7 th Grade- This information is meant to be used in conjunction with the 6 th and 7 th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
• How many basic types of economic systems are there?• Name the economic systems.• Which economic system do most textbooks say is the most common throughout the world?
• How many basic types of economic systems are there? 3• Name the economic systems. Traditional, Command, Market• Which economic system do most textbooks say is the most common throughout the world? Mixed.
Georgia Performance Standards• SS7E5 The student will analyze different economic systems.• b. Explain how most countries have a mixed economy located on a continuum between pure market and pure command.• c. Compared contrast the economic systems in Israel, Saudi Arabia, and Turkey.
Israel(1) What to produce?A large portion of Israel’s GDPcomes from high techmanufacturing, financialservices, and agriculture.
(2) How to produce?Israel has substantialgovernment ownership ofbusiness, but is graduallyprivatizing companies.
(3) For whom to produce?The private sector producesgoods and services for domesticand international markets basedon the market price system.
Israel ic om on ms 68% E c te S ysPlace on the continuum: Israel would fall in themiddle of the market side on the continuum. Pure PureCommand Market
Saudi Arabia(1) What to produce?Saudi Arabia is theworld’s leadingproducer of oil. TheSaudi governmentcontinues to invest inindustrial production.They are a leader inpetrochemicals,mining, and refining.
Saudi Arabia (2) How to produce?• Over 95% of the oil industry in the country is operated by the government. Most other major industries have significant government involvement.• Saudi Arabia relies heavily on specialized labor from other countries. Estimates are that a third of the labor force falls in this category.• Since the 1980s, the Saudi government has been trying to increase private ownership of business and encourage more joint ventures with private foreign companies.
Saudi Arabia3) For whom to produce? • One third of Saudi Arabia’s GDP is based on exports to other countries. (This is due to the economy’s reliance on the oil sector.)
ic om o n msEc te S ys Saudi Arabia 64%Place on the continuum: Saudi Arabia would fallto the left of Israel on the continuum. Pure PureCommand Market
Turkey(1) What to produce?Turkey has a diversified economy withlarge service, manufacturing, andagriculturalsectors.
(2) How toproduce?Since the late1980s, Turkey hasgradually movedfrom agovernmentdirected economyto more privateenterprise.
(3) For whom to produce?One fifth of Turkey’s production isexported. The remainder isconsumed by domesticconsumers andthe government.
ic om o n msEc te S ys Turkey 62%Place on the continuum: Turkey would fall to the left of SaudiArabia and Israel on the market side of the continuum. Pure PureCommand Market
ic om o n ms IsraelEc te 68% S ys Turkey 62% Saudi Arabia 64% Pure PureCommand Market