1) What would be the implication when the relationship between price and quantity in the market is inversely proportional? Is there a chance that the parents of Raju can possibly appreciate this relationship? How? Justify your answers. (minimum of 5 sentences)

2) Farhan got his dream job as an international wild life photographer. He wanted to save all his income in a bank. Will this contribute to the inflow of the economy? Explain. (minimum of 5 sentences)

3) When Raju was hired, he wanted to completely spend all his income from his work. Will this contribute to the circular flow of the economy? Explain. (minimum of 5 sentences)

4) When taxes are spend on government projects, will this help balance the circular flow of the economy? Explain. (minimum of 5 sentences)

5) If you will be Rancho, how will you teach Raju to resolve his economic situation of his family using the illustration indicated in the circular flow of economic activities. (minimum of 5 sentences)

6) Where is inflation and deflation in this illustration. Explain. (minimum of 5 sentences)

RAJURANCH

O FARHAN

1) Property2) Economic Exchange3) Division of Labor4) Economic Socialization5) Prices6) Principle of Supply and

Demand

ASPECTS OF ECONOMIC SYSTEM

PROPERTY

individual and organization gives each other valuable goods and services in return for different goods and services.

ECONOMIC EXCHANGE

DIVISION OF LABOR

ECONOMIC SOCIALIZATION

PRICES

DEMAND CURVE

THE LAW OF SUPPLY

THE SUPPLY SCHEDULE

SUPPLY CURVE

Too much outflows of money in our economy will result to deflation.Producers

compete more sharply on the fewer pesos in the hands of the consumers

Thus, a drop in the price level and a rise in the value of pesos.

Too much inflows of money into our economy usually results to inflation. Inflation: a decline in the value

of money, with an upward movement of the price level.

When the amount of money in circulation increases, people have more money to spend.

There will be an increase in demand.

Therefore, consumers compete for available goods.

They pay more pesos for the goods they want and consequently, an increase in price.

Inflation then can be described as too much pesos going after a small number of goods.

1) Pre-industrial Society:a) Hunting-gathering society b) Pastoral societies c) Horticulturist d) Agrarian societies

2) Industrial Society:3) Post-industrial society:4) Modern Economic System:

a) Socialismb) Capitalism

DIFFERENT ECONOMIC SYSTEMS

Societies that rely for food primarily on the hunting of animals and the gathering food that grows in the natural environment

HUNTING-GATHERING SOCIETY

society whose primary source of subsistence comes from their herds.

PASTORAL SOCIETIES

HORTICULTURIST

AGRARIAN SOCIETIES

INDUSTRIAL SOCIETY

POST-INDUSTRIAL SOCIETY

no private enterprises because all means of production are owned and are regulated by the government.

MODERN ECONOMIC SYSTEM - SOCIALISM