Lesson 3: economic institutions Flashcards
Act of coordinating the other factors of production (land, labor, capital)
Economic Organization
Enumerate the 6 aspects of the economic system
- Price
- Division Labor
- Law of Supply and Demand
- Economic Exchange
- Economic Socialization
- Property
A socially acknowledged right; involves right of ownership
Property
Individuals and organizations exchanging valuable goods and services for different goods and services
economic exchange
Individuals learning the values and behavior needed to fill in positions in the economic community
economic socialization
Division of work in reference to age, gender, skill, and qualification
division of labor
the monetary value of goods and services
price
states that when demand is higher than supply, there is an increase in price; when supply is higher than demand, there is a decrease in price
law of supply and demand
enumerate the types of economic organization
- sole proprietorship
- partnership
- corporation
- cooperatives
known as “one man business”
sole proprietorship
the proprietor solely manages the business and performs all the functions of an entrepreneur
sole proprietorship
Business is carried by two or more men called partners
partnership
a legal entity that is separate and distinct from its owners
corporation
often referred to as a “legal person”
corporation
incorporated by a group of shareholders
corporation
established for the purpose of providing services on a non-profit basis to its shareholders or members who own and control it
cooperative
enumerate the 6 types of cooperatives in the Philippines
- Credit cooperative
- Consumer cooperative
- Marketing Cooperative
- Producer’s Cooperative
- Service Cooperative
- Multipurpose Cooperative
Procure and distribute goods to its members and non members
Consumers Cooperative
Promotes and undertakes savings and lending services among its members
Credit Cooperative
undertakes a joint production whether it’s agricultural or industrial
Producer’s Cooperative
Engages in supply of production inputs to members and markets their products
Marketing Cooperative
engages in several services such as dental and medical care, electricity, etc.
Service Cooperative
Combines 2 or more of the business activities
Multipurpose Cooperative
