VE 102_GROUP 4- ECONOMIC INSTITUTION_FATIMA M. PARA-ONDA REPORT PPTX.pptx

FATIMA M. PARA-ONDA
SDO CITY OF SAN PEDRO
MICHELLE V. COLIGADO
SDO LAGUNA
ANGELIQUE JOY GLUDA
SDO CAVITE PROVINCE
GROUP 4
TEAM ECONOMICS

OBJECTIVES
1. To define the nature and concept of
economic institution in relation to values
education.
2. To recognize the role of the industries in
values formation and in nation building.
12/10/2022 ECONOMIC INSTITUTION 3

ECONOMIC INSTITUTION
1.NATURE AND CONCEPT OF ECONOMICS
2.INDUSTRIAL SOCIETIES
3. CAPITALISM
4. SOCIALISM
5. COMMUNISM

INTRODUCTION
⚫Every society needs to make effective use of the scarce
resources. Goods and services have to be produced to meet the
basic needs such as food, clothing, shelter, etc.
⚫Economic institutions are responsible for organizing the
production, exchange, distribution and consumption of goods and
services.
⚫Economic institution is also one of the basic institutions.
For the sake of survival each society has an economic system
ranging from simple to complex.
1/24/2024 PRESENTATION TITLE 5

INTRODUCTION
⚫Goods are tangible objects that are necessary
(such as food, clothing, and shelter) or desired
(such as DVDs and electric toothbrushes).
⚫Services are intangible activities for which
people are willing to pay (such as dry cleaning, a
movie, or medical care).

Economic Institution. noun [ C ] ECONOMICS,
GOVERNMENT, FINANCE. us. a company or an
organization that deals with money or with managing
the distribution of money, goods, and services in an
economy.

What is Economics
Economics is the study of scarcity and
its implications for the use of
resources, production of goods and
services, growth of production and
welfare over time, and a great variety
of other complex issues of vital
concern to society.

What is the Nature of Economics
Economics is a social science which
means it studies society and relationships
between people. Economists analyse
many different aspects of human
behaviour and decision-making within and
between markets, organizations and
countries.

Characteristic of economic
Institution
It has an independent and legal
entity. Seeking to perform the function
for which it was founded; because it
has the capacity to carry out
production.

Three Main Function of
Economic Institution
 Establishing and protecting property
rights;
Facilitating transactions; and,
Permitting economic co-operation
and organization.

The Five Economic Institutions
(1) Private property
(2) Free markets,
(3) Competition,
(4) Division and Combination of labor,
and
(5) Social cooperation.

Four Types of Economic
Institution
Economic systems can be categorized
into four main types:
1. Traditional economies,
2. Command economies,
3. Mixed economies, and
4. Market economies.

2. Traditional Economy
14
Economic questions are answered by habits and customs
(the way it has always been done)
Children work the same jobs parents worked, often farming
or hunter/gatherer
Fear Change!
Ex. Eskimos, the Amish,
Pigmies, Bush People

2. Command Economy
The government answers the basic economic questions
Advantages: able to act quickly in emergencies, provide for
all people equally
Disadvantages: Inefficient, no incentive to work hard or be
creative
Ex. Communist Countries (China, Vietnam, North Korea,
former
Soviet Union, Cuba)

3. Free Market Economy
Economic questions are answered by individual buyers and
sellers.
Supply and demand influence economy
People act out of self interest; motive for profit (money)
drives the economy
Also known as FREE ENTERPRISE or CAPITALISM
Ex. The United States, Western
Europe, Japan

4. Mixed Economy
Mixed Economy: No economy is pure market, pure
command or pure traditional, elements of each appear in all
economies, some have more elements of one economy than
another.
Market Mixed Command
USA Great Britain China

Major Players in Economics
Major Players in Economics
•Federal Reserve Chairman. The Federal Reserve, the
country's central bank, was created in 1913 by an act of
Congress. ...
•Treasury Secretary. ...
•Office of Management and Budget. ...
•Council of Economic Advisers.

Economics Institution in the Philippines
 The Philippine government.
 Bangko Sentral ng Pilipinas.
 National Economic Development Authority.
 Philippine Statistics Authority.
 Department of Finance.
 Department of Foreign Affairs.
 Department of Tourism.
 Department of Public Works and Highways.

