1. Top ten things you need to know
Economic Theory
Top ten things you need to know

2. 1
Economics = study of how to allocate* resources by making decisions relating to production and consumption of resources
*distribute

3. What types of resources are considered in economics?2
What types of resources are considered in economics?
Land – natural resources (renewable, non-renewable/finite and infinite)
Labor –health and education of workforce
Capital – money or assets (often refers to something that can be used to help you start a new business)

4. Why do we need an economy?3
Why do we need an economy?
To prevent scarcity caused by unlimited wants and limited resources

5. How can economics prevent scarcity4
How can economics prevent scarcity
It helps society make decisions regarding three key questions
What to produce?
How to produce it?
Who gets it?

7. How does a right wing economy answer the key questions?5
Focus: individualism, limited government (laissez-faire)
What to produce – demand
How to produce it – make a profit for the supplier
Who gets it – who can afford it (price system and wages)
*also known as capitalism, free market, private enterprise

8. 6
Examples
Great Britain, the United States and Canada during their industrial revolutions

9. How does a left wing economy answer the key questions?7
Focus: collectivism, high level government intervention (socialism)
What to produce – government decides needs
How to produce it – government (focused on employment)
Who gets it – government allocates
*also known as socialism, communism, centrally planned, public enterprise

10. 8 Examples The USSR (1917-1991) Cuba (1953 – approx. 2014)
China (1949 – mid 1990s)
Vietnam (1975 – mid 1990s)
North Korea (1948 – present)

11. How does a mixed economy answer the key questions?9
How does a mixed economy answer the key questions?
Focus: take the benefits from both capitalism and socialism
What to produce - consumer demand, but the government will also ensure essential goods are being produced
How to produce it – best way for the supplier to make a profit, but government will have regulations, protect employment
Who gets it – most goods based on ability to pay, some goods the government will provide
*also known as welfare capitalism or democratic socialism, depending on the level of government intervention

12. 10 Examples Welfare capitalism – United States
Mixed economy – Canada, United Kingdom
Democratic socialism – Sweden, Norway, Denmark, Finland

13. Terms – which is right/left wing?
Private direction
Public direction
Planned economy
Free enterprise
Laissez-faire
Command economy
Invisible hand
Mixed economy
Collectivism
Communism
Capitalism
Welfare capitalism
Socialism
Interventionist
Individualist
Individual initiative
Common good
Social welfare

14. Centrally Planned Economy Command Economy Mixed Economy
Left Wing
Center
Right Wing
Public Direction
Private Direction
Planned Economy
Centrally Planned Economy
Command Economy
Mixed Economy
Free Enterprise
Laissez-faire
Invisible Hand
Communism
Socialism
Welfare Capitalism
Capitalism
Interventionist
Individualist
Common Good
Social Welfare
Collectivism
Individual Initiative
Individualism