Economic institution

PREPARED BY:
SUNSHINE JOY SALIBIO SOBERANO
ANGELICA DUPITAS
 Institution are basically
durable systems of
established and embedded
social rules that create a
social structure for social
interaction.
Hodgson,2001
  Are the formal and
informal rules that
organize the economic
flow and activity of a
society.
Kelly, 2012
• A company or an organization
that deals with money or with
managing the distribution of
money, goods, and services in
an economy.
A. Reciprocity
•Is a form of gift exchange
between two parties
wherein return is expected
after product or gift giving.

(Parry, 1986)
B. Tranfers
•Are payments that are
made without any good or
service being received in
return.

(Bishop, 2012)
C. Redistribution

• It is the act of the government to

distribute income from the
wealthy businesses and citizens to
the less wealthy.

(Mares, 2014)
• In economics the theory, policy or
practice of lessening or reducing
inequalities in income for example
through such measures like
progressive taxation and anti
poverty programs.
D. Market Transaction

oPurchases
Buyer and seller interact with
one another to exchange goods
for an amount of money.
 oLoans
Loans are money advanced to
a businesses with an interest
charged that must be paid and
returned at some point in the
future.
o Loans (Mortgage)

Type of loan that was created

for purchasers to be able to
make homeownership more
attainable.
o Bank Accounts

PNB
METRO BANK
LANDBANK
BPI
E. Market and State

• Market
A system of private ownership and enterprise that
acts based on their own private and self interest.

• State
The governing body of the society.