LEGAL BASES OF PHILIPPINE EDUCATIONAL SYSTEM

MAJOR LEGAL BASES

The Philippine Constitutions
1. 1935 CONST. Article XIV Section 5
2. 1973 CONST. Article XV Section 8 (1-8)
3. 1987 CONST. Article XIV Sections 1-5(5)

THE 1987 CONSTITUTIONS

Article XIV Sections 1-5(5)

Section 1. The state shall protect and promote the right of all the citizens to quality
education at all levels and shall take appropriate steps to make such education accessible to all.

Section 2. The state shall:

1. Establish, maintain and support a complete, adequate and integrated system of education
relevant to the needs of the people and society;
2. Establish and maintain s system of free public education in the elementary and high school
levels. Without limiting the natural rights of parents to rear their children, elementary education is
compulsory for all children of school age;
3. Establish and maintain a system of scholarship grants, student loan programs, subsidies and
other incentives which shall be available to deserving students in both public and private schools,
especially to the underprivileged;
4. Encourage non- formal, informal and indigenous learning system, as well as self- learning
independent and out-of-school study programs particularly those that respond to community
needs; and
5. Provide adult citizens, the disabled and out-of-school youth with training in civics, vocational
efficiency and skills.

Section 3.
1. All educational institutions shall include the study of the Constitution as part of the curricula.
2. They shall inculcate patriotism and nationalism, foster love of humanity, respect for human
rights, appreciation of the role of national heroes in the historical development of the country,
teach the rights and duties of citizenship, strengthen ethical and spiritual values, develop moral
character and personal discipline, encourage critical and creative thinking, broaden scientific and
technological knowledge and promote efficiency.
3. At the option expressed in writing by the parent or guardians, religion shall be allowed to be
taught to their children or wards in the public elementary and high schools within the regular class
hours by instructors designated or approved by the religious authorities of the religion to which the
children or wards belong, additional cost to the Government.

Section 4.
1. The state recognizes the complementary roles of the public and private institutions in the
educational system and shall exercise reasonable supervision and regulation of all educational
institutions.
2. Educational institutions, other than those established by religious groups and mission boards,
shall be allowed solely by citizens of the Philippines or corporations or associations at least sixty
per centum of the capital of which is owned by such citizens. The Congress may, however, require
increased Filipino equity participation in all educational institutions. The control and administration
of educational institutions shall vested in citizens of the Philippines. No educational institution shall
be established exclusively for aliens and no group of aliens shall comprise more than one third of
the enrollment in any school. The provisions of this subsection shall not apply to schools
established for foreign diplomatic personnel and their dependents and, unless otherwise provided
by law, for other foreign temporary residents.
3. All revenues and assets of non- stock, non- profit educational institutions used actually, directly
and exclusively for educational purposes shall be exempt from taxes and duties. Upon the
dissolution or cessation of the corporate existence of such institutions, their assets shall be
disposed of in the manner provided by law. Proprietary educational institutions, including those
cooperatively owned, may likewise be entitled to such exemptions subject to the limitations
provided by law including restrictions on dividends and provisions for reinvestment.
4. Subject to conditions prescribed by law, all grants endowments, donations or contributions used
actually, directly and exclusively for educational purposes shall be exempt from tax.
 Section 5.
1. The State shall take into account regional and sectoral needs and conditions and shall
encourage local planning in the development of educational policies and programs.
2. Academic freedom shall be enjoyed in all institutions of higher learning.
3. Every citizen has a right to select a profession or course of study, subject to fair, reasonable
and equitable admission and academic requirements.
4. The State shall enhance the right of teachers to professional advancement. Non- teaching
academic and non-academic personnel shall enjoy the protection of the State.
5. The State shall assign the highest budgetary priority to education and ensure that teaching will
attract and retain its rightful share of the best available talents through adequate remuneration and
other means of job satisfaction and fulfillment.

BATAS PAMBANSA BLG. 232(THE EDUCATION ACT OF 1982)

This was an act providing for the establishment and maintenance of an integrated system
of education. In accordance with Section 2, this act shall apply to and govern both formal and non-
formal system in public and private schools in all levels of the entire educational system.
As provided by this Act, the national development goals are as follows:
1. To achieve and maintain an accelerating rate of economic development and social progress.
2. To assure the maximum participation of all the people in the attainment and enjoyment of the
benefits of such growth; and
3. To achieve and strengthen national unity and consciousness and preserve, develop and
promote desirable cultural, moral and spiritual values in changing world.
It is also stated in Section3 that:
The State shall promote the right of every individual to relevant quality education,
regardless of sex, age, creed socio- economic status, physical and mental conditions, racial or
ethnic origin, political or other affiliation. The State shall therefore promote and maintain equality
of access to education as well as the benefits of education by all its citizens.

