Senior High School

Understanding Culture,
Society, and Politics

Quarter 2 – Module 1
Economic Institutions

Department of Education ● Republic of the Philippines

Understanding Culture, Society, and Politics Grade 11/12
Alternative Delivery Mode
Quarter 2 – Module 1: Economic Institutions
First Edition, 2020

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ii
 Senior High School

Understanding Culture,
Society, and Politics

Quarter 2 – Module 1
Economic Institutions

This instructional material was collaboratively developed and reviewed

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stakeholders to email their feedback, comments, and recommendations to the
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Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.) included in
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iii
 Table of Contents
COVER PAGE ...................................................................................................................................i
COPYRIGHT PAGE ........................................................................................................................ii
TITLE PAGE .....................................................................................................................................iii
TABLE OF CONTENTS ............................................................................................................... iv
WHAT THIS MODULE IS ABOUT.............................................................................................. v
WHAT I NEED TO KNOW ............................................................................................................ v
HOW TO LEARN FROM THIS MODULE ................................................................................ v
ICONS OF THIS MODULE.......................................................................................................... vi
WHAT I KNOW .............................................................................................................................. vii
Lesson 1: Economic Institutions ............................................................................................ 1
What’s New: Name It ............................................................................................ 1
What is It: Economic Institutions ............................ ………………………...1
What’s More: Draw It All ...................................................................................... 3
What Can You Say? ................................................................. 3
What I Have Learned: My Real-Life Experience........................................... 3
What I Can Do: The Economist ......................................................................... 4
Lesson 2: Non-State Institutions ............................................................................................ 4
What’s New: Fill It Up ........................................................................................... 4
What is It: Non-state Institutions and Organizations .................................. 5
What’s More: I Know............................................................................................. 6
Partner for Life ............................................................................. 7
What I Have Learned: Look for It ...................................................................... 8
What I Can Do: How Can I Help? .................................................................... 8
Summary ........................................................................................................................................... 9
Assessment .................................................................................................................................... 11
Key to Answers .............................................................................................................................. 13
References ...................................................................................................................................... 14

iv
What This Module is About
An economic institution provides the distribution of goods and services to the
members of the society. In societies with a recognized economic system, production
and distribution of goods and services is the most essential part of the system for it to
function accurately.

Nonstate institutions are businesses not owned and controlled by the

government. The private sector and other non-state organizations perform roles that
complement the state and of the markets. Many non-state institutions are key players
in the economic activities of the society.

Let’s look at this.

What I Need to Know

At the end of this module, you should be able to:

• Explain the forms and functions of state and non-state institutions

(UCSP11/12HSO-IIa-24; UCSP11/12HSO-IIb-25).

How to Learn from this Module

The following are your guide for the proper use of this module:

To the Learner:
1. Follow all the instructions in every activity.
2. Answer the pre-test before going over the material to find out what you already
know.
3. Answer all the exercises at the end of every lesson.
4. Review the lesson that you find difficult to understand. Be resourceful.
5. All answers should be written in the module unless otherwise specified, for
example, a sheet of paper or bond paper.
6. All output should be placed in a folder that will serve as your portfolio. The
output should be arranged in sequential order.
7. Seek assistance from your teacher and parents/guardian.

To the Teacher:
1. Communicate with parents and learners regularly for updates and feedbacks.
2. Make sure that all activities are complied with before accepting the output or
the portfolio.
3. You may contextualize or localize your activity as long as it is still within the
boundary of the learning competency.

To the Parents/Guardian:
1. Closely monitor your child’s progress.
2. Do not answer the activities for your child. Just guide them in doing it.
3. Support your child. Talk to him/her about his/her journey with this module.

v
 Icons of this Module
This part contains learning objectives that
What I Need to Know
are set for you to learn as you go along the
Learning Objectives
module.

This part of the module is an assessment

What I Know? as to your level of knowledge of the
Pre-Assessment subject matter at hand meant to gauge
prior understanding.

What’s In? This part connects the previous lesson

Review Activity with that of the current one.

An introduction to the new lesson through

What’s New?
various activities before it will be presented
Motivational Activity
to you.

These are discussions to deepen your

What Is It?
discovery and understanding of the
Lesson Proper
concept.

These are follow-up activities intended for

What’s More?
you to practice further to master the
Performance Task
competencies.

What I Have Learned? These are activities designed to process

Generalization what you have learned from the lesson.

