Chapter 1: ECONOMICS AND THE REAL WORLD

F. Fajardo: Economics is the proper allocation and efficient use of available

resources for the maximum satisfaction of human wants
Explanation: According to F. Fajardo, economics is about using the resources we
have in the best possible way to satisfy people's wants as much as we can. In simpler
terms, it means making smart choices with what we have to make sure we get the
most out of it and fulfill our desires as best as possible.

P.J. Samuelson: Economics is the study of wealth

Explanation: it means that economics is about understanding how we create,
distribute, and use resources to generate wealth or value. It involves examining how
we produce goods and services, how we allocate them, and how individuals,
businesses, and societies benefit from the wealth that is generated. Economics helps
us understand the factors that contribute to the accumulation of wealth and how it
affects our lives.

G. Sicat: Economics is a science of choice

Explanation: it means that economics is focused on studying how people make
decisions when they have different options available. It explores why individuals,
businesses, and governments choose certain courses of action while giving up others.
Economics helps us understand the factors that influence decision-making, such as
scarcity, costs, benefits, and trade-offs. By examining these choices, economists aim
to explain and predict how resources are allocated and how societies can make the
best use of their limited resources to achieve their goals.

L. Robbins : Economics is a science which studies human behavior as a relationship

between ends and scarce means which have alternative uses
Explanation: According to L. Robbins, economics is a science that examines how
humans behave when they have goals they want to achieve, but the resources they
need to accomplish those goals are limited and can be used in different ways. In
simpler terms, it means that economics studies how people make choices when they
have limited resources and multiple ways to use them.

For example, let's say you have $10, and you want to buy either a movie ticket or a
book. You can't have both because your money is limited. Economics would analyze
how you decide which one to choose based on your preferences, needs, and the value
you assign to each option.

The statement highlights that economics focuses on the relationship between our
desires or goals (ends) and the resources we have available (means) to achieve them.
These resources can be money, time, labor, or natural resources. Since these
 resources are scarce, meaning there is not an unlimited supply of them, we must
make choices and allocate them in the best way possible to fulfill our goals

Furthermore, the statement emphasizes that the resources we have can be used for
various purposes. In our example, the $10 could be spent on either the movie ticket
or the book. Economics analyzes how different uses of resources can lead to different
outcomes and how individuals and societies prioritize and allocate their scarce
resources among alternative options

In summary, economics studies how people behave when they have limited resources
and various ways to use them to achieve their goals. It explores the choices we make,
the trade-offs we face, and how we allocate our scarce resources to maximize our
satisfaction or well-being.

A. Marshall: Economics is a study of mankind in the ordinary business of life.

Explanation: According to A. Marshall, economics is the study of how people go
about their everyday activities and make decisions in life. In simpler terms, it means
that economics examines how individuals, businesses, and societies engage in their
regular activities and make choices.

When we talk about the "ordinary business of life," we are referring to the routine
activities and decisions we all make, such as what to buy, where to work, how much
to save, and how to allocate our time. Economics looks closely at these actions and
decisions to understand the reasons behind them and the outcomes they produce.

For instance, economics might explore why people choose to buy certain products or
services, how businesses decide what to produce and how much to charge, or how
governments make policies to address economic issues. By studying these everyday
activities, economics aims to gain insights into how individuals and societies
function, how resources are used, and how various factors shape our economic
behavior.

In essence, economics is concerned with understanding how people navigate their

daily lives, make choices, and interact within the broader economic system. It helps
us make sense of the ordinary activities and decisions we encounter in our personal
and professional lives, and how they collectively contribute to the functioning of the
economy.

ECONOMICS is a social science that studies and seeks to allocate scarce human and
non-human resources among their alternative uses in order to satisfy
unlimited human wants and needs

* Resources - inputs
Classification: 1. Human
2. Non-human
Scarce human - man power
Non-human recources (limited)- Goods, facilities, machines, land, water

Human - man power

Non-human Inputs - mga kailangan

* Major concerns of economics:

1. Scarcity of resources
• This means that there are limited amounts of resources available to us, such as
money, time, natural resources, and labor. We cannot have an endless supply of
everything we desire. For example, there is a limited amount of land to build houses,
limited hours in a day, and limited money in our wallets. Scarcity forces us to make
choices about how we allocate and use these resources.
Other explanation: Resources are limited, which means there is only a certain amount
available to us. This scarcity means that we have to make choices about how we use and
distribute these resources because we can't have an unlimited supply of everything we
want or need.

2. Unlimited human wants and needs

• Human wants and needs are essentially our desires and requirements for things that
make our lives better or more comfortable. These wants and needs are virtually
limitless. We always want more and more things, whether it's food, clothes, gadgets,
or experiences. Our desires can never be fully satisfied because they are boundless.
This contrast between unlimited wants and limited resources is a fundamental
concern of economics. It forces us to prioritize our wants and make decisions based
on what is most important or valuable to us given the scarcity of resources.
Other explanation: As human beings, we have countless desires and requirements for
things that would improve our lives. These wants and needs are never-ending. We always
want more, whether it's material possessions, experiences, or opportunities. However,
since resources are limited, we can't fulfill all of our wants and needs simultaneously.
This creates a constant need for decision-making and prioritization in order to achieve
the most important or necessary things with the resources we have.

* Essential elements of economics

1. Goods - In economics, goods refer to physical objects or products that have value and
can be traded or consumed. Goods can be classified into different categories based on
their characteristics and purpose.

Kinds:
a. tangible goods - Tangible goods are physical objects that can be touched or felt.
Examples include books, clothes, furniture, and cars. These are the most common types
of goods that we encounter in our daily lives.

b. consumer goods - Consumer goods are products that are intended for direct
use or consumption by individuals. They are items that satisfy our wants and
needs directly. Examples include food, clothing, electronics, and personal care
 products. Consumer goods are typically purchased by individuals for their
own use or enjoyment.

c. capital goods - Capital goods, also known as producer goods or investment

goods, are items that are used in the production of other goods and services.
These goods are not directly consumed by individuals but are utilized by
businesses and organizations to create or enhance the production process.
Examples of capital goods include machinery, equipment, factories, and
vehicles.
d. luxury goods - Luxury goods are products that are considered non-essential or
beyond basic necessity. They often possess high quality, exclusivity, and a
higher price tag. Luxury goods are associated with status, prestige, and
indulgence. Examples include high-end fashion items, luxury cars, jewelry,
and high-priced electronics.

e. free goods - Free goods are natural resources or goods that are available in
abundance and do not have a price attached to them. These goods are not
scarce and do not require any effort or cost to obtain. Examples include air,
sunlight, and natural water bodies. While they may have value, they are not
exchanged in markets due to their abundance.

f. economic goods - Economic goods are goods that are limited in supply and
have a positive economic value. These goods require effort and resources to
produce, and they are subject to scarcity. Economic goods can be either
consumer goods or capital goods. They are typically bought, sold, or traded in
the market to satisfy human wants and needs.

