Midterm Flashcards
(52 cards)
1
Q
An orderly working body joined in a regular interdependence to serve a common purpose
A
System
2
Q
A set of economic institutions that dominates a given economy
A
Economic system
3
Q
Is a set of rules of conduct of established ways of thinking or doing things.
A
Institution
4
Q
Principal objective of economic system
A
To solve the basic economic problem
5
Q
Goal of economic system
A
High standard of living for all citizens
6
Q
Basic economic problems
A
Production
Consumption
Distribution
Growth
7
Q
Sum total of the productive activity of an entire population
A
Economy
8
Q
Smallest units in any economy
A
Individual
Firm
9
Q
Are the unit of organization and the locus of decision-making
A
Firms
10
Q
Production unit
A
Plant
11
Q
Firms that produce similar or identical products
A
Industry
12
Q
Classifications of economic systems by R. Subade
A
- Custom or traditional economy
- Command or planned economy
- Market economy
- Mixed economy
13
Q
Classifications of economic system by Sicat
A
1) Planned economy A. Communist economy B. Socialist economy 2) Mixed or regulated capitalism 3) Free economy or free capitalism
14
Q
Reaction to mercantilism
A
Laissez faire
15
Q
Reaction to the abuses of capitalism
A
Socialism
16
Q
Criteria for economic system
A
- as to ownership of the means of production
- as to economic decision-making
- as to presence or absence of price-control
- as to availability of goods in the market
- as to presence or absence of consumer rights
17
Q
Comprises a group of buyers and sellers who engage in trade
A
Market
18
Q
3 (4) fundamental questions
A
- What goods and services shall be produced?
- How shall they be produced?
- For whom shall they be produced?
(4) How much shall be produced?
19
Q
Stages of Philippine economy
A
- Direct appropriation economy
- Pastoral economy
- Agricultural economy
- Town economy
- National economy
20
Q
- appropriated the gifts of nature to satisfy their wants
- gathered fruits and plants in the forest for their food
- defended on hunting and fishing using simple implements or tools
A
Direct appropriation economy
21
Q
- people domesticated animals
- they lived a nomadic life
- trade was by means of barter
- slaves were bought and sold
- wealth considered of animals
A
Pastoral economy
22
Q
- man settled down and cultivated soil
- with greater economic security, population increased rapidly
- family became the unit of production
A
Agricultural economy
23
Q
- towns rose
- merchants formed themselves into guilds
- engaged in handicrafts and industries
- trade was confined to a certain place
A
Town economy
24
Q
- trade was no longer confined
- trade extended across national boundaries
- foreign trade gave rise to mercantilism
- industry was controlled by individuals who possessed capital
- laborers borrowed money foe capitalists and sold finished goods
A
National economy
25
An economic organization or system in which means and methods of production are controlled, owned and operated by private individuals and through private initiative
Capitalism
26
An economy in which the forces of demand and supply operate freely
Free economy
27
Other name of free economy
Free-enterprise system or economy
28
A form of society guided by the principle of equality, cooperation and concern for the poor and powerless
In modern era, this is associated with working class or political power
Socialism
29
An economic system in which there is common or joint ownership of property by the state
Communism
30
A type of economic system for decision-making which makes its economic choices through a sort of economic commander in chief or group of men whose wishes are the command of the producer
Command economy
31
A system wherein all economic activities are planned centrally
The means of production particularly in major industries are often publicly owned and administered
Individual initiative in making economic decisions is replaced by centralized economic planning and control
Planned economy
32
A type of economic system for decision-making whose economic choices are decide by the past.
A product is produced a certain way because it has always been that way
Traditional economy
33
An economy in which both public and private institutions exercise economic control
Mixed economy
34
Is an orderly working body joined in a regular interdependence to serve a common purpose
system
35
Most simple form of business
Easiest to register
Oldest form of business organization
Single or sole proprietorship
36
Advantages of sole proprietorship
Decisions made only by owner
Simple process to start
Profits belong to owner
Pride of ownership
Lower taxes
37
Disadvantages of sole proprietorship
Unlimited liability
Limited life of business
Difficult to raise capital
Risk of loss is not shared
38
Business owned and operated by two or more people
Bind themselves to contribute money, property or industry to a common fund
Partnership
39
Advantages of partnership
Easy to start
Not many regulations
Not as difficult to raise capital
Combination of knowledge and skills
40
Disadvantages of partnership
Unlimited liability
Profits are shared
Limited life of business
Disagreements
41
Types of partnerships
General
Limited
Joint venture
42
Partners divide responsibility
Equal shared assumed
General partnership
43
Partners have limited liability
Limited input in management decisions
Not often used for retail
More complex and formal than general
Limited partnership
44
Acts like general partnership
Limited period of time or single project
Joint venture
45
Business owned by stockholders but operated by officers
Most common form of business organization
Limited liability of owners
Corporation
46
Advantages of corporation
```
Easy to raise capital
Limited liability
Unlimited life of business
Hire specialized skills
Shared risks
```
47
Disadvantages of corporation
Difficult to start
Less direct control
Double taxation
Limited activity
48
Types of market structures
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
49
Inner dimensions of health
```
Physical
Mental
Emotional
Social
Spiritual
Sexual
```
50
Outer dimensions of health
Societal
Occupational
Environmental
51
Methods used in economic health evaluation
Cost minimization
Cost effectiveness
Cost utility
Cost and benefit analysis
52
Enrollees
Formal sector
Indigents
Retirees
Individual paying program