These are tasks designed to showcase

What I Can Do?
your skills and knowledge gained and
Application
applied to real-life concerns and situations.

This part evaluates your level of mastery in

Assessment
achieving the learning objectives of the
Post-Assessment
lesson.

vi
 What I Know

PRETEST

Multiple Choice. Choose the letter of the correct answer.

1. It is a financial institution that lends money both to public and private

organizations.
A. Banks C. Labor union
B. Corporation D. Trade union

2. It refers to a broad category of non-state organizations representing a company

or group of people that engage in a lawful activity about a public function, such
as the provision of a good or service to the larger society.
A. Bank C. Corporation
B. Cooperative D. Financial organization

3. It refers to an autonomous association whose membership is voluntary toward

the attainment of shared economic, social and, cultural needs or aspirations.
A. Bank C. Labor union
B. Cooperative D. NGO

4. It is a term used for an organization of workers whose main objective is to

protect the welfare of its members.
A. Cooperative C. Labor union
B. INGO D. NGO

5. They are the funders and donors.

A. Global Organizations C. People’s Organizations
B. Government Organizations D. Religious Organizations

6. World Bank, International Monetary Bank and, Asian Development Bank are
examples of _____.
A. Civil Society Organizations C. Global Organizations
B. Economic Organizations D. Political Institutions

7. These agencies are present in developing countries challenged by security

conflict, food shortage, climate change, financial instability, and others.
A. Development agencies C. Financial institutions
B. Economic organizations D. Financial markets

8. They exist to promote principled causes, ideas, and values to change

international policy.
A. Development Agencies C. Local Organizations
B. International Organizations D. Transnational Advocacy Groups

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9. The following banks are owned by private institutions EXCEPT _________.
A. Banco de Oro C. Land Bank of the Philippines
B. Bank of the Philippine Islands D. Metrobank

10. The following are government-owned institutions EXCEPT ____________

A. Development Bank of the Philippines
B. Jollibee Foods Corporation
C. Home Mutual Development Fund
D. PhilHealth Insurance Corporation

11. This is a type of business owned by its customers. Employees can also become
members.
A. Agricultural cooperatives C. Consumer’s cooperative
B. Banks D. Corporations

12. This where residents own shares reflecting their equity in the cooperative’s real
estate
A. Credit cooperative C. General cooperative
B. Electric cooperative D. Housing cooperative

13. Ownership of a corporation is through stockholders who own shares in the

company.
A. Non-profit corporation C. Profit corporation
B. Non-stock corporation D. Stock corporation

14. This is a type of cooperative that performs a broader range of functions.

A. Electric cooperative C. General cooperative
B. Farmer’s cooperative D. Housing cooperative

15. This is a type of cooperative that provides credit facilities to each member.
A. Consumer’s cooperative C. Farmer’s cooperative
B. Credit cooperative D. Housing cooperative

viii
 Lesson Economic Institutions
Learning Competency: Analyze economic organization and its

1 impacts on the lives of people in the society

(UCSP11/12HSO-IIa-24)

What’s New

Activity 1: NAME IT.

With the present COVID – 19 pandemic situations, many institutions and

organizations have reached the communities to extend help to the Filipinos in terms
of, but not limited to, food, money, personal protective equipment (PPE), and other
basic needs. Based on your observation, name an institution/organization which
helped your community during this pandemic and explain briefly its impact on the lives
of the people.

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________.

What is It
Every society has formed social institutions and organizations to meet all the
basic needs of the people. One of these needs is to produce and distribute goods and
services to the people. The economic institutions and organizations of society provide
the distribution of goods and services to the people.

ECONOMIC INSTITUTIONS

Nonmarket Institutions

Reciprocity exists when there is an exchange of goods or labor between

individuals in a community. This would include direct barter or simultaneous

1
exchanges of goods or labor. An example of reciprocity is when you exchange food or
in-kind for the labor extended from your neighbors.

Transfer entails a redistribution of income that is not matched by the actual

exchange of goods or services. An example of this is a donation or financial assistance
from a wealthy relative to the needy one. Another is from the government institutions
in the case of 4P's, senior citizen social pension, farmer subsidies, social security
benefits, among others.

Redistribution can be considered as a combination of transfer and reciprocity.

It involves a centralized collection of goods from members of a group and redistributes
the goods to the same members of the group. For example, during this covid-19
pandemic, a student organization in your school collects relief goods and distributes
the same to the most affected students in the community.