2. Services - In addition to goods, services are a fundamental element of economics.

Services are intangible activities or actions performed by individuals or businesses to
meet the needs and wants of others. Unlike goods, services cannot be physically
touched or held, but they provide value through the benefits they offer.
Examples of services include healthcare, education, transportation, banking,
entertainment, and professional consultations. These activities involve a person or
organization using their knowledge, skills, or expertise to provide assistance, perform
tasks, or deliver experiences to others.

NATURE OF ECONOMICS
Economics is a social science because it deals with the study of man’s life and
how he interacts with other men. It seeks to explain the “WHY” of things in the world of
economic behavior—production, consumption and distribution.

Economics as a social science: Economics is considered a social science because it

focuses on understanding human behavior and how individuals interact with each other.
It examines how people make decisions, produce and consume goods and services, and
distribute resources within society. By studying economics, we try to explain the reasons
behind economic actions and behaviors. For example, why do people buy certain
products, how does income distribution impact society, or what factors influence
business decisions.

Economics is interdependent with other sciences so economic problems can not

be solved by economic solutions alone but economic solutions with non-economic
reforms

Interdependence with other sciences: Economics is closely interconnected with other

fields of study. Economic problems and challenges often require solutions that go beyond
economic measures alone. It recognizes that addressing economic issues may require
considering non-economic factors, such as social, political, environmental, or
technological aspects. For example, solving unemployment may involve not only
economic policies but also educational reforms, infrastructure development, or social
welfare programs. Economics acknowledges the complex nature of real-world problems
and the need for interdisciplinary approaches to find effective solutions.

METHOD OF ECONOMICS
Economics uses scientific methods
Steps. 1. Gathering of data - Economists collect relevant information and data about
economic activities, behaviors, and trends. This data can come from various sources,
such as surveys, government reports, financial records, or experiments. Gathering data
helps economists obtain accurate and reliable information to study and analyze economic
issues.

2.Analysis of data - Once the data is collected, economists analyze it using

different methods and techniques. They examine patterns, relationships, and
trends within the data to identify meaningful insights and draw conclusions.
Analysis may involve statistical analysis, mathematical models, or qualitative
assessments, depending on the nature of the research question.

3.Conclusion and recommendation - After analyzing the data, economists draw

conclusions based on the findings. They evaluate the implications of the data for the
specific economic issue being studied. Conclusions may involve identifying causes
and effects, making predictions, or explaining economic phenomena. Additionally,
economists often provide recommendations or suggestions for policies, actions, or
changes based on their conclusions. These recommendations aim to address
economic problems or improve economic outcomes.

Limitations of economic method

1. Biases and values of those who get the facts, who make the analysis and make the
conclusion. - One limitation of the economic method is that the individuals involved in
gathering facts, conducting analysis, and drawing conclusions may have their own
biases and values that can influence the results. This means that personal opinions,
beliefs, or preferences of economists or researchers may unintentionally impact the
way they interpret the data or formulate conclusions. For example, someone with a
particular political or ideological leaning may approach the data in a way that aligns
with their pre-existing beliefs, potentially leading to biased findings.
2. Data cannot be examined objectively. - Another limitation is that data itself cannot be
examined completely objectively. Data is collected through various methods, such as
surveys, observations, or measurements, and this process may involve limitations or
subjectivity. Different data collection techniques or methodologies can lead to
variations in the information obtained. Additionally, data can be influenced by the
context in which it is collected or the way questions are framed, potentially affecting
the reliability or accuracy of the results. Therefore, economists need to be cautious and
critical when analyzing data, considering its limitations and potential sources of bias.
Short explanation: Another limitation is that data can be influenced by the way it is
collected and the context in which it is gathered, making it difficult to achieve complete
objectivity in economic analysis.

DIVISION OF ECONOMICS
1. Microeconomics
- seeks to understand and explain the behavior of individuals (consumer,
producer, firm...) as they respond to changes in their economic environment
- studies the economy in part
Examples:
• Consumer behavior: Microeconomics studies how individuals make choices
regarding what goods and services to consume based on their preferences, budget
constraints, and the prices of goods. It looks into topics like consumer demand,
utility theory, and decision-making processes.
• Demand and supply: Microeconomics analyzes how the price and quantity of
goods and services are determined through the interaction of demand from
consumers and supply from producers. It examines factors such as consumer
preferences, income levels, and production costs.
• Production and costs: Microeconomics examines how firms produce goods and
services, considering factors such as production techniques, costs of inputs, and
output levels. It explores concepts like production functions, economies of scale, and
cost analysis.
• Market structures: Microeconomics analyzes different market structures and their
effects on market behavior and outcomes. It includes topics such as perfect
competition, monopolies, oligopolies, and monopolistic competition.
• Factor markets: Microeconomics studies the markets for factors of production,
such as labor and capital. It explores how wages, interest rates, and rent are
determined and how individuals and firms make decisions regarding the use and
allocation of these resources.
• Economic efficiency and market failures: Microeconomics examines the
efficiency of resource allocation within markets and the presence of market failures,
such as externalities or information asymmetry. It explores the role of government
intervention and policies to address these market failures.

2. Macroeconomics
- deals with the economic behavior of the whole economy or its aggregates
- studies the economy as a whole
 Examples:
• Gross Domestic Product (GDP): Macroeconomics analyzes the total value
of goods and services produced within an economy over a specific period. It
examines GDP growth rates, business cycles, and fluctuations in economic
output.
• Inflation: Macroeconomics studies changes in the general price level of
goods and services. It analyzes inflation rates, the impact of inflation on
purchasing power, and the effectiveness of monetary policy in controlling
inflation.
• Unemployment: Macroeconomics examines the level of unemployment in an
economy, including factors such as labor force participation, unemployment
rates, and the impact of unemployment on the overall economy.
• Fiscal policy: Macroeconomics investigates the role of government spending,
taxation, and public debt in influencing economic activity. It examines the
effects of government policies on aggregate demand, economic growth, and
the distribution of resources.
• Monetary policy: Macroeconomics studies the role of central banks in
controlling the money supply, interest rates, and the overall availability of
credit. It explores how monetary policy affects inflation, investment, and
economic stability.
• International trade and finance: Macroeconomics analyzes the global flows
of goods, services, and capital. It examines topics such as exchange rates,
balance of payments, trade deficits, and the impact of international trade on
domestic economies.
• Economic growth: Macroeconomics studies the long-term expansion of an
economy's productive capacity. It examines factors that contribute to
economic growth, such as technological progress, capital accumulation, and
productivity improvements.

