groupings of individuals or organizations that focus on specific political or social issues, carrying out, resisting or undoing a social change
• Government Programs in the Philippines

  • Human Development and Poverty Reduction Cluster
  • Pantawid Pamilyang Pilipino Program (CCT)
  • K to 12 Basic Education
• Listahanan (National Household Targeting System for Poverty Reduction)


  An information management system that employs geographic targeting, household assessment, and validation to provide information on who and where the poor are in the Philippines, used for identification and selection of potential beneficiaries for poverty alleviation and social protection programs
• Pantawid Pamilyang Pilipino Program (4Ps)


  A human development measure of the national government that provides conditional cash grants to the poorest of the poor, to improve the health, nutrition, and the education of children aged 0-18
• Responsible Parenthood


  The will and ability of parents to respond to the needs and aspirations of the family and children, a shared responsibility of the husband and the wife to determine and achieve the desired number, spacing, and timing of their children according to their own family life aspirations, taking into account psychological preparedness, health status, socio-cultural, and economic concerns
• Absolute Poverty


  Also known as extreme poverty or abject poverty. It involves the scarcity of basic food, clean water, health, shelter, education, and information.
• Absolute poverty


  • Tend to struggle to live and experience a lot of child deaths from preventable diseases like malaria, cholera, and water-contamination-related diseases
  • Absolute poverty is usually uncommon in developed countries
• Relative Poverty


  Defined from the social perspective that is living standard compared to the economic standards of population living in surroundings. It is a measure of income inequality.
• Example of relative poverty


  • A family can be considered poor if it cannot afford vacations, or cannot buy presents for children at Christmas, or cannot send them to universities
• Situational Poverty


  A temporary type of poverty based on the occurrence of an adverse event like environmental disasters, job loss and severe health problems
• Situational poverty


  • People can help themselves even with a small assistance, as poverty comes because of unfortunate event
• Generational Poverty


  Handed over to individual and families from one generation to the one. This is more complicated as there is no escape because the people are trapped in its cause and unable to access the tools required to get out of it
• Rural Poverty


  • Occurs in rural areas with population below 50,000. It is the area where there are less job opportunities, less access to services, less support for disabilities, and quality education opportunities
  • People are tending to live mostly on farming and other menial work available to the surroundings
• Urban Poverty


  • Occurs in the metropolitan areas with population over 50,000
  • Limited access to health and education
  • Inadequate housing and services
  • Violent and unhealthy environment because of overcrowding
  • Little or no social protection mechanism
• Socialist

  Refers to social, political and cultural factors that permeate economic exchanges and are often necessary to achieve

  individual, organizational and inter-

  organizational effectiveness which is not possible when economic action is “under-socialized”.
• Market institution

  play an important role in the buying and selling of commodity in the market. In this institution, we need a market system wherein buyers, sellers and other actors come together to trade in a given product or service.
• According to Gregory and Stuart in their book “Comparative Economic System”, describes an economic system as one which consists of mechanisms, organizational arrangements, and rules that facilitate the making and executing of decisions about the allocation of scarce resources.
• Economist

  Forces are those acting on economic factors from outside the market system. They include organizing and correcting factors that provide order to market and other societal institutions and organizations such as economic and political.
• Capitalistic Economic System

  * This is characterized by freedom of choice and enterprise, private ownership of all economic resources, competition, and market mechanism. * Consumers are free to choose the commodity they wish to consume according to their budget. * The market plays an important role in allocating the inputs of production among its alternative uses. * Since there is an existence of competition, there is no place for an inefficient worker, a high priced sub-standard good, or an inefficient industry.
• Mixed Economic System

  * Most present-day economic systems are a mix-up of capitalistic and command economic systems. * This shows characteristics of free enterprise economy in many aspects of their economic activities. * The government involvement in the whole scheme of the system is also apparent.
• Command Economic System

  * Economic decisions are made on a collective or group basis. * This group may be government agency or an institution. * The occupation of workers, the quantities and types of goods and services

  produced as well as the distribution of income are all determined by the

  central planners.
• Redistribution

  * Focuses on the collection of goods from individuals in a community to be kept by a central authority. * The aim is to allocate such goods back to the people.