RIGHTS OF STUDENTS IN SCHOOL (Section 9)

1. The right to receive competent instruction, relevant quality education.
2. The right to freely choose their field of study subject to the existing curricula and continue their
course up to graduation, except in cases of academic deficiency or violations of disciplinary
regulations.
3. The right to school guidance and counseling services.
4. The right to access to his owns school records and the confidentiality of it.
5. The right to issuance of official certificates, diplomas, transcript of records, grades, transfer
credentials and similar document within thirty days from request.
6. The right to publish a student newspaper and invite resource persons during symposia,
assemblies and other activities.
7. The right to free expression of opinions and suggestions and to effective channels of
communication with appropriate academic and administrative bodies of the school or institutions.
8. The right to form or establish, join and participate in organizations and societies recognized by
the school…, or to form, join and maintain organizations and societies for purposes not contrary to
law.
9. The right to be free from involuntary contributions except those approved by their organizations
and societies.

RIGHT OF ALL SCHOOL PERSONNEL (Section 10)

1. Free expression of opinions and suggestions.
2. To be provided with free legal service by the appropriate government office in case of public
school personnel and the school authorities concerned in case of private school personnel, when
charged in administrative, civil and/or criminal proceedings, by parties other than the school
authorities concerned, for actions committed directly in the lawful discharged of professional
duties and/or in defense of school policies.
3. Establish join, maintain labor organization of their choice to promote their welfare and defend
their interest.
4. To be free from involuntary contributions except those imposed by their own organizations.

SPECIAL RIGHTS and/or PRIVILEGES OF TEACHING OR ACADEMIC STAFF (Section 11)

1. Right to be free compulsory assignment not related to their duties defined in their appointment
or employment contracts unless compensated thereof. (additional compensation Sec. 14 R.A.
4670- at least 25% his regular remuneration)
2. Right to intellectual property………
3. Teachers are persons in authority when in lawful discharge of duties and responsibilities… shall
therefore be accorded due respect and protection (Commonwealth Act No. 578)
4. Teachers shall be given opportunity to choose career alternatives for advancements.

RIGHTS OF ADMINISTRATORS(Section 12)

School administrators shall be deemed persons in authority while in the lawful discharge of
their duties and responsibilities…. Shall be accorded due respect and protection (Commonwealth
Act No. 578)

RIGHTS OF SCHOOLS (Section 13)

1. The right of their governing boards…….to adopt and enforce administrative or
management systems.
The right of institutions of higher learning to determine on academic grounds who shall be
admitted to study, who may teach, and who shall be the subjects of the study and research.

MAINTENANCE OF QUALITY EDUCATION

1. Voluntary Accreditation (Section 29)
2. Teachers and Administrators obligations and qualification (Sections 176 and 17)
3. Government Financial Assistance to Private Schools (Section 41)

OTHER LEGAL BASES

1. Act No. 74
This law was enacted on January 21, 1901 by the Philippine Commission, and provided:
a. establishment of the Department of Public Instruction headed by the General superintendent
b. the archipelago was divided into school divisions and districts for effective management of the
school system.
c. English was made as medium of instruction in all levels of schooling
d. optional religious instructions in all schools (Section 16)
e. establishment of a Trade school in Manila (Philippine College of Arts and Trade- PCAT now
known as Technological University of the Philippines), a school of Agriculture in Negros, a
Normal school in Manila (Philippine Normal School) (Section 18)
 Philippine Normal School, however, was renamed Philippine Normal College (PNC) by
virtue of Republic Act No. 416 on June 18, 1949. And on December 26, 1991, the PNC was
converted to Philippine Normal University as provided by Republic Act No. 7168.

2. Act No. 2706

This was known as the “Private School Law”, enacted on March 10, 1917 by the
Philippine Legislature, which made obligatory the recognition and inspection of private schools
and colleges by the Secretary of Public Instruction so as to maintain a standard of efficiency in all
private schools and colleges in the country.
This law was amended by Commonwealth Act No. 180 passed on November 13, 1936
which provided that:
The Secretary of Public Instruction was vested with power to “supervise, inspect and regulate said
schools and colleges in order to determine the efficiency of instruction given in the same.”
And all private schools come under the supervision and regulation of the Secretary of DPI,
thus eliminating “diploma mills” and substandard schools.