Market Institutions

The market transaction involves parties who sell their goods and services in
exchange for cash from consumers or customers. Some examples of these are the
sari-sari stores in our community where we use to buy our basic needs; the food
industry that we used to patronize provides support to the economic activity in our
country, in general.

Market and state. The state, through the government, plays an important role
in the market. The government regulates the prices especially for the basic commodity
to protect the interest of the consumers. That is why we have this so-called Suggested
Retail Price (SRP) which means that the price of a certain commodity follows a price
ceiling or the maximum price set by the government. The Department of Trade and
Industry (DTI) is tasked with this regulation.

Labor is also considered a commodity and it is an input to the production of

goods and services. The government regulates the prices of labor by determining the
minimum wages through the regional wage board to protect the workers from being
paid below the minimum in exchange for their service rendered. The government
intervenes in the activities of market institutions to primarily protect the interest and
welfare of the consumers and the workers.

The government collects taxes from the worker’s income, business profits, and
consumption of goods and services to raise revenue for government spending, may it
be government purchase, for example, purchase of fighter planes or construction of
railways or transfer payments which does not require any output in the form of social
security benefits, provision of public services through free education, universal health
care, etc., subsidies and the like.

2
 What’s More

Activity 2: DRAW IT ALL. (Performance Task)

1. Based on the concepts in Lesson 1, draw your understanding about the

nonmarket institutions and the market institutions
2. Use one (1) long bond paper for this activity. Make it colorful.

Rubric for the Drawing

Criteria Rating
The drawing clearly expresses the information and message. 5 4 3 2 1
The drawing highlights key information relevant to the topic. 5 4 3 2 1
The drawing shows creativity. 5 4 3 2 1
Total points (15)

Activity 3: WHAT CAN YOU SAY?

1. Refer to Activity 2: Draw it All.

2. Write an essay about your drawing. Use pad paper for this activity.

Rubric for the Essay

Criteria Rating
The answer relates entirely to the assigned topic. 5 4 3 2 1
The answer conveys a genuine personal view regarding the topic. 5 4 3 2 1
The work is original and does not contain plagiarized content. 5 4 3 2 1
Total points (15)

What I Have Learned

Activity 4: MY REAL-LIFE EXPERIENCE.

Write a real-life experience that relates to the concept of reciprocity.

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________.

3
 What I Can Do

Activity 5: THE ECONOMIST

If given the chance to become an economic adviser in our country, list down
your top three (3) economic programs that you want to implement right after you
assume office.

1. ______________________________________________________
2. ______________________________________________________
3. ______________________________________________________

Lesson
Non-state Institutions
Learning Competency: Differentiate functions of non-state

2 institutions in society
(UCSP11/12HSO-IIb-25)

What’s New

Activity 1: FILL IT UP

Fill in the missing letters to complete the word.

1. B__ N__ - it is a place where people deposit or save their money with
interest in a given period.

2. C__R__O__A__I__N – is a company or group of people authorized to act as

a single entity and recognized in the law.

4. C__O__E__A__I__E – or coop refers to an autonomous association whose

membership is voluntary toward the attainment of shared economic, social
and, cultural needs or aspirations.

4
 What is It

Non-state Institutions and Organizations

A bank is a place where

people deposit or save their money
with interest in a given period. It
lends money both to public and
private organizations. The
government borrows money from
the bank to finance its projects while
private organizations and individuals
borrow money to finance their
business and other personal needs.
The example includes Banco de
Oro, Bank of the Philippine Islands,
Metrobank, rural banks, etc.
Image: https://bit.ly/3eQooPw

A corporation is a company or group of people authorized to act as a single

entity and recognized as such in law. Usually, corporations operate as stock
corporations where ownership is through stockholders who own shares in the
company. Examples are San Miguel Corporation and Jollibee Foods Corporation.

Cooperative or coop refers to an autonomous association whose membership

is voluntary toward the attainment of shared economic, social and, cultural needs or
aspirations. The members are the owner of a cooperative. Examples are credit
cooperative, a consumer cooperative, electric cooperative, housing cooperative,
worker’s cooperative, an agricultural cooperative, general cooperative.

A trade union or labor union is an organization of workers whose main

objective is to protect the welfare of its members. Its purpose is to collectively negotiate
with employers for better compensation benefits, to ensure safety standards in the
workplace, and others. In the Philippines, these national federations are the Trade
Union Congress of the Philippines (TUCP) and the Kilusang Mayo Uno (KMU).