HISTORY OF ECONOMICS

Economics comes from a Greek word, oikonomia which means management of the
household. The housekeeper had to see to it that: (1) there is enough food, clothing and
shelter (2) that the necessary duties and responsibilities are performed by the members of
the household and (3) that their products are distributed according to necessity or custom

Father of economics: The Father of Economics is commonly attributed to Adam Smith,

a Scottish economist and philosopher who lived during the 18th century. Smith is
known for his influential book "The Wealth of Nations," published in 1776, which
laid the foundation for modern economics. In his book, Smith discussed concepts such as
the division of labor, the invisible hand, and the principles of free markets and
capitalism. His work greatly influenced the field of economics and is considered a
cornerstone of classical economics. Adam Smith's contributions to economic theory and
his analysis of market forces have earned him the title of the Father of Economics.

Bible of economics: Smith is known for his influential book "The Wealth of Nations,"
published in 1776
THE BASIC ECONOMIC PROBLEMS

1. What goods and services to produce and how much?

 problem on production - The basic economic problem of "what
goods and services to produce and how much" refers to the challenge of
deciding which products and services should be produced and in what
quantities. This is known as the problem of production.

In simpler terms, it means making choices about what things should be

made and how many of them should be produced. For example, should
a company focus on producing more cars or more smartphones? Should a
farmer grow more wheat or more vegetables? These decisions involve
considering factors such as consumer demand, available resources,
production costs, and the potential profitability of different products.

The problem of production arises because resources, such as labor,

raw materials, and technology, are limited. It is not possible to
produce an unlimited amount of every product, so choices must be
made about how to allocate these resources effectively. Economies
must determine which goods and services are most important or in
demand and use their limited resources efficiently to meet those
needs.

Solving the problem of production requires considering various factors,

including market demand, resource availability, and cost considerations. It
involves analyzing consumer preferences, market trends, and the potential
profitability of different products to make informed decisions about what
to produce and in what quantities.

 goods and services should be based on the needs and wants of the
people - In simpler terms, it means producing things that people
actually need and want. For example, if people need food, clothing, and
shelter, then it makes sense to produce those items. Additionally, the
quantity of goods and services produced should match the demand or
desire for those goods and services in society.

To determine what to produce and how much, economists and

businesses look at what people are willing to buy. They consider
factors like consumer preferences, market research, and surveys to
understand what people need and want. By producing goods and
services that meet these needs and wants, businesses can be more
successful in selling their products.

This approach ensures that resources are used efficiently and that the
production of goods and services aligns with what people actually desire.
It helps avoid producing things that people don't need or want, which
would be a waste of resources. By focusing on meeting the needs and
 wants of consumers, the economy can function more effectively and
provide goods and services that people value.

 before deciding on how much to produce, we should determine what the

people desire and the limitation of our resources to minimize cost of
production
2 things to consider:
1. desire and interest of the people - In simpler terms, before
deciding on the quantity of goods and services to produce, we
need to know what people want and what they are interested in.
This means taking into account their preferences and needs. For
example, if people have a high demand for smartphones, it
would make sense to produce more smartphones to meet their
desires.

2. limitations of resources - producing goods and services is not

only about fulfilling people's desires; it also depends on the
availability of resources. Resources such as labor, raw
materials, and technology are limited. This means that we need
to consider the constraints of these resources when deciding
what and how much to produce. For instance, if there is a
shortage of a particular raw material needed for production, it
may limit the quantity of goods that can be produced.

By considering both the desires of the people and the limitations of resources, we can
find a balance. We aim to produce goods and services that are in demand by the
people, while taking into account the availability of resources. This helps minimize
the cost of production and ensures that resources are used efficiently.

In summary, the basic economic problem of what to produce and how much involves
considering what people want and the limitations of resources. By understanding
people's desires and the availability of resources, we can make decisions that satisfy
consumer demand while optimizing production efficiency.

2. How to produce the goods and services?

 problem on the method of production/technology - In simpler
terms, it's about figuring out the best way to make the things people
want. This involves making decisions about the production process,
such as what technologies, techniques, and resources to use.

To solve this problem, economists and businesses consider various

factors. They evaluate different production methods and technologies to
find the most cost-effective and efficient approach. For example, they
may compare manual labor to automated machinery or different types of
production equipment.
 The goal is to find a production method that maximizes output while
minimizing costs. This could involve optimizing resource utilization,
streamlining production processes, or adopting new technologies that
improve efficiency.

By addressing the "how" of production, societies can strive to find the

most effective and sustainable ways to create goods and services. This
problem considers factors such as labor, capital, technology, and resource
availability to ensure that production methods align with the desired
outcomes and efficiently meet people's needs and wants.

 general rule: goods and services must be produced in the most

efficient manner - In simpler terms, it means finding the best and most
effective way to make the things people want. Efficiency refers to
using the available resources wisely and minimizing waste. When
producing goods and services, the aim is to maximize output while
minimizing the resources, time, and effort required.

To achieve efficiency in production, businesses and economists consider

factors like the choice of technology, the organization of production
processes, and the allocation of resources. They seek to optimize these
factors to ensure that the desired goods and services are produced at the
lowest cost and with the least waste.

Efficiency in production is important because it allows for the

optimal use of resources. By minimizing waste and using resources
effectively, more goods and services can be produced with the same
amount of resources. This benefits both producers and consumers, as
it can lead to lower prices, higher profits, and a greater availability of
products.

Overall, the objective of addressing the "how" of production is to find

ways to produce goods and services in the most efficient manner. This
involves making informed decisions about technologies, processes, and
resource allocation to ensure that resources are used wisely, waste is
minimized, and output is maximized.

2 types of resource mix

1. Labor-intensive mix - A resource mix that relies more on human labor
than on machinery or technology to produce goods and services. In
simpler terms, it means using a lot of human effort and manual work in
the production process.

2. Capital-intensive mix - A resource mix that relies more on machinery,

technology, and physical capital than on human labor to produce goods
and services. In simpler terms, it means using a significant amount of
machines, equipment, and technology in the production process rather
than relying heavily on human labor.
 • choice depends on 2 factors:
(1) objective of the producer – This refers to what the producer wants
to achieve or accomplish through their production process. It
could be minimizing costs, maximizing profits, increasing output,
or meeting specific quality standards. The objective guides the
producer's decision on whether to use more labor or capital in
production.

(2) limits of resources - This refers to the availability and constraints

of the resources needed for production, such as labor, machinery,
raw materials, and technology. There is a limit to how much of
each resource is available at a given time. The producer needs to
consider these limitations when deciding on the resource mix. For
example, if there is a shortage of skilled labor or limited financial
resources for purchasing machinery, it may affect the choice
between a labor-intensive or capital-intensive approach.

In simpler terms, when deciding how to produce goods and services, producers
consider what they want to achieve and the resources available to them.

