GEN 005: The Contemporary World

Module #11 Student Activity Sheet

Name: _____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

Materials: Activity Sheets

References:
Lesson Title: Emergence of Economic System
https://corporatefinanceinstitute.
com/resources/knowledge/other/
Learning Targets: At the end of the lesson, students should be globalization/
able to:
https://www.coursehero.com/file/
p35ifc2/Equity-Distribution-The-
1. describe the concepts of the economic system;
risks-of-globalization-can-be-
2. can explain the different economic systems.
unfairly-skewed/

A. LESSON PREVIEW/REVIEW

1). Introduction (2 min)

Hello! Good Day? Here we go again. What did you remember from our last topic? We were able to discuss
Risk Management. Today’s lesson is about the Emergence of the Economic system. We will try to learn also the
types of the economic system and how these help economy of any countries organized and systematic in the
distribution of goods and services. Just listen, read, and pay attention. After this class, you will gain more
understanding of the topic. Before we proceed to our topic today, please answer first the review of the previous
lesson.

Please read the learning targets before you proceed to the succeeding activities. The learning targets are
your goals. Remember, you need to achieve your learning targets at the end of the lesson.

Lesson Review

Directions: Read the statement carefully and identify the term/word being described in the statement

below. Write your answer on the space provided for.

Equity
_____________________1. It goes a step further and refers offering varying levels of support depending
upon need to achieve greater fairness of outcomes.

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 Interdependence 4. National sovereignty 5. Risk of
globalization
GEN 005: The Contemporary World
Module #11 Student Activity Sheet

_____________________2.
Equality This refers to equal opportunity and the same levels of support for all segments
of society.
_____________________3.
Interdependence It is when two or more actors impact and rely on each other.
_____________________4.
National sovereignty The supreme, absolute, and uncontrollable power by which an independent state
is governed and from which all specific political powers are derived; the intentional independence of a
state, combined with the right and power of regulating its internal affairs without foreign interference.
. Risk of
_____________________5. These are greater and more varied than the risks of domestic commerce and
globalization
managing them is the key.
Check your answers against the Key to Corrections found at the end of this SAS. Write your score on your
paper.

B. MAIN LESSON

I think you are now ready to start with our lesson for today. Now, let’s move to the next set of activities. The
succeeding activities aim to develop your knowledge and understanding of the lesson.

Activity 1: Content Notes (13 mins)

Anybody here who knows someone who is selling anything and earns money from markups? Why do
you think sellers never stop selling? Why (SRP) suggested that the government impose retail prices or price
ceilings for certain commodities in times of calamity? Can you sell anything in the market? All of these things
can be answered in our lesson today. Our topic is about Economic systems. Ready? Let’s start!

What is an economic system?

An economic system, or economic order, is a system of production, resource allocation, and

distribution of goods and services within a society or a given geographic area. It includes the
combination of the various institutions, agencies, entities, decision-making processes, and
consumption patterns that comprise a given community's economic structure.
An economic system organizes the distribution and exchange of a country's goods, resources, and
services. From an economics perspective, a financial system regulates various economic issues,
including production, the supply of capital and labor, and all other physical resources.

Basic economic questions

As such, an economic system is a type of social system. The mode of production is a related concept.
All economic systems have basic questions: what to produce, how to create and in what quantities, and
who receives the production output. Four basic questions that a society needs to answer.

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 GEN 005: The Contemporary World
Module #11 Student Activity Sheet

1. What to produce, in other words, which essential products and services and which enjoyable
but optional products and services should an economy have to ensure the subsistence of a
population and the happiness of that population.

2. How to produce goods and services, and how much of these goods to make. Produce too much,
and there is a waste, create too little, and the cost of production rises.

3. Whom to produce? There's also the question of what is allocated on the production: those who
can afford it most, or those who need it most?

4. How economic systems must cope with change. Even when the factors of production and the
distribution of output have been settled, economic systems eventually change. The way a
financial plan is governed also determines how it copes with change. Economic change can
result in some economic participants being worse off, and an economy should help participants
equalize inequalities over time.

Economic systems can be very government-driven and highly regulated or more dependent on private
operators and lightly regulated. Many agencies, government entities and institutions, and various
regulations are involved in an economic system. Overall, financial systems are complex and need
continuous intervention to ensure smooth functioning.

What are the four main types of economic systems?

There are four primary types of economic systems: traditional, command, market, and mixed. Each
economy has its strengths and weaknesses, its sub-economies and tendencies, and, of course, a
troubled history.

The Traditional Economic System

The most basic of all the economic types and in practice since ancient times, the traditional financial
system involves very little division of labor (in other words, individuals specializing in producing specific
goods) and very little in the way of economic governance.

Characteristics of a Traditional Economy

1. Traditional economies are often based on one or a few of agriculture, hunting, fishing, and
gathering.
2. Barter and trade are often used in place of money.
3. There is rarely a surplus produced.
4. Often, people in a traditional economy live in families or tribes.

