Economic Types Fish Sticks!!!Wait what?

Will Get to the fish sticks later… Yesterday we looked at different economic systems. Lets discuss the question from Yesterday. What system is the best? Explain. Think about the basic goal of economics, such as growth, efficiency, stability, and equity?

Essential Questions: In what ways does economics impact your life?

Terms to Know  Economy: It is a system in which people make, exchange, and use things that have value and that meet their wants and needs.  Producer: Owners and workers in the economy  Consumer: People who buy and use products

Every Economic System has 3 Decisions it has to make: 1. What and how many goods and services should be produced? 2. How they should be produced? 3. Who gets these completed products? These Decisions Vary based on the Economic System you choose

Three types of economic systems  Traditional Economy: habit and custom determine the rules for all economic activity.  Individuals don’t make decisions on what they would like to have. Instead follow customs and behaviors of their elders.  Exist in a very limited part of the world today.

Market Economy (Private Ownership)  Market Economy: Also called Capitalism, individuals and private groups make decisions about what to produce.  Based on Free Enterprise, the idea that private individuals have a right to own property and businesses with little government involvement.  People can choose who they work for and what job they want to follow for a career.

Market Economy cont.  No country on Earth has a perfect market system.  Mixed Economy- government supports Free Enterprise, but also has a say in it to protect the citizens of that government from possible economic exploitation.

Example of Mixed Economy Socialism: 3 main goals. 1.Provide equitable distribution of wealth and economic opportunity. 2. Society control through government. 3. Public ownership of services and factories that are essential.

Last type…Command Economy (Government Ownership)  Command Economy: Often associated with Communism, the government owns or directs the means of production – land and labor, and business managers – controls the distribution of goods. Example: Communist China

Question  What are the differences between a Market Economy and a Command Economy?

Not only economic systems….. Not only are the economic systems important, but also what type of jobs is available in the country you live in. There are four types of jobs: Primary, Secondary, Tertiary, and Quaternary.  Lets name some jobs and see if you can determine what the definition of each Economic Activity.

 Primary Economic Activities: taking and using natural resources directly from the earth.  Examples: farming, coal mining, and fishing  Secondary Economic Activities: use raw materials to produce something new and more valuable.  Examples: manufacturing cars, making pottery and electronics

 Tertiary Activates: Do not involve directly acquiring and remaking natural resources. Instead, they are activates that provide services to people and business.  i.e. doctors, bankers, teachers, lawyers, food servers  Quaternary Activities: concerned with processing, management, and distribution of information.  i.e professionals in education, business, and research