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Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
Economic Systems
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Economic Systems

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Transcript

  • 1. Economic Systems
  • 2.
    • Traditional
    • Command
    • Market
  • 3. Objectives
    • Identify three questions that all economic systems must answer.
    • Describe a traditional economy
    • Describe a command economy
    • Describe a market economy
    • Explain how most economies have a mixed economy located on a continuum between a market and command economy
  • 4. Vocabulary Break Economic System
    • the system of production and distribution and consumption
  • 5. Three Economic Questions
    • What to produce?
    • How to produce?
    • For whom to produce?
  • 6. Traditional
    • A traditional economy is shaped largely by customs and religion.
    • Economic questions are answered by what happened in the past.
    • Traditional economies are mainly found in rural areas.
  • 7. What to produce?-Traditional
    • Just what is needed to take care of self
  • 8. How to produce?-Traditional
    • How it was produced in the past
  • 9. For whom to produce?-Traditional
    • Self and one’s household
  • 10. Positives of a traditional economy
    • Predictable
      • Knowing what your job will be
      • Knowing the way you will live
  • 11. Problems with a traditional economy
    • Lack many resources
    • Only produce enough to live on
  • 12. Command
    • In a command economy the government answers the three basic economic question
    • Sometimes called communism
  • 13. What to produce?-Command
    • What the government determines
  • 14. How to produce?-Command
    • Government says how to produce
  • 15. For whom to produce?-Command
    • Citizens regardless of market demand
  • 16. Positives of a command economy
    • Because the government makes the decisions, people don’t have to worry about employment, housing, education, and healthcare
  • 17. Problems with a command economy
    • Consumers get low priority
    • Little freedom of choice
    • All resources are owned by the government
  • 18. Market
    • In a market economy, buyers and sellers answer the three economic questions.
    • All resources are privately owned
  • 19. What to produce?-Market
    • Producers and consumers
    • Whatever the market demands that will produce a profit
  • 20. How to produce?-Market
            • By private producers
  • 21. For whom to produce?-Market
    • Consumers who demand the product and are willing to pay
  • 22. Positives of a market economy
    • People can start their own businesses
    • People have choice
  • 23. Problems with a market economy
    • The desire for money may lead to poor quality of goods and services
    • Business owners have to risk losing money
  • 24. Vocabulary Break Continuum
    • A continuous seamless series.
    • A link between things that gradually and seamlessly connects. It is impossible to say where one becomes the next.
  • 25. Continuum of Economies Most Individual freedom No Individual freedom Pure Market Pure Command Most economies fall in between a pure market and a pure command economy on the continuum

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