3. Commonwealth Act No. 1 (Amended by R.A. 9163)

Known as the “National Defense Act” passed by the Philippine Assembly on December
21, 1935, which provided in Section 81 that:
“Preparatory Military training shall be given with the youth in the elementary grade school at
the age of ten years and shall extend through the remainder of his schooling into college or post-
secondary education.
By virtue of Presidential Decree 1706, issued by the late President Marcos on August 8,
1980, otherwise known as the “National Service Law”, Commonwealth Act No. 1 was amended,
and required all citizens to render, civic welfare service, law enforcement service and military
service.
4. Commonwealth Act No. 80
This law created the Office of Adult Education on October 26, 1936, so as to eliminate
illiteracy and to give vocational and citizenship training to adult citizens of the country.

5. Commonwealth Act No. 578

Enacted on June 8, 1940, conferred the status of “persons in authority” upon the teachers,
professors, and persons charged with the supervision of public or duly recognized private schools,
colleges and universities.
This Act also provided a penalty of imprisonment ranging from six months and one day to
six years and a fine ranging from 500 to 1, 000 pesos upon any person found guilty of assault
upon those teaching personnel.

6. Commonwealth Act No. 586 (Repealed by R.A. 896)

This is known as Education Act of 1940. It was approved on August 7, 1940 by the
Philippine Assembly.
The law provided for the following:
a. reduction of seven- year elementary course to six- year elementary course.
b. fixing the school entrance age to seven.
c. national support of elementary education.
d. compulsory attendance in the primary grades for all children who enroll in Grade I.
e. introduction of double- single session- one class in the morning and another in the afternoon
under one teacher to accommodate more children.

7. Commonwealth Act No. 589

This law, approved on August 19, 1940, established a school ritual in all public and private
elementary and secondary schools in the Philippines.
The ritual consists of solemn and patriotic ceremonies that include the singing of the
National Anthem and Patriotic Pledges.

8. Republic Act No. 139 (Repealed by R. A. 8047)

Enacted on June 14, 1947, and the Board of Textbooks. This law provided that all public
schools must only use books that are approved by the Board for a period of six years from the
date of their adoption.
The private schools may use books of their choice, provided the Board of Textbooks has no
objections with those books.

9. Republic Act No. 896

Enacted on June 20, 1953 and known as the Elementary Education Act of 1953, it repealed
Commonwealth Act 586 and provided for the following:
a. restoration of Grade VII (but never implemented due to lack of funds)
b. abolition of the double- single session and return to the former practice of only one
c. class under one teacher in the primary and three teachers to two classes or five teachers to
three classes in the intermediate level
d. compulsory completion of the elementary grades
e. compulsory enrollment of children in the public schools upon attaining seven years of age.

10. Republic Act No. 1124 (Repealed by R. A. 7722)

Approved on June 16, 1954, this law created the Board of National Education charged with
the duty of formulating general educational policies and directing the educational interests of the
nation.
However, this Board which was later renamed National Board of Education (P.D. No. 1),
was abolished bu virtue of the Creation of the board of Higher Education as stipulated in Batas
Pambansa Blg. 232. The Board’s function is now assumed by the commission on Higher
Education or CHED by virtue of Republic Act No. 7722.

11. Republic Act No. 1265 (amended by R. A. 8491)

This law was approved on June 11, 1955, and provided that a daily flag ceremony shall be
compulsory in all educational institutions. This includes the singing of the Philippine National
Anthem.

12. Republic Act No. 1425

 It was approved on June 12, 1956, it prescribed the inclusion in the curricula of all schools,
both public and private, from elementary schools to the universities, the life, works and writings of
Jose Rizal especially the Noli Me Tangere and El Filibusterismo.

13. Republic Act No. 4670

Known as the “Magna Carta for Public School Teachers”. This was approved on June
18, 1966 to promote and improve the social and economic status of public school teachers, their
living and working conditions, their employment and career prospects.
It also provided the following:
1. Recruitment qualifications for teachers
2. Code of Professional Conduct for Teachers
3. Teaching hours- 6 hours of classroom teaching (maximum load)
4. Additional compensation- 25% of the regular remuneration
5. Health and injury benefits (thru the GSIS)
6. One year study leave (sabbatical leave) after seven years of continuous teaching, the teacher
should receive 60% of the monthly salary.
7. One range salary increase upon retirement (basis computing the retirement fee).
8. Freedom to form organizations.

14. Republic Act No. 1079

Approved on June 15, 1959, it provided that Civil Service eligibility shall be permanent and
shall have no time limit.

