1. … and the questions they each have to answer.
ECONOMIES OF THE WORLD!
… and the questions they each have to answer.
Intro to Economics

2. Economies of the World Traditional Market Command What to produce
How to produce
For whom to produce

3. SS6E5 The student will analyze different economic systems.
a. Compare how traditional,
command, and market,
economies answer the economic
questions of
1 - what to produce
2 - how to produce, and
3 - for whom to produce.

4. Question one! What should we produce? Food? Clothing? Shelter?
Entertainment items/services?
Healthcare?
Education?

5. Question two! How do we produce it? By hand? In factories?
Small businesses?
Big businesses?
Do adults make the products?
Do children make the products?

6. Question three! Who are we producing it for? Everyone?
Only the rich people?
Only the poor people?
Only for certain groups?

7. Traditional Economy What should we produce? Question one!
The basics! The most basic things necessary to live.

8. Traditional Economy How do we produce it? Question two!
Mostly by hand or using basic tools.

9. Traditional Economy Who are we producing it for? Question three!
Ourselves, our families, or to barter if we have too much

10. Market Economy What should we produce? Question one!
Whatever people will buy.

11. Market Economy How do we produce it? Question two!
Whatever way is cheapest!

12. Market Economy Who are we producing it for? Question three!
Whoever will buy it
If no one will buy it, we won’t produce it (supply & demand)

13. Command Economy What should we produce? Question one!
What the government thinks people will need

14. Command Economy How do we produce it? Question two!
By assigning jobs to the citizens
By using whatever capital resources available (including older factories and machines)

15. Command Economy Who are we producing it for? Question three!
We are producing it for every citizen, so everyone can have an equal amount

17. What is the difference between commercial and subsistence farming?
Commercial Farming
Subsistence Farming
Growing enough food to feed large populations.
*Think: Commercials on TV”
Survival Farming; enough for themselves and their families.

18. Market Command

19. Import vs Export Import Export Good coming in to your country
Goods exiting or leaving your country
Come on in !!!
See you later !!!

20. Public vs. Private Businesses
Businesses owned by the government.
Examples: Court houses, schools, post office, fire stations, police stations.
NOT government operated.
Examples: retail stores, grocery stores (Wal-Mart, Target, Publix)

21. National vs. International
One country
More than one country

22. National vs. International
National Flights
International Flights
One country
More than one country

23. Entrepreneur
The person responsible for bringing the human, capital, and natural resources together to start a business.
Human Resources (Capital): Workers with appropriate education and training. (Examples: Teachers, Cashiers)
Capital Resources: Things needed to start a business (Machines, factories, technology)
Natural Resources: Useful materials found in nature, such as: land, water, forests, minerals, soil. (Example: tree, fruit)

24. You are the proud new owner of a new chicken restaurant
You are the proud new owner of a new chicken restaurant. Come up with a unique name. Now you must bring together your human, capital and natural resources. Make a 3 column chart for Your resources. List 5 resources that would fall under each column that you will need to make your business a success.

25. Your Unique Name
Human Resources
Capital Resources
Natural Resources

26. Economics Goods: Products(footballs, make-up, iPods, computers)
Services: An action performed for money (example- doctor, hairdresser)
Consumer: Person who buys and uses goods and services.
Producer: Person who makes or provides services.
Distribution: Getting goods passed out to where they need to go

27. Specialization vs. Diversification
Relying on only one crop or product
Pros – can make things faster, cheaper, and usually better quality.
Cons – If something happens to that one product you may go out of business
Diversification
Relying on more than one crop or product
Pros – there are more choices
Cons – Quality may be lacking, can be more expensive

28. Specialization vs. Diversification
Relying on only one crop or product
Pros – can make things faster, cheaper, and usually better quality.
Cons – If something happens to that one product you may go out of business
Diversification
Relying on more than one crop or product
Pros – there are more choices
Cons – Quality may be lacking, can be more expensive

29. Specialization vs. Diversification
Relying on only one crop or product
Pros – can make things faster, cheaper, and usually better quality.
Cons – If something happens to that one product you may go out of business
Diversification
Relying on more than one crop or product
Pros – there are more choices
Cons – Quality may be lacking, can be more expensive

30. Specialization vs. Diversification
Relying on only one crop or product
Pros – can make things faster, cheaper, and usually better quality.
Cons – If something happens to that one product you may go out of business
Diversification
Relying on more than one crop or product
Pros – there are more choices
Cons – Quality may be lacking, can be more expensive

31. Decide if the following businesses are specialized or diversified.