economy what is produced? how goods are produced how people get products traditional command market...
TRANSCRIPT
ECONOMY What is Produced?
How Goods are Produced
How People Get Products
Traditional
Command
Market
Types of Economic Systems
EX→ Australian Aborigines
What people need to survive
(food, shelter, & tools)
FarmingHunting
Gathering
People make their own, share, or trade
EX→ Soviet Union Cuba
Whatever the government decides
However the government decides
However the government decides
-Class-Reward System-Waiting in Line
ECONOMY What is Produced?
How Goods are Produced
How People Get Products
Traditional
Command
Market
Types of Economic Systems
EX→ Australian Aborigines
What people need to survive
(food, shelter, & tools)
FarmingHunting
Gathering
People make their own, share, or trade
ECONOMY What is Produced?
How Goods are Produced
How People Get Products
Traditional
Command
Market
Types of Economic Systems
EX→ Australian Aborigines
What people need to survive
(food, shelter, & tools)
FarmingHunting
Gathering
People make their own, share, or trade
EX→ Soviet Union Cuba
Whatever the government decides
However the government decides
However the government decides
-Class-Reward System-Waiting in Line
EX→ Canada United Kingdom
Whatever people are willing to buy & sell
Business Owners determine the most
efficient legal methods of production
Determined by how much a person is able
or willing to pay
Return to our……. “Essential
Question(s)”
What are the major physical features of Australia, and where are they located on a map (Great Barrier Reef, Coral Sea, Ayers Rock, and Great
Victoria Desert)?
Ayers Rock“Uluru”
Great Victoria Desert
Great Barrier Reef
CoralSea
R70-71Australian Economy
Today’s Standard
SS6E8 The student will analyze different economic systems.
a. Compare how traditional, command, and market, economies answer the economic questions of 1 -what to produce, 2-how to produce, and 3-for
whom to produce.
b. Explain how most countries have a mixed economy located on a continuum between pure market and pure command.
c. Describe the economic system used in Australia.
Intro to our……. “Essential
Question(s)”
What types of economic systems exist in the world today?
What is the economic system used in Australia?
What is Economics??????Economics is the study of how people
manage their resources.
Types of Economic Systems
Traditional- customs & habits of a society will determine what will be produced & how it will be distributed & consumed
(Usually includes bartering, rather than money). Traditional economies are becoming more rare.
Types of Economic Systems
Command- Government will determine what will be produced & how it will be distributed & consumed.
Government will set prices and set regulations (rules) that industries must follow.
Types of Economic Systems
Market- Individuals, private companies, & consumers will determine what will be produced & how it will be distributed & consumed (Supply & Demand). Individuals and companies
are allowed to produce freely without government interference.
Types of Economy
MIXED- The most common type in the world. Most nations today have some form of “mixed economy.” This means that the national economy may have some aspects of a market economy & some aspects of a command economy.
EXAMPLES
The United States is thought to have a “mixed” economy.The government does not decide what will be produced & how much it will cost, but it does regulate certain goods & services, such as illegal drugs
Australia is thought to have a “mixed” economy. The government does not decide what will be produced & how much it will cost, but it does regulate certain goods & services, such as illegal drugs. Australia is thought to have one of the most free economies in the world.
Economic Systems
PureMarket
(No Government Control)
Mixed Economy(All modern economies fall into this category)
PureCommand
(Total Government Control)
AUSTRALIACertain things are
regulated , like illegal drugs & the Govt.
runs the Postal Service
BRAZILCertain things are regulated & the Govt. runs the Postal
Service & Healthcare
CUBAThe Govt.
runs all industry.
Country Type of Economy
GrowingOr
Struggling
What government controls
AustraliaMixed Market
GrowingNot Much-
Postal Service &Some substances
are illegal
Australian Economic DataSource: CIA World Fact Book
Type of Currency:
Gross Domestic Product (GDP): World Rank:
GDP per Capita:World Rank:
What does a high GDP & GDP per Capita tell us about the Standard of Living in a country?______________________________________________________________
Australian Dollar
$889.6 Billion est.2010
18th $41,300 est. 2010
17th
It is probably pretty good
Specialization- When a country focuses on producing what they can produce and sell most
easily.
Hey Australia! What is your Specialty???????Australia specializes in the production and export of: Coal, Iron Ore, Wool, Wheat, & Mineral Resources
SPECIALIZATION:______________________________________________________________________________________
3 Ways “specialization” benefits (helps) Australia and/or encourages worldwide trading:
_____________________________________________
_____________________________________________
_____________________________________________
When a country produces the few things that it can
produce & sell most easily.
Specializes & makes products from its own natural resources
Exports its products & makes money
Imports products it can’t make itself & other countries make money
****EVERYBODY WINS****
Human-Made Trade Barriers
Tariff – a Tax on Imported Goods (makes them more expensive & makes it less likely consumers will buy)
Quota- A Limit on the amount of goods that can be imported from another country.
Embargo- A total Ban on trade with a country – Usually motivated by politics to hurt another country economically.
Human-Made Trade Barrier
What is it? Why is it done?
TARIFF
QUOTA
EMBARGO
Tax on imported goods
To raise the prices of imported foreign goods, so
people choose to buy cheaper goods made
domestically
Limit on the amount of
imported goods
To raise the prices of imported foreign goods, so
people choose to buy cheaper goods made
domestically
Total ban on imported goods from a country
To punish a country
economically
Open your Gallopade Books to p.165
Return to our……. “Essential
Question(s)”
What types of economic systems exist in the world today?
What is the economic system used in Australia?