If the objective is to minimize costs and make the most of available labor, a labor-
intensive mix is chosen. This means relying more on human workers and their
manual effort to produce goods and services.

On the other hand, if the objective is to maximize efficiency and productivity, and
there are sufficient financial resources and advanced technology available, a capital-
intensive mix is chosen. This means relying more on machinery, technology, and
physical capital to automate and streamline the production process.

3. For whom are the goods and services?

 problem on distribution – it is about deciding who gets to have and use the goods
and services that are produced, making sure it is fair and meets the needs of
individuals and society.

To address this problem, factors like income, wealth, and societal needs are
considered. The distribution of goods and services can be influenced by various
mechanisms, such as market forces, government policies, and social norms.

The aim of distribution is to ensure fairness and meet the needs of individuals and
society as a whole. It involves ensuring that everyone has a chance to obtain the
goods and services they require or desire, based on their circumstances and the
resources available.
 In summary, the problem of distribution involves determining how goods and
services will be shared among people. It takes into account factors like income,
wealth, and societal needs to ensure fairness and meet the diverse demands of
individuals and society.

 who will want these goods and services? - In simpler terms, it's about
figuring out who will be interested in and benefit from the goods and
services. This includes identifying the individuals or groups in society who
have the desire and demand for these products.

To address this problem, factors like consumer preferences, income levels, and
societal needs are considered. The goal is to ensure that goods and services are
allocated to those who value and can benefit from them the most.

In summary, the problem of "for whom" relates to identifying the individuals or

groups who want and need the goods and services. By understanding consumer
preferences and considering societal needs, producers can ensure that their
products reach the right people and fulfill their demands.

ECONOMIC SYSTEM
 it is a set of economic institutions that dominates a given economy

 institution – is a set of rules of conduct, established ways of thinking or ways of

doing things

 principal objective: to solve basic economic problems with different or varied

concepts, strategies and ways of improving living condition of their peoples.

Economic System Models

1. Capitalism - Capitalism is an economic system where businesses and industries
are owned and operated by private individuals or companies rather than the
government. In simpler terms, it is an economic system based on private
ownership and the pursuit of profit. In a capitalist system, individuals and
businesses have the freedom to make their own economic decisions and compete
in the marketplace.
 other terms: free-enterprise economy - which emphasizes the freedom of
individuals to start businesses and engage in economic activities.
: market economy - It is also referred to as a "market
economy" because buying and selling goods and services in
markets play a central role.
: laissez faire economy - which emphasizes the minimal role
of government intervention and regulation in economic activities,
allowing the market forces of supply and demand to determine
prices and production.
1. Capitalism:
• Example: The United States is often considered a prominent
example of a capitalist country. In the U.S., private individuals or
companies own and operate businesses across various sectors,
such as technology (Apple, Google), retail (Walmart, Amazon), and
automotive (Ford, General Motors).
2. Free-enterprise economy:
• Example: A small business owner starting a local bakery or a
freelance graphic designer offering their services independently are
examples of individuals exercising their freedom in a free-
enterprise economy.
3. Market economy:
• Example: The New York Stock Exchange (NYSE) is an example of a
market where buyers and sellers engage in the trading of stocks
and securities. Prices are determined by supply and demand, and
individuals or institutions can participate in buying and selling
shares of publicly traded companies.
4. Laissez-faire economy:
• Example: Hong Kong is often cited as an example of a laissez-faire
economy. The government of Hong Kong has implemented
minimal intervention and regulation in its economic activities,
allowing businesses to operate with greater freedom and market
forces to play a significant role in determining prices and
production levels.

1. Capitalism:
• Example: Germany is another example of a capitalist country where
private individuals and companies own and operate businesses.
Companies like BMW, Siemens, and Adidas are well-known German
brands that operate under the principles of capitalism.
2. Free-enterprise economy:
• Example: In a free-enterprise economy, individuals have the
freedom to start various types of businesses. Examples include a
self-employed plumber offering plumbing services, a local farmer
selling organic produce at a farmers' market, or an individual
opening a small coffee shop in their community.
3. Market economy:
• Example: The Tokyo Stock Exchange (TSE) in Japan is an example of
a market where buyers and sellers trade stocks and securities. It is
one of the largest stock exchanges globally and showcases the
functioning of a market economy in facilitating the exchange of
financial assets.
4. Laissez-faire economy:
• Example: Singapore is often cited as a country with a laissez-faire
economic approach. The government has adopted a minimal
intervention policy, allowing businesses to thrive with limited
regulation. The presence of a vibrant financial sector, numerous
multinational corporations, and a competitive business
environment exemplify the laissez-faire principles in action.

 characteristics:
(1) private property - Private property refers to the
ownership and control of resources, assets, and means of
production by individuals or private entities. In simpler
terms, it means that individuals have the right to own,
use, and dispose of property according to their own
choices and interests.
EXAMPLES:
Residential Property: A house or an apartment that is privately owned by an
individual or a family. Examples include single-family homes, condominiums, or
rental properties owned by landlords.

Commercial Property: Buildings or spaces used for business purposes that are
privately owned. Examples include office buildings, shopping malls, restaurants, and
factories owned by businesses or individuals.

Shopping malls: SM Mall of Asia, Ayala Malls, Robinsons Malls.

Intellectual Property: Intangible creations of the mind that are protected by legal
rights. Examples include patents for inventions, copyrights for artistic works like
books, music, or films, and trademarks(logo of Jabi – fast food chain, slogan "It's
More Fun in the Philippines," which is used to promote tourism in the country.)
for branding purposes.

Land and Natural Resources: Privately owned land used for various purposes such
as agriculture, real estate development, or resource extraction. Examples include
farms, private estates, mines, and oil wells.

Means of Production: Machinery, equipment, tools, and factories used in the

production of goods and services that are privately owned. Examples include
manufacturing plants, assembly lines, and technology infrastructure owned by
businesses.

SPECIFIC EXAMPLES:
1. Residential Property: A single-family house owned by an individual or a
family, such as a suburban home or a city apartment.
2. Commercial Property: An office building owned by a business or an
individual, such as a corporate office complex or a retail store in a
shopping mall.
3. Intellectual Property: A patented invention owned by an individual or a
company, such as a new technology or a pharmaceutical drug.
4. Land and Natural Resources: A privately owned farm where crops are
grown and livestock are raised, or a privately owned oil well extracting
petroleum resources.
5. Means of Production: A factory owned by a manufacturing company,
where machinery and equipment are used to produce goods like
automobiles or electronics.

