1. Economics Comparison of Economic Systems

2. Free Market Command Economy PhilosopherAdam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic Idea Who owns the factors of production and makes decisions? Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Political System

3. Free Market Command Economy PhilosopherAdam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic IdeaMarkets exist because no one is self- sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Political System

4. Free Market Command Economy PhilosopherAdam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic IdeaMarkets exist because no one is self- sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? IndividualsThe Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Political System

5. Free Market Command Economy PhilosopherAdam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic IdeaMarkets exist because no one is self- sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? IndividualsThe Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Political System

6. Free Market Command Economy PhilosopherAdam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic IdeaMarkets exist because no one is self- sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? IndividualsThe Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Highest degree of any systemGovernment makes all decisions, Consumers lack say in all decisions Political System

7. Free Market Command Economy PhilosopherAdam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic IdeaMarkets exist because no one is self- sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? IndividualsThe Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Highest degree of any systemGovernment makes all decisions, Consumers lack say in all decisions No “safety net”Government provides basic needs Political System

8. Free Market Command Economy PhilosopherAdam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic IdeaMarkets exist because no one is self- sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? IndividualsThe Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Highest degree of any systemGovernment makes all decisions, Consumers lack say in all decisions No “safety net”Government provides basic needs Self-interestDistribute wealth evenly throughout society. Political System

9. Free Market Command Economy PhilosopherAdam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic IdeaMarkets exist because no one is self- sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? IndividualsThe Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Highest degree of any systemGovernment makes all decisions, Consumers lack say in all decisions No “safety net”Government provides basic needs Self-interestDistribute wealth evenly throughout society. Encourages entrepreneurs to seek new ideas and innovations. Does not reward innovation and actively discourages change. Political System

10. Free Market Command Economy PhilosopherAdam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic IdeaMarkets exist because no one is self- sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? IndividualsThe Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Highest degree of any systemGovernment makes all decisions, Consumers lack say in all decisions No “safety net”Government provides basic needs Self-interestDistribute wealth evenly throughout society. Encourages entrepreneurs to seek new ideas and innovations. Does not reward innovation and actively discourages change. Political SystemUsually associated with a democracyUsually associated with communism

12. Homework