Econ Systems SFLS

1. Levels of Economic Development
Types of Economies
and

2. Levels of Economic Development
Types of Economies
and

3. 1.) Primary sector
Levels of Economic Development
- Consists of agriculture, fishing,
and activities such as mining,
and oil extraction.

4. 1.) Primary sector
Levels of Economic Development
2.) Secondary sector - Wide range of manufacturing
such as food processing, textiles,
clothing, iron and electronics.

5. 1.) Primary sector
Levels of Economic Development
2.) Secondary sector
3.) Tertiary sector - Services and diverse activities
as transportation, banking,
retailing and information
technology.

6. {
1.) Primary sector

7. 2.) Secondary sector

8. 3.) Tertiary sector

9. Levels of Economic Development
Types of Economies
and

10. Ways to interpret Economic theory
Positive economics
is the study of what is
结果是基于数据
Normative economics
is the study of what should be
是基于你的愿望是什么结果
The next few slides are a very brief introduction to
the history that created the different types of
economies we have today.

11. {
His political philosophy
政治哲学 influenced
the French Revolution
法国大革命
as well as the overall
development of
modern political,
sociological, and
educational thought.
Jean-Jacque
Rousseau

12. {
Famous book called: Social contract
社会契约
Man is born free, but is everywhere in chains
人是生而自由的，但无处不在链
The legislative power belongs to the
people, and can belong to it alone
立法权力属于人民，属于它的单独
Jean-Jacque
Rousseau
An example of a thinker that inspired very
different ways of viewing the world
afterwards.

13. {
He noticed how rich French people lived
compared to the poor French of his time.

14. {His writings inspired things like the French Revolution

15. Adam Smith (1723 - 1790)
was a Scottish moral philosopher
苏格兰哲学家, pioneer of political
economy 政治经济学的先驱, and
key Scottish Enlightenment苏格兰
启蒙运动figure
Rousseau was even read
by people like Adam Smith
and helped to inspire
Smith as well.

16. Adam Smith (1723 - 1790)
was a Scottish moral philosopher
苏格兰哲学家, pioneer of political
economy 政治经济学的先驱, and
key Scottish Enlightenment苏格兰
启蒙运动figure

17. {
“It is not from the benevolence
of the butcher, the brewer, or the
baker, that we can expect our
dinner, but from their regard to
their own interest”
“这不是从仁的屠夫，酿酒商，或
面包师，我们可以期望我们的晚
餐，但他们关于自己的兴趣”
Adam Smith’s famous book
The Wealth of Nations

18. {
在追求他个人私利的过程中,他常常会更有效地使
社会变得更好, 比他原先想作或未想作的更有效.
Adam Smith’s idea led to the
understanding of people to build and
create new things and how this made
the world a better place for everyone.

19. {
Karl Marx
was a German
philosopher,
economist, sociologist,
historian, journalist,
and revolutionary
socialist.
Writing about 50 years later,
he saw the world in a very
different way.

20. {
You have nothing to lose except your
chains
你有什么可失去的，除了你的链条
The history of all hitherto existing
society is the history of class
struggles
整个世界的历史是阶级斗争
The Communist Manifesto
“共产党宣言”
Karl Marx

21. {
整个世界的历史是阶级斗争
He thought this new
capitalism was just more
exploitation of people.

22. {
Karl Marx
Adam Smith
So much of the history and
fighting of 20th century was
between the ideas of these
different sides.

23. 冷战
It led to things like the cold
war….

24. And almost the destruction
of the entire planet. That’s
how important these ideas
were.

25. Levels of Economic Development
Types of Economies
and

26. 1.) Command Economy
Types of Economies
- Government plays the
central role in market
decision making

27. 1.) Command Economy
Types of Economies
i.) What to produce.
ii.) How much to produce.
iii.) How to produce it.
iv.) Who to produce it for.
Determined by
Government
preferences.

28. Ways to interpret Economic theory
Positive economics
is the study of what is
结果是基于数据
Normative economics
is the study of what should be
是基于你的愿望是什么结果
Warning – These next slides are a simplified overview of the
results of having Command economies. Please view these as
Positive economics.

29. Command Economies have
mostly failed in the real world
to provide for it’s citizens.
Positive economics
is the study of what is
结果是基于数据
Normative economics
is the study of what should be
是基于你的愿望是什么结果

30. {
North Korea at night – show how
undeveloped this command economy
is compared to the rest of the world.

31. {
He was a big follower of
Marx and Command
economies ideas… didn’t
work so well.