15. Republic Act No. 6655

Known as the “Free Public Secondary Education Act of 1988”, it was approved on May
26, 1988 and provided for:
a. Free public secondary education to all qualified citizens and promote quality education at all
level.
b. No tuition or other fees shall be collected except fees related to membership in the school
community such I.D., student organization and publication.
c. Non- payment of these shall not hinder a student from enrollment or graduation.
d. Nationalization of all public secondary schools ( Section 7)
e. A student who fails in majority of his academic subjects for two consecutive years could no
longer avail of their program.

EASTERN AND WESTERN PHILOSOPHIES

1. Confucianism
A. The way to moral virtues is through natural means
- Be true to oneself nature
- Apply principles of social relationship
- Doctrine of the mean
- Emphasize the individual’s place in the society, getting rid of governments repressive
tendencies, better institutions
- Mans obligation is to preserve right human relationship
- Rulers must serve the people’s interest

B. Contributions
1. Doctrine of the mean
2. Four Nature Principles Every Person is supposed to have
A. Humanity
B. Justice
C. Wisdom
D. Propriety
3. The Golden Rule

2. TAOISM- emphasize man’s place in nature in contrast to Confucianism, it is not concerned

with society, except as something to move away from.

- Man is a microcosm of the universe containing all the elements

- Necessary & make up heaven and earth
- Man’s anguish is caused by unfilled diseases
3. BUDDHISM- originated from the experience of the misery of life
- There is no peace to be found in the world
- Life is caught in the labyrinth of changes
- Nirvana, the only way for peace

The teachings:
1. The four Noble truths
A. Universal fact of pain and suffering, life is the root of suffering
B. Desire are the origin and cause of sufferings
C. Negating life causes suffering
D. The path, which leads to assertion & suffering (accumulating karma or needs that
eventually free the mind)

2. The Eight old path

A. The right view
B. The right resolve aspiration
C. The right speech
D. The right action
E. The right livelihood
F. The right effort
G. The right concentration
H. The right contemplation

4. BRAHMANISM- founded on experience of the divine being who is the one beyond all
multiplicity
a. The individual self and material world are deceptions
b. The only real, non- conscious and beyond good and evil is Brahman or the great self
c. God become man, incarnations
d. Moksha (salvation) consist in an escape the cyclic wheel of time

5. ISLAM- complete surrender to God

-life of man is supposed to be witness and testimony of faith in me God (Allah)

The Five Pillars

A. The Muslim Creed
1. There is no divinity outside God
2. Muhammad is God’s envoy
3. There is no resurrection after man’s death
4. Divine discuss govern good and evil
B. Prayer brings man in the right relationship with God
C. Charity
D. Observance of the Ramadan
E. Pilgrimage to Mecca

6. MATERIALISM- Physical matter is the ultimate reality and that all beings and process and
phenomena can be explained as manifestation or results of matters.

7. IDEALISM- a protest against materialism preoccupied with things “abstract” or “spiritual”

-basis reality is composed of or is closely related to the mind or idea
-mind is real
- reality is spiritual world is manifestation of the underlying physical reality

8. NATURALISM- denies anything as hiring supernaturality

-man in his society are most secondary and defendant upon the natural order
- man is at war with himself

9. PRAGMATISM- society nurtures human life individuals are dependent upon society

10. PERSONALISM- a doctrine that states that the ultimate reality of the world is a Divine
person who sustains the universe by a continuous act of a creative world
 11. EXISTENTIALISM- man is living individual that breaths and thinks that has awful freedom
of moral choice that longs for salvation and faces despair, the individual that lives in
anxiety, and dies.

12. REALISM- physical objects, focus and relations are “out there” waiting to be discovered to
the will of human beings

13. HUMANISM- rejects supernaturalism

-self- realization
- stressed mathematics as an orderly arrangement of its parts
- child is born as tabula rasa

14. COMMUNISM- society is a whole is more and more splitting up into two great classes
facing each other

15. PERFECTIONISM- the ultimate end is the development or perfection of the self

16. ETHICAL EGOISM- an action only if it promotes the good or the best interest of the
performing the act.

17. HEDONISM- the view that only pleasure is the only good as end

18. UTILITARIANISM- claims that the greater happiness or good of the greater number of
persons is the test of the right or wrong.

19. KANTIAN PHILOSOPHY- claims of unconditional morality. If performing an act is a matter

of duty, then we should do it regardless of the consequence.

20. MORAL EVOLUTIONISM- morality is never fixed or absolute but is continually changing
and evolving gradually into perfect morality.