(2) economic freedom - Economic freedom refers to the

ability of individuals and businesses to make their own
economic decisions without excessive government
interference. It means having the freedom to choose
what to produce, how to produce it, and whom to
trade with. In simpler words, it means having the
freedom to pursue economic opportunities and
engage in voluntary transactions.
EXAMPLES:
1. Entrepreneurship: Individuals have the freedom to start their own
businesses and pursue their entrepreneurial ideas, such as opening a
restaurant, a clothing store, or a tech startup.
2. Consumer Choice: Consumers have the freedom to choose what products
or services to buy based on their preferences and needs, such as selecting
a brand of smartphone, deciding where to eat, or choosing which car to
purchase.
3. Employment Opportunities: Individuals have the freedom to seek
employment in different industries and occupations based on their skills
and interests, such as working as a teacher, engineer, or graphic designer.
4. Investment Decisions: Investors have the freedom to allocate their capital
and resources to different investment opportunities, such as investing in
stocks, bonds, real estate, or funding a startup.
5. Market Competition: Businesses have the freedom to compete with one
another based on price, quality, and innovation, allowing consumers to
benefit from a wide range of choices and competitive prices.

SPECIFIC EXAMPLES:
1. Private Property: Examples of private property include individual homes,
privately owned land, personal vehicles, privately operated businesses,
and intellectual property rights like patents and copyrights.
2. Entrepreneurship: Examples of entrepreneurship include individuals
starting their own businesses, such as opening a bakery, launching a tech
startup, or establishing a consulting firm.
3. Consumer Choice: Examples of consumer choice include selecting which
smartphone brand to purchase, deciding where to dine out for dinner,
choosing which clothing brand to buy from, or selecting a vacation
destination.
4. Employment Opportunities: Examples of employment opportunities
include individuals being free to choose their career paths, such as
becoming a doctor, engineer, lawyer, or artist, and having the ability to
switch jobs or negotiate employment terms.
5. Investment Decisions: Examples of investment decisions include
individuals investing in stocks, bonds, mutual funds, real estate properties,
or contributing to retirement savings accounts like 401(k) plans.

(3) free competition - Free competition refers to a market

environment where multiple businesses operate and
compete with each other. It means that businesses can
freely enter and exit markets, offering goods and services
to consumers. In simpler terms, it means that there are
multiple choices for consumers and businesses have to
compete to attract customers by offering better
products or services.
EXAMPLES:
1. Retail Industry: In the retail sector, multiple businesses compete against
each other, such as supermarkets, department stores, and online retailers.
Consumers have the freedom to choose where they shop based on factors
like price, quality, and convenience.
2. Technology Sector: Companies in the technology industry, such as Apple,
Samsung, and Microsoft, compete by developing innovative products like
smartphones, laptops, and software. Consumers have various options to
choose from based on their preferences and needs.
3. Fast Food Chains: Examples like McDonald's, Burger King, and Wendy's
compete for customers by offering different menus, pricing strategies, and
promotions. Consumers can choose the fast food restaurant that best
satisfies their taste preferences and budget.
4. Airlines: In the airline industry, multiple carriers compete for passengers
by offering different routes, prices, and services. Customers can compare
and choose among various airlines based on factors like ticket prices,
flight schedules, and customer reviews.
5. Energy Suppliers: In the energy sector, multiple companies compete to
supply electricity and gas to consumers. Customers have the freedom to
 select their energy provider based on factors like rates, renewable energy
options, and customer service.

SPECIFIC EXAMPLES:
1. Automotive Industry: Companies like Ford, Toyota, General Motors, and
Volkswagen compete in the market to produce and sell cars. Consumers
have the freedom to choose among different brands, models, and
features based on their preferences and budget.
2. Smartphone Market: Apple's iPhone, Samsung's Galaxy series, and
Google's Pixel phones are examples of competing brands in the
smartphone industry. Consumers can choose from various manufacturers
and models, each offering different designs, features, and operating
systems.
3. Soft Drink Industry: Coca-Cola and PepsiCo are major players in the soft
drink market, competing for consumer preferences. They offer a variety of
beverages, marketing campaigns, and pricing strategies to attract
customers.
4. E-commerce Platforms: Amazon, eBay, and Alibaba are examples of online
marketplaces that enable sellers to compete and offer products to
consumers worldwide. These platforms provide opportunities for
businesses of all sizes to reach customers and compete on factors like
price, quality, and customer service.
5. Fast Fashion Retailers: Companies like Zara, H&M, and Forever 21
compete in the fast fashion industry, providing affordable and trendy
clothing options to consumers. They compete on factors like design, price,
and speed of production to capture customer demand.

(4) profit motive - The profit motive is the driving force

behind economic activities in a capitalist system. It refers
to the desire of individuals and businesses to earn profits
by successfully producing and selling goods or services.
In simpler words, it means that businesses are
motivated to make a profit as a reward for their
efforts, risks, and investments.
EXAMPLES:
1. Entrepreneurship: Entrepreneurs start and operate businesses with the
goal of making profits. They identify opportunities, invest capital, and take
risks to create products or services that meet consumer demand.
2. Investment: Investors allocate their capital to businesses or projects that
they believe will generate profits. They expect to receive financial returns
on their investments, such as dividends, interest, or capital gains.
3. Competitive Pricing: Businesses in a capitalist system strive to set prices
for their goods or services in a way that maximizes profits. They consider
 factors such as production costs, market demand, and competition to
determine the optimal pricing strategy.
4. Cost Efficiency: Profit-oriented businesses aim to minimize costs and
maximize efficiency in their operations. They seek ways to streamline
production processes, reduce wastage, and improve productivity to
enhance profitability.
5. Innovation and Product Development: The pursuit of profit incentivizes
businesses to invest in research, development, and innovation. They strive
to create new and improved products or services that can capture market
demand and generate higher profits.

SPECIFIC EXAMPLES:
1. Entrepreneurship: An individual starts a software company to develop and
sell innovative mobile applications, aiming to generate profits through
app sales and advertising revenue.
2. Investment: An investor buys shares of a publicly traded company's stock,
expecting to earn profits through capital appreciation and dividends as
the company grows and generates profits.
3. Competitive Pricing: Two clothing retailers compete by offering different
pricing strategies. One retailer sets lower prices to attract more customers
and increase sales volume, while another focuses on premium pricing to
position their brand as high-quality and earn higher profit margins.
4. Cost Efficiency: A manufacturing company adopts advanced automation
technology to streamline production processes, reduce labor costs, and
improve efficiency, ultimately increasing profitability through cost savings.
5. Innovation and Product Development: A pharmaceutical company invests
in research and development to create new medications, aiming to secure
patents and generate profits through sales of innovative drugs that
address unmet medical needs.

2. Communism - Communism is an economic system where the means of

production, such as factories and land, are owned and controlled by the
community as a whole, and there is no private ownership. In simpler terms, it is a
system where resources and wealth are shared collectively by the community
rather than being owned by individuals or companies.
 other terms: command economy - which means that the government or a
central authority has control over economic decisions and resource
allocation.
classless society - It is also associated with the idea of a
"classless society," where there are no social classes or significant economic
inequalities.

