ECONOMIES AROUND THE WORLD

Economic Systems• Free Market• Command• Socialist

Supply and Demand

Supply and Demand

Individual Freedoms Competition Limits

Flow of Money in a Free Market

Gross Domestic Product

High GDP• Rich countries produce more goods and services

and so they have a higher GDP

Low GDP

• Poorer countries usually have limited resources

Command Economy

No one gets to be an entrepreneur Only the government decides what

happens Consumers have little or no choice

Compare and Contrast

Free Market Economy

Command Economy

What is the governments role?

Makes few decisions Makes all decisions

Does the system run on competition or cooperation?

Competition Cooperation

Which principle guides the economy?

Supply and Demand Central planning

Who own property and businesses?

Individuals and groups

The government

Does the system emphasize freedom?

Yes no

Talk about it!

What would an advantage be of living in a command economy?

What would a disadvantage be?

Socialism – let’s share!

Most European countries have some aspects of

socialism but operate in a free market economy.

Socialism generally determines a higher tolerance for a tax burden on individuals

All citizens have access to free health care

Social welfare programs are expanded.