21. MORAL POSITIVISM- holds that the basis or source of all moral laws is the laws of the
state

SOCIAL SCIENCES

Sociology is defined as the scientific study of human groups and interaction in a given society.

The forerunners of sociology are:

Auguste Comte- the father of sociology; the philosopher who coined the term sociology;
developed the first complete approach to the scientific study of society (positivism)

Herbert Spencer-viewed society as similar to a living organism composed of structures with

specific functions; a proponent of the structural functionalism

Emile Durkheim- has extensively studied groups, social behavior on the areas of crime and
punishment, religion and the workplace, using suicide as an index.

Karl Marx- the most important exponent of the conflict theory; his basic argument is that the basic
argument is that the basis of group or social life are competition and conflict between the “haves”
(bourgeois) and the :”have nots” (proletariat); author of the communist Manifesto

Max Weber- a proponent of symbolic interactionism which focuses on the study of social life and
human behavior from the standpoint of the individuals involved in day-to-day interactions

The study of sociology is important because it allows us to obtain information about society and
the different aspects of life in a factual manner, which may be useful for the making of regulations
and policies by community leaders, entrepreneurs and government officials for the good of the
society.

Culture refers to the total lifestyle of a people including all the ideas, values, knowledge, behavior
and material objects that they share. It is categorized into- material culture which consists of all
the physical objects or “artifacts” made or used by people and nonmaterial culture which consist of
all those things that have no physical existence such as language, ideas, knowledge and
behavior.

The components/elements of culture:

1. Beliefs- shared ideas about how the world operates.
2. Values- people’s ideas about what is good or bad, right or wrong.
3. Norms-rules of what people should/should not do, say or think a given situation
4. Folkways-ordinary usage and conventions or everyday life
5. Mores-a folkway with moral tone
6. Symbols-something that can express or evoke meaning
7. Language-a shared set of spoken and often written symbols and rules of combining those
symbols in meaningful ways. It is the storehouse of culture.

Characteristics of Culture:
1. Culture is shared
2. Culture is a group product
3. Culture is learned
4. Culture is transmitted from one generation to the next
5. Culture is patterned and integrated
6. Culture is adaptive and maladaptive
7. Culture is compulsory
8. Culture is cumulative
9. Culture is dynamic
10. Culture is diverse

Ethnocentrism is the tendency to judge other cultures by one’s own standards.

Xenocentrism – the tendency to think that other cultures are superior.

Cultural relativism is the recognition that we cannot judge another’s culture by one’s standards,
after all what might be immoral to a certain group might be moral to another.
The members of a culture share a set of values which represent the people’s conscience. These
values differ from one culture to another that their acceptability is relative.

Culture shock – is a term used to denote a feeling of disorientation, confusion or displacement

because of unknown or poorly understood language, different codes of conduct, unfamiliar food,
and even unfamiliar physical surroundings caused by living in or exposure to a foreign
environment.

Sub-Culture - refers to the attitude of certain groups deviating from the habitual practices of the
majority.

Xenophobia – the fear of foreign culture

Amalgamation – the mixture and blend of different cultural elements to become one.

The analysis of culture maybe done through the (1)ecological approach where cultural elements
are viewed from the context of the total environment in which the society exists, and (2)
functionalist approach where specific components of culture are analyzed through the functions
that they perform, or the effects they have in maintaining social order as a whole.

Society – a population that occupies the same political territory, and participates in a common
culture
Group - is a collection of people interacting together in an orderly way on the basis of shared
expectations about each other’s behavior.
Status – is an individual’s position in a society
Role – a pattern of expected behavior attached to a particular status.
Primary group – a small group in which relationships are both personal and enduring
Secondary group – a large and impersonal social groups based on specific interest or activity
In-group – a social group commanding a member’s esteem and loyalty
Out-group –a social group towards which one feels a sense of composition or opposition and
resistance
Socialization is the process that teaches individuals to become functioning human beings, who
must fit into a number of groups and be productive members of a society; the process of
transmitting culture.

Sex- the biological state of being male or female.

Gender- the personal traits and social positions that members of a society attach to being male or
female.

Male Dominance- a social situation in which more power and prestige are given to men that to
women.

Sexism – the ideology which supports gender inequality and justifies male dominance.

Deviance – a behavior that violates significant social norms and is disapproved by a large number
of people.
Stigma – is a mark of social disgrace that sets the deviant apart from those who consider
themselves normal.
Anomie - a sense of normlessness that happens when people in society are socialized into
desirable social goals but are denied access to institutionalized means of achieving these goals.

