Economic Institution Microeconomics and Macroeconomics Basic Economic Problems Philippines’ Social Hierarchy Socioeconomic Mobility Socioeconomic Stratification and its Perspectives Sociological Analysis of Stratification and Class

1. MAJOR
SOCIAL
INSTITUTIONS
Social Dimensions of Education

2. ECONOMIC
INSTITUTIONS
Social Dimensions of Education

3. OUTLINE
Economic Institution
Microeconomics and Macroeconomics
Basic Economic Problems
Philippines’ Social Hierarchy
Socioeconomic Mobility
Socioeconomic Stratification and its
Perspectives
Sociological Analysis of Stratification and
Class

4. ECONOMIC INSTITUTION

5. ECONOMIC INSTITUTION
Human behavior is mainly concerned
with the satisfaction of material wants. It is
centered on the task of making a living,
the most absorbing interest of man. To that
end, man in all ages and among all
classes struggle to bring about changes in
the environment.

6. ECONOMIC INSTITUTION
The changes that have taken place
and are taking place in the Philippines are
the result chiefly of the interplay of forces
in our efforts to improve our material well-
being. Our mode of living centers on the
acquisition of wealth in order to satisfy our
wants and this aspect of man’s activities
constitutes the field of economics.

7. ECONOMIC INSTITUTION
Examples of economic activities are
earning money, buying goods and
services, putting up a business, or saving
money in the bank. We cannot isolate
ourselves from economics because our
physical existence depends on it. We
cannot live without production and
consumption.

8. WHAT IS ECONOMICS?
A science concerned with the process or
system by which goods and services are
produced, sold, and bought.
A study of how we make decisions in a
world where resources are limited. It is
sometimes called the science of decision
making.

9. MICROECONOMICS
AND
MACROECONOMICS

10. MICROECONOMICS
Microeconomics – the branch of
economics that focuses on the behavior
of individual participation in various
market. It is concerned with the specific
economic units of parts that makes an
economic system and the relationship
between those parts.

11. MICROECONOMICS
In microeconomics, emphasis is
placed on understanding the behavior
of individual firms, industries,
households, and ways in which such
entities interact.

12. MACROECONOMICS
Macroeconomics – the branch of
economics that takes a wide-ranging
view of the economy, studying the
behavior of economic sectors. It is
concerned with the economy as a whole,
or large segments of it.

13. MACROECONOMICS
It focuses on such problems as the
role of unemployment, the changing level
of prices, the nation’s total output of goods
and services, and the ways in which
government raises and spends money.

14. MICROECONOMICS AND
MACROECONOMICS
Microeconomics looks at the trees,
while macroeconomics looks at the
forest. Both categories involve the
construction of theories and formulation of
policies-activities that are the heart of
economics.

15. 15
MACROECONOMICS VS.
MICROECONOMICSTo understand the scope and sweep of macroeconomics, let’s
begin by looking more carefully at the difference between
microeconomic and macroeconomic questions.
MICROECONOMIC
QUESTION
MACROECONOMIC
QUESTION
Go to business school or take
a job?
How many people are
employed in the economy as a
whole?
What determines the salary
offered by Liceo de Cagayan
University?
What determines the overall
salary levels paid to workers
in a given year?

16. 16
MACROECONOMICS VS.
MICROECONOMICS
MICROECONOMIC
QUESTION
MACROECONOMIC
QUESTION
What determines the cost to a
university or college of offering
a new course?
What determines the overall
level of prices in the economy
as a whole?
What government policies
should be adopted to make it
easier for low-income students
to attend college?
What government policies
should be adopted to promote
full employment and growth in
the economy as a whole?
What determines whether
Ayala will put up a branch on
El Salvador City ?
What determines the overall
trade in goods, services and
financial assets between the
Philippines and the rest of the
world?

17. 17
 Microeconomics focuses on how decisions are made
by individuals and firms and the consequences of those
decisions.
Ex.: How much it would cost for a university or
college to offer a new course ─ the cost of the
instructor’s salary, the classroom facilities, the class
materials, and so on.
Having determined the cost, the school can then
decide whether or not to offer the course by weighing
the costs and benefits.
Macroeconomics vs. Microeconomics

18. 18
 Macroeconomics examines the aggregate
behavior of the economy (i.e. how the actions of
all the individuals and firms in the economy
interact to produce a particular level of economic
performance as a whole).
Ex.: Overall level of prices in the economy
(how high or how low they are relative to
prices last year) rather than the price of a
particular good or service.
Macroeconomics vs. Microeconomics

19. 19
FOUR PRINCIPAL WAYS THAT MACROECONOMICS
DIFFERS FROM MICROECONOMICS:
1. In macroeconomics, the behavior of the whole
macroeconomy is, indeed, greater than the sum of
individual actions and market outcomes.
2. Macroeconomics is widely viewed as providing a
rationale for continual government intervention to
manage short-term fluctuations and adverse events in
the economy.
 monetary policy
 fiscal policy

20. 20
FOUR PRINCIPAL WAYS THAT MACROECONOMICS
DIFFERS FROM MICROECONOMICS (CONT.):
3. Macroeconomics is the study of long-run growth:
What factors lead to a higher long-run growth rate? And
are there government policies capable of increasing the
long-run growth rate?
4. The theory and policy implementation focus on
economic aggregates -- economic measures that
summarize data across many different markets for
goods, services, workers, and assets.

