Professional Documents
Culture Documents
SHS HUMSS UCSP Wk7 1-4
SHS HUMSS UCSP Wk7 1-4
Department of Education
Region VII, Central Visayas
Division of Bohol
CONCEPT NOTES
An economic institution provides the distribution of goods and services to the members
of the society. However, it also causes some socialization that brings about a distribution
of power. It also influences the culture and affects social stratification.
Non-market Institutions:
1. Reciprocity- refers to non-market exchange of goods or labor ranging from direct barter
to forms of gift exchange where a return is eventually expected as in the exchange of
birthday gifts. (ex. When neighbors exchange food for labor rendered)
2. Transfer- a change of ownership of an asset or a movement of funds and/or assets from
one account to another. (ex. Donation or financial assistance from a richer relative and
transfer payments)
3. Redistribution- a combination of the features of transfer and reciprocity where economic
exchange involves the collection of goods from members.
Reciprocity, transfer, and redistribution are considered as non-market transactions since
they do not entail the exchange of cash for rendering of service or provision of goods.
Market transactions involve parties who sell their goods and services in exchange for
cash from consumers.
The State-Market Relationship:
The state through the government, comes in to regulate the prices of the service, which
technically is in the form of the wages the workers earn. Government intervention inn
economic institutions is warranted to protect the interest of consumers and workers.
The primary instrument used by the governments to redistribute income is tax, a
compulsory contributions to government coffers, normally levied from worker’s income,
business profits, and consumption of goods and services.
ACTIVITY
Answer the following questions and give each question an example to prove your answer.
1. Do you believe monopolizing goods or services has disadvantages? Yes or no and why?
2. What is the main difference between market and non-market transaction?
3. Why is there a market transaction?
Republic of the Philippines
Department of Education
Region VII, Central Visayas
Division of Bohol
CONCEPT NOTES
Non-state institutions are groups and organizations which operate outside the support of
any state or government. They are referred to be stateless since they are considered to be
independent of any state although they usually collaborate with the government in
implementing projects. They assume different functions and focus on a specific objective.
In general, they develop certain services needed by members of the society for their
progress. Examples are the following:
a. Banks e. Transnational advocacy groups
b. Corporations f. Development agencies
c. Cooperatives g. International Organizations
d. Trade Unions
A. Bank- are financial institution that lends money both to public or private organizations.
Functions of banks:
1. Depository of savings 3. Issue loans to both people and
companies
2. Largely responsible for the payment system
B. Corporation-a company or group of people authorized to act as a single entity and
recognized as such in law.
Types of Corporations:
1. Whether or not they can issue stock (stock and nonstock)
2. Whether or not they are for profit (profit and non-profit)
C. Cooperative- a legal entity owned and democratically controlled by its members.
Some Functions of Cooperatives:
1. They often provide quality goods and services.
2. They typically invest in local communities.
3. Membership builds social networks and strengthen social cohesion.
ACTIVITY
Answer the following questions and give each question an example to prove your answer.
CONCEPT NOTES
Trade/labor unions are organizations of workers whose main objective is to protect the
welfare of its members.
Some Purpose of Labor Unions:
Negotiate wages and working condition terms
Help settle grievances
Raise new demands on behalf of its members
Transnational advocacy groups are fluid and open relationships among knowledgeable,
committed actors like individuals and organizations. They exist to change international
policy as well as make these changes real in the daily lives of ordinary people.
Some issues that motivate advocacies:
Human rights 3. Women’s rights 5. International peace
Consumer rights 4. Environmental issues
Development agencies are organizations committed to distributing aid. Aid can be
subdivided into two categories:
1. humanitarian aid (ex. emergency relief efforts for natural disasters)
2. development aid (aimed at helping countries to achieve long-term sustainable economic
growth and with the aim of achieving poverty reduction)
International organizations are organizations with an international membership, scope,
and presence.
Roles of international organizations:
help set international agenda
mediate political bargaining
provide place for political initiatives and acting as catalyst for coalition-formation
ACTIVITY
Answer the following questions and give each question an example to prove your answer.
CONCEPT NOTES
An economic institution provides the distribution of goods and services to the members
of the society. However, it also causes some socialization that brings about a distribution
of power. It also influences the culture and affects social stratification.
Economic transaction could be market and non-market transaction such as reciprocity,
transfer, and redistribution.
The state through the government, comes in to regulate the prices of the service, which
technically is in the form of the wages the workers earn. Government intervention inn
economic institutions is warranted to protect the interest of consumers and workers.
There are groups and organizations in the community which operate outside the support
of any state or government known as non-state institutions which include banks,
corporations, cooperatives, trade/labor unions, transnational advocacy groups,
development agencies, and international organizations.
These non-state institutions develop certain services needed by members of the society
for their progress.
ACTIVITY
Answer the following questions thoroughly in 4-5 sentences only using the given criteria
below:
Content - 10
Organization -5
Neatness -5
Total - 20 points each
1. Describe your experiences where you encountered both market and non-market
transaction. Did you realize that those economic transactions affect us in the community?
Yes or no? Why?
2. Which among the non-market transaction is typically practiced in your community?
3. Describe your experiences where you transacted any of the non-state institutions. How
important the roles or functions of those non-state institutions?