Zoo vs Jungle – Discussion Questions Who would rather live in a Jungle? Who would choose the zoo? Why? What are the most important reasons for your personal choices? What values or beliefs emerge in these answers? What are the drawbacks to living in the environment you have chosen to live in?

Economic Systems How we solve scarcity

The communists are coming!

ECONOMICS Economics is the study of the production, distribution and consumption of Goods and Services. An Economic System is the way a society organizes the production, distribution, and consumption of goods and services.) They organize themselves this way in order to solve the problem of scarcity – how can we balance unlimited wants/needs with limited resources (land, labour, capital)?

What do Economic Systems Value? The PUBLIC GOOD is about what’s best for society as a WHOLE. Governments differ on how to achieve it. COOPERATION: set aside individual interests to meet the needs of the group; recognizes needs and circumstances; values EQUITY – “Communism” INDIVIDUALISM: what’s best for individuals will add up to what’s best for society; values creativity and INDEPENDENCE. - “Capitalism” There are extremes at either end of the continuum. Can you think of some examples of other countries we can place on the continuum?

Economic Systems There are 3 types of Economic Systems: Market Economic Systems (Right) Planned Economic Systems (Left) Mixed Economic Systems (Middle) Economic systems are constantly changing to suit the needs, resources and ability of its country.

Market Economic System (right) In these economies, resources (FOPs) are owned privately (individually), ownership is based on competition. AKA: Laissez-Faire Capitalism; Private Enterprise, or Free Market Economy Gov’t owns nothing, no gov’t involvement in economy (mostly) Values individualism Practiced by the USA

Centrally planned economies (left) In these economies, resources (FOPs) are owned publically (collectively); there is no private property. Decisions about the economy are made by the government based on it’s political judgment. AKA: Public Enterprise, Command Eco. And Socialist Gov’t owns everything. Completely involved Values Collectivism Common in Sweden, Finland, China, and Cuba

Market vs planned https://youtu.be/bf3UlmoKVRU

Mixed economy (middle) Combines both elements of Planned & Market Economies Decisions are based both on the actions of individuals in the market and on government policies. AKA Democratic Socialism, Welfare Capitalists Has private AND public ownership Values Collectivism & Individualism Can be found in…Canada!

ECONOMIC SYSTEMS can SHIFT LEFT or SHIFT RIGHT depending on social and political factors affecting the economy, such as VALUES, STANDARD OF LIVING and QUALITY OF LIFE.

Answering the basics How Each Economic System Will Answer the Basic Economic Questions Centrally Planned Mixed Market What will be produced? Essentials Essentials/Wants What the people want By whom will it be produced? Government Government/ Entrepreneurs Entrepreneurs For whom will it be produced? Citizens Citizens/People who can afford it People who can afford it

The Political and Economic Spectrum COMMUNIST CENTRALLY PLANNED TOTALITARIAN PLANNED CAPITALIST FREE MARKET FREE ENTERPRISE LAISSEZ FAIRE SOCIALIST MIXED MODIFIED MARKET The Left side. Change is good. Large amounts of Government involvement in the economy The Right side. Change is bad. Little or No Government involvement in the economy.

Pros and cons of Capitalism (Market Economy) Competition makes people innovative Better products at low prices Encourages economic growth Without gov’t intervention, less fortunate can be abused

Pros and cons of communism (planned economy) Share of work Share of products Doesn’t usually work because man is selfish and sharing is difficult to establish and continue

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