21. BASIC ECONOMIC
PROBLEMS

22. WHAT TO PRODUCE?
Society must decide what to produce with its
limited resources.
For example, society may have to choose
whether to produce goods for defense or services
for poor people.

23. HOW TO PRODUCE?
Society must decide
how to produce.
For example, should
we accept more pollution
from factories in
exchange for greater
output of products?

24. FOR WHOM TO PRODUCE?
Society must decide for whom to produce.
Who will receive the goods and services?
In the Philippines, most goods and services
are distributed through the price system.

25. PHILIPPINES’ SOCIAL
HIERARCHY

26. PHILIPPINES’ SOCIAL
HIERARCHY
A social dissection is a basic
categorization method whereby a
community ranks one another as
superior or inferior. Although there are
many factors that contribute in the social
segregation of people but majorly this
ranking & evaluation is done on the
basis of authority, wealth, status and
social influence.

27. PHILIPPINES’ SOCIAL
HIERARCHY
This was done as an appropriate
hierarchical organization & arrangement
of these social classes form specific
social groups in the society. Philippines
social hierarchy was also affected by this
social stratification.

28. PHILIPPINES’ SOCIAL
HIERARCHY
In Philippines there were broadly three
social classes which also got sub
categorized further. The Philippine social
hierarchy is depicted here in a down
sliding order pattern with the topmost
status holder social class on the highest
levels and the other lower classes in a
vertical manner:

29. Philippines’ Social
Hierarchy
Middle ClassUpper Class/ Maharlika Lower Class
Class I Class II Timawa
Aliping
Namamaha
y
Aliping
Sagigilid
Alipin
Datu
Umalahoka
n
Gat
Lakan
Datu’s
Family

30. PHILIPPINES’ SOCIAL
HIERARCHY
Upper Class / Maharlika
These were the top most authority
holder in this hierarchy and the
richest of all in the Philippines’ social
hierarchy. This social class further
got divided and sub divided as follow:

31. PHILIPPINES’ SOCIAL
HIERARCHY
Class I– This was the class of leader
of the society and his family. It
incorporated the following:
Datu
Datu’s Family

32. PHILIPPINES’ SOCIAL
HIERARCHY
Class II– These were inferior to Datu and
his family but superior to rest of the
people of Philippine. The people in this
class were involved in administrative
works like trading, lawmaking, warfare,
implementing of the laws, handling and
taking care of rituals and religion.
Umalahokan
Gat
Lakan

33. PHILIPPINES’ SOCIAL
HIERARCHY
Middle Class
This was the middle level social class
of the hierarchy. It further
incorporated two social classes that
are portrayed as below. Just have a
look:

34. PHILIPPINES’ SOCIAL
HIERARCHY
Timawa – These were the Freed Slaves.
They bought their freedom by some
possible mean. They were engaged in
agriculture, boat making, livestock,
carpentry, hunting, fishing and many more
such manual work. They were allowed to
get married and had family of their own.

35. PHILIPPINES’ SOCIAL
HIERARCHY
Aliping Namamahay – These were also
sort of slaves but had some rights
provided by their owners. They could get
themselves free by any means possible at
that time. When an Aliping Namamahay
bought his freedom, he then became a
Timawa.

36. PHILIPPINES’ SOCIAL
HIERARCHY
Lower Class
This was the lowest class of the
hierarchy. It further incorporated into
two classes that are described as
below:

37. PHILIPPINES’ SOCIAL
HIERARCHY
Aliping Sagigilid – This was the poorest
class of the Philippines’ social hierarchy. These
people had zero or negligible rights. They were
not allowed to own a property in the country.
They were not even allowed to get married.
They were pretty much like slaves who could be
traded or even sold out by their owners and
were not allowed to repulse their master’s
decision.

38. PHILIPPINES’ SOCIAL
HIERARCHY
Alipin – This was the lowest most
class in Philippines’ social hierarchy.
These were people who had done
crime in the past. People would
inherit the ‘Alipin’ blood from their
criminal parents. There were also
some other sort of Alipin who were
buried under huge debts.

39. SOCIOECONOMIC MOBILITY

40. SOCIOECONOMIC MOBILITY
Social Mobility - Movement of individuals
or groups within a stratification structure.
Intra-generational mobility – movement
within a career of an individual.
Inter-generational mobility – mobility of
groups from one generation to another.

41. SOCIOECONOMIC MOBILITY
Horizontal mobility – a change from one
occupation to another at the same
general status level.
Vertical mobility – upward or downward
movement of occupational or social
class.

