© EMC Publishing, LLC.

Slides:

Advertisements

Similar presentations

1 Chapter 22 Practice Quiz Tutorial Economies in Transition ©2004 South-Western.

Advertisements

Do Now: 2/09/ Describe the steps of critical thinking that a business person needs to know. 2. What is the Definition of Economics? Today we talk.

Section 1 Introduction-1

Economic Systems Comparing Economic Systems. Warm Up- Economic Systems Free Market Voluntary exchange of goods between individuals and business in a market.

Starter Define these terms in your own words: – Human capital – Investment – Capital investment – Capital goods – Consumer goods – Opportunity cost – Trade-off.

3 Questions. 3 questions every society must answer allocation of resources What goods shall be produced? How will the goods be produced? For whom will.

  Examining FOUR different kinds of economies and how they answer the 5 Questions of Economics (remember my song)  Examining the Principles of Capitalism.

Goals: The Students will understand: 1. The four basic economic systems. 2. A socialistic economic plan. 3. Income distribution. 4. The theories of Adam.

Economic Theories Economics: A study of human efforts to satisfy seemingly unlimited wants through the use of limited resources. Resources include both.

Economic Systems. Capitalism  A system based on private ownership of the means of production.  Also based on concept of free enterprise. Q. What does.

Types of Government Basic Economic Unit Part II. Types of Economic Systems.

Economic Systems Three Basic Questions Due to scarcity, individuals, governments, and businesses, must make decisions about what to produce. The type.

Three Fundamental Economic Questions

Comparing Economic Systems Vocabulary Review. 9/25 Do Now  What is the difference between a command economy and a market economy.

Unit 2 Review Economics is the study of _____________, _________________, and ______________ Production, consumption and distribution.

New Ways of Thinking in the Industrial Revolution The rise of Socialism.

Economic Systems 3 Key Economic Questions. What is an economic system? The method used by a society to produce and distribute goods and services.

Standard:12e2.3 Explain the roles of property rights, competition and profit in a market economy ESLR-Analytical Thinkers Collaborative Workers Effective.

Warm Up: 08/26/ What are the 3 questions every economic system must answer? 2.What are the 3 major economic theories discussed in Section 4, of Chapter.

ECONOMIC SYSTEMS An economic system is an organized way a society provides for the wants and needs of its people, or how a society answers the three basic.

Economic Systems Market, Command and Traditional.

Types of Economic Systems. Market The government has no say in what, how, or for whom to produce The factors of production are owned by individuals The.

ECONOMIC SYSTEMS An economic system is an organized way a society provides for the wants and needs of its people, or how a society answers the three basic.

ECONOMIC SYSTEMS WHAT ARE THEY? WHAT PURPOSE DO THEY SERVE?

Copyright © Cengage Learning. All rights reserved.1 | 1 Economic Systems Economics –The study of how wealth (anything of value) is created and distributed.

Economic Systems. Economic Questions about the production and distribution of goods 1. What goods will be produced? 2. How will the goods be produced?

Types of Economies UNIT VI – Fundamentals of Economics.

 What is an economic System?  Method used by a society to produce and distribute goods and services  Which economic system a country uses depends on.

CHAPTER 2: SECTION 1 Economic Systems Three Economic Questions All nations in the world must decide how to answer three economic questions about the production.

Chapter 21 Overview Notes: The 3 Basic Economic Systems in the World Today.

The American Economy What are the major factors and theories that determine how people and businesses make economic decisions in the USA?

Economic theories Ch 1 sec 4.

Theme 1: Introduction to markets and market failure

© EMC Publishing, LLC.

Objectives Chapter 2 Section 1

Economic Systems and Economic Factors

Chapter 1 Economics – study of the choices that consumers and producers make. Capitalism – United States Economic System. Laissez Faire – Free Enterprise.

Economic Systems Review

Theme 1: Introduction to markets and market failure

© EMC Publishing, LLC.

