1. MARKETING
3.04 – COMPARING
ECONOMIC SYSTEMS

2. THREE ECONOMIC QUESTIONS
WHAT GOODS AND SERVICES SHOULD BE PRODUCED?
HOW SHOULD THE GOODS AND SERVICES BE PRODUCED?
FOR WHOM SHOULD THE GOODS AND SERVICES BE PRODUCED?

3. COMPARING ECONOMIES TRADITIONAL ECONOMY THREE QUESTIONS ANSWERED:
“How things have always been done”
TRADITION DECIDES
EXAMPLES: Amish Community
Indian Reservations

4. COMPARING ECONOMIES MARKET ECONOMY
NO GOVERNMENT INVOLVED, THE MARKET ANSWERS THE THREE QUESTIONS:
Consumers decide “WHAT.“
Businesses decide “How.”
Consumers who are willing to pay determines the “FOR WHOM.”

5. COMPARING ECONOMIES COMMAND ECONOMY
THE GOVERNMENT ANSWERS ALL THREE QUESTIONS:
GOVERNMENT RUNS BUSINESSES.
GOVERNMENT EMPLOYS PEOPLE.
GOVERNMENT DECIDES WHO RECEIVES PRODUCTS.

6. MIXED ECONOMIES NOT COMPLETELY CONTROLLED BY THE GOVERNMENT.
NOT A PURE MARKET SYSTEM.
A MIX OR BLEND OF BOTH.

7. CAPITALISM
PEOPLE ELECT THEIR GOVERNMENT OFFICIALS WHO REPRESENT THEIR INTERESTS.
(UNITED STATES, JAPAN)

8. (CUBA, VIETNAM, NORTH KOREA)
COMMUNISM
GOVERNMENT CONTROLLED BY ONE PARTY.
PEOPLE ARE ASSIGNED JOBS.
LITTLE FREEDOM OF CHOICE.
PEOPLE DO NOT PAY FOR MEDICAL CARE.
(CUBA, VIETNAM, NORTH KOREA)

9. (CANADA, FRANCE, GERMANY)
SOCIALISM
COUNTRIES ARE CAPITALISTIC WITH INCREASED GOVERNMENT INVOLVEMENT.
REDUCES THE DIFFERENCE BETWEEN RICH AND POOR.
BASED ON WELFARE FOR THE PEOPLE.
(CANADA, FRANCE, GERMANY)

10. Works Cited

11. Thank you!