Social stratification – refers to the division of a society into layers or strata whose occupants
have unequal access to social opportunities and rewards.
Social inequality – is the unequal sharing of such social rewards as wealth, power and prestige

The five basic social institutions

The family- a relatively permanent group of people related by blood, marriage or adoption. Its
functions are regulations of sexual behavior, replacement of members, socialization, care and
protection, social placement, and emotional support.

Education- refers to the various ways in which knowledge is transmitted to members of the
society. Formal education enhances the integration and stability of society through socialization,
social integration, social placement and cultural innovation. It may also act as an agent of social
change as through it knowledge is diffused; societies modernized, and may contribute to rebellion
or revolution.

Government - the pattern of statuses and roles that a society develops to fulfill the need for order
within it and the need for defense against threats from outside it. Its functions are to implement
political control such as maintaining order, settling disputes, coordinating activities of members
and protecting its citizens from external threats; and plan and maintain activities that involve large
positions.

Religion - a collectively held set of symbols and rituals that express a basic understanding of the
world and address the ultimate concern of the meaning of human existence. Its primary function is
to give emotionally satisfying explanation for the great problems of earthly existence.
Economy- the institutionalized system for production, distribution, and consumption of goods and
services.

Values
Man-is an individual composed of body, soul and spirit. The body constitutes man’s physical
tangible self. Man’s mind will constitute his spirit- his innermost self. The moral and emotional
nature of man is known as the soul.
Ethics- is both the study of human conduct and practical sciences of the morality of human
behavior.
Values- are those that are desirable and meaningful to man as a rational and social being.
- Internalized standardized standards of norms of behavior
- As with any other element of culture values are learned, relative, subjective, hierarchical,
transmitted, caught, and dynamic.
- Are in consonance with the human being’s rationalistic, biological, spiritual, social, political,
economic, moral, aesthetic, creative nature
 -
The Filipino’s Cultural Orientation
-maintenance of smooth interpersonal relations
-pakikipagkapwa tao (hiya
-euphemism, pakikisama
-family oriented
-finds humor even in most trying times
-has the ability to survive
-hardworking and industrious
-faithful and religious
-flexible, resilient, adaptable, creative
-sensitive

Psychology
Psychology – is derived from the Greek words “psyche” meaning soul and “logos” meaning
study. Its common modern definition is: The scientific study of behavior and mental
processes.

Biological Basis of Human Behavior

1. Genetics – the scientific study of how characteristics or traits are handed down from one
generation to the next.
 What genetic traits are transmitted and will manifest is pure a matter of chance
2. The Nervous system – a highly organized communication network that is made of nerve
cells and whose basic purpose is to relay information back and forth among cells.
Psychological Development
1. Heredity – refers to the qualities and potentialities that are genetically derived from one’s
ancestors
- Maturation – the process of unfolding genetically determined abilities and
characteristics
2. Environment – all factors (except genes) that influence the growth and development of an
organism in any way.

Sensation – the process involved in the initiation and propagation of nerve impulses by the
physical stimulation of receptors in the sense organs.
Senses Stimulus Receptors
Sight Light Photoreceptors
in the retina
Hearing Sound Hair cells in
the cochlea
Taste Chemical Taste buds
substances
soluble in
saliva
Smell Air borne Hair cells in
molecules the olfactory
epithelium
Skin senses Physical Free nerve
(touch, pressure endings
temperature, on skin
pain)

Perception – the process by which sensory input is interpreted so as to make it meaningful.

Learning – the process by which a relatively enduring change in behavior occurs as a result of
practice.
Conditioning – a form of learning; the acquisition of specific patterns of behavior in the presence of
well-defined stimuli.
Memory – the process by which information is acquired, stored in the brain, and later retrieved.

Intelligence – the capacity to learn and use information; the sum total of everything we know; the
ability to learn and profit from experience; the ability to solve problems and cope with environment;
the capacity to understand the world and resourcefulness to cope with its challenges; a general
capacity for comprehension and reasoning that manifests itself in various ways.

Motivation – the process of arousing, directing and maintaining behavior.

Emotion – the condition of an organism during an experience that is affectively toned, whether
mild or intense.
Personality – is the distinctive characteristic pattern of thought, emotion and behavior that define
the individual’s personal style and his interaction with the environment.

ECONOMICS
Economics is the study of how societies efficiently use scarce resources to produce
valuable commodities and distribute them to satisfy the needs and wants of their members. It is
also defined as the proper allocation and use of available resources for the maximum satisfaction
of human wants.

The Fundamental economic questions:

1. What goods and services must be produced and in what quantities?
2. How shall these goods and services be produced?
3. For whom shall these goods and services be produced?

