ENGAGE

FACTS: The Spanish money system (based on pesos) was adopted into the Filipino
lifestyle as well as the use of Spanish numbers in business and money transactions.

Activity no. 1 Classification of Economic Institution

Classify the following Business organizations in the box.

Put them in the classification grid. Use yellow pad.

BENECO PHILIPPINE NATIONAL BANK

CEBUANA PERA PADALA WESTERN UNION
BAWADI VETERAN’S BANK
PHILHEALTH MERALCO
SUNSHINE DEPARTMENT STORE LUELCO
CENTRAL BANK OF THE PHILIPPINES GSIS
SOCIAL SECURITY SYSTEM
BANK OF THE PHILIPPINE ISLAND TIONGSAN BAZAAR

PRIVATE COOPERATIVE GOVERNMENT CONTROLLED

CORPORATION

EXPLORE
Activity no. 2 Philippine currency
Instruction:
Make a research on the Philippine currency. Use the table below to classify them
properly. Use yellow pad.

CURRENCY ( Start from the lowest to PERSONALITY IN THE CURRENCY

highest currency )

UCSP 12/3
EXPLAIN
________________________________________________________
ECONOMIC INSTITUTIONS

From the time of Karl Marx, Max Weber and Emile Durkheim and other sociol-
ogists of 19th and early 20th centuries have had a long and deep interest in economic
institutions, especially as these relate to non-economic aspects of social life such as the
family, education and the state.
The term ‘economic institutions’ is usually used for socially sanctioned such concepts
and structures which men have developed in the process of satisfying their material
needs. Economic institutions provide basic physical subsistence for society and meet
needs for food, shelter, clothing and other necessities of life.
These institutions include production agriculture and industry
and the distribution, exchange and consumption of
commodities, goods and services necessary for human
survival. Secondary economic institutions are credit and
banking system, advertising, co-operatives, etc.
In detail, these institutions are studied by the science of
economics. Economists study the internal workings of
economic system—production, distribution, supply and demand
and consumption of goods, taxation, borrowing, saving and
spending, and so on.
Sociologists are not economists. Therefore, they are not much
interested in the mechanisms of production and distribution but they have surely an
interest in the relations of men incident to a particular economic order.
All human and social life has an economic basis, the nature of which determines
the formal structure of society. Economic institutions arise out of the determinants we
make with respect to the goods we need. Sociologists study economic systems to better
understand how the production of goods influences social life.
They study types of economic systems, the size
and power of corporations, the occupations in economic
systems, and how work affects the rest in one’s life. Not
only this, sociologists study the role of values and
preferences in affecting production and consumption of
goods, the influence exerted by prestige or custom on
the price of goods, the origins and motivations of entre-
preneurs and managers, the contribution of education to
productivity and similar issues.
In brief, sociologists study how the economic system
interacts with other social institutions or how the non-
economic aspects of social life affect the economic
aspects. By knowing the political conditions of different
societies, for instance, it is possible to predict some of
the economic activities that will occur in them. Even something so intimate as friendship
may condition economic processes.
If workmen in a clique do not accept management’s goals of production, they often try
deliberately to slow the output. Moreover, they use the lever of friendship and loyalty to
enforce these restrictive practices in their group. Members often ‘go along’ with the
norms because they wish to remain in good standing in the clique (Smelser, 1962).

Sociologists and Economists Perspectives:

Although sociologists and economists do not study the same subjects, they
actually cover much of the same material, but with different interests and points of view.
Economists cannot understand the success or failure of an economic system without
considering how it interacts with the rest of the society.
Sociologists cannot understand how systems interact unless
they understand the functioning of each system. Nevertheless,
the disciplines have different goals. Economists specialize in
studying the economic system—the study of the production and
distribution of goods and services.
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It is just one of society’s important interacting parts whereas sociologists study the
whole of society, including the economic system. Economists think, as do sociologists,
in terms of systems and sub-systems; they stress the relations between parts,
especially patterns of dependence, dominance, exchange, and the like.

