Upload File

economic systems. the 3 major production questions what to produce? how to produce? for whom to...

  • Home
  • Documents
  • Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,
31
Economic Systems

Upload: stephen-laurence-walsh

Post on 18-Dec-2015

224 views

Category:

Documents


0 download

Report

Tags:

TRANSCRIPT

Page 1: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Economic Systems

Page 2: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

The 3 Major Production Questions

• What to produce?

• How to produce?

• For whom to produce?

We will classify economic systems into categories, based on how each of them attempts to answer these three questions.

Page 3: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Traditional Economy

• The answers to the three major production questions are dictated by ritual, habit, or custom.

Page 4: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,
Page 5: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,
Page 6: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,
Page 7: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Examples of Traditional Economies

• Inuit tribe

• Some parts of South America

• Some parts of Africa

• Aboriginal tribes of Australia

• Some island societies

Page 8: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Traditional Economies

Advantages? Disadvantages?

Page 9: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Command Economy

• The answers to the three major production questions are given by some strong central authority (i.e. the government)

• Communism – an economic system in which all factors of production are the property of the state.

Page 10: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Examples of Command Economies

• Cuba

Page 11: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Examples of Command Economies

• North Korea

Page 12: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Command Economies

Strengths Weaknesses

Page 13: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Market Economy

• Businesses and individuals act in their own best interest to answer the three major production questions.

• Capitalism – an economic system in which individuals and businesses compete, with a minimum of government interference

• “Laissez-Faire”

Page 14: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Market Economies

Strengths Weaknesses

Page 15: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Mixed Economies

• Mixed-Market

• Socialism

• Economies in Transition

Page 16: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Total Government

Control

No Government

Control

Communism Socialism Mixed-Market Capitalism

Little Economic Freedom

Total Economic Freedom

Page 17: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Rank Country Overall Change

1 Hong Kong 90.0 +0.3

2 Singapore 87.1 -0.2

3 Australia 82.6 +0.4

4 Ireland 82.2 -0.3

5 New Zealand 82.0 +1.2

6 United States 80.7 -0.3

7 Canada 80.5 +0.3

8 Denmark 80.0 +0.4

9 Switzerland 79.4 -0.1

10 United Kingdom 79.0 -0.5

2009 Index of Economic Freedom:

The Top 10

http://www.heritage.org/Index/

http://www.heritage.org/Index/Country/HongKong
Page 18: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

2011 Index of Economic Freedom:

Page 19: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Bottom 5

Page 20: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Role Players in the Mixed-Market Economy

• Consumers

• Producers

• Government• Consumer• Producer• Protector• Regulator• Provider

Page 21: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

7 Economic & Social Goals of Capitalism

1. Economic Freedom

2. Economic Equality

3. Economic Security

4. Economic Growth

5. Economic Efficiency

6. Price Stability

7. Full Employment

Page 22: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Communism

Communism: How/Why does it rise?

How/Why does it fall?

Page 23: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Capitalism Communism

Page 24: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

CapitalismCapitalism CommunismCommunism

Page 25: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

““From each according From each according to his ability, to his ability, to each to each according to his according to his needs!needs!” ”

–Karl Marx

»Critique of the Gotha Programme, 1875

Page 26: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

“As for me, I am not a Marxist.”

Karl Marx

Page 27: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Why Doesn’t It Work?

• Incentive Problem– Average Test Scores Example

• Coordination Problem

• In one word, why doesn’t it work?

GREED

Page 28: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

When CAN It Work?

Page 29: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Characteristic Capitalism Communism

Primary Economic Goal

Basis of Economy

Resource Allocation

Government Planning

Ownership of F.O.P.

Motivation

Economic Freedom

Economic Equality

CompetitionCooperation /

Collectivization

Supply & Demand

Government Planning

Private Property Public Property

Profit MotivePatriotism: The

Good of Community

Page 30: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Characteristics of Free Enterprise Capitalism

• Economic Freedom

• Voluntary Exchange– Consumer Sovereignty: The consumer drives

the market– “The customer is always right!”

• Private Property Rights– The Tragedy of the Commons

• Profit Motive

Page 31: Economic Systems. The 3 Major Production Questions What to produce? How to produce? For whom to produce? We will classify economic systems into categories,

Economics in the Middle East. Economics The three basic questions that all economic systems must answers are: 1.What to produce? 2.How to produce it?