BRANCHES OF ECONOMICS
Economics is divided into two branches:

Macroeconomics which deals with the economic behavior of the whole economy of its
aggregates such as government, business and the like. It is concerned about the gross national
product, level of production, unemployment rate, etc.

Microeconomics deals with the economic behavior of individual units or specific segments of the
whole economics such as firms, consumers, price of commodities and the like.

DIVISIONS OF ECONOMICS
1. Production- the process of manufacturing goods needed by the people to satisfy their
needs.
2. Consumption- the proper utilization of economic goods.
3. Distribution- the marketing of goods and services to different economic outlets for
allocation to individual consumers.
4. Exchange-the process of transferring goods and services from one person to another in
exchange for something,
5. Public Exchange- the activity of the government regarding taxation, borrowing and
expenditures.

FACTORS OF PRODUCTION
Factors of Production are economic resources that are necessary to produce economic
goods. They are the following:
1. Land- natural resources.
2. Labor- human resources and manpower
3. Capital- manmade physical productive capacity such as plants, machines, tools and the
like.
4. Entrepreneur- the person who organizes and coordinates all the other factors of
production to produce economic goods.
5. Foreign Exchange- the foreign currency reserve and for importing goods and services in
the process of production.

THE LAW OF DIMINISHING RETURNS

It states that when successive units of a variable input(like farmers) work with a fixed input
(like one hectare of land) beyond a certain point, the additional product (output) produced by each
additional unit of a variable input decreases (Fajardo, 1986).
SUPPLY AND DEMAND
Supply is the flow of goods and services which the firms are willing or can make available
in the market at a given price structure.
 Demand is the relationship between market price and the quantity demanded, expressing
how much of the same commodity or services one consumer or all consumers would but at a
given real price schedule.
Price is the value of a product or services.

MARKET MODELS
Market is an impersonal set of pressures bringing together supply and demand. The
different market models are the following:
1. Pure competition- a market situation where there is a considerable number of sellers offering
the same products.
2. Pure Monopoly- a market situation where there is only one seller of a particular good or
service.
3. Monopolistic Competition- a market situation where there is a relatively large number of
small sellers offering similar but not identical products.
4. Oligopoly- a market situation where there are few firms offering standardized or differentiated
goods and services.

ECONOMIC SYSTEMS
An economic system is a set of economic institution that dominates a given economy
(Fajardo, 1986). The following are the major economic systems in the world today.
1. Capitalism- in this economic system, the factors of production and distribution are owned by
the private individuals or corporations.
2. Socialism- it is the bridge between capitalism and communism. It is a combination of
capitalism and communism. Under this system, the major factors of production and distribution
and industries are owned and managed by the state, while the minor industries are owned by
the private sector.
3. Communism- it is the exact the opposite of capitalism, where all the factors of production and
all the industries are owned and managed by the state. It is also known as command
economy, where private property ownership is not allowed.
4. Mixed Economics- is one that has element form more than one economic system. It contains
both private and public enterprises.

TAXATION
The power to tax is an attribute of sovereignty emanating from necessity. It is a necessary burden
to preserve the state’s sovereignty and a means for the government to provide the citizenry the
needed facilities and protection.
Taxes are enforced proportional contributions from the persons and property levied by the law-
making body of the State by virtue of its sovereignty in support of government and for public
needs.

Nature of the Power of Taxation

1. Legislative – can only be exercised by the law-making body
2. Inherent in sovereignty

Purpose
1. Primary – to provide funds or property with which the government discharges its
appropriate functions for the protection and general welfare of its citizens.
2. Non-revenue objectives
a. To strengthen anemic enterprises by granting them tax exemptions or other conditions
or incentives for growth
b. To protect local industries against foreign competition by increasing import taxes
c. As a bargaining tool in trade negotiations with other countries
d. To counter the effects of inflation or depression
e. To reduce inequalities in the distribution of wealth
f. To promote science and invention, finance educational activities or maintain and
improve the efficiency of local police forces
g. To implement police power and promote general welfare
Classification of Taxes
1. As to subject matter
a. Personal Tax-taxes are of fixed amount upon all persons of a certain class within the
jurisdiction without regard to property, occupation or business in which they may be
engaged.
 b. Property Tax-assessed on property of a certain class
c. Excise Tax- imposed on the exercise of a privilege
d. Customs Duties- duties charged upon the commodities on their being imported into
or exported from a country
2. As to Burden
a. Direct Tax- both the incidence of and liability for the payment of the tax as well as
the impact of burden of the tax falls on the same person.
b. Indirect Tax- the incidence or liability of the payment of the tax falls on one person
but the burden thereof can be passed on to another.
3. As to purpose
a. General Tax- levied for the genera or ordinary purposes of the government
b. Special Tax- levied for special purposes
4. As to manner of computation
a. Specific Tax- the computation of the tax or the rate of the tax is already provided for
by law
b. Ad Valorem Tax- tax of a fixed proportion of the value of the property with respect to
which the tax is assessed; this requires the intervention of assessors or appraisers
to estimate the value of such property before the amount due from each taxpayer
maybe determined.
5. As to taxing authority
a. National Tax- levied by the National Government
b. Local Tax- levied by the local Government
6. As to rate
a. Progressive Tax-rate or amount of the tax increases as the amount of the income or
earning of the taxed increases
b. Regressive Tax-tax rate decreases as the amount of the income to be taxed
increases
c. Proportionate Tax- based on the fixed proportion of the value of the property
assessed.