Sociologists consider the economy as a sub-system of society, then they shall

ask how it is related to other major sub-systems the cultural system (for example,
values and ideologies), the political system, the stratification system, and so on.

Reciprocity
In social psychology, reciprocity is a social norm of responding to a positive
action with another positive action, rewarding kind actions. As a social construct,
reciprocity means that in response to friendly actions, people are frequently much nicer
and much more cooperative than predicted by the self-interest model; conversely, in
response to hostile actions they are frequently much more nasty and even brutal.
Reciprocity makes it possible to build continuing
relationships and exchanges. Fukuyama states that “If
the institutions of democracy and capitalism are to work
properly, they must coexist within certain premodern
cultural habits that ensure their proper functioning”. He
goes on to say “Law, contract, and economic rationality
and prosperity…. must as well be leavened with
reciprocity, moral obligation, duty toward community,
and trust…. The latter are not anachronisms in a
modern society but rather the sine qua non of the
latter’s success”. According to the sociologist Alvin
Gouldner (1960), this norm is nearly universal, and only
a few members of society—the very young, the sick, or the old—are exempt from it.
Reciprocal actions differ from altruistic actions in that reciprocal actions only
follow from others' initial actions, while altruism is the unconditional act of social gift-
giving without any hope or expectation of future positive responses. Some distinguish
between ideal altruism (giving with no expectation of future reward) and reciprocal
altruism (giving with limited expectation or the potential for expectation of future reward).

Positive and negative reciprocity

Positive reciprocity occurs when an action committed by one individual that has a
positive effect on someone else is returned with an action that has an approximately
equal positive effect. For example, if someone takes care of another person's dog, the
person who received this favor should then return this action with another favor such as
with a small gift. However, the reciprocated action
should be approximately equal to the first action in
terms of positive value, otherwise this can result in an
uncomfortable social situation. If someone takes care of
another person's dog and that person returns the favor
by buying that individual a car, the reciprocated gift is
inappropriate because it does not equal the initial
gesture. Individuals expect actions to be reciprocated
by actions that are approximately equal in value.
One example of positive reciprocity is that waitresses
who smile broadly receive more tips than waitresses
who present a minimal smile. Also, free samples are
not merely opportunities to taste a product but rather invitations to engage in the rule of
reciprocity. Many people find it difficult to accept the free sample and walk away.
Instead, they buy some of the product even when they did not find it that enjoyable.

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 Negative reciprocity occurs when an action that has a negative effect on
someone is returned with an action that has an approximately equal negative effect. For
example, if an individual commits a violent act against a person, it is expected that
person would return with a similar act of violence. If, however, the reaction to the initial
negative action is not approximately equal in negative value, this violates the norm of
reciprocity and what is prescribed as allowable. Retaliatory aspects i.e. the aspects of
trying to get back and cause harm, are known as negative reciprocity. This definition of
negative reciprocity is distinct from the way negative reciprocity is defined in other
domains. In cultural anthropology, negative reciprocity refers to an attempt to get
something for nothing. It is often referred to as "bartering" or "haggling" (see reciprocity
(cultural anthropology) for more information).
Principle of Reciprocity
Once people have produced goods those goods need to be distributed for
consumption. This guided through several principles: redistribution, reciprocity, and
market. These principles are not mutually exclusive and all may be found within the
same society. The market principle is based on the practice of goods bought and sold
using money. Profit is a key motivating principle. Value is theoretically based on
demand and supply, but supply can be artificially manipulated to value and, therefore,
increase profit margin.

