GOVERNMENTS

• Government


  Overarching structure and distribution of power within a state
• Types of government

  Democracy, monarchy, authoritarianism, totalitarianism, oligarchy
• Forms of government

  Presidential, parliamentary, federal, unitary
• The Philippines operates a mixed economy with both capitalist and socialist characteristics, regulated by a democratic government
• Types of government in the Philippines

  • Republic
  • Unitary state
  • Presidential system
  • Constitutional republic
• The current constitution, enacted in 1987, establishes the Philippines as a democratic and republican state with a presidential system
• As of May 2024, President Ferdinand "Bongbong" Marcos Jr. leads the administration, elected in 2022, focusing on economic recovery, infrastructure development, and national security
• Roles of government in the economy

  • Regulation
  • Provision of public goods and services
  • Economic stabilization
  • Economic development
  • Redistribution
• Market failure


  Occurs when the allocation of goods and services by a free market is inefficient, leading to suboptimal outcomes for society as a whole
• Causes of market failure

  • Misallocation
  • Inadequate provision of public goods
  • Environmental degradation
• Implications of market failure

  • Inefficient allocation of resources
  • Underprovision of public goods
  • Environmental degradation
• Examples of market failure

  • Market control
  • Information failure
  • Externalities
• Pollution


  The introduction of contaminants into the natural environment that cause adverse change
• Negative externalities


  Occur when the production or consumption of goods and services imposes costs on third parties which are not reflected in the market price
• Private costs


  Costs that the producer or consumer incurs in the course of their economic activity
• Social costs


  Include both the private costs and any additional costs imposed on society
• Tragedy of the Commons


  Describes a situation where individuals, acting independently according to their self-interest, overuse and deplete shared resources
• Mechanisms to address pollution

  • Property rights
  • Market incentives
  • Pricing mechanism