UCSP

• Economic institutions


  The economy can be generally defined as a social institution that organizes a society's production, distribution and consumption of goods and services
• All societies have economies
• Goods


  • Food
  • Clothing
  • Cars
  • etc.
• Services


  • Given by professionals and the service-oriented industries
• Economic processes


  • Reciprocity
  • Transfer
  • Redistribution
• Reciprocity


  The voluntary giving or taking of objects without the use of money, in the hopes that in the future, they could be given back
• Forms of Reciprocity


  • Generalized Reciprocity
  • Balanced Reciprocity
  • Negative Reciprocity
• Generalized Reciprocity


  The exchange of goods and services without a definite time frame of when the favor should be returned
• Balanced Reciprocity


  The exchange that occurs between groups or individuals with the donor expecting to receive something of equal or similar value
• Negative Reciprocity


  Groups try to maximize their gains while giving as little as possible
• Transfer


  When resources from one individual or organization are given to another with no expectation of return, an economic transfer happens
• Transfers and the Government

  • Retirement and Disability Benefits
  • Medical Benefits
  • Unemployment Insurance
  • Education and Training
• The mandate of DSWD is the Meaning of Transfer
• Redistribution


  Occurs when individuals' goods or services are pooled together by a central authority to be used at a later time
• The TRAIN Law is a key moment in the Meaning of Redistribution
• Market system


  A type of economic system that allows the free flow of goods between private individuals and firms with a very limited participation from the government
• Market system


  • Existence of factors of production like land and capital
  • Dominant control of capital that gives rise to "capitalism"
  • Private ownership that encourages investment, innovation, and the like
  • Freedom of enterprise
• Invisible hand


  Integrates that self-interest and competition are good and could give optimum results
• A market is a mechanism and not necessarily a place in which brings buyers and sellers together to desired transaction
• Another important characteristic of the market system is the extensive use of capital goods and technology which requires specialization
• Economic systems


  • Traditional economy
  • Command economy
  • Market economy
  • Mixed economy
• Traditional economy


  A system that relies on customs, history, and time-honored beliefs. Tradition guides economic decisions such as production and distribution. Societies with traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of them. It relies a lot on people, and there is very little division of labor or specialization.
• Command economy


  The central government plans, organizes, and controls all economic activities to maximize social welfare. It does not allow market forces like supply and demand to determine production or prices. Lack of private property: There is little to no private ownership of businesses or property.
• Market economy


  Individuals, rather than the state, own most of the resources (land, labor and capital), rather than the government. Individuals control the use and price of these resources through voluntary decisions made in the marketplace (supply and demand). The production of goods and services, investments, pricing, and distribution are in the hands of private enterprises. It promotes free competition among markets.
• Mixed economy


  A combination of command and market economy. Most industries are private, while the rest, composed primarily of public services, are under the control of the government.