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 GEN 005: The Contemporary World
Module #11 Student Activity Sheet

Advantages of a Traditional Economy

1. Traditional economies produce no industrial pollution and keep their living environment clean.
2. Traditional economies only produce and take what they need,
3. So there is no waste or inefficiencies involved in creating the goods required to survive as a
community.

Disadvantages of Traditional Economy

1. It isolates the people within that economy.
2. Large outside economies can overwhelm a traditional economy. ...
3. It offers very few choices, and they can only have whatever they produce in the area.
4. There may be a lower overall quality of life.
5. It creates specific health risks, like malnutrition, diseases.
6. Unpredictability creates survival uncertainties.

The Command Economic System

A more advanced economic system compared to the traditional financial system, the command
economic system involves planning from a centralized point, either a local government or indeed the
national government, as under communist rule.

Nonetheless, some people would argue that the command economy has advantages in that the
government can better control supply and demand than the market can. The idea is that a command
economy can lead to lower prices for the public while also ensuring an ongoing, plentiful supply of jobs
for the population.

Command Economy Characteristics

1. Government is in control of the pricing of goods and services by central economic planning.
2. The government owns all the factors and means of production.
3. The government makes all decisions for finances in the country, may even assign people jobs.
4. Social equality is the essential feature of a command economy. No one is rich or poor.

Advantages: Low levels of inequality and unemployment, and the common good replacing profit as
the primary incentive of production.
Disadvantages: include lack of competition and lack of efficiency.

The Market Economic System

A market economy is a system where the laws of supply and demand direct goods and services.
(1). Supply includes natural resources, capital, and labor. (2) Demand includes purchases by
consumers, businesses, and the government. Businesses sell their wares at the highest price
consumers will pay

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 GEN 005: The Contemporary World
Module #11 Student Activity Sheet

Market forces control the economy.

1. Consumers are deciding whether to buy a good at a specific price, wait before buying it, or
never buy a market force. They want lower prices of commodities.
2. Businesses pricing products to create maximum profit, taking into account consumer demand,
is another market force. They produce more if consumers buy more.

Advantages of a Market Economy

1. Competition leads to efficiency because businesses that have fewer costs are more competitive
and make more money.
2. Innovation is encouraged because it provides a competitive edge and increases the chance for
wealth.

Disadvantages of a Free Market Economy

1. Factors of Production is not employed if it is not profitable.

2. The market system may not produce certain goods and services.
3. The free market may encourage harmful goods.
4. Production may lead to negative externalities.
5. A free market economy may increase the gap between the rich and the poor.
6. Unemployment and Inequality.

The Mixed Economic System

Traditional economic systems are incapable of dealing with the advanced requirements of a developed
society, but there are arguments for and against both the market and command economies. This is
why the mixed economic system emerged, a mix between the command economy and the market
economy.

Mixed economy
A mixed economy is an economic system combining private and public enterprises. A mixed economic
system is a system that combines aspects of both market and command. A mixed economic system
protects personal property and allows a level of economic freedom in the use of capital, but also allows
for governments to interfere in economic activities to achieve social aims

Characteristics of mixed economy:

1. Co-existence of the Private and Public Sectors- minor industries for the people and major
industries belong to the state such as Expressways, LRT/MRT and Dams, National Power
Corporation, etc.
2. Existence of Joint Sectors like Public and private, both private companies

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 GEN 005: The Contemporary World
Module #11 Student Activity Sheet

3. Regulation of Private Sector such as price control and declared illegal products.
4. Planned Economy – the businessmen decide what to produce, how much
5. Private Property – individuals can have own properties as long as he can have the means to buy
6. Provision of Social Security – benefits and insurances returns upon retirement
7. The motive of Business Concerns – profit maximization, market share, survival in the market
8. Reduction of Inequalities of Income and Wealth – all are given the chance to participate in
wealth accumulation.

Advantage: A mixed economy permits private participation in production, which in return allows
healthy competition that can result in profit. It also contributes to public ownership in manufacturing,
which can address social welfare needs.

The disadvantage of mixed economies: is that they tend to lean more toward government control and
less toward individual freedoms. Sometimes, government regulation requirements may cost a
company so much that it puts it out of business. In addition, unsuccessful regulations may paralyze
features of production.

Which is the best economic system?

The way an economic system function has a massive effect on the daily lives of the citizens of a
country. For these citizens to live in an environment that supports personal sustenance and personal
growth is essential, and there are many arguments for and against all economic systems.

Perhaps the best argument is for an economic system that provides enough incentive for innovation
and growth and considers the needs and desires of all economic factors rather than just those
responsible for growth and innovation.

Inevitably it is a balancing act, with no absolute implementation of an economic system serving the
needs of society well. Exactly where this balance lies, however, is up to citizens. This is why there is a
modest variation in economic systems around the world and perhaps why the world's economy
effectively operates a mixed economic system.

