ECONOMIC SYSTEMS

Studiram ekonomiju. Svjetska ekonomija je u krizi.

??? ECONOMY ECONOMICS ECONOMIC ECONOMICAL ECONOMISE ECONOMIST

??? ECONOMY ECONOMICS ECONOMIC ECONOMICAL ECONOMISE ECONOMIST Connected to money or finance Not wasteful A science A scientist To save money by using less of something A country's system of producing and using up of goods exercises

??? How do countries decide what to produce? Our needs and wants are bigger than our financial abilities Countries are like us! resources are limited, and the wants and needs of the population are unlimited!

Economic system Every country has a system by which the country's scarce resources are allocated and decisions are made about the basic economic questions: What to_________ ? How to _________ it? And who gets what is _________d?

Economic system Every country has a system by which the country's scarce resources are allocated and decisions are made about the basic economic questions: What to produce? How to produce it? And who gets what is produced?

Match scarce allocate means of production Raw materials and means of labour (tools, machines, etc.) employed in the production process. To distribute for a specific purpose. not having enough of something.

How are economic systems different? planned mixed market

How much do you know about Croatian economy in the past?

planned economy command, centralized, controlled means of production - owned by the state Decisions made centrally by the government. distribution of goods and services is more equal no competition among companies. socialist economy (in the past: the Soviet Union, Poland, Yugoslavia, etc.) today (e.g., China, Cuba) and even these are changing and starting to rely more on market forces.

uq0 uq0 Command economy, 3’

Market economy unplanned, free market, free enterprise economy Government - passes laws, provides essential services (army, police, justice). means of production - private individuals and businesses. Lot of competition - main aim is to make a profit. market mechanism (the law of supply and demand) decides what to produce, how to produce and who gets what is produced.

Mixed economies Most countries in the world - mixture of planned and market economy Government - passes laws, provides essential services (army, police, justice). Country's economy divided into two sectors: public sector - owned by the government, private sector - owned by private individuals and businesses. most resources are allocated by the forces of supply and demand which makes mixed economies similar to market economies. But! Government has a large role in regulating markets

welfare states Countries where the private sector operates on the basis of the market mechanism but where the government provides a minimum standard of living for everyone through the public sector. pensions, health care, elementary education, unemployment benefits and other help for the poor.

Planned, market or mixed economy? Supply and demand on the market are the only factors that influence what will be produced, how and for whom Some sections of the economy are owned and operated by the state but large portions of business remain in private hands. The system in which all economic decisions are planned and controlled from the centre.

Planned e. Market e. Mixed e. 1. Role of the government 2. Allocation of resources by… 3. Means of production owned by….. 4. Is there competition? PLANNED ECONOMY MARKET ECONOMY MIXED ECONOMY

Planned e. Market e. Mixed e. 1. Role of the government 2. Allocation of resources by… 3. Means of production owned by….. 4. Is there competition? PLANNED ECONOMY MARKET ECONOMY MIXED ECONOMY BIG; ALL DECISIONS ARE MADE CENTRALLY LIMITED; GOVERNMENT INTERVENTION AT MINIMUM OWNS THE PUBLIC SECTOR AND REGULATES THE MARKET THE GOVERNMENT BY THE MARKET; BY SUPPLY AND DEMAND BY THE SUPPLY AND DEMAND THE GOVERNMENT PRIVATE INDIVIDUALS AND BUSINESSES NOYES; THE AIM IS TO MAKE PROFIT YES

Revision: WHAT IS THE DIFFERENCE BETWEEN…? ECONOMICS AND ECONOMY? ECONOMICAL SOLUTION AND ECONOMIC SOLUTION? AN ECONOMIST AND A BUSINESSMAN? BUSINESS AND A BUSINESS?

Revision: ECONOMICS,ECONOMY... MBA training in economics The U.S. economy maintains a very high level of output per person. Economics tries to understand how society allocates its scarce resources RESOURCE ALLOCATION the way that the resources of a country, company etc. are used for different purposes, and how this is decided ECONOMY (noun) An organized system for the production, distribution and consumption of wealth. ECONOMIST (noun) a social scientist with special knowledge in economics ECONOMIZE (AmE)/ ECONOMISE (BrE) The need to economize scarce energy resources. to reduce the amount of time, money, goods etc. that you use

BUSINESS v. A BUSINESS Some smaller companies went out of business last year due to recession. She runs a business restoring old cars. BUSINESS (uncountable noun) the production, buying and selling of goods and services for profit A BUSINESS (countable noun) a person or organization that produces or sells goods and services for a profit e.g. run a business/ set up a business