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ECONOMIES
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Industrie$ of Economy PROCESS MAKING Servicing or Selling Gathering
Census Survey Government Gathering Knowledge PROCESS (Order of Events) Servicing or Selling 3rd MAKING 2nd 1st GETTING
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ECONOMIES TRADITIONAL COMMAND MARKET MIXED Government Form (U/L)
determines the type of Economy Sellers = Retailers, Producers, and Service Industries TRADITIONAL COMMAND How Money is Made and Spent ECONOMIES MARKET MIXED
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(Little or NO Government at all) How Money is Made and Spent
TRADITIONAL (Little or NO Government at all) Government chooses the type of Economy Consumers = Buyers Sellers = Retailers, Producers, and Service Industries Very Rare Less developed countries (small villages) Each new generation has the same job as the one before them. Ex: blacksmith, trade or skill How Money is Made and Spent ECONOMIES Lifestyles are Recycled MARKET
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ECONOMIES MARKET (Limited Government) Supply Demand Price
How Money is Made and Spent ECONOMIES MARKET (Limited Government) Free enterprise – in business to make a profit Capitalism – work harder get rewarded If the supply is High, the Price will be low If the supply is Low, the Price will be High Supply and Price Have an INVERSE relationship Supply Demand Price How many people want the product or service The Product… how much is available
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ECONOMIES TRADITIONAL (Little or NO Government at all) COMMAND MARKET
Government determines the type of Economy Consumers = Buyers Sellers = Retailers, Producers, and Service Providers COMMAND Rare Less developed countries (small villages) Based on tradition/customs and not market Barter (trade) Each new generation has the same job as the one before them. Ex: Blacksmith, Trades/Skills Caste System in India Subsistence Societies (Grow/Catch What You Need) How Money is Made and Spent ECONOMIES Capitalism Free Enterprise In Business to make a Profit Monopoly = 1 Seller Higher Price, No Motivation to Improve Competition = Multiple Sellers BENEFITS Better Price Better Product Better Customer Service More Choices MARKET MIXED
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ECONOMIES MIXED Lots of Market, (Limited Government)
How Money is Made and Spent ECONOMIES MIXED (Limited Government) Capitalism Free Enterprise In Business to make a Profit Monopoly = 1 Seller Higher Price, No Motivation to Improve Competition = Multiple Sellers BENEFITS Better Price Better Product Better Customer Service More Choices United States has this type of Economy Lots of Market, A little Government Government sets Regulations (Laws) to protect the people Why do you think the regulations are important? EX: Airlines, Food Industry, Electricity
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ECONOMIES TRADITIONAL (Little or NO Government at all)
Government determines the type of Economy Consumers = Buyers Sellers = Retailers, Producers, and Service Providers TRADITIONAL (Little or NO Government at all) COMMAND (Unlimited Government) Communism, Socialism Everyone is treated the same regardless of productivity or quality of work Government Owns and Controls EVERYTHING Jobs, Pay, Product Prices, Supply Consumers have Less Choices Pay Higher Prices, Get Lower Quality & Have Fewer Choices Very Rare Less developed countries (small villages) Each new generation has the same job as the one before them. Ex: blacksmith, trade or skill How Money is Made and Spent ECONOMIES Capitalism Free Enterprise In Business to make a Profit Monopoly = 1 Seller Higher Price, No Motivation to Improve Competition = Multiple Sellers BENEFITS Better Price Better Product Better Customer Service More Choices MARKET (Limited Government) MIXED (Limited Government)
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G L O B A I Z T N More Trade Among the World’s Countries
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