Kaisher Jaome Matias BSA-4 Economic Development

TRADITIONAL ECONOMY
#2 What is tradition?

 I believe that traditions are customs or heritages that were passed down
from one generation to another.

How does a traditional economy answer the Big three questions?

 What is being produced?

- It produces raw materials for consumption and production, such as
crops, livestock, and wood resources.

 How is it being produced?

- It is produced by using the traditional way of growing crops and
livestock as a foundation. The use of technological advancement
methods in machinery and livestock food pellets was used to produce
an effective and efficient product production.

 For whom is it being produced?

- If it is implemented in the Philippines, it will be helpful to the
Filipinos due to the increase in meat, fruit, and vegetable market
prices. It will be beneficial to farmers, for the government will be
dependent on the product produced rather than on the imported
crops and meat.

COMMAND ECONOMY
#3 How could government control of the economy affect your life?
 I am a farmer's grandchild; my grandfather typically produces 100-150
sacks of rice during harvest, but due to the high importation of rice, the
price of each sack of rice depreciates, which makes my grandfather
doubt himself whether to plant rice next season or not. It also affects me
when I grow up because of the increase in market prices of everyday
commodities today.
How does a command economy answer the Big three questions?
 What is being produced?
- I think the government should produce what is necessary at the
moment or what is needed. Something that can change the economy
quickly, like creating employment for the masses, using the country's
natural resources, regulations on prices of goods, etc.

 How is it being produced?

- The government is the one mandating the command to the country's
citizens.

 For whom is it being produced?

- Due to the scarcity of resources, everybody equally shares what is
produced, like the prices of the goods, transportation, electricity, and
water. The needs of the people are taking care of first before anything
else.

MARKET ECONOMY
How does a market economy answer the three big questions?

 What is being produced?

- The market produces goods that they think are necessary for the
market. Meaning anyone has the free will to create a business to
deliver goods they believe are required or unique to the market.

 How is it being produced?

- Being a free market, meaning the buyers and sellers are regulating
prices and goods. That being said, people have the right to what to
produce in the market or what they think is needed. That comes to
the law of supply and demand. People's willingness to supply and
demand a good determines the market equilibrium price or the price
where the quantity of the good that people are willing to provide
equals the amount that people require.

 For whom is it being produced?

 - The things being produced are for the people, especially the buyers
and suppliers because they regulate the prices according to their pay
average.

PRIVATE PROPERTY
# How is this different from a Command Economy?
 The difference between personal property and command economy is that
private property is land, building, or houses that can be bought and
owned by an individual or group. While on command economy,
individuals have the right to acquire personally owned properties;
however, it first needs government authorization to continue the
transaction.

ECONOMIC FREEDOM
#4 How is this different from a command economy?
 Economic freedom has different from a command economy. First is a
personal choice; in a command economy, refrain you from choosing.
Second, voluntary exchange, having the right to exchange goods to whom
you want to exchange. Lastly is the freedom to compete in the market,
having the right to introduce new innovative products and services to the
masses. In addition, Governments can promote economic independence
by providing a legal structure and a law-enforcement system that
protects owners' property rights and enforce contracts in an evenhanded
manner. However, economic freedom also requires governments to
refrain from taking people's property and interfering with personal
choice, voluntary exchange, and the freedom to enter and compete in
labor and product markets. When governments substitute taxes,
government expenditures, and regulations for personal choice, voluntary
exchange, and market coordination, they reduce economic freedom.
Restrictions that limit entry into occupations and business activities also
reduce economic freedom.

MARKET FORCE
#5 How is this different from a command economy?
 Command economy by any means is a centralized economy meaning the
government has the power over the market. On the other hand, the Free-
 market economy is democratic, emphasizing the people. The people have
the capabilities to influence the economy. It has the power to change the
prices of products because it is privately owned.

MIXED ECONOMY
How does a mixed economy answer the big three questions?

 What is being produced?

- It produces a fair price of electricity, water, transportation, and food that
both the poor and the rich can acquire.

 How is it being produced?

- It produces a system that both government and the people have the
power to influence the economy. It will make an unbiased decision,
especially in the prices of everyday necessities such as food, water, and
electricity.

 For whom is it being produced?

- It is being produced to the whole masses to buy or acquire both the rich
and the poor.

CONTINUUM
# Where on the continuum do the following countries belong?
 Cuba – Mixed command Economy
 China – transition Economy
 France/Sweden – Mixed socialist economy
 United States – Mixed Market Economy

LET'S DO THIS: THINKERS CORNER

Task: In a formal paragraph, tell me which economic system you
believe is the best. Consider your needs and wants. All systems had their
advantages and disadvantages – which one do you support?
 This is, of course, a matter of opinion. My view is that a mixed economy
is the best economic system. Specifically, I would argue that the best economy
is based mainly on market principles but has some amount of government
involvement.
Market economies are, in general, a good thing. Market economies allow
consumers to have the most significant possible choice. They enable
consumers to have the best quality of products at the lowest prices. All of these
things happen "automatically" because businesses compete to make profits.
This is a good situation for consumers. Market economies are also good
because they allow people to have the greatest possible amount of economic
freedom. However, a pure market economy would not be so great. For example,
in a pure market economy, there would be no laws to protect workers from
working long hours. There would be no minimum wage laws. There would be
no consumer protection laws. Without laws like these, there would be too
much room for businesses to abuse workers and consumers.
Therefore, a market economy with some protections imposed by the
government is, in my view, the best system.

CRITICAL THINKING
Describe the Economic system the Philippines has?
- Out of the four economic systems, the Philippines has a mixed economic
system. In the Philippines, there is a combination of market and
command economy elements. A proof of this would be the existence of
public schools (funded by the government) alongside private schools
(individually owned)

As an Economic thinker, if you are to assess our current economic

situation, do you think that our Economic system is enough to address
our economic issues? What is necessary solution you can suggest for
this? What do you think are the elements of success to uplift our
economic situation?

The mixed socialist Economy should be used, as a current issue that can be
fixed by socialism is the appropriation involved in the system. Some cannot
afford it, and some cannot earn enough. This leaves many quote unpleasant
conditions and situations. So, with the proper appropriation of taxes, prices,
etc., decided by the government on those who can pay for these taxes, those in
tight situations could move up a level in terms of their class in society, a status
quo of equilibrium. At the same time as a free market would allow individuals
to flourish on their own, with the right applied changes for the socialist part of
the system, the class gaps would be able to balance a lot less radically, with
people gaining not from only tax/income increase/decrease, but through
personal entrepreneurship of the rising stars of the business sphere.