EXAMPLES:
1. Collective Ownership: In a communist system, industries and enterprises
are collectively owned by the community or the state. For example, in the
 Soviet Union under communist rule, major industries such as oil, steel, and
agriculture were owned and operated by the state.
2. Command Economy: In a communist system, the government or a central
authority has control over economic decisions and resource allocation. For
instance, in North Korea, the government exercises extensive control over
all aspects of the economy, including production, distribution, and pricing.
3. Classless Society: Communism envisions a classless society where there
are no social classes or significant economic inequalities. An example
often cited is the early stage of the Paris Commune in 1871, where
workers and citizens collectively governed and aimed to establish a
society without class distinctions.

 characteristics:
(1) no private property – In communism, there is no private
ownership of resources or property. Everything is collectively
owned and controlled by the community as a whole. Individuals
do not have the right to own land, factories, or other means of
production.
EXAMPLES:
1. Land: In communist countries like China under Mao Zedong, land was
considered a collective asset and individuals did not have the right to own
land privately. Land was typically owned and controlled by the state or by
communal agricultural units.
2. Means of Production: Under communist regimes like the former Soviet
Union, factories, industries, and other means of production were owned
and operated by the state or by collective entities rather than being
privately owned. Private individuals or companies did not have the right to
own or control these resources.
3. Housing: In some communist countries, such as Cuba, the state or
government is responsible for providing housing to citizens. Private
ownership of houses and properties is limited, and the state plays a
central role in housing allocation and management.

Common examples of the absence of private property in a communist

system include:

1. Land: In a communist system, land is typically owned collectively by the

state or community rather than being privately owned. Individuals do not
have the right to own land or real estate.
2. Means of Production: Industries, factories, and other means of production
are owned and controlled by the state or community in a communist
 system. Private ownership of businesses or productive assets is restricted
or eliminated.
3. Natural Resources: Natural resources such as minerals, oil, and forests are
commonly owned and managed by the state or community in a
communist system. They are not available for private exploitation or
ownership.
4. Housing: In some communist systems, housing is provided by the state or
government, and individuals do not have the right to own or purchase
homes. Housing allocation and management are controlled by the state
or communal authorities.
5. Intellectual Property: In certain communist systems, intellectual property
rights may be limited or regulated by the state. Ideas, inventions, and
creative works are seen as communal or collective assets rather than
being subject to private ownership.

(2) no free competition – In a communist system, there is no free

competition among businesses. The government or central
authority controls economic activities and determines what
goods and services are produced. There is no competition
between companies to attract customers or achieve market
dominance.

EXAMPLES:
1. State Monopolies: In a communist system, the government often
establishes state monopolies, where a single entity or a limited number of
entities have exclusive control over the production and distribution of
specific goods or services. These monopolies eliminate competition from
other businesses.
2. Central Planning: In a communist system, economic activities are typically
centrally planned by the government or a central authority. The
government determines what goods and services are produced, in what
quantities, and at what prices. This centralized decision-making process
eliminates competition between businesses in determining production
and pricing strategies.
3. Lack of Private Enterprises: In a communist system, private businesses are
either severely restricted or completely eliminated. Without private
enterprises, there is no competition between businesses to offer better
products, services, or prices.
4. Price Controls: In a communist system, the government often sets prices
for goods and services. These price controls limit the ability of businesses
to compete based on price, as prices are determined by the government
rather than market forces.
 5. Limited Consumer Choice: In a communist system, consumer choices are
often limited due to the lack of diverse businesses and products. The
government or central authority determines what goods and services are
produced, resulting in limited options for consumers to choose from.

SPECIFIC EXAMPLES:
1. State-Owned Enterprises: In a communist system, industries and
businesses are commonly owned and operated by the state. The
government has complete control over the means of production and
distribution, and private businesses are either restricted or non-existent.
Examples include state-owned factories, farms, and utilities.
2. Central Planning Committees: In a communist system, central planning
committees or agencies are responsible for making decisions about
production levels, resource allocation, and distribution of goods and
services. These committees determine what goods are produced, how
much is produced, and how they are distributed, leaving no room for
competition among businesses.
3. Price Controls: In a communist system, prices are often set by the
government, and there is limited or no flexibility for businesses to set their
own prices based on market demand or competition. The government
may enforce price controls to ensure affordability or to prioritize equal
access to goods and services.
4. Absence of Private Entrepreneurship: In a communist system, private
entrepreneurship is typically suppressed or heavily regulated. Individuals
do not have the freedom to start their own businesses or compete in the
market. The state controls economic activities, and decisions about
investment, production, and employment are made by the government.
5. Lack of Market-Based Exchange: In a communist system, market
mechanisms and voluntary exchange are often replaced by state-directed
distribution systems. Instead of individuals freely engaging in buying and
selling based on supply and demand, the government determines how
goods and services are allocated to the population, usually through
centralized distribution channels.

(3) no economic freedoms – Individuals in a communist system

have limited economic freedoms. They do not have the freedom
to make their own economic decisions, such as choosing what
job to pursue or starting their own businesses. Economic
activities are directed and regulated by the central authority.
EXAMPLES:
 1. Restricted Occupational Choice: In a communist system, individuals may
have limited options when it comes to choosing their occupation or
career. The government often determines which jobs are available and
assigns individuals to specific roles based on societal needs rather than
personal preferences or qualifications.
2. State-Planned Economy: In a communist system, the government plans
and controls the economy, including production levels, resource
allocation, and distribution of goods and services. This limits the ability of
individuals to engage in economic activities according to their own
preferences and market demand.
3. Limited Entrepreneurship Opportunities: In a communist system, the
opportunity for individuals to start and operate their own businesses is
typically restricted. The state often controls and regulates the
establishment of private enterprises, favoring collective or state-owned
enterprises instead.
4. Government Control over Trade and Exchange: In a communist system,
the government has significant control over trade and exchange activities.
International trade may be tightly regulated, and individuals may face
restrictions or limitations on buying and selling goods and services within
the country.
5. Fixed Wages and Income: In a communist system, wages and income
levels are often determined by the government or central authority. There
may be limited opportunities for individuals to negotiate or earn income
based on their skills, productivity, or market demand for their work.

SPECIFIC EXAMPLES:
1. Government-Imposed Occupation Assignments: Individuals may be
assigned specific occupations or jobs by the government based on
societal needs rather than personal choice or qualifications. For example, a
person may be assigned to work in a specific industry or sector without
having the freedom to pursue their preferred career path.
2. State Control of Business Ownership: All major industries and enterprises
are owned and controlled by the state or the collective community,
limiting private ownership and entrepreneurship. Individuals are not free
to start their own businesses or engage in independent economic
activities without government approval.
3. Central Planning of Production and Resource Allocation: The government
dictates what goods and services are produced, in what quantities, and
how resources are allocated. There is no market-driven mechanism or
individual decision-making in determining production levels or allocating
resources.
4. Price Controls and Rationing: Prices of goods and services are often set by
the government, and rationing systems may be in place to distribute
scarce resources. Individuals do not have the freedom to set prices or
engage in free-market transactions based on supply and demand.
5. Limited Consumer Choice: Consumers have limited options in terms of the
goods and services available. The government may control or restrict
imports, limiting the variety of products that individuals can access. There
is no competitive market where consumers can choose from a wide range
of options.