Market economies are the hallmark of large-scale, industrial groups. Other

characteristics of market economies include the accumulation of capital (wealth used to
fund more production) and complex economic interactions, including international
components. Market economies are synonymous with intensive agricultural societies. In
the modern world, non-market economies exist under the umbrella of a national market
economy; however, there are some cultural groups, e.g., foragers, who have little
interaction with the national economy. Groups such as this are generally left out of
economic development plans. In fact, they are often seen as impediments to modern
economic development, leading to marginalization and deprivation as their ability to
meet their needs is impeded.
Non-market economies are based on reciprocity or redistribution. Reciprocity is a
direct exchange of goods or services while redistribution refers to the movement of
goods or services from a central authority to the members of the society.
There are three types of reciprocity: generalized, balanced, and negative

Generalized reciprocity refers to an exchange that incurs no calculation of

value or immediate repayment of the goods or services. This usually happens among
close kin and friends; e.g., Kung hunters sharing meat with other members of the family
or buying a cup of coffee for a friend. It acts as a form of social security among kin—
sharing with family ensures that they in turn will share with you. Generalized reciprocity
has an element of altruism to it. Think about a person who makes a bunch of
sandwiches and then hands them out to the homeless. That person is distributing food
without expectation of repayment.

Balanced reciprocity involves calculation of value and repayment of the goods

or services within a specified time frame. Some foragers will exchange wild game for
modern hunting implements such as metal knives. Horticulturalists may exchange some
of their product for machetes. Storeowners may exchange goods for services of skilled
tradesmen. Gift giving in modern society is another example of balanced reciprocity. As
adults, when gifts are given there is an expectation that we will receive a gift of equal
value in return at a fixed point in the future. For instance, if we receive a birthday gift
from a friend, it is expected that we will give that friend a gift of similar value on their
birthday.

Negative reciprocity occurs when one party attempts to get more out of the
exchange than the other party. This can happen through hard-bargaining, deception,
stealing, or even selling food at an inflated price because there is no other option; e.g.,
vendors at special events.

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Circular flow Model

FIGURE 1

FIGURE 2

What Is the Circular Flow Model?

The circular flow model demonstrates how money moves through society. Money
flows from producers to workers as wages and flows back to producers as payment for
products. In short, an economy is an endless circular flow of money.

That is the basic form of the model, but actual money flows are more
complicated. Economists have added in more factors to better depict complex modern
economies.

These factors are the components of a nation's gross national product (GDP) or
national income. For that reason, the model is also referred to as the circular flow of
income model.

KEY TAKEAWAYS

 The circular flow model demonstrates how money moves from producers to
households and back again in an endless loop.
 The models can be made more complex to include additions to the money
supply, like exports, and leakages from the money supply, like imports.
 When all of these factors are totaled, the result is a nation's gross domestic
product or the national income.

Understanding the Circular Flow Model

The circular flow model starts with the household sector that engages in
consumption spending (C) and the business sector that produces the goods.

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 Two more sectors should also be included in the circular flow of income, the
government sector, and the foreign trade sector. The government injects money into the
circle through government spending (G) on programs such as Social Security and
National Parks administration. Money also flows into the circle through exports (X),
which bring in cash from foreign buyers.

In addition, businesses that invest (I) money to purchase capital stocks contribute
to the flow of money into the economy.

Outflows of Cash

Just as money is injected into the economy, money is withdrawn or leaked

through various means. Taxes (T) imposed by the government reduce the flow of
income. Money paid to foreign companies for imports (M) also constitutes a leakage.
Savings (S) by businesses that otherwise would have been put to use are a decrease in
the circular flow of an economy’s income.

Transfer
A transfer involves the movement of assets, monetary funds, and/or ownership
rights from one account to another. A transfer may
require an exchange of funds when it involves a change
in ownership, such as when an investor sells a real
estate holding. In this case, there is a transfer of title
from the seller to the buyer and a simultaneous transfer
of funds, equal to the negotiated price, from the buyer to
the seller.

The term transfer may also refer to the movement of an

account from one bank or brokerage to another.

 A transfer is the movement of assets, funds, or

ownership rights from one place to another.
 A transfer is also used to describe the process by
which ownership of funds or assets are reassigned to a new owner
 Banking, brokerage, cryptocurrency, asset titles, and loan transfers are a few
examples of domains and transaction types where transfers occur. 