Sectors of the Economy
commodities ranging
from necessities (food,
clothing, shelter) to
luxury items (cars,
swimming pools,
yachts).
activities that benefit
others (e.g. the work of
priests, physicians,
teachers, and computer
software specialists).
Services are
•Goods are

⚫Economy has three
sectors
1.Primary Sector
2.Secondary Sector
3.Tertiary Sector
•Goods are
Economy
Primary
Secondary
Tertiary

⚫PRIMARY SECTOR PRODUCTION; the extraction of raw
materials and resources from environment. (Agriculture,
Raising Animals , Fishing, Forestry and mining)
⚫SECONDARY SECTOR PRODUCTION; the processing
of raw material (from primary sector) into finished goods.
For example, steel workers process metal ore; auto
workers then convert the ore into automobiles, trucks, and buses.
⚫TERTIARY SECTOR PRODUCTION; the provision of services
rather than goods. Tertiary sector production includes a wide
range of activities, such as fast-food service, transportation,
communication, education, real estate, advertising, sports, and
entertainment. 22

•
1.
crops,
2. livestock,
3. Fisheries
4. forestry
12/10/2022 ECONOMIC INSTITUTION
•1. Large Scale Manufacturing
(LSM)
•2. Small Scale Manufacturing,
• 3. Slaughtering
• Sub-Sectors
•Wood Product, Engineering
Products, Paper and Board, Food
Beverage and Tobacco, Rubber,
Iron and Steel Products,
Automobiles, Leather Products,
Electronics, Pharmaceuticals,
Chemicals, Non Metallic mineral,
Coke & Petroleum Products,
Fertilizers, and Textile
Manufactoring
Sector
•1. Transport
,
•2. Storage and
Communication;
•3. Wholesale and Retail
Trade;
•4. Finance and
Insurance;
•5. Housing Services
• (Ownership of Dwellings);
•6. General Government Services
(Public Administration and
Defense); and
•Other Private Services (Social
Services)
Services
Sector
23
Agricultural
Sector

ECONOMIC STUCTURE
PROPERTY* OWNERSHIP:
⚫An economic system is a system of production and exchange
of goods and services as well as allocation of resources in a
society.
⚫Property ownership is the key element of economic structure as
it defines who owns and control the means of
production(property):
Examples of property, which may be tangible or intangible, include
automotive vehicles, industrial equipment, furniture, and land -the last of
which is often referred to as "real property."

NATURE AND CONCEPT OF
ECONOMICS IN EDUCATION
Education economics or the economics of education
is the study of economic issues relating to education,
including the demand for education, the financing
and provision of education, and the comparative
efficiency of various educational programs and
policies.
12/10/2022 25

NATURE AND CONCEPT OF
ECONOMICS
The focus of economics of education is to optimum use of
educational resources, tools and techniques to achieve the
educational objectives. Thus the economics of education is a
science of allocating scarce educational resources
among competing alternatives to education in order to
achieve its goals.

What is the Role of Economics
in Education?
Economics education helps to inculcate managerial skills
and competencies on learners that will help them in
utilizing such skills for enhancing the productivity in
work environment and the society at large. The forgoing
will pave way for ensuring sustainable development by an
individual (learner)

Benefits of Economic Institution
Among other things, economic institutions have decisive influence on
investments in physical and human capital, technology, and
industrial production. It is also well-understood that in addition to
having a critical role in economic growth, economic institutions are also
important for resource distribution.
12/10/2022 28

What are the Values in Teaching Economics?
To make the students able to understand the various causes of
poverty, unemployment, price rise, inflation, and their remedial
measures. To make the students able to understand the economic
explosion of consumers, rights of consumers in society.
The study of economics helps the students to broaden their
knowledge.Students can be aware about most of the interesting and logical
facts about the behaviour of human beings. The students increase their
knowledge through the study of various economic theories, important
principles, laws and generalisation.

Three major economic systems during the Industrial
Revolution:
1.Capitalism
2.Communism
3.Socialism

Business opportunities are like
buses. There's always another
one coming.
Richard Branson
33

References
https://www.economicseducation.org/
what-is-economics
https://en.wikipedia.org/wiki/Education
_economics
https://www.123helpme.com/essay/Ec
onomics-And-Education-The-
Importance-Of-Economics-
FJEC76LTDNR

VE 102_GROUP 4- ECONOMIC INSTITUTION_FATIMA M. PARA-ONDA REPORT PPTX.pptx

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