standard: ss7e5 what is economics?. which would you like? or $500 iphone 5 $500 of groceries
TRANSCRIPT
S TA N DA R D : S S 7 E 5
WHAT IS ECONOMICS?
WHICH WOULD YOU LIKE?
• OR
$500 iPhone 5 $500 of Groceries
WHICH WOULD YOU LIKE?
• OR
$20 “One Directions” CD One