THE CONCEPT OF

ECONOMICS,
TAXATION, AND
AGRARIAN REFORM
Discussants:
Aisa Lobaton
Arra Bunao
Ken Jhastine Belen
1.CONCEPT OF
ECONOMICS
 WHAT IS
ECONOMICS?
 can be defined as, “the study of
choice.” The concept of scarcity is the
foundation of economics. Scarcity
reflects the human condition: fixed
resources and unlimited wants, needs,
and desires.
 ECONOMICS IS
DIVIDED INTO TWO
MAJOR CATEGORIES
1. MICROECONOMICS
The study of individual decision-making
units, such as firms and households.
Examples of Microeconomics
individual demand, individual supply,
the theory of the firm, opportunity
cost, and consumer theory.
2. MACROECONOMICS
The study of economy-wide aggregates,
such as inflation, unemployment,
economic growth, and international
trade.
Examples of Macroeconomics

aggregate demand, aggregate supply,

efficiency, investment, unemployment,
and inflation.
 FOUR KEY ECONOMIC
CONCEPTS

Scarcity Cost and

Benefits
Supply and
Demand Incentives
1 .)SCARCITY
 SCARCITY
It means that the demand for a
good or service is greater than the
availability of the good or service.
2. SUPPLY AND
DEMAND
The use of supply and demand allows us to
understand how the world works, how
changes in economic conditions affect
prices and production, and how
government policies and programs affect
prices, producers, and consumers.
THE SUPPLY OF A GOOD REPRESENTS THE
BEHAVIOR OF FIRMS, OR PRODUCERS.
SUPPLY REFERS TO HOW MUCH OF A GOOD
WILL BE PRODUCED AT A GIVEN PRICE.
5 TYPES OF
SUPPLY
II. TAXATION
WHAT IS TAXATION?
refers to the fees and financial obligations
imposed by a government on its residents.
Income taxes are paid in almost all countries
around the world. However, taxation applies
to all payments of mandatory levies,
including on income, corporate, property,
capital gains, sales, and inheritance.
Taxation is involuntary; hence it does not
require consent from the residents.
Therefore, the government may resort to
the use of force and threats to implement
successful taxation.
Summary

•Taxation occurs when a governmental authority

imposes levies on citizens and business organizations.
•Fees paid through taxation are compulsory and may not
be linked to any service delivery.
•Revenues collected are used to finance government
expenditures.
TYPES OF TAXATION
 INCOME TAXES
are levies imposed on the total financial income of an
individual, such as wages, investments, and salaries. Most
income taxes increase with the rise in the taxpayer’s
earnings. This means that higher-income earners pay
more taxes than low-earners. This is also referred to as
progressive taxation.
 CORPORATE TAXES
is levied on business income. The burden of corporate tax
is shared between the business, its consumers, and the
employees through setting higher prices and paying low
wages. To encourage business growth, most governments
levy businesses a corporate tax rate of below 30%.
 CAPITAL GAIN TAXES
are levied on capital assets, which include personal
properties and investments like stocks, homes, bonds,
cars, or jewelry. When an asset increases in value, such as
rising stock prices, it is referred to as capital gain.
 PROPERTY TAXES
are generally imposed on physical property, such as land
and buildings. They are the primary revenue source for
local state governments. Property levies account for over
70% of local tax revenues. Property taxes finance key
public services, such as fire departments, schools, roads,
security, and rapid medical services.
CLASSES OF TAXES
Taxes are classified into different criteria ranging from
the mode of payment, the subject bearing the tax burden,
and the extent of shifting the burden.
DIRECT TAXES
Direct taxes are levies subjected to individuals
based on the taxpayer’s net wealth, expenditure,
or personal net income. Levies on net worth are
based on the taxpayer’s assets value minus total
liabilities, while expenditure taxes are paid on
income that is not directed to savings.
INDIRECT TAXES
Indirect taxes are taxes imposed on transactions
such as imports and exports and the production
and consumption of goods and services. Examples
include value-added taxes, legal transaction
taxes, manufacturing taxes, and custom taxes on
import duties.
III. AGRARIAN REFORM
 1.Agrarian reform can refer either, narrowly, to
government-initiated or government-backed
redistribution of agricultural land (see land
reform) or, broadly, to an overall redirection of
the agrarian system of the country, which often
includes land reform measures.
 2 . Agrarian reform can include credit
measures, training, extension, land
consolidations, etc. The World Bank evaluates
agrarian reform using five dimensions: (1) stocks
and market liberalization, (2) land reform
(including the development of land markets), (3)
agro-processing and input supply channels, (4)
urban finance, (5) market institutions.
 3.The United Nations thesaurus sees agrarian
reform as a component of agricultural
economics and policy, with a specific impact on
rural sociology, and broader than land reform,
describing agrarian reform as:
 4. Reforms covering all aspects of agrarian
institutions, including land reform, production
and supporting services structure, public
administration in rural areas, rural social welfare
and educational institutions.
5. Land reform… is concerned with rights in land,
and their character, strength and distribution,
while… [agrarian reform] focuses not only on
these but also a broader set of issues: the class
character of the relations of production and
distribution in farming and related enterprises,
and how these connect to the wider class
structure. It is thus concerned economic and
political power and the relations between them
THANK YOU