Economic Tasks

A. Definition of Economic Tasks

• These are things that have to be fulfilled within the scope of economics.

B. Five Economic Tasks

• An economy has to Determine.

1. Based on the four question with regard to making choices (what, how much, how, and for whom)
2. It is important to know the available resources and what kind of goods and services are found within a given region.

• An economy has to Allocate.

1. Goods and services must be shared justly and evenly among different sectors in society.
2. Private Consumption: for individual use like food, clothing, shelter, etc.
3. Public Consumption: for the common good like healthcare, infrastructure, police protection, etc.
4. Investments: in order to replace worn out capital goods and produce new goods for the future of society.

• An economy has to Distribute.

1. The benefits reaped in the system must be given out evenly to the people.
2. Wages: for the labor force; their salaries, allowance and benefits.
3. Interest: for the banking and finance sectors.
4. Profit: for businesses.
5. Rent: for land and hired services.

• An economy has to Define.

1. They are the people involved in making the decisions about the production and distribution of goods and services.
2. It is important to know the people holding the economic power.
3. For most 3^rd world countries, only a handful control the commerce; they are often referred to as the Economic Elite.
4. In the decisions they make, is it for the good of the nation or only for their personal intent?

• An economy has to Acquire.

1. These are resources not readily available within a given region, but can be provided by outside sources like neighboring countries or the global market.
2. A country can’t survive on its own; there must be interdependence from each nation.
3. The problem is how to evenly distribute the goods among countries and who will make the decisions (North - First World/Developed Nations and South – Third World/Developing Nations)

Further Reading

• Economics lesson plans were based and adopted from Fr. Roberto Yap's economics notes found in the Tulong Dunong Sourcebook and Michael P. Todaro: Economics for a Developing World