Transnational Advocacy Groups are involved in social advocacy to promote

principled causes, ideas, and values. Their goal is to give the powerless a voice in the
domestic and international law-making body. Common social advocacies include
human rights, consumer rights, women’s rights, environmental issues, and
international peace. In the Philippines, Human Rights Watch is very active in human
rights and peace issues.

Development Agencies are committed and dedicated to distributing aid.

These agencies are present in developing countries challenged by security conflict,
food shortage, climate change, financial instability, and others. Some of the prominent
development agencies in the Philippines are the following:

5
 • United States Agency for International Development (USAID)
• Australian Agency for International Development (AusAID)
• Japan International Cooperation Agency (JICA)

The aid can be subdivided into two categories: humanitarian aid (emergency
relief efforts in response to disasters and development aid (foreign aid) aimed at
helping countries to achieve sustainable economic growth.

Global Organizations work in the development of entire countries. They are

the funders and donors. They operate by giving loans or grants to other countries to
be used for improvement. In the onslaught of COVID-19, World Bank granted a loan
to the Philippines to be used for financial assistance to many of the Filipinos who are
affected by the pandemic. Below are the most well-known organizations in the world.
• World Bank (WB)
• International Monetary Fund (IMF)
• Asian Development Bank (ADB)

The International Organizations are organizations with a worldwide membership,

scope, or presence. The two (2) main types are the following:
• International Non-governmental Organizations (INGO) are non-governmental
organizations (NGOs) that operate internationally, for example, the
International Committee of the Red Cross.
• International Governmental Organizations (IGOs) are organizations that are
made up primarily of member states, for example, the United Nations (UN).

What’s More

Activity 2: I KNOW

1. Identify one (1) non-state institution which you have known and that can be
found near your area or community.
2. From your answer in number 1, write an essay guided by the question below:

What is the significant contribution of this non-state institution in your

community?

Name of the Non-state Institution: _____________________________________

Contribution to the Community:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

6
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

Rubric for the Essay

Criteria Rating
The answer relates entirely to the assigned topic. 5 4 3 2 1
The answer conveys a genuine personal view regarding the topic. 5 4 3 2 1
The work is original and does not contain plagiarized content. 5 4 3 2 1
Total points (15)

Activity 3: PARTNER FOR LIFE

Basta “Abot mo ang Mundo!” “Bida ang Saya!” Of course, “We find ways!” to “Taste
the Feeling!”

Sounds familiar? Yes, indeed. Those are called taglines or slogan from different non-
state institutions that make their brand distinct. Many of these institutions have played key
roles in boosting the economy of our country. Many of these institutions have always proven
their worth as counterpart of the government, especially in times of crisis. The private-public
partnership is working in our country for the better. Now, let’s move to our next activity.

1. Watch the television, listen to the radio, or browse the internet. What else? Be
resourceful.
2. You are going to research three (3) different non-state institutions or
organizations that can be found in the Philippines, which extended help during
a crisis.
3. Look for their name, their tagline or slogan, and their valuable contribution to
our country.

Name of the Tagline or Slogan Valuable Contribution

Organization

7
 What I Have Learned

Activity 4: LOOK FOR IT

For you to be familiar with some non-state institutions in our country, research
two (2) of the following:

1.
Bank
2
1.
Corporation
2
1.
Cooperative
2.
1.
NGO
2.

What I Can Do
Activity 5: HOW CAN I HELP?

As a learner, give three (3) ways on how you can help in the economic
development in your respective community, city, province, or our country, in general.

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

8
 SUMMARY

Nonmarket Institutions

• Reciprocity exists when there is an exchange of goods or labor between

individuals in a community. This would include direct barter or simultaneous
exchanges of goods or labor.

• Transfer entails a redistribution of income that is not matched by the actual

exchange of goods or services.

• Redistribution can be considered as a combination of transfer and reciprocity.

It involves a centralized collection of goods from members of a group and
redistributes the goods to the same members of the group. community.

Market Institutions

• Market transaction involves parties who sell their goods and services in
exchange for cash from consumers or customers.

• Market and state. The state, through the government, plays an important role
in the market. The government regulates the prices especially for the basic
commodity to protect the interest of the consumers.

• Labor is also considered a commodity and it is an input to the production of

goods and services.

Nonstate Institutions and Organizations

• A bank is a place where people deposit or save their money with interest in a
given period.

