4. ECONOMIC INSTITUTION ARE TASKED TO
ANSER THE FOLLOWING QUESTION:
• 1. what goods and services should be produced?
• 2. how should these goods and services be produced?
• 3. for whom should the goods and services be produced?
6. 1. RECIPROCITY
- is a form of gift exchange between two parties wherein return
is expected after product or gift giving.
• 2 things occur during the exchanging products:
a. economic gain
b. social gain
7. Transfer/ government transfer/ transfer payment
-Are payments that are made without any good or service being
received in return.
-Example: pensions and welfare benefits
-Is the process of transferring income and wealth- be it in the form of
money, physical property and from one individual to other individual.
-Example: taxation, land reforms, and charity
2. Transfer and redistribution