Republic of the Philippines

Cebu Normal University

Osmeña Blvd. Cebu City, 6000 Philippines

College of Arts & Sciences

Telephone No.: (+63 32) 253 0347
Email: cnucas@cnu.edu.ph
Website: www.cnu.edu.ph

MIDTERM EXAMINATION
(Comparative Economic Planning)

Name:_Ruben Damayo __ Subject Day & Time:__MW (0130-03pm) Score:_________

I. REMEMBERING. Supply the table below with facts about the three types of
economic systems (10 PTS)
New Capitalist Socialist Economy
Traditional Economy
Economy

Basic -having economic -mostly the economy is -is collective ownership

principles or decisions embedded being of any meansand with
concepts with traditional manipulated/controlled the goal of reducing
socio-cultural. by the rich people like class distinctions
private individuals and
businessmen

Three country -haiti, brazil and -United Kingdom, USA -Cuba, China, and
example yemen and Singapore North Korea

One Positive -more jobs like -one individual can be -provision of basic
Externality working in factory rich needs to everyone
due to new
investments

One Negative -co2 massive -not everyone can be -lack of incentive for
Externality production due to rich everyone
factories

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January 2021
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II. ANALYSING. Answer the question asked using the praxis of the Capitalism, Socialism and
New Traditional Economies (10 PTS).

Why Capitalism remains preferable to many countries than socialism? Provide three
(3) persuasive arguments and elucidate each.

1. Capitalism affords economic freedom, consumer choice, and economic growth.

Socialism, which is an economy controlled by the state and planned by a central
planning authority, provides for a greater social welfare and decreases business
fluctuations.Capitalism is the greatest economic system because it has numerous
benefits and creates multiple opportunities for individuals in society. Some of these
benefits include producing wealth and innovation, improving the lives of
individuals, and giving power to the people.

2. _ The capitalist approach provides a natural bridge to equality. What is

unprecedented about capitalism is that all members of society get the same
opportunity to find their fortune. Although some people may be unable to achieve
their definition for a variety of reasons, the fact remains that everyone gets the same
starting point in life. It is up to each person to approach the idea of innovation.

3. Capitalism is a form of a formal economy. Businesses must operate within the

established limits, monitoring regulations and policies, to stay in compliance with
the expectations of the government. Instead of controlling the economy through the
use of a central planning authority like the spectrum of socialism-based economies,
capitalism focuses on growth, choice, and freedom. These benefits come at the
expense of the greater social welfare.

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Recertification due date: 24
January 2021
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III. EVALUATING. Comprehensively answer the question below using the data presented in
every photo (20 PTS).

1. What valid conclusion can be drawn from the data presented in the photo (Data 1). How
true is the conclusion to all countries applying Capitalism as an economic system? Why
do you think it is so?

Data 1. Income of the Poorest and Economic Freedom

The GDP increases when capitalism is present in the economy because

innovation leads to higher demand, which then leads to more purchasing. When a
consumer’s life is better because of the products or services they’ve purchased, then
there is an option to improve their standard of living over time. Private enterprise
can use economic resources more efficiently than the public sector, which means the
profits can go right back into the system to help everyone during each cycle. Over
time, this trait leads to expansion, more jobs, and eventually more wealth._
________________________________________________________________________________
__________________________________________________________
________________________________________________________________________________

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2. What valid conclusion can be drawn from the data presented in the photo (Data 2). How
true is the conclusion to all countries applying Socialism as an economic system? Why
do you think it is so?

Data 2. Socialism vis-à-vis Work Ethics and Equality

Among the majority of Americans who have a negative impression of socialism, no single
reason stands out. The 19% say that socialism undercuts people’s initiative and work ethic, making
people too reliant on the government for support.

Since there is no competition because socialism believes in fairness, there is no way people
will work hard and to be competitive since they will not benefited from it since everyone will receive
the same salary or recognitions Thus people will always relied in people who work as what they were
expected.

Everyone has a freedom to choose whateve they want because we do have different lives. It
will be unfair to those people who worked their ass-off and received the bare minimum which should
be more than that.

Also, some people will learn from someone else's mistake because they don't want to
experience that in some countries experiences that lead them to a devastating situation.

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IV. APPLYING and CREATING. Supply the table below with feasible schemes about the
three types of economic systems (20 PTS)

Device a 2-point-strategies to counter the perceived negative externalities (as

mentioned in Part 1) of each economic system.
Strategy 1 Strategy 2

New Traditional System -since people rely on new -find new ways that old
technology esp using traditions will adapt the
machinery. We could new traditions without
create or invent a machine compromising its
that can do mass existence.
production that doesn't
emit harmful chemicals
such as co2.

Socialist System -have a high standards in -prior the most in need to

choosing a new promote proper equality.
government where not
everyone who isnt
capable of leading cant
participate

Capitalist System -plant more trees, and -since capalist/sm can

engage into organizations earn more profit, we can
that will promote tax them more and
environmental advocacies provide the taxes to the
in that way it can people who are in dire
promote the business to need.
the environmentalists.

Prepared by:

LOUIECHI VON RAMA MENDOZA, MAPA

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Registration No. 52Q18778
Certification Date: 6 August 2018
Recertification due date: 24
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