1.

Economics is the study of the production and consumption of goods and the transfer of wealth to produce and obtain those goods. Economics explains how people interact within markets to get what they want or accomplish certain goals. Since economics is a driving force of human interaction, studying it often reveals why people and governments behave in particular ways. There are two main types of economics: macroeconomics and microeconomics. Microeconomics focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders. Macroeconomics, on the other hand, takes a much broader view by analyzing the economic activity of an entire country or the international marketplace. A study of economics can describe all aspects of a countrys economy, such as how a country uses its resources, how much time laborers devote to work and leisure, the outcome of investing in industries or financial products, the effect of taxes on a population, and why businesses succeed or fail. People who study economics are called economists. Economists seek to answer important questions about how people, industries, and countries can maximize their productivity, create wealth, and maintain financial stability. Because the study of economics encompasses many factors that interact in complex ways, economists have different theories as to how people and governments should behave within markets. Adam Smith, known as the Father of Economics, established the first modern economic theory, called the Classical School, in 1776. Smith believed that people who acted in their own self-interest produced goods and wealth that benefited all of society. He believed that governments should not restrict or interfere in markets because they could regulate themselves and, thereby, produce wealth at maximum efficiency. Classical theory forms the basis of capitalism and is still prominent today. A second theory known as Marxism states that capitalism will eventually fail because factory owners and CEOs exploit labor to generate wealth for themselves. Karl Marx, the theorys namesake, believed that such exploitation leads to social unrest and class conflict. To ensure social and economic stability, he theorized, laborers should own and control the means of production. While Marxism has been widely rejected in capitalistic societies, its description of capitalisms flaws remains relevant. A more recent economic theory, the Keynesian School, describes how governments can act within capitalistic economies to promote economic stability. It calls for reduced taxes and increased government spending when the economy becomes stagnant, and increased taxes and reduced spending when the economy becomes overly active. This theory strongly influences U.S. economic policy today. As one can see, economics shapes the world. Through economics, people and countries become wealthy. Because buying and selling are activities vital to survival and success, studying economics can help one understand human thought and behavior. ... Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek (oikonomia, "management of a household, administration") from (oikos, "house") + (nomos, "custom" or "law"), hence "rules of the house(hold)".*1+ Political economy was the earlier name for the subject, but economists in the latter 19th century suggested 'economics' as a shorter term for 'economic science' that also avoided a narrow political-interest connotation and as similar in form to 'mathematics', 'ethics', and so forth.[2] A focus of the subject is how economic agents behave or interact and how economies work. Consistent with this, a primary textbook distinction is between microeconomics and macroeconomics. Microeconomics examines the behavior of basic elements in the economy, including individual agents (such as households and firms or as buyers and sellers) and markets, and their interactions. Macroeconomics analyzes the entire economy and issues affecting it, including unemployment, inflation, economic growth, and monetary and fiscal policy. Other broad distinctions include those between positive economics (describing "what is") and normative economics (advocating "what ought to be"); between economic theory and applied economics; between rational and behavioral

