Economy Flashcards
The social institution which
facilitates the movement of
goods and services from the
productive stage to
distribution and finally to
consumption.
ECONOMY
all the commodities
GOODS
actions or activities done for an individual
or a group.
SERVICES
Two primary motives for conducting exchange
in the society:
- Economic gains
- Social gains
Refers to the value of giving an object, gift, or service in turn for something you receive.
RECIPROCITY
giving without immediately expecting the
corresponding return
GENERALIZED RECIPROCITY
giving while expecting an immediate return in
the exchange.
BALANCED RECIPROCITY
happens when one of the parties tries to gain more out of the exchange thereby taking advantage of the other party.
NEGATIVE RECIPROCITY
directly involving the central authority of political organizations.
REDISTRIBUTION
Social organizations collects the goods and then redistributes the items to the members of the group.
REDISTRIBUTION
Economic Sectors
- Primary Sector
- Secondary Sector
- Tertiary Sector
● Deals with the extraction of raw materials from the
environment
● Example: Agriculture, Fishing, Mining
Primary Sector
● Involves the conversion of raw materials into finished
products.
● Example: Car manufacturing, food processing
Secondary Sector
● Involves all service-oriented transactions
● Example: BPO, real estate, food and beverages industry
Tertiary Sector
Mechanisms set by the State in allocating resources
and in producing and distributing goods and
services to the population.
ECONOMIC SYSTEMS
- Private ownership of the means of
production which are considered as
sources of wealth. - Laissez-faire: Little to no intervention
from the government
CAPITALISM
- Encourages competition among
different businesses – lowering prices,
creating better products, advertisements
CAPITALISM
- The means of production are collectively
owned by the State.
SOCIALISM
- People work based on their abilities and to
reap the benefits in accordance with their
labor.
SOCIALISM
- Classified between capitalist and socialist
economic systems.
MIXED ECONOMY
implement a market-based economy with several State-
initiated, socialized programs such as Welfare State –healthcare and education.
Welfare State
undergoing large commercial activities through State-
owned enterprises and by working closely with various corporations.
State Capitalist
TYPES OF NON-STATE INSTITUTIONS
- Banks
- Cooperatives
- Corporation
- Labor Union
- Transnational Advocacy Groups
- International Organizations
- Development Agencies
