CULTURAL, SOCIAL AND POLITICAL INSTITUTION

1. MODULE 2: CULTURAL,
SOCIAL AND POLITICAL
INSTITUTIONS
LESSON 3:THE ECONOMIC INSTITUTION

2. INSTITUTION
• Is a durable systems of established and embedded social rules
that create a structure for social interactions.

3. ECONOMIC INSTITUTION
• are the formal and informal rules that organize the economic
flow and activity of a society.

4. ECONOMIC INSTITUTION ARE TASKED TO
ANSWER THE FOLLOWING QUESTION:
• 1. what goods and services should be produced?
• 2. how should these goods and services be produced?
• 3. for whom should the goods and services be produced?

5. OTHER FUNCTION AND ASPECT OF
ECONOMICS:

6. 1. RECIPROCITY
- is a form of gift exchange between two parties wherein return
is expected after product or gift giving.
• 2 things occur during the exchanging products:
a. economic gain
b. social gain

7. Transfer/ government transfer/ transfer payment
-Are payments that are made without any good or service being
received in return.
-Example: pensions and welfare benefits
Redistribution
-Is the process of transferring income and wealth- be it in the form of
money, physical property and from one individual to other individual.
-Example: taxation, land reforms, and charity
2. Transfer and Redistribution

8. MARKET/ FINANCIAL TRANSACTIONS
Is basically the system of exchange in a market.
Examples of market transactions:
1. Purchases
2. Loans
3. Mortgage
4. Bank accounts

9. PURCHASES
Is the most common amongst all kinds of transaactions.
LOANS
Is a sum of money that a person may borrow.
MORTAGE
Is a type of loan that was created for purchasers to be able to
make homeownership more attainable.
BANK/ TRANSACTION ACCOUNTS
This type of accounts held in a bank or any other financial
institution that allow individuals available access to money
through cash withdrawals, checks and debit.

10. MARKET AND STATE
Is basically seen a system of private ownership and enterprise
that acts based on their own private and self interest.