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1. ACTIVITY 1
ECONOMICS WITH LAND REFORM AND TAXATION
Name: Armia P. Leonardo Sec: E22
Day/Time/Room: MWF/8:00-9:00 PM/ B4-37 Date: Sept. 24, 2014
Part 1
Define the following words:
1. Economics
 Proper allocation and efficient use of available resources for the maximum
satisfaction of human wants.
 Essential parts of our lives.
 Also proper distribution of wealth and income.
2. Microeconomics
 Deals with the economic behavior of individual such as the consumers,
firms and other owners of factors of production.
3. Macroeconomics
 Deals with the economic behavior of the whole economy or its
aggregates such as government, business and household.
4. Socialism
 Combination of capitalism and communism.
 Major industries: owned and managed by the state.
 Minor industries: belong to private sector.
 Karl Marx – father of modern socialism.
5. Capitalism
 Owned and managed by private individuals or corporations.
 There’s no government intervention in economic affairs.
 Characteristics of capitalism are:
 Private Property
 Economic Freedom

2.  Free Competition
 Profit Motive
6. Communism
 Opposite of capitalism.
 Owned and managed by the state.
 Also called a command economy or classes society.
 Characteristics of communism are:
 no private property,
 no free competition because the government is the only seller.
 No economic freedoms
 No profit motive
 Presence of central planning.
7. Demand
 Schedule of various quantities of commodities which buyer are willing and
able to purchase at a given price, time and place.
8. Supply
 Schedule of various quantities of commodities which producers are willing
and able to produce and offer at a given price, place and time.
9. Law of Demand
 As price decreases consumers likely to buy more goods and services.
 While as price increases consumers likely to buy less goods and services.
10. Law of Supply
 As price increases quantity supply also increase.
 And as price decrease quantity supply also decreases.