• A corporation is a company or group of people authorized to act as a single

entity and recognized as such in law.

• Cooperative or coop refers to an autonomous association whose membership

is voluntary toward the attainment of shared economic, social and, cultural
needs or aspirations.

• A trade union or labor union is an organization of workers whose main objective

is to protect the welfare of its members. In the Philippines, these national
federations are the Trade Union Congress of the Philippines (TUCP) and the
Kilusang Mayo Uno (KMU).

• Transnational Advocacy Groups are involved in social advocacy to promote

principled causes, ideas, and values. In the Philippines, Human Rights Watch
is very active in human rights and peace issues.

9
• Development Agencies are committed and dedicated to distributing aid. Some
of the prominent development agencies in the Philippines are the United States
Agency for International Development (USAID), Australian Agency for
International Development (AusAID) and, the Japan International Cooperation
Agency (JICA)

• Global Organizations operate in the development of entire countries. Some of

the most well-known organizations in the world include the World Bank (WB),
International Monetary Fund (IMF), and Asian Development Bank (ADB).

• International Organizations are organizations with a worldwide membership,

scope, or presence. The two (2) main types are the International Non-
governmental Organizations (INGO) and, the International Governmental
Organizations (IGOs).

10
 ASSESSMENT
POSTTEST

Multiple Choice. Choose the letter of the correct answer.

1. It is considered a commodity and an input to the production of goods and

services.
A. Business C. Labor
B. Income D. Tax

2. An actual or nominal place where forces of demand and supply operate, and
where buyers and sellers interact to trade goods and services.
A. Bank C. State
B. Market D. Transfer

3. The exchange of goods or labor between individuals in the community.

A. Exchange C. Reciprocity
B. Labor D. Transfer

4. A redistribution of income that is not matched by the actual exchange of goods

or services.
A. Market C. Redistribution
B. Reciprocity D. Transfer

5. Refers to a system of economic exchange involving the centralized collection

of goods from members of a group followed by the distribution of those goods
among those members.
A. Redistribution C. Transfer
B. Reciprocity D. All of the above

6. SRP means _____.

A. Suggested Regular Price
B. Suggested Regular Production
C. Suggested Retail Price
D. Suggested Retail Production

7. The following are examples of transfer payments, EXCEPT _____.

A. Constructions of bridges C. Subsidies
B. Free education D. Universal Health Care

8. The following are examples of government purchase, EXCEPT ____.

A. Military arms and ammunitions C. Public Markets
B. Government Hospitals D. Senior citizen’s pension

9. Kilusang Mayo Uno is an example of _____.

A. a Bank C. a Labor union
B. a Cooperative D. an NGO

11
10. The following are common social advocacies EXCEPT ________.
A. Human rights C. International peace
B. IGO D. Women’s rights

11. A development aid categorized to respond during emergencies.

A. Development aid C. Humanitarian aid
B. Foreign aid D. International aid

12. International Committee of the Red Cross is an example of ____.

A. GO C. INGO
B. IGO D. All of the above

13. United Nations is an example of ____.

A. GO C. INGO
B. IGO D. All of the above

14. TUCP and KMU are examples of ____.

A. Advocacy Groups C. Transnational Groups
B. Trade Union or labor union D. All of the above

15. The members are the owners of a cooperative.

A. True C. Neither A nor B
B. False D. A or C

12
 13
ANSWER KEY
PRETEST
1. A 6. C 11. C
2. C 7. A 12. D
3. B 8. D 13. D
4. C 9. C 14. C
5. A 10. B 15. B
POSTTEST
1. C 6. B 11. C
2. B 7. A 12. C
3. C 8. D 13. B
4. D 9. C 14. B
5. A 10. B 15. A
 REFERENCE

Baleña, Ederlina D., Lucero, Dolores M., Peralta, Arnel M. Understanding

Culture, Society, and Politics for Senior High School. Quezon City:
Educational Resources Corporation, 2016.

Contreras, Antonio P., Dela Cruz, Arleigh Ross D., Erasga, Dennis S., Fadrigon,
Cecile C. Understanding Culture, Society, and Politics. Quezon
City: Phoenix Publishing House, Inc., 2016.

14
For inquiries or feedback, please write or call:

Department of Education – Division of Cagayan de Oro City

Fr. William F. Masterson Ave., Upper Balulang, Cagayan de Oro
Telefax: (08822) 855-0048
E-mail Address: cagayandeoro.city@deped.gov.ph