Economic Systems - Mr. Tyler's Lessons · Economic Systems •Economic System - the method used by a society to produce and distribute goods ... how to produce it, and to whom to

3 Primary Economic Systems Different Economic Systems Explored Economics

Chapter 2 Section 1 PDF - Westmoreland Elementary School · Economic Systems • Method used by society to produce & distribute goods/services • The economic system employed by

Chapter 2. Economic Systems Economic systems – way nations determine how to use resources All economic systems answer three basic questions: what to produce,

Understanding Economic Systems: Types of Economic Systems

Determinants of long-term economic growth Economic systems Economic policies Economic institutions Economic systems Economic policies Economic

Economic Systems Unit 2 What is an economic system? The method used by a society to produce and distribute goods and services

Economic Systems Chapter 2. Scarcity Choices Three Basic Questions WHAT to Produce? HOW to Produce? FOR WHOM to Produce? Should they produce military

SS.912.E.1.3 Compare how the various economic systems (traditional, market, command, mixed) answer the questions: (1) What to produce?; (2) How to produce?;

Economic Systems Benchmark: Compare how different economic systems answer the fundamental economic questions of what goods and services to produce, how

Economic Systems. Economic Questions What to produce?What to produce? –Allocation of factors of production How to produce?How to produce? –Methods of

Economic Systems Chapter 16 What are economic systems?

Economic Analysis of Cashew Nut Marketing Among Produce

Economic Systems 3 Key Economic Questions. What is an economic system? The method used by a society to produce and distribute goods and services

Essential Question: How do economic systems answer the questions of what, how, and for whom to produce?

Economics in Asia. All Economic Systems seek to answer the three basic economic questions 1) What to produce? 2)How to produce? 3) For whom to produce?

Economic Systems. All Economic Systems seek to answer the three basic economic questions 1) What to produce? 2) How to produce? 3) For whom to produce?

Chapter 2 Notes Economic Systems. Economic System The method used by a society to produce and distribute goods and services

Ch.2sec.1 Economic System & Economic Tools The three questions that all economic systems must answer. What should the economy produce? How should this

Basic Economic Questions: What to produce? How to produce? For whom to produce? Economic System The organization of an economy, which represents

Economic Resources and Systems Economic Systems · Economic Resources and Systems Section 2.2 ... Different Types of Economies Different economic systems answer the three basic economic

Techno-Economic Assessment of Processes that produce Jet

Public Debt and Economic Growth – Economic Systems Mattercege/Diskussionspapiere/DP281.pdf · Public Debt and Economic Growth – Economic Systems Matter ... economic systems that

Economic Systems Business Management. Economic Systems O BJECTIVE We will compare economic systems, free markets, and economic-political systems. E SSENTIAL

INTRODUCTION ECONOMIC ASSESSMENT FINDINGS · in the state produce aircraft parts and auxiliary equipment, such as: BAE Systems, GE Aviation, Albany Engineered Composites, Elbit Systems

Economic Systems. Essential Question: How do economic systems answer the questions of what, how, and for whom to produce?

Economic Systems. All Economic Systems Must Consider the Following Questions: THE THREE BIG ECONOMIC QUESTIONS 1. What goods and services to produce?

Economic Systems. The Three Basic Economic Questions: What should we produce? How should we produce? For whom should we product?

Comparative Economic Systems - UMasscourses.umass.edu/econ773/Slides1.pdf · Approaches to comparative economic systems Market systems Economic planning Capitalism 2. ... economic

ECONOMICS. ECONOMIC SYSTEMS METHOD USED BY A SOCIETY TO PRODUCE AND DISTRIBUTE GOODS AND SERVICES

2.1 Economic systems...Economic systems Who in an economy decides what goods and services to produce, how to produce them and who to produce them for, and how are these decisions are

Cells. Levels of Organization Cells produce tissues Tissues produce organs Organs produce organ systems Organs systems produce organisms Levels of Organization

The American Economy. 3 Basic Economic Questions WHAT TO PRODUCE?! HOW TO PRODUCE?! FOR WHOM TO PRODUCE?!

All societies have an economic system or a way of providing for the wants and needs of their people. An Economic Systems function is to produce and