1. Types of economic systems

2. entities Players: Goal Consumers: maximize personal utility
Businesses: maximize long-run profit
Government: maximize social welfare

3. Government Questions: 1
How much should the economy produce?
It depends on the resources it has available

4. US Farm land 1997, 2002 and 2007 Census of Agriculture 1997 2002 2007
Approximate total land area (acres  ) ,262,462, ,263,960, ,260,994,361   
Total farmland (acres) ,752, ,279, ,095,840        
 Percent of total land area           
Cropland (acres) ,324, ,164, ,424,909             
Percent of total farmland             
Percent irrigated              
On the arable land, which is only 11% of Japan's total land area, the population density is among the highest in the world.
145,833 sq mi in Japan – 15,000 square miles of farmable land
9,600,000 square acres
 • Census of Agriculture • Contact NASS Customer Service,

5. What should be produced?
Country Agri.  Indus. Serv.  
United States 0.9% 20.4% 78.6%
South Korea 3.3% 40.7% 56%
Indonesia 13.1% 46% 41%

6. How are the goods and services produced?
By the most efficient companies.
Sometimes by the government.

7. Who receives the output? Income Distribution by Quintile
2006 BOT 20 MID 20 TOP 20 TOP 5
116,
2005
114,
2000
108,
1990
94,
1970
64,

8. Can the system adapt to change?

9. These were so cool!

10. State of the Art

12. Types of Economies
Command – governments determines prices and quantities produced
Capitalistic - free market interaction between buyers and sells determines prices and quantities produced
Mixed – a mix where in some markets the government is a buyer, regulator, or producer.
Even with a free market capitalist system there are times when the system does not operate in a manner that best suits the overall population. These occurrences are known as free market breakdowns. Some of these free market breakdowns are on the “Free Market Breakdown” page on the website.

13. How can the type of economic system be determined?
Government percent of overall spending.