1. Types of Economic Systems ECONOMY
What is Produced?
How Goods are Produced
How People Get Products
Traditional
Command
Market
What people need to survive
(food, shelter, & tools)
Farming
Hunting
Gathering
People make their own, share, or trade
EX→ Australian
Aborigines
However the government decides
-Class
-Reward System
-Waiting in Line
Whatever the government decides
However the government decides
EX→ Soviet Union
Cuba

2. Types of Economic Systems ECONOMY
What is Produced?
How Goods are Produced
How People Get Products
Traditional
Command
Market
What people need to survive
(food, shelter, & tools)
Farming
Hunting
Gathering
People make their own, share, or trade
EX→ Australian
Aborigines

3. Types of Economic Systems ECONOMY
What is Produced?
How Goods are Produced
How People Get Products
Traditional
Command
Market
What people need to survive
(food, shelter, & tools)
Farming
Hunting
Gathering
People make their own, share, or trade
EX→ Australian
Aborigines
However the government decides
-Class
-Reward System
-Waiting in Line
Whatever the government decides
However the government decides
EX→ Soviet Union
Cuba
Business Owners determine the most efficient legal methods of production
Determined by how much a person is able or willing to pay
Whatever people are willing to buy & sell
EX→ Canada
United Kingdom

4. Return to our……. “Essential Question(s)”
What are the major physical features of Australia, and where are they located on a map (Great Barrier Reef, Coral Sea, Ayers Rock, and Great Victoria Desert)?

5. Coral
Sea
Great Barrier Reef
Ayers Rock
“Uluru”
Great Victoria Desert

7. R70-71 Australian Economy

8. Today’s Standard c. Describe the economic system used in Australia.
SS6E8 The student will analyze different economic systems.
a. Compare how traditional, command, and market, economies answer the economic questions of 1 -what to produce, 2-how to produce, and 3-for whom to produce.
b. Explain how most countries have a mixed economy located on a continuum between pure market and pure command.
c. Describe the economic system used in Australia.

9. Intro to our……. “Essential Question(s)”
What is the economic system used in Australia?
What types of economic systems exist in the world today?

10. Economics is the study of how people manage their resources.
What is Economics??????
Economics is the study of how people manage their resources.

12. Types of Economic Systems
Traditional- customs & habits of a society will determine what will be produced & how it will be distributed & consumed (Usually includes bartering, rather than money). Traditional economies are becoming more rare.

13. Types of Economic Systems
Command- Government will determine what will be produced & how it will be distributed & consumed. Government will set prices and set regulations (rules) that industries must follow.

14. Types of Economic Systems
Market- Individuals, private companies, & consumers will determine what will be produced & how it will be distributed & consumed (Supply & Demand). Individuals and companies are allowed to produce freely without government interference.

15. Types of Economy
MIXED- The most common type in the world. Most nations today have some form of “mixed economy.” This means that the national economy may have some aspects of a market economy & some aspects of a command economy.
EXAMPLES
The United States is thought to have a “mixed” economy.
The government does not decide what will be produced & how much it will cost, but it does regulate certain goods & services, such as illegal drugs
Australia is thought to have a “mixed” economy. The government does not decide what will be produced & how much it will cost, but it does regulate certain goods & services, such as illegal drugs. Australia is thought to have one of the most free economies in the world.

17. Economic Systems Pure Command Pure Market Mixed Economy AUSTRALIA CUBA
(Total Government Control)
Pure
Market
(No Government Control)
AUSTRALIA
Certain things are regulated , like illegal drugs & the Govt. runs the Postal Service
CUBA
The Govt. runs all industry.
BRAZIL
Certain things are regulated & the Govt. runs the Postal Service & Healthcare
Mixed Economy
(All modern economies fall into this category)

19. What government controls Some substances are illegal
Country
Type of Economy
Growing Or
Struggling
What government controls
Australia
Mixed
Market
Not Much-
Postal Service &
Some substances are illegal
Growing
Australian Economic Data
Source: CIA World Fact Book
Type of Currency:
Gross Domestic Product (GDP):
World Rank:
GDP per Capita:
What does a high GDP & GDP per Capita tell us about the Standard of Living in a country?______________________________________________________________
Australian Dollar
$889.6 Billion est.2010
18th
$41,300 est. 2010
17th
It is probably pretty good

20. Specialization- When a country focuses on producing what they can produce and sell most easily.
Hey Australia! What is your Specialty???????
Australia specializes in the production and export of:
Coal, Iron Ore, Wool, Wheat, & Mineral Resources

21. ****EVERYBODY WINS****
SPECIALIZATION:______________________________________________________________________________________
3 Ways “specialization” benefits (helps) Australia and/or encourages worldwide trading:
_____________________________________________
When a country produces the few things that it can
produce & sell most easily.
Specializes & makes products from its own natural resources
Exports its products & makes money
Imports products it can’t make itself & other countries make money
****EVERYBODY WINS****

22. Human-Made Trade Barriers
Tariff – a Tax on Imported Goods (makes them more expensive & makes it less likely consumers will buy)
Quota- A Limit on the amount of goods that can be imported from another country.
Embargo- A total Ban on trade with a country – Usually motivated by politics to hurt another country economically.

23. TARIFF QUOTA EMBARGO Tax on imported goods
Human-Made Trade Barrier
What is it?
Why is it done?
TARIFF
QUOTA
EMBARGO
To raise the prices of imported foreign goods, so people choose to buy cheaper goods made domestically
Tax on imported goods
Limit on the amount of imported goods
To raise the prices of imported foreign goods, so people choose to buy cheaper goods made domestically
Total ban on imported goods from a country
To punish a country economically

24. Open your Gallopade Books to p.165

25. Return to our……. “Essential Question(s)”
What is the economic system used in Australia?
What types of economic systems exist in the world today?