Johmil M.

Montepio

11 ICT- Flamingo

Give the importance of economic institutions in a society

The power that economic institutions distribute is significant. Economic institutions play an important
role in manufacturing, distribution, and consumption of goods and services. They look out for those who
are less fortunate and work to ensure that everyone receives their share and rights. The social structures
that we as humans establish for ourselves, such as our families, are among the most important and
fundamental of all. Every member of a family receives the same link just by virtue of belonging to the
same family. The basic purpose of the family is to fulfill the needs of its members by providing them with
food, a place to live, protection, and education.

If you will practice the types of reciprocity with your parents, what will it be and why?

I think it would be a generalized reciprocity. I want to do nice things for my parents and always make
them feel like they are appreciated, so I will give them something without expecting much in return. I
will spoil them. Even if it isn't simply by buying them everything in life that they could ever want, but
also by serving them with all of my heart and doing it without expecting anything in return.

RECIPROCITY

Definition: The exchanging of goods/service

Types and differences: Generalized reciprocity: giving something without expecting in return. Balanced
reciprocity: giving with expecting the same value in return.

Negative reciprocity: attempt to get something for nothing

Examples: (Generalized Reciprocity) changing diapers, cooking meals

(Balanced Reciprocity) Christmas exchange gifts

(Negative Reciprocity) Gambling, market exchange

REDISTRIBUTION

Definition: The process through which a governing body redistributes a large quantity of goods to its
people.

Types and differences: Vertical; between richer and poorer people. Horizontal; between groups of
people with different characteristics

Examples: Rich and poor people, young and older people (governments to redistribute money to those
in need)

MARKET EXCHANGE

Definition: An economic model in which the production, distribution, and exchange of commodities and
services are driven by market factors such as supply and demand.

Types and differences: Market Transaction: Involve the transfer of goods, services, information, money,
or any combination thereof, from one party to another.

Market states: A comprehensive perspective on the connection between the material and relational
dynamics of society

Examples: Farmers bring their crops to the local marketplace and sell them to the public.