Economic Systems and the American Economy

Unit 3 Essential Question: Who or what decides what you get?

Unit 1: Foundations of Government

The American Economy What are the major factors and theories that determine how people and businesses make economic decisions in the USA?

Chapter 3 Essential Question: Who or what decides what you get?

Lecture #6: Economic Systems

I. The Role of Economic Systems A

Economic Theories Chapter 1 Section 4.

Organized set of procedures that answer the basic economic questions.

Types of Economic Systems

Adam Smith Progress result when individuals follow their own self-interest Businesses follow their own self-interest when they compete with one another.

CHAPTER 2 Economic Systems and the Global Economy

Economic Theories Remember to title and date your notes. Also include ALL the bold information.

Warm Up: Economic Theories

Characteristics of the basic economic systems

Economic Systems.

The American Economy What are the major factors and theories that determine how people and businesses make economic decisions in the USA?

Economic systems.

Chapter 1 Economics – study of the choices that consumers and producers make. Capitalism – United States Economic System. Laissez Faire – Free Enterprise.

So, every society must answer three basic economic questions:

Basic Economic Unit Part II

Every society has an economic system to allocate goods and services.

Economic Systems How do different societies around the world meet their economic needs? What are the advantages and disadvantages of each economic system?

Economic Theories.

Russian Revolution and Economic Views OPHS World History

Economic Systems.

Key Economic Questions

Economic Systems 1-3.

ESSENTIAL QUESTION EQ: How are Free Market Capitalist economies and Command, Communist economies alike, and how are they different? E. Napp.

Presentation transcript:

© EMC Publishing, LLC

2 Section 1 Economic Systems © EMC Publishing, LLC

Three Economic Questions All nations in the world must decide how to answer three economic questions about the production and distribution of goods. What goods will be produced? How will the goods be produced? For whom will the goods be produced? economic system © EMC Publishing, LLC

Two Major Economic Systems Free enterprise: individual choices capitalism or a market economy. Socialism: government a command economy. © EMC Publishing, LLC

Major Differences Between Free Enterprise and Socialism The government plays a different role in each type of economy. free enterprise system: resources are owned and controlled by individuals. socialism, these resources are controlled by the government. © EMC Publishing, LLC

Major Differences Between Free Enterprise and Socialism (cont.) In a free enterprise system, the government plays a small role in the economy. In a socialistic system, the government may make these decisions. © EMC Publishing, LLC

Major Differences Between Free Enterprise and Socialism (cont.) Socialism: Central Planning Income distribution: Taxes. © EMC Publishing, LLC

Decentralized Socialism Versus Communism Decentralized socialism and communism socialism and that communism is a particularly strong form. oversees much that occurs in the economy but does not control every Communism: government comes close to controlling all legal economic activities. © EMC Publishing, LLC

Mixed Economies A country’s economic system may contain some parts of free enterprise and socialism. © EMC Publishing, LLC

Exhibit 2-1 from the Student Text 1.0 100.0 Less economic freedom More economic © EMC Publishing, LLC

The Visions Behind Free Enterprise and Socialism A vision is a sense of looking at, understanding, and explaining how the world works. Adam Smith was an eighteenth-century economist whose ideas are fundamental to free enterprise. Greatest good for the majority of the people\ Self-interest = invisible hand © EMC Publishing, LLC

The Visions Behind Free Enterprise and Socialism (cont.) Karl Marx was a nineteenth-century economist who pointed out what he believed to be many of the failures and injustices of free enterprise. socialism and communism. Marx did not see self-interest as leading to good things. Capitalist exploit workers LABOR THEORY OF VALUE SURPLUS VALUE (PROFIT) SHOULD GO TO WORKERS © EMC Publishing, LLC

Friedrich Hayek and the Road to Serfdom Economist Friedrich Hayek (1899–1992) published a book titled The Road to Serfdom. Hayek believed that central or government planning lead to a kind of dictatorship, Unfree society Berlin after WWII. © EMC Publishing, LLC