(4) no profit motives – In communism, the pursuit of individual

profit is not a driving force. The focus is on meeting the needs of
the community as a whole rather than maximizing individual
profits. Economic activities are aimed at fulfilling collective
goals and promoting social welfare.

1. State-Run Healthcare: In a communist society, healthcare is typically

provided by the state without the primary objective of generating profits.
Medical services are offered to the population based on their needs rather
than their ability to pay. Doctors and healthcare professionals work for the
betterment of the community's health, and resources are allocated based
on collective well-being rather than profitability.
2. Public Education: In a communist system, education is often treated as a
fundamental right and provided by the state. The aim is to ensure equal
access to education for all members of society, irrespective of their
financial resources. Teachers and educators focus on imparting knowledge
and skills to empower the community rather than maximizing personal
financial gains.
3. Social Housing: In a communist society, housing is commonly provided
and managed by the state or collective organizations. The objective is to
ensure that everyone has access to safe and affordable housing,
regardless of their income or social status. The allocation of housing is
based on need rather than profitability, and the focus is on addressing the
housing needs of the community as a whole.
4. Public Transportation: In a communist system, transportation networks
such as railways, buses, and metros are often owned and operated by the
state. The aim is to provide efficient and affordable transportation services
to the entire community, minimizing profit-driven considerations. The
focus is on meeting the transportation needs of the population and
promoting accessibility rather than generating revenue.
5. Agricultural Collectives: In some communist systems, agricultural
production is organized through collective farms or cooperatives. The
objective is to promote collective ownership and cooperative work rather
than individual profit. Resources and profits are shared among the
 members of the collective, and the emphasis is on meeting the food
needs of the community rather than pursuing individual financial gains.

1. Free Healthcare: In a communist society, healthcare services are provided

to all citizens free of charge. Doctors and healthcare professionals work
for the betterment of the community's health, without the goal of
maximizing profits. Medicines, treatments, and medical facilities are made
accessible to everyone, ensuring that healthcare is a right rather than a
commodity.
2. State-Funded Education: In a communist system, education is typically
funded and administered by the state. Public schools and universities offer
free education to all individuals, from primary education to higher studies.
The focus is on providing quality education to empower individuals and
contribute to the overall development of society.
3. Socialized Housing: In a communist society, the government or collective
organizations provide affordable housing to the population. The housing
projects are designed to meet the housing needs of the community, with
an emphasis on providing secure and decent accommodation for all
citizens. Rent and housing costs are often subsidized, ensuring that
everyone has access to adequate shelter.
4. Public Transportation Systems: In a communist system, public
transportation networks are developed and maintained by the
government. Buses, trams, trains, and metros operate on a non-profit
basis, with the aim of providing affordable and efficient transportation
options to the public. Fares are set at reasonable rates to ensure
accessibility for all members of society.
5. Collective Agriculture: In some communist systems, agricultural
production is organized through collective farms or cooperatives. Farmers
work together and share resources, tools, and land to cultivate crops
collectively. The produce is distributed among the community, prioritizing
food security and equitable distribution rather than pursuing individual
profits.

(5) presence of central planning - In a communist system, there is

central planning by the government or a central authority.
Economic decisions, such as resource allocation and production
targets, are made by the central planning authority. The goal is to
achieve equitable distribution of resources and ensure the well-
being of the community.

1. Five-Year Plans: In countries like the former Soviet Union and China,
central planning was implemented through comprehensive Five-Year
 Plans. These plans set targets for various sectors of the economy, such as
agriculture, industry, infrastructure, and social welfare. The central
planning authority determines the allocation of resources and sets
production goals to achieve the desired outcomes.
2. State-Owned Enterprises: In a communist system, key industries and
enterprises are owned and controlled by the state. The central planning
authority determines the production levels, investment decisions, and
resource allocation for these state-owned enterprises. This allows the
government to direct economic activities according to the overall
development plan and the needs of the community.
3. Price Controls: In a communist system, the central planning authority
often sets and regulates prices of goods and services. This ensures that
essential commodities remain affordable and accessible to the general
population. Prices are determined based on factors such as production
costs, distribution considerations, and social welfare objectives.
4. Resource Allocation: The central planning authority plays a crucial role in
allocating resources within a communist system. They decide how
resources such as land, capital, and labor should be distributed across
different sectors of the economy. The aim is to ensure an equitable
distribution of resources and prioritize sectors that contribute to the
overall well-being of the community.
5. Economic Development Plans: Communist systems often formulate long-
term economic development plans that outline strategies and priorities
for the nation's growth. These plans address areas such as infrastructure
development, technological advancements, education, and social welfare.
The central planning authority coordinates the implementation of these
plans to achieve the desired economic and social outcomes.

1. Soviet Gosplan: In the former Soviet Union, the State Planning Committee,
known as Gosplan, was responsible for central planning. Gosplan
developed comprehensive economic plans, setting production targets,
and allocating resources across various sectors of the economy. For
example, Gosplan determined the targets for industrial output, agricultural
production, and infrastructure development.
2. China's Five-Year Plans: The People's Republic of China has implemented
a series of Five-Year Plans since the 1950s. These plans outline specific
goals and strategies for economic development, with the central planning
authority overseeing resource allocation and setting production targets.
For instance, China's plans have focused on industrialization, agricultural
modernization, infrastructure expansion, and technological advancements.
3. State-Owned Enterprises (SOEs): In many communist countries, state-
owned enterprises play a significant role in the economy. These
enterprises are owned and controlled by the state, and their operations
are directed by the central planning authority. Examples include
nationalized industries in sectors such as energy, telecommunications,
 transportation, and heavy manufacturing. The central planning authority
determines their production levels, investment priorities, and resource
allocation.
4. Price Controls and Subsidies: In communist systems, the central planning
authority often imposes price controls on essential goods and services.
For example, the government may set price limits on food items, housing,
healthcare, and education to ensure affordability and equitable access.
Additionally, subsidies may be provided to certain sectors or products to
support their production and make them more affordable for the
population.
5. Resource Allocation Committees: Central planning involves committees or
agencies responsible for resource allocation decisions. These committees
assess the needs of different sectors and allocate resources accordingly.
For instance, an agricultural resource allocation committee may determine
the distribution of land, water, and agricultural inputs among farming
communities to ensure food production targets are met.

