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Politics and Economy: Key Concepts Explained

1. The document discusses the relationship between politics and the economy. Political behavior in an economy is shaped by interests, ideas, and institutions. 2. It examines three main economic ideologies: liberalism, Marxism, and economic nationalism. Liberalism supports private ownership while Marxism does not. 3. The conclusion states that politics involves governance and power debates while economy refers to wealth and resources production/consumption. Politics and economy are interrelated as politics forms economic policy and impacts trade, GDP, income, and corruption.

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Wenie Malong Resoso
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11 views2 pages

Politics and Economy: Key Concepts Explained

1. The document discusses the relationship between politics and the economy. Political behavior in an economy is shaped by interests, ideas, and institutions. 2. It examines three main economic ideologies: liberalism, Marxism, and economic nationalism. Liberalism supports private ownership while Marxism does not. 3. The conclusion states that politics involves governance and power debates while economy refers to wealth and resources production/consumption. Politics and economy are interrelated as politics forms economic policy and impacts trade, GDP, income, and corruption.

Uploaded by

Wenie Malong Resoso
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Activity #8

Politics and the economy


I. Objective: To be able to know the politics and the economy.
II. Materials: Paper, computer, Cellphone, flash drive
III. Diagram:

IV. Procedure
The political behavior in an economy is shaped by:
1. Interests
They include the interest of individuals and groups who are able to use their power
to influence policy. Individuals in government tend to promote their own economic
and political interests that will help them retain power.
2. Ideas
It is assumed that individuals are self-seeking and rational and that they are unable
to assess the outcomes of all the choices available to them.
3. Institutions
There are political rules that include the Constitution and define how leaders are
chosen and how a new policy can be implemented. Institutions help structure
incentives facing individuals and groups within the economy.
V. Significant Learning
Political economy is a social science that studies production, trade, and their
relationship with the law and the government. It is the study of how economic
theories affect different socio-economic systems such as socialism and communism,
along with the creation and implementation of public policy.
The modern economist’s theories are split into three ideologies, namely:
1. Liberalism
The liberal ideology stems from the concept of labor and exchange and the use of
land, labor, and capital to produce durable goods. Liberal economists believe that
economics can benefit everyone and that society can progress with the
improvement in the standard of living.
2. Marxism
Marxism states that inequality is bad, and wealth is generated from labor and
exchange. It does not support the private ownership of resources, which it believes
leads to inequality and only favors the needs of the elite and not of the whole
society.
3. Economic nationalism
This is the belief that the state possesses all the power and that individuals should
work to make use of the economic benefits. The ideology states that the
government should control all resources and that individuals are ignorant and
cannot create a cohesive society without a strong state.
VI. Conclusion
The activities associated with the governance of a country or other area, especially the
debate or conflict among individuals or parties having or hoping to achieve power is Politics.
The wealth and resources of a country or region, especially in terms of the production and
consumption of goods and services is Economy. Relation Between Politics and Economy?
There is various way in which politics affects the economy:
• Formation of economic policy
• International trade
• GDP, Per capita income
• Income inequality
• War and disturbance
• Scams and corruption

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