1. ECONOMIC SYSTEMS Unit 1, part 2
Chapter 2
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ECONOMIC SYSTEMS Unit 1, part 2
GOALS:
List the three economic questions that must be answered by every society.
Describe three types of economic systems.
Identify five features of our market economy.
Explain why economies are mixed systems.
Explain why market economies are becoming common around the world.

2. KEY ECONOMIC QUESTIONS
Chapter 2
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KEY ECONOMIC QUESTIONS
What to produce?
How to produce?
For whom to produce?

3. TYPES OF ECONOMIC SYSTEMS
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TYPES OF ECONOMIC SYSTEMS
Custom-based economy
Goods produced as they always have been
Less developed countries

4. TYPES OF ECONOMIC SYSTEMS
Directed (planned) economy
Resources owned & controlled by government
Communist form of government

5. TYPES OF ECONOMIC SYSTEMS
Market economy
Democratic form of government
Questions answered by those buying & selling goods & services
Individuals are free to engage in business transactions
Market – where buyers and sellers come together

6. OUR ECONOMIC SYSTEM Private enterprise Private property Capitalism
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OUR ECONOMIC SYSTEM
Private enterprise
Individuals may start or invest in any business , as long as it is not illegal to do so
Private property
The right to own, use & dispose of things of value
Capitalism
Economic resources are privately owned
Free to decide what to buy
Free to decide what to produce

7. OUR ECONOMIC SYSTEM Profit Competition Freedom of choice
Econ decision driven by profit
Competition
Freedom of choice
Entering the business you want
Selecting the career you want

8. MIXED ECONOMIC SYSTEMS
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MIXED ECONOMIC SYSTEMS
An economic system usually gets its name from the way its economic resources are owned and controlled.
Most countries have mixed economic systems.

9. EMERGING MARKET ECONOMIES
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EMERGING MARKET ECONOMIES
The economic success of market economies has caused many countries to reexamine their economic systems.
The weakness of controlled economies have caused many nations to change to market or mixed economies.