Activity 2: Check for Understanding (5 mins) (18 mins + 2 mins checking)

I hope that activities on this part will help you achieve your learning targets. The next set of exercises
will help you deepen your understanding of the lesson.

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 GEN 005: The Contemporary World
Module #11 Student Activity Sheet

Directions: Based on your readings, give your definitions of the following terms below.

Exercise # 2: Let’s do it again. Please read the statement, and answer it with True or False.

_____1.
T Globalization has lots of advantages as well as disadvantages.
_____2.
T Businesses are interdependent, and there's no solo business.
_____3.
T Problems on one side of the equation will destroy the balance of related businesses.
_____4. Equity is mandatory assistance to the neediest, while equality is assistance for all.
T
_____5.
T National sovereignty is weakened by the policies of multinational companies foreign direct
investors.
Check your answers against the Key to Corrections found at the end of this SAS. Write your score on your
paper.

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 GEN 005: The Contemporary World
Module #11 Student Activity Sheet

Exercise #3: What do you think is the best economic system and why?

_____________________________________________________________________________________________________________

_____________________________________________________________________________________________________________

_____________________________________________________________________________________________________________

A rubric found on the last page of this activity sheet will be used in checking the answers.
Since you are done with this, you may now proceed to the closure activity.

C. LESSON WRAP-UP

Frequently Asked Questions (FAQs)

Question 1. If China invaded the Philippines in the future, will they implement/utilize their
economic system?

Answer: I don’t want to think this yet, but, hopefully, not. Socialist market economy (SME) is the
economic system and economic development model employed in the People's Republic of China. The
system is based on the predominance of public ownership and state-owned enterprises within a market
economy. In China, the government dictates the price of goods in the market. They have central
planning, wherein the government is responsible for the production of goods and their distribution.

Question 2. What kind of economic system do the Philippines have?

Answer: Based on my readings, “the Philippines still has a mixed economic system that includes various
private freedom, combined with centralized economic planning and government regulation. There are
businesses here that control a large portion of our resources (for example, Aboitiz, Ayala-Zobel, Tans, Sy family).
These are wealthy families that contributed a lot to our economy. Others are owned by the goveRnment like
LRT/MRT, PHILPOST, etc. The economic system of the Philippines is now heading to capitalism in which private
individuals or businesses own capital goods. The production of goods and services is based on supply and
demand in the general market.

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 GEN 005: The Contemporary World
Module #11 Student Activity Sheet

Thinking about Learning (5 mins)

My Learner Tracker
What contributed to the
quality of your
What lesson# did you
performance today?
do? What were the What were your scores in
What’s the date today? What will you do next
learning targets? What the activities?
session to maintain your
activities did you do?
performance or improve
it?

Directions: Since you are done with today's lesson, please carefully read the questions below and give
your honest answer to them.

What was the most important thing you learned during this class?

_____________________________________________________________________________________________________________

_____________________________________________________________________________________________________________

What important question remains unanswered?

_____________________________________________________________________________________________________________

_____________________________________________________________________________________________________________

KEY TO CORRECTIONS

Lesson Review: 1. Equity 2. Equality 3. Interdependence 4. National sovereignty 5. Risk of

globalization
Exercise 2: 1. True 2. True 3. True 4. True 5. True
Exercise 3: See rubric or checking the answers to the essay questions.

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 GEN 005: The Contemporary World
Module #11 Student Activity Sheet

Scoring Rubric for Essay

4 3 2 1 0 SCORE

Content Write-up is Write-up is accurate Write-up is not Write-up is Questio

comprehensive, but not complete. completely stated. incomplete. Key ns are
(50%) accurate, and Key points are Key points are not points are lacking. not
complete. Key stated but not addressed and not It does not answer
ideas are clearly supported. Include supported. It does incorporate ed.
stated and some pertinent and not include information from
supported. Include detailed pertinent class discussions
pertinent and information from information from
detailed class discussions. class discussions.
information from
class discussions.

Organiz Well organized, Mostly clear and Inadequate Organization and Questio
ation developed, and easy to follow. organization. The structure draw ns are
easy to follow. Usually maintains structure of the away from the not
(30%) Maintains focus on focus but answer is not easy answer. Provides answer
the topic. occasionally to follow. Presents no information ed.
presents information that is that can be
information that is sometimes unclear. understood.
different from the
topic.

Spelling Grammar, spelling, Contain few Contain substantial Contain enough Questio
and punctuation, and distracting distracting distracting ns are
Gram- sentence structure problems. There problems. There grammar, spelling, not
mar have no errors. are one or two may be three to punctuation, and answer
errors in grammar, four errors in sentence structure ed.
(20%) spelling, grammar, spelling, problems to make
punctuation, and punctuation, and it substantially
sentence structure. sentence structure. incomprehensible

TOTAL SCORE

Teacher’s Signature: __________________

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