Economic Institutions

Question 1

the economy functions best when the
government does not intervene through regulations, subsidies,
privileges, and other types of intervention.

Answer 1

Laissez-Faire State-

Question 2

is a state that
intervenes in the market and sets the direction and pace of
economic development. (China)

Answer 2

Interventionist or Developmental State

Question 3

the ??? involvement is aimed at
achieving a good quality of life for the citizens, rather than
merely driving economic development.

Answer 3

Welfare State’s

Question 4

are
commercial in a sense that they involve any of these activities:
manufacturing, producing, trading, wholesaling, retailing,
buying, and consuming economic items.

Answer 4

economic institutions

Question 5

what are the three main categ of economic institutions

Answer 5

• MANUFACTURERS
• DISTRIBUTORS
• CONSUMERS

Question 6

Refers to the expectation that individuals or parties will
respond positively to each by returning benefits for benefits. It
also refers to the non-market exchange or goods and services.

Answer 6

reciprocity

Question 7

is the exchange of goods and services
without a definite time frame of when the favor should be returned.
(Family relationship).

Answer 7

Generalized reciprocity

Question 8

exchange occurs between groups or
individuals with the donor expecting to receive something of equal or
similar value.

Answer 8

balanced reciprocity,

Question 9

groups try to maximize their gains while
giving as little as possible. This form is usually motivated by the desire
to acquire a large number of goods using minimal resources.

Answer 9

negative reciprocity,

Question 10

Refers to the payment, transaction, movement or
redistribution of money, fund, and resources from one
hand to another.

Answer 10

transfer

Question 11

Examples of Transfers

Answer 11

*Taxes (no additional production of goods and services
but just a transfer of money from private hands to the
government)
* Financial Aid from the government
* Social Security
* Subsidies

Question 12

refers to the
transfer of income, wealth, or property from some
persons to others by means of social mechanism such as
taxation.

Answer 12

Redistribution

Question 13

Modern forms
of redistribution are done on an economy wide basis
rather than among particular individuals and is
commonly done through

Answer 13

distributive justice.

Question 14

in economic terms, refers to a bigger setting where buyers or
sellers simultaneously trade or exchange goods or services.

Answer 14

market

Question 15

• Exchange of items, products, and services with or without
  money.

Answer 15

transaction

Question 16

It consists of objects that serve as means of

exchange for goods and services.

Answer 16

money

Question 17

It is the amount required or agreed upon by the
exchanging parties. It is the amount of money
used in exchange for a certain product.

Answer 17

prices

Question 18

It refers to the quantity of goods or services that
are available to sell at a given price and period.

Answer 18

supply

Question 19

It refers to the quantity of goods or services that
consumers are willing to purchase at a given price
and time period.

Answer 19

demand