3. Socialism
 it is a combination of capitalism and communism 
characteristics:
(1) major and strategic industries are owned and managed by
the state
Examples:
• Healthcare: The government may operate hospitals,
clinics, and healthcare facilities, providing healthcare
services to the population.

• Education: The state may own and manage schools,

colleges, and universities, ensuring access to education
for all citizens.

• Transportation: The government may own and operate

public transportation systems, such as railways, buses,
and subways, to provide affordable and accessible
transportation.

• Utilities: Essential services like water, electricity, and

telecommunications may be owned and operated by the
state to ensure universal access and fair distribution.

1. Healthcare:
• Philippine Health Insurance Corporation (PhilHealth): PhilHealth is a
government-owned corporation that administers the national
health insurance program in the Philippines. It provides healthcare
 coverage and benefits to its members, ensuring access to
affordable medical services.
• Philippine General Hospital (PGH): PGH is a government-owned
hospital and the largest medical facility in the Philippines. It serves
as a public tertiary hospital, providing specialized medical care and
services to patients, particularly those who cannot afford private
healthcare.
2. Education:
• State Universities and Colleges (SUCs): The Philippines has
numerous state-owned universities and colleges, such as the
University of the Philippines (UP) system, which is a network of
public universities across the country. These institutions offer
quality education at subsidized or affordable rates, promoting
equal access to higher education.
• Technical Education and Skills Development Authority (TESDA):
TESDA is a government agency that oversees technical-vocational
education and training programs. It provides skills development
and certification programs to enhance the employability and
productivity of individuals.
3. Transportation:
• Philippine National Railways (PNR): PNR is a state-owned railway
company that operates commuter and long-distance train services
in the Philippines. It connects various regions and provinces,
offering an affordable transportation option for commuters.
• Metropolitan Manila Development Authority (MMDA): MMDA is a
government agency responsible for managing and coordinating
transportation systems in Metro Manila. It oversees public buses,
regulates traffic flow, and implements transport-related policies
and programs.
4. Utilities:
• Metropolitan Waterworks and Sewerage System (MWSS): MWSS is
a government agency responsible for regulating and overseeing
the water supply and sewerage services in Metro Manila and
nearby areas. It ensures the provision of clean water and efficient
wastewater management to the population.
• National Power Corporation (NPC): NPC is a government-owned
corporation responsible for the generation and transmission of
electricity in the Philippines. It operates hydroelectric and
geothermal power plants, contributing to the country's energy
needs.
• National Telecommunications Commission (NTC): NTC is a
government agency that regulates and supervises the
telecommunications industry in the Philippines. It ensures fair
 competition, quality services, and consumer protection in the
telecommunications sector.

(2) minor industries belong to the private sector

Examples:
• Small retail stores: Shops and stores that sell goods to
consumers, such as clothing stores, grocery stores, and
local businesses.
• Restaurants and cafes: Privately-owned establishments
that provide food and beverage services to customers.
• Small-scale manufacturing: Private enterprises involved
in manufacturing goods on a smaller scale, such as
artisanal products or specialized items.
• Technology startups: Independent companies focused
on innovation and development in the technology
sector, such as software development or digital services.
• Professional services: Privately-owned businesses
providing specialized services like legal, accounting,
consulting, or creative services.

1. Small retail stores:

• Sari-Sari Stores: These are small neighborhood convenience stores
that sell various goods, snacks, beverages, and household items to
local residents.
• Boutique Shops: Privately-owned clothing stores, both physical and
online, that offer fashion apparel, accessories, and footwear to
customers.
• Local Grocery Stores: Independent grocery stores that cater to the
needs of the community by providing a range of food items,
toiletries, and household products.
2. Restaurants and cafes:
• Jollibee: Jollibee is a popular fast-food chain in the Philippines,
privately owned and operated, offering a wide range of Filipino and
international dishes.
• Max's Restaurant: Max's Restaurant is a privately-owned restaurant
chain known for its Filipino cuisine, particularly its signature dish,
"Max's Fried Chicken."
• Starbucks: Starbucks operates as a private coffeehouse chain in the
Philippines, serving a variety of hot and cold beverages along with
light snacks.
3. Small-scale manufacturing:
• Habi Footwear: Habi Footwear is a private company that specializes
in producing artisanal and handcrafted footwear, emphasizing
traditional Filipino craftsmanship.
 • Craft Breweries: Private breweries that produce small-batch, craft
beers using locally sourced ingredients and unique brewing
techniques.
• Handicraft Producers: Private enterprises engaged in producing
handmade crafts and products, such as woven baskets, pottery,
woodwork, and accessories.
4. Technology startups:
• Coins.ph: Coins.ph is a privately-owned technology startup in the
Philippines that provides digital financial services, including mobile
payments, remittances, and cryptocurrency exchange.
• Kalibrr: Kalibrr is a privately-owned online job matching platform
that connects job seekers with companies in the Philippines,
focusing on improving the recruitment process.
• Xurpas: Xurpas is a technology company that develops and
provides mobile content, digital solutions, and value-added
services to consumers and businesses.
5. Professional services:
• Romulo Law Firm: A privately-owned law firm in the Philippines
that offers legal services and specializes in various areas of practice,
including corporate law, intellectual property, and litigation.
• PwC Philippines: PwC Philippines is a private professional services
firm that provides audit, tax, and advisory services to businesses in
the Philippines, catering to various industries.
• ABS-CBN Corporation: A privately-owned media and entertainment
company that offers broadcasting, digital content production, and
creative services in the Philippines.

Which is the best economic system?

Criteria in judging an economic system:
1. Abundance - An economic system that promotes productivity and efficient
allocation of resources can contribute to creating an abundance of goods and
services.

2. Growth - An economic system that encourages investment, innovation, and

entrepreneurial activity can foster economic growth over time.

3. Stability - An economic system that minimizes volatility, fluctuations, and

economic crises can provide stability for businesses, workers, and the overall
economy.

4. Security - An economic system that ensures basic necessities, social safety nets,
and protection against economic risks can promote security for individuals and
communities.
 5. Justice and equity - An economic system that addresses income inequality, social
disparities, and promotes fairness in resource distribution can contribute to justice
and equity within society.

6. Economic freedom - An economic system that allows individuals to make

choices, pursue opportunities, and engage in voluntary transactions can provide
economic freedom and individual autonomy.

* The choice depends on particular economic interest, cultural, social and political
orientation.

ROLE OF ECONOMICS:
 Maximize benefits to people….that is, the attainment of SOCIAL JUSTICE

- The role of economics is to contribute to the attainment of social justice

by maximizing benefits to people. Economics examines the production,
distribution, and consumption of goods and services, and it seeks to address
issues of fairness, equity, and the well-being of individuals and society as a
whole.

ADDITIONAL NOTES…