Basic Economic Problems and
the Philippine Socioeconomic
Development in the 21st

Lesson objectives
•Identify the different economic systems
•Explain the three primary macroeconomics
goals of a country
•Explain how applied economics can be used
to solve country’s economic problems

Economic systems

Economic systems- free
market economy
•Private ownership . The prices are set
by the market mechanisms or by the
interactions between the seller and
the consumers
•An economic system where there is
an absence of coerced transactions

Economic systems-
centralized economy
•It is characterized by
involvement of government.
•North Korea & Soviet Union

Economic systems-
centralized economy

Economic systems-
mixed economy
•An economic system that has the
characteristics of command and free
market economy.
•An economic system also that there is
a balance between private and
government accountability in

Economic systems-
traditional economy
•Characterized by the customs
and habits
•Barter is an example of this type
of economic system
•Some parts of Africa

Macroeconomic
goals

Economic growth
• Business cycle – it is the upward and downward trend
of the GDP observed over a period of time.

Full employment

Price stability

The Philippines’ 21st
Century
Socioeconomic
Challenges

•Poverty and
Unequal
Distribution of
Income
•Demographic
Implications
•Weak
Infrastructure
•Slow Adaptation
of Modern