42. SOCIOECONOMIC MOBILITY
Determinants of mobility
Steepness of the socioeconomic
pyramid – only very few positions at
the top; how many people can be
President?

43. SOCIOECONOMIC MOBILITY
Determinants of mobility
Starting position on the
socioeconomic ladder – some
persons start closer to the top than
others; it is easier to become
President if you are already elected
to higher office.

44. SOCIOECONOMIC MOBILITY
Determinants of mobility
Structural mobility – the
movement of entire categories of
people due to changes in society
itself; correctional officers have
moved up the occupational status
ladder from security guards to
professionals in terms of both
income and prestige.

45. SOCIOECONOMIC
STRATIFICATION AND ITS
PERSPECTIVES

46. THE DAVIS-MOORE PERSPECTIVE
• THESIS
– STRATIFICATION HAS BENEFICIAL CONSEQUENCES (IT’S
FUNCTIONAL).
• KEY POINTS
– MEMBERS OF SOCIETY HAVE NEEDS
– SOME STATUSES IN SOCIETY ARE MORE IMPORTANT
THAN OTHERS WHEN IT COMES TO SEEING TO NEEDS
– TO ATTRACT THE BEST QUALIFIED AND TO GIVE OF
THEIR TIME, EFFORT, AND ENERGIES, REWARDS MUST BE
SUFFICIENT IN NATURE (INCOME, PRESTIGE, POWER)
– KEY CONCEPT
– MERITOCRACYAND GETTING WHAT YOU “DESERVE”

47. ANOTHER PERSPECTIVE
• ONE’S PLIGHT IN LIFE IS TIED TO
A PERSON’S RELATIONSHIP TO
THE MEANS OF PRODUCTION
– A PERSON EITHER CONTROLS
MONEYAND EQUIPMENT, OR WORKS
FOR THOSE WHO DO
• THROUGH INHERITENCE LAWS,
SOCIAL CLASSES THEN
REPRODUCE THEMSELVES OVER
GENERATIONS
• EVENTUALLY, YEARS OF CLASS
OPPRESSION WOULD LEAD TO
CAPITALISM’S DEMISE
– SOCIALISM REPLACES CAPITALISM
KARL MARX BELIEVED THAT CAPITALIST SYSTEMS OF
STRATIFICATION WOULD ALWAYS BENEFIT A FEW AT THE EXPENSE OF THE MANY

48. IDEOLOGICAL SUPPORT FOR
INEQUALITY
There exists in the beliefs of people
explanations which justify or legitimize a
particular societal structure. There will
always be, in the minds of those who are
privileged in a society, the desire to
justify their good fortune as being a result
of personal qualities such as hard work.

49. The social scientist, however, looks for
structural reasons for the patterns of the
distribution of wealth, for admission to
and graduation from the best
universities, and the securing of the
best jobs.
* “self-serving bias”
IDEOLOGICAL SUPPORT FOR
INEQUALITY

50. Marx argued that the class(es) in power
impose their ideology on the entire
society, and that false consciousness
occurs when people without power
accept an ideology that is contrary to the
interests of that people as a class.
IDEOLOGICAL SUPPORT FOR
INEQUALITY

51. Marx further suggested that this false
consciousness will exist until the
exploited class develops a sense of class
consciousness, at which time the people
will unite in the pursuit of their collective
interests and challenge the power
classes.
IDEOLOGICAL SUPPORT FOR
INEQUALITY

53. SOCIOLOGICAL ANALYSIS
OF STRATIFICATION AND
CLASS

54. SOCIOLOGICAL ANALYSIS OF
STRATIFICATION AND CLASS
Functionalist Perspective
 The lower class provides a pool of inexpensive
laborers that help keep prices down.
 The poor buffer the lower-middle class from
economic changes.
 People have different skills and knowledge and will
always seek different opportunities.
Conflict Perspective
 Stratification and class are the results of the
inequality in the distribution of the wealth, which is
sustained by the exertion of power.

55. SOCIOLOGICAL ANALYSIS OF
STRATIFICATION AND CLASS
Symbolic Interactionist Perspective
People are socialized to accept
inequality.
People in the subordinate classes
often adopt the value systems of those
in power and see themselves as
unworthy.

56. RELATIVE VERSUS ABSOLUTE POVERTY
 Relative Poverty:
An uneven distribution of wealth where some
people lack resources that are taken for
granted by others.
 Absolute Poverty:
A situation in which the lack of resources is
life-threatening.

57. RELATIVE VERSUS ABSOLUTE POVERTY
Poverty and Women:
In poor countries men own 90% of the
land.
70% of the world’s 1 billion people living
near absolute poverty are women.

58. SLAVERY
Chattel slavery– one owns another
Child slavery- children used to beg,
steal, or work
Debt bondage- workers are not paid
enough to pay for their expenses
Servile forms of marriage- women are
sold off into marriage or prostitution