Redistribution
Redistribution refers to the movement of goods
or services to and from a central authority. The
authority may be a single individual, e.g., a chief, or a
group of people, e.g., temple priests. The central
authority may not be interested in accumulating wealth
for themselves, but use the distribution of goods and
services to create interdependence among the parties
involved. The Big Men of Highland Papua New
Guinea redistribute goods they have accumulated to
create and maintain alliances in an area where conflict
with other groups occur relatively frequently. In
industrial societies, progressive income taxes are an
example of redistribution—taxes are collected from
individuals dependent on their personal income and then that money is distributed to
other members of society through various government programs. Charitable donations
function similarly.

Market transaction 
It may involve exchange of goods, services, information, currency, or any
combination of these that pass from one party to another.

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Understanding Markets
Technically speaking, a market is any place where two or more parties can meet
to engage in an economic transaction—even
those that don't involve legal tender. A market
transaction may involve goods, services,
information, currency, or any combination of
these that pass from one party to another.

Markets may be represented by physical

locations where transactions are made. These
include retail stores and other similar businesses
that sell individual items to wholesale markets
selling goods to other distributors. Or they may
be virtual. Internet-based stores and auction sites
such as Amazon and eBay are examples of
markets where transactions can take place entirely online and the parties involved
never connect physically.

Types of Markets
Markets vary widely for a number of reasons, including the kinds of products
sold, location, duration, size, and constituency of the customer base, size, legality, and
many other factors. Aside from the two most common markets—physical and virtual—
there are other kinds of markets where parties can gather to execute their transactions.

A. Black Market
A black market refers to an illegal market where transactions occur without the
knowledge of the government or other regulatory agencies. Many black markets exist in
order to circumvent existing tax laws. This is why many involve cash-only transactions
or other forms of currency, making them harder to track.
Many black markets exist in countries with planned or command economies—
wherein the government controls the production and distribution of goods and services
—and in countries that are developing. When there is a shortage of certain goods and
services in the economy, members of the black market step in and fill the void.
Black markets can also exist in developed economies as well. This is prevalent
when prices control the sale of certain products or services, especially when demand is
high. Ticket scalping is one example. When demand for concert tickets are high,
scalpers will step in and sell them at inflated prices on the black market.

B. Auction Market
An auction market brings many people together for
the sale and purchase of specific lots of goods. The
buyers or bidders try to top each other for the
purchase price. The items up for sale end up going to
the highest bidder.
The most common auction markets involve livestock
and homes, or websites like eBay where bidders may
bid anonymously to win auctions.

C. Financial Market

The blanket term financial market refers to any place

where securities, currencies, bonds, and other securities are
traded between two parties. These markets are the basis of
capitalist societies, and they provide capital formation and
liquidity for businesses. They can be physical or virtual.
The financial market includes the stock market or exchanges
such as the New York Stock Exchange, Nasdaq, the LSE, and
the TMX Group.
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Other kinds of financial markets include the bond market and the foreign exchange
market, where people trade currencies.
ELABORATE
Class Recitation: Discuss the Circular Flow model.

EVALUATION
Activity no. 3 Unit Quiz

Economic Institution

Part I Concept of Reciprocity

Fill up the table with the needed data. Use yellow pad.
RECIPROCITY EXPLAIN/DISCUSS EXAMPLE/SITUATION
THAT MANIFEST
RECIPROCITY

GENERALIZED

BALANCED

NEGATIVE

UCSP 12/10

Part II Economic System

Activity no. 4 Economic System ( Globalization: Friend or a

Foe )

Watch the music video “Friend or a Foe”

Use yellow pad.
https://www.dailymotion.com/video/x2pt57h
 MULTINATIONAL COMPANY (MNC)

BUSINESS COUNTRY OF ORIGIN EFFECT TO LOCAL

ORGANIZATION/COMPAN ECONOMY
Y

1.

2.

3.

4.

5.

Part IV Essay
1. To what extend does Globalization affect our identity?