economics; and between mainstream economics (more "orthodox" dealing with the "rationality-individualism-equilibrium nexus") and heterodox economics (more "radical" dealing with the "institutions-history-social structure nexus").[3] Economic analysis may be applied throughout society, as in business, finance, health care, and government, but also to such diverse subjects as crime,[4] education,[5] the family, law, politics, religion,[6] social institutions, war,[7] and science.[8] At the turn of the 21st century, the expanding domain of economics in the social sciences has been described as economic imperialism.[9] 2. Agrarian Reform could be defined as the rectification of the whole system of agriculture. It is normally done by the government where they redistribute the agricultural land among the farmers of the country. The agrarian reform is concerned with the relation between production and distribution of land among the farmers. It also concerns the processing of the raw materials that are produced by farming the land from the respective industries. .. Agrarian Reform acts and laws in Philippines: gradual evolution The beginning: The idea of initiating land reform programs in Philippines can be traced back to 1963. The enactment of the Republic Act (RA) 3844, Section 49, better known as the Agricultural Land Reform Code emphasized on the foundation of an organization called the Land Authority.Established on 8th August 1963, the Land Authority was endowed with the responsibility of implementing the Republic Act 3844 policies. To hasten up the other activities associated with the land reform programs in Philippines, the Republic Act 3844 offered formal recognition to all the existing agencies involved with similar activities. The functions of these agencies were re-coordinated, with the aim of fulfilling the common objectives of the land reform programs. The 1970s: Republic Act 6389, popularly referred to as the Code of Agrarian Reform of the Philippines proposed the foundation of an autonomous department, the Department of Agrarian Reform (DAR). This independent body was formed to replace the existing Land Authority. The Department of Agrarian Reform was further re-named as the Ministry of Agrarian Reform in 1978, under the then Parliamentary form of government in Philippines. 1980 onwards: The year 1988 saw the formulation of Republic Act No. 6657, popular as the Comprehensive Agrarian Reform Law or CARL. The Comprehensive Agrarian Reform Law or CARL was enacted to offer lawful basis for the implementation of the Comprehensive Agrarian Reform Program or CARP, suggesting the implementation methods as well. In fact, it was the CARL, which empowered the CARP for supporting the activities of the agro-based industries in the country. The post-2000 era: The Department of Agrarian Reform was further re-named as the Department of Land Reform in this era. The Executive Order 364, signed by the Philippine President Gloria Macapagal-Arroyo was enacted to widen the areas of operation of the Department of Land Reform, making it accountable for all land reform activities and programs in Philippines. Further, the Executive Order also made the Department, controller and supervisory body of the Philippine Commission on Urban Poor (PCUP). In addition, recognition of the ownership of the ancestral lands of the native Philippine population also came under the jurisdiction of the Department of Land Reform. Very recently, Executive Order No. 456 was signed by President Arroyo on 23rd August 2005. This Order commanded the Department of Land Reform to revert back to its original name, Department of Agrarian Reform. The aim of the Executive Order 456 was to do something more other than mere reformation of the agrarian land. This specific order considered all the important factors to promote beneficial activities which can lead to overall economic upliftment of the Philippine agricultural sector and the peasant class. Agricultural Sector of Philippines and Agrarian Reforms: effects In spite of Agrarian Reform, absence of symmetry in the land allocation pattern persisted as a permanent plight to the agricultural sector of Philippines. There was hardly any change which took place in the existing relationship between the landlords and the peasants. The relationship was not at all liberalized, but continued to be feudal in nature. Here, the ownership of agricultural land remained

concentrated in the hands of few landlords. It was basically due to the narrow-mindedness of the landholders who showed more interest in controlling the uses of their plots rather than in achieving sustained increase in agricultural productivity. When the chunks of the agricultural land were under the control of the landowners, they put them on rent to the farmers for cultivation. Hence, the tenancy rates in the Philippines rural areas existed and varied between 50% to 70%. This made the landownership somewhat monopolistic in nature in Philippines, where wealth concentrated in the hands of the rich and powerful landlords, while the peasant classes were pushed towards poverty. However, the situation showed substantial improvements, with the passing of the Comprehensive Agrarian Reform Law (CARL) or Republic Act No. 6657. The Law utilized the maximum portion of the 50 billion (US$1.92 billion) fund in initiating developmental land reform programs. Though the development was quite slow in terms of the allocating the lands to the tillers, yet the government was successful in allocating an aggregate of 2.56 million hectares of land among the landless peasants. 3. Taxation is the method by which a government gains revenue to spend on things like public services and welfare benefits. There are many methods by which tax revenue can be gained, and different definitions and structures to taxation which are outlined below. Also, conflicts in choosing methods and forms of taxation occur, pitting priorities such as reducing iniquity of income against maximising incentive for economic growth. ..Principles of a Good Tax System Efficient - A tax system should raise enough revenue such that government projects can be adequately sponsored, without burdening the tax payer too much, becoming a disincentive for investment and work Understandable - The system should not be incomprehensible to the layperson, nor should it appear unjust or unnecessary complex. This is to minimize discontent and costs. Equitable - Taxation should be governed by people's ability to pay, that is, wealthier individuals or firms with greater incomes should pay more in tax while those with lower incomes should pay comparatively less. Benefit Principle - Those that use a publicly provided service (which is funding primarily through taxation) should pay for it! However, conflicts in principle may and often do arise between this and principle 3. ... A means by which governments finance their expenditure by imposing charges on citizens and corporate entities. Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs. See also taxation principles.