Basic Principles of a Sound Tax System

1. Fiscal adequacy – the sources of revenue should be sufficient and elastic to meet the
demands of public expenditure
2. Equality or theoretical justice – the tax burden should be in proportion to the taxpayer’s
ability to pay
3. Administrative feasibility – tax laws must be capable of convenient, just and effective
administration on the part of both the government and the taxpayer
4. Consistency or compatibility with economic goals.
Taxation in the Philippines adheres to the principles of equality, uniformity and we adapt
progressive system taxation.
Limitations on the Power of Taxation
1. Constitutional - those expressly provided by the constitution or implied from its provisions
a. Observance of the due process of law and equal protection of the law (Sec.1,ArtIII)
b. Rule of uniformity and equity in taxation (Sec.28 (1), Art VI)
c. No imprisonment for non-payment of poll tax (Sec 20, Art III)
d. Non-impairment of the obligation of contracts (Sec 10, Art III)
e. Prohibition against infringement of religious freedom (Sec 5, Art III)
f. And the limitations on the granting of tax exemptions; and judicial review of all cases
involving the legality of any tax, impost, assessment, or any penalty imposed in relation
thereto.
2. Inherent – those not embodied in the Constitution
a. Taxes may be levied only for public purpose, or a purpose affecting the inhabitants of
the state or taxing district as a community and not merely as individuals
b. Power to tax is limited to the territorial jurisdiction of the state
c. Prohibition against delegation of taxing power
Tax avoidance-when a tax payer uses his knowledge of taxation to avoid of minimize the payment
of taxes; this is legal and therefore allowed by law.
Tax evasion- when a tax payer deliberately fails to pay tax due to the government-, this is illegal
and therefore punished by law.

Agrarian Reform
Agrarian Reform – is a social/political movement to bring about land reforms and to improve the
economic conditions of the farmer. The rationale of the comprehensive agrarian reform is to free
the tenant farmers from the bondage of the soil. The redistribution of the lands regardless of fruits
or crops produced, to farmers and regular farm workers who are landless, irrespective of tenurial
arrangements, and includes the totality of factors and support services designed to fit the
economic state of the beneficiaries.
-the basic of AR is social justice or the equitable diffusion of wealth and political power for
common good.
-the root cause of land monopoly in the Philippines can be traced back to the feudalistic influence
of Spanish rule.
-this land monopoly resulted to poverty among the Filipino masses.
-in democratic countries like the Philippines, this problem is solved by land distribution
- RA 6657-the Comprehensive Agrarian Reform Law is the basic law being implemented by the
government now to solve the inequitable distribution of land and alleviate the economic conditions
of the landless in the country

Salient Features of the CARP

 CARP covers all agricultural lands, public and private, industrial or corporate regardless of the
commodity produced.
 Retention limits of five (5) hectares to owners and three (3) hectares to each child who is at
least 15 years old and actively tilling the land
 Rights of indigenous communities to their ancestral lands are protected to ensure their
economic, social and cultural well-being
 In determining just compensation, the cost of acquisition of the land, the current value of the
property, its nature, actual use and income, the sworn valuation of the owner, the tax
declarations and the assessment made by the government assessors shall be considered.
 Land awarded to the beneficiaries shall be paid to the Land Bank of the Philippines in 30
annual amortizations @ 6%/annum
 the policy on social justice however is not just for the landless farmers but must be balanced
with the interest of the landowners as well thru the observance of the principle of “equal justice
under the law”

Rights of the landowner

1. Due process
2. Equal protection of the laws
3. Payment of just compensation
4. Retention for himself and his qualified children(5 and 3 has respectively)
5. The right to choose the area to be retained