Allocation and

Economic Systems

Tr. Cherrie
 Lesson Objectives:
1.Analyze the relationship of allocation to scarcity and
to needs and wants
2.Examine the mechanism of allocation in the different
economic system as an answer to scarcity.
3.Give the importance of economics in the daily lives of
family and society.
 Allocation

the action or process of

allocating or distributing
something.
 Scarce Resources

Needs and
Wants Allocation Economic
Activities

Three Basic Problems in

Economics
 The Economic
Systems
Covers the structure of
governance composed of
institutions and mechanisms that
deal with activities that answer
questions on the needs of an
economy.
A. Traditional
Economy
B. Market Economy
C. Command
Economy
 1.Traditional Economy

This type of economy answers

problems based on the customs,
traditions, beliefs and norms of
the society.
 2. Market Economy

The…
What?
How?
For Whom?
 Feudalism
 An economic system and
political system that dealt
with extensive land
ownership.
 Mercantili
sm
 Mercantilism is an
economic policy that is
designed to maximize the
exports and minimize the
imports for an economy.
 Capitalism
 Is an economic system in
which ownership of
factors of production-
land, capital, labor and
entrepreneur.
Characteristics of Capitalism

1. Ownership of Resources and

Wealth
2. Decision-making
3. Pricing
 Command
Economy
 The government decides
in addressing the
economic problems under
this type of economy.
Communism

a political theory derived from

Karl Marx, advocating class war
and leading to a society in which
all property is publicly owned and
each person works and is paid
according to their abilities and
needs.
Communism

Karl Marx
“Father of
Communism”
Socialism
Is described as
combination of
capitalism and
communism.
Fascism

Resources and
industries are
controlled by the
state under the
dictator.
 Any
Questions?
 Let’s Check!

If you had the power and the choice, which

economic system would you establish in
the Philippines? Why and how would you
do it?
What did you learn?

1. How are your

needs affected by
the economic
system?
What did you learn?

Would it be
beneficial for the
people to choose
which economic
system to operate?
Why?
What did you learn?

\How would you

picture the
Philippines as
communist
country?
Thank
you!