ECONOMIC DEVELOPMENT
PRELIM REVIEWER
NOMADS - The first inhabitants of the planet
were hunters or foragers, food gatherers and
fishers.
The wandering people who transferred from
one place to another to extract food from the
environment.
They also engaged in other activities like
pottery, handicrafts, woodcrafts carpentry
metallurgy and other skilled and semi-skilled
occupation.
ECONOMY - Is a system of organizations and
institution that either facilitate or play a role in
the production and distribution of goods and
services in a society.
Refers to the system of producing and
distributing the material needs of the society.
ECONOMICS - refers to the study of the way in
which natural resources are used and how the
wealth they produce is divided and of the
application of the underlying principles to the
needs and prosperity of the society.
4 FACTORS OF PRODUCTION
1. LAND - factor of production primarily
refers to natural resources such as
minerals, forests, and fertile land.
2. LABOR - factor of production
encompasses the physical and mental
efforts of individuals engaged in
producing goods or services.
3. CAPITAL - factor of production involves
the financial resources, machinery,
equipment, and technology used in the
production process.
4. ENTREPRENEURSHIP - factor of
production involves the innovation,
risk-taking, and organization necessary
to combine the other factors and create
a new product or service
CAPITALISM - the only role of the government
is to enforce the rules of the marketplace –
preventing illegal activity from destabilizing the
economy – and to protect the property right of
individuals.
SOCIALISM - It defines as an economic system
in which individuals own their human capital.
COMMUNISM - is where the government is
fully engaged in central planning to determine
what is produced, how much is produced, and
who gets it.
SCARCITY - It refers to the condition that all
resources are available only in limited supply.
LAW OF SCARCITY - states that goods are scarce
because there are not enough resources to
produce all the needs that the people want to
consume.
TYPES OF RESOURCES
 SOCIETY - collective assets owned and
utilized by a community
 HUMAN - skills, knowledge, and labor
of individuals
 MANUFACTURE AIDS TO PRODUCTION
- enhancing the efficiency of production
processes
 COMMODITIES - finished goods ready
for consumption
 PRODUCTION - production focuses on
creating goods, while consumption
involves using those goods.
 CONSUMPTION
College can contribute to the concept of
resource in society by offering education and
knowledge development.
CORPORATION - is an organization created by
law that has an ongoing existence and proves
and liabilities that are district from those of its
owners and employees.
MULTINATIONAL COMPANIES/MNC’S –

- operates in more than companies

around the world and have centralized
management system.
- they are more focused on adapting the
products and service to each individual
local market.

TRANSNATIONAL COMPANIES

- companies that many companies

around the world but do not centralized
management system.

ECONOMIC GROWTH - is a measure of the

value of output of goods and services within a
time period.

ECONOMIC DEVELOPMENT - is a measure of

the welfare of humans in society.

TRADITIONAL ECONOMY - defines as a system

that relies on customs, history, and time-
honored believes. Tradition guides economic
decisions such as production and distribution.
Societies with traditional economies depend on
agriculture, fishing, hunting, gathering, or some
combination of them.

MARKET ECONOMY - It is an economic system

in which the production of goods and services is
directed by the laws of supply and demand.

AGRICULTURE - encompasses crop and

livestock production, aquaculture, fisheries, and
forestry for food and non-food products.

FISHING - form of aquaculture in which fish are

raised in enclosures to be sold as food. It is the
fastest growing area of animal food production.

HUNTING - is the human practice of seeking,

pursuing, capturing, or killing wildlife or feral
animals. The most common reasons for humans
to hunt are to exploit the animal's body for
meat