32. {

33. {
大跃进
This really was an economic disaster
and led to the suffering of millions of
people.

34. {
柬埔寨
A similar thing happened
here and led to the death
and starvation of millions
of people.

35. {
柏林墙
Countries on the East side
of the wall – the Command
economy side also did not
grow as well as those in the
West.

36. {
After the wall fell in 1989 the
countries in the East opened up
the to world.

37. {
It was not always easy but
them Command economy
countries did but better
after they moved to the free
market.

38. 1.) Command economy
Types of Economies
2.) Free Market economy - Decisions about
how to allocate分配
resources are left up
to people themselves.

39. Types of Economies
i.) What to produce.
ii.) How much to produce.
iii.) How to produce it.
iv.) Who to produce it for.
Determined by
consumers preferences
2.) Free Market economy
Determined by
producers seeking profits
Determined by
purchasing power

40. Free Market economies are
the most vibrate 積極 and best
economies in the world.
Positive economics
is the study of what is
结果是基于数据
Normative economics
is the study of what should be
是基于你的愿望是什么结果

41. By pursuing his own interest he
frequently promotes that of the
society more effectually than
when he really intends to
promote it.
在追求他个人私利的过程中,他常
常会更有效地使社会变得更好,
比他原先想作或未想作的更有效.
Adam Smith’s famous book
The Wealth of Nations

42. {
By preferring the support of domestic to that of foreign industry, he
intends only his own security; and by directing that industry in such a
manner as its produce may be of the greatest value, he intends only
his own gain, and he is in this, as in many other cases, led by an
invisible hand to promote an end which was no part of his intention.
Nor is it always the worse for the society that it was not part of it.
他(公司的总经理或拥有人)宁愿支持自己的公司而不支持别人的公司,为
的是他自己的安全; 于是他若是把他自己公司的产品素质或价值提高,他
只是为了要争取更多私利, 那么他在这件事上, 和在其它的事上一样, 会
被一隻无形的手导引着去达成一种不是他原先想要的结果. 而且这结果
并不一定会对他公司不归属的社会造成坏的影响.
Adam Smith’s famous book
The Wealth of Nations

43. He opened up to free
market ideas which helped
to develop and grow the
country in amazing ways.

44. {

45. {

46. 1.) Command economy
Types of Economies
2.) Free Market economy
3.) Mixed economy - Incudes private and public
sectors, with only some
government control.

47. Types of Economies
i.) What to produce.
ii.) How much to produce.
iii.) How to produce it.
iv.) Who to produce it for.
Determined by
consumers and
government preferences
Determined by
producers seeking profits
and government regulation
Determined by
purchasing power and
government preferences
3.) Mixed economy

48. Positive economics
is the study of what is
结果是基于数据
Most countries in the world are to
some degree，a mixed economy.

49. {

50. Index 索引 of Economic Freedom
free
北朝鲜
# 177
command mixed
古巴
# 176
香港
# 1
新加坡
# 2
美国
# 11
中国
# 137
加拿大
# 6
英国
# 14俄国
# 140
德国
# 18
法国
# 70
巴西
# 114

51. Summary so far…

52. 1.) Primary sector
Levels of Economic Development
2.) Secondary sector
3.) Tertiary sector - Services and diverse activities
as transportation, banking,
retailing and information
technology.
- Wide range of manufacturing
such as food processing, textiles,
clothing, iron and electronics.
- Consists of agriculture, fishing,
and activities such as mining,
and oil extraction.

53. 1.) Command
economy
Types of Economies
3.) Mixed
economy
- Government plays the
central role in market
decision making.
- Incudes private and public
sectors, with only some
government control.
2.) Free Market
economy
- Decisions about how to
allocate resources are left up
to people themselves.

54. 1.) Command Economy
Types of Economies
i.) What to produce.
ii.) How much to produce.
iii.) How to produce it.
iv.) Who to produce it for.
Determined by
Government
preferences.

55. Types of Economies
i.) What to produce.
ii.) How much to produce.
iii.) How to produce it.
iv.) Who to produce it for.
Determined by
consumers preferences
2.) Free Market economy
Determined by
producers seeking profits
Determined by
purchasing power

56. Types of Economies
i.) What to produce.
ii.) How much to produce.
iii.) How to produce it.
iv.) Who to produce it for.
Determined by
consumers and
government preferences
Determined by
producers seeking profits
and government regulation
Determined by
purchasing power and
government preferences
3.) Mixed economy

57. The End
Thanks
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