COLLEGE OF ARTS AND SCIENCES

Department of Economics

ECONOMICS 20.1

BASIC PRINCIPLES OF ECONOMICS WITH APPLICATIONS IN TAXATION,

AGRARIAN REFORM AND CONSUMER EDUCATION
Academic Year 2015-2016
INFORMATION
Weight: Case Study/Position Paper
Name of Student: Roxl Rhyann F. Fallore
Teacher: Mr Jhon Louie B Sabal,
Section: EA
Assistant Instructor, Department of Economics
Instructions: This Case Study (Equivalent of a position paper) is a major requirement of this class. It
hopes to:
a. Analyze how economic systems work
b. Compare and contrast the characteristics of the major economic systems
c. Compare one country with another by reference to factors associated with economic
performance
This is your return demonstration in the class. Please limit only your answers in 2 pages.
QUESTION
CONTEXT:
What events prompted the continuity of Chinas
growth?

GOALS:
What are the key concepts of Chinas
Political/Economic System?

STRUCTURE:
What are the important bodies in Chinas rigorous
process of selecting its leaders? Explain.

ANSWER
The following were the events that prompted the
continuity of Chinas growth:
Radical land
collectivization, Great Leap Forward, Privatization
of farmland, Cultural Revolution, Deng Xiaopings
market reform, and the opening of Party
membership to private business people by Jiang
Zemin.
The key concepts of Chinas Political/Economical
System are: Adaptability, meritrocracy, and
legitimacy. In terms of adaptability, Chinas oneparty system self-corrects through enactment of
rules to correct previous dysfunctions of their
system. Through meritrocracy, China was able to
form separate, yet integrated career paths for
their officials; they were being trained starting
from the bottom level (keyuan) of positions up to
the top levels (ju). Legitimacy of their political
system has been evaluated through the level of
satisfaction of their people and how optimistic
they are in their countrys future.
China has a department so called Partys
Organization Department.
This department
operates a rotating pyramid made up of three
components/bodies:
state-owned enterprises,
civil service, and social organizations. With these
three bodies, they recruit college grads into entry-

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Department of Economics

MILESTONES:
What are the positive impact to various sectors,
government and the consumers of this system?

CHALLENGES:
What are the pertinent and emerging issues and
problems encountered under this system?

ANALYSIS:
What are the positive and negative areas of this
system?

level positions starting from the bottom level

called keyuan (clerk). The keyuan could then
be promoted through four increasingly elite ranks:
Fuke (deputy section manager), ke (section
manager), fuchu (deputy division manager), and
chu (division manager). Their performance would
be reviewed by the department once a year.
Those who performed well will be promoted
beyond the four base levels to the fuju (deputy
bureau chief) and ju (bureau chief) levels. By the
point the recruited people reach the top levels,
they will be assigned to manage a district with a
population in millions or a company with
hundreds of millions of dollars in revenue.
The positive impact of communism to the
government and various sectors is that they have
the control of most means of production in their
country. The government also dictates economic
structure which leads to economic stability. As for
the consumers, they will have no problem in terms
of acquiring their needs since resources are
allocated to those who need them most.
Though control of the means of production being
given to the government has considered a positive
impact to them, this has been also considered an
emerging issue since there would be limitations
for the amount a business can produce and how
much money it can earn; this has been a pertinent
issue among consumers. Since goals have been
centralized and most manufacturing industries
under communism are goal-oriented, destruction
of the environment has been a problem as firms
only aim to meet their production while neglecting
their responsibility on pollution control.
Ideally, people are equal in communism. In a
communist country, economic boundaries do not
separate people which helps mitigate crime and
violence. Due to the fact that the government
owns all means of production, they provide jobs
for the majority of the people. There is no
competition among producers which would lead
to a harmonious economic development. On the
negative part, communism promotes equality so
much that workers are paid equally no matter how
hard each worker works; which would give little
motivation to workers and worst, would lead to
inefficiency in terms of performance, which would
lead to poor-quality production. Strict laws are
also implemented that very few rights and
freedom are given to the people.

COLLEGE OF ARTS AND SCIENCES

Department of Economics