1. Intro to Macroeconomics
Economic Systems
Intro to Macroeconomics

2. Economic Systems Governments determine a country’s economic system
All the countries in the world can be categorized into the 2 economic systems
How many countries are there in the world?

3. Economic Systems provide answers for these: What to produce?
How to produce?
For whom to produce?
Most controversial aspect

4. 2 Economic Systems 1. Market economy 2. Command based economy
Complete opposition of each other
Capitalism vs Communism (vs Socialism)

5. Who gets the candy bar?
Brainstorm some ideas of how we can allocate (give out) this candy bar

6. Allocation Mechanisms
Helps decide for whom to produce
Lottery
First come
Market
Command
Force
Need

7. Economic Goals 1. Economic Equity 2. Economic ________

8. Economic Equity
Same measure of fairness
Equality
Equity

9. Economic Goals 1. Economic Equity 2. Economic Freedom

10. Economic Freedom What can you not buy in the United States?
WHY??
Restrictions on freedom
The ability for a member of society to pursue economic activities
Considering the economic freedom and economic equity are in opposition, what does this tell us about our culture?