Economic Systems Spring Semester 2018
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Economic Systems Spring Semester 2018

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Economic Systems Spring Semester 2018




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Presentation on theme: "Economic Systems Spring Semester 2018"— Presentation transcript:

Slide1

Economic Systems

Spring Semester 2018

Rixie

Slide2

Always remember…

Economics is the study of choices related to resources, production, and consumption

Slide3

4 Types of Economic Systems

Command

Market

Traditional

Closed

Slide4

#1 Command Economies

Characteristics

:

Centrally

operated by

government, which:

Prohibits

personal property

Decides

what is madeControls prices and supplies

Major Goal:

Create

social equality

Slide5

#2 Market Economies

Characteristics

:

Pure

Market

Economy:

No gov’t intervention

Mixed

Market

Economy:Combo of command

&

pure market

Some gov’t interventionProducers & consumers can make economic decisions

Major Goal:

Promote

free economic choices

Slide6

#3 Traditional Economies

Characteristics

:

Based

on traditions/customs of family/community

Center

on barter/trade

(not $)

Hunting

, gathering, farming

Major Goal:

Preserve

traditional customs

Slide7

#4 Closed Economies

Characteristics

:

Restrict

trade with international partners

Isolation from rest

of the

world

Major Goal:

Maintain

self-sufficiency

Slide8

Quick Quiz

The

most common economic system in the world is

a

closed economy

.

command economy

.

mixed market economy

.

traditional economy.

Slide9

Quick Quiz

What

is one example of a closed economy?

a

barter system that does not rely on money or other

currency

a restricted system that blocks trade with international

partners

a trade-based system that encourages the flow of goods and

services

an old-fashioned system that preserves traditional choices and customs

Slide10

Quick Quiz

The

goal of a command economy is to

sustain self-sufficiency

.

preserve traditional customs

.

create equality within a society

.

promote free economic choices.

Slide11

Governments & Economic Systems

The more involved a gov’t is in the economy, the more restrictive that economy will be

Slide12

Command Economies: Socialism

Gov’t

can control factories/means of

production

Citizens may often own homes, but not businesses

Slide13

Command Economies: Communism

Focus

on promoting

social/economic

equality

The state:

Owns property

Employs workers

Slide14

Mixed Market Economies: Republics

Provide many freedoms

Elect

representatives

Citizens can:

Change jobs

O

wn businesses

People provide their own necessities

Slide15

Comparing Command & Mixed Market Economies

Command

Pros

Cons

Pros

Cons

Gov’t may provide necessities

for citizens

Tough to start a business

Independence

& choice

Citizens

pay for necessities

Smaller income gap

Tough to become rich

Greater

opportunity to gain wealth

Larger

income gap

High

taxes

Employment not guaranteed

Mixed Market

Slide16

Quick Quiz

A mixed market economy tends to exist under

a

communist

government that provides little

regulation.

democratic

government that provides some

regulation.

representative government that provides no regulation.

socialist

government that provides a lot of regulation.

Slide17

Quick Quiz

In

a communist command economy, workers are employed

by

the agencies.

the

consumers

.

the producers

.

the state.