essential questions
Post on 30-Dec-2015
31 Views
Preview:
DESCRIPTION
TRANSCRIPT
Societies must choose an economic system to reach their economic goals. To help them do
this, they have to answer key questions.
Three Economic QuestionsWhat goods and
services should be produced?
How should goods and services be
produced?
Who consumes the goods and services?
-How much of our resources should we devote to national defense, education, public health, or consumer goods?-Which consumer goods should we produce?
-Should we produce food on large corporate farms or small family farms?-Should we produce electricity with oil, nuclear power, coal, or solar power?
-How do goods and services get distributed?-The question of who gets to consume which goods and services lies at the heart of the differences between economic systems. -Each society answers the question of distribution based on its combination of social values and goals.
Classifying Countries• Developed Country
• Emerging Market
• Newly Industrialized Country
• Developing Country
• Highly industrialized, highly efficient, and whose people enjoy a high quality of life
• Newly industrialized countries plus those with potential to be newly industrialized
• Recently greater national production and exports from industrial operations
• Poor infrastructure and extremely low personal income
• People make economic decisions based on custom or habit.
• Agriculturally based.• They produce only what they need.• Mainly in rural areas of developing
nations.
• Mostly private (individual or business) ownership of economic resources.
• Economic decisions are made by the marketplace – supply & demand.
• Called capitalism, free-enterprise• Government is involved in many
ways.
• Economic resources owned by the government – most land, factories, and other resouces.
• Central government planners make most economic decisions for the people.
• Education, health care, and welfare services are provided
• Called command, socialist, or communist
• A mix of socialism and free enterprise in which the government plays a significant decision making role.
• Resources are spilt rather evenly.
• Called social democratic, liberal socialism
The forces that determine prices of goods and services
in a market economy is called
Supply &
Demand
A classless society (everyone is equal)
One-party rule, gov’t ownership of the
means of production, and decision making
by centralized authorities.
MixedCombination of socialism and free enterprise.
Gov’t plays a significant role in making economic decisions.
Quick Recap• Modern Economic
Systems– Traditional– Centrally Planned– Mixed– Free Market
• Economic System Types– Capitalism– Socialism– Communism– Mixed
top related