2. How did Globalization affect Filipino business?

3. Why does Globalization lead to economic growth? Why?

4. Does Globalization remain relevant to the Philippine economy? Why?

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REFERENCES:
a. Arcinas, M. (2016) Understanding Culture, Society and Politics, 1 st. Ed. Quezon:
Phoenix Publishing House, Inc.
b. Agrawal, R. C. 2005. Political Theory, New Delhi: Chand & Company LTD.
 c. Defensor Santiago, Miriam. 2002. Politics and Governance with Philippine
Constitution. Quezon City: Central Professional Book, Inc.
d. Henslin, James M. 2003. Sociology: A Down-to-Each Approach. Allyn and Baco
Publishing
e. Palispis, Epitacio S. 2007, Introduction to Sociology and Anthropology. Manila,
Philippines: Rex Bookstore, Inc.
f. Schaeffer, Richard T. Sociology, 2011. New York: The McGraw-Hill Companies
Inc.
Others:
a. https://www.youtube.com/watch?v=ou3GSJ28ve4
b. https://www.niu.edu/clas/cseas/_pdf/lesson-plans/fulbright-hays/sociological-
functionalist-theory.pdf

Prepared by: Checked by: Noted by:

Renante C. Lamoste Ms. Rovelyn Bato Mrs. Cleofe P. Kollin, PhD.

Senior High School Teacher Subject Coordinator Principal
Cp no. 09391721968
rc.lamoste17@gmail.com
rlamoste@eastercollege.ph

NOTE:
THIS MATERIAL IS FOR EASTER COLLEGE SENIOR HIGH SCHOOL STUDENTS
ONLY!
No part of this material may be reproduced in any form or by any means or otherwise
without the prior written permission of the creator.

UCSP 12/12

Easter College
Easter School Rd. Guisad Baguio City
Senior high School department
S. Y. 2022 - 2023
 TABLE OF CONTENTS

TOPIC PAGES
A. Economic Institution 3-7
B. Transfer (ECONOMIC CONTEXT) 7
C. Redistribution 8
D. Market transactions 8-9

CURRICULUM GUIDE

STANDARDS TOPIC

A. Identify one’s role in economic

groups and institution. Economic Institutions

B. Analyze aspects of economic

systems and organizations. Economic System and organizations
C. Recognize other forms of a. Reciprocity
economic transactions. b. Transfer
c. Redistribution
d. Market transactions

MODULE V
I. Course/Subject Title: Understanding Culture, Society and Politics

II. Schedule of the Subject: WTh

III.Course Description:
This Course uses insights from Anthropology, Political Science, and Sociology to
develop students’ awareness of cultural, social, and political dynamics, and sensitivity
of cultural diversity, provide them with an understanding of how culture, human
agency, society and politics work; and engage them in the examination of the
country’s current human development goals. At the end of the course, students
should acquire ideas about human culture, human agency, society and politics;
recognize cultural relativism and social inclusiveness to overcome prejudices; and
develop social and cultural competence to guide their interactions with groups,
communities, networks, and institutions.

IV. Course outcome/Performance Standard:

A. Analyze aspects of economic systems and organizations.

B. Examine economic institutions and its impact on the lives of people in the
society.
C. Prove by sharing sufficient reasons on how varying society globally promote
economic growth, political stability, and good international relations.

V. Time Frame: Two weeks

UCSP 12/1

VI. Content
Learning Experience

GOOD DAY!!! How are you today???

While there are many roles you play in life…I

would want to emphasize that you made a
tremendous job of being a student, you
fulfilled the given task ahead of you. I salute
you with what you have done. Today is
another day of making through with the
activities for the next remaining weeks of the
final grading period. I hope that you will exert
the same effort. Before you start with the
activities may I reiterate the aims of our
lesson; Analyze aspects of economic
systems and organizations;
Examine economic institutions and its impact
on the lives of people in the society;
Prove by sharing sufficient reasons on how
varying society globally promote economic
growth, political stability, and good
international relations.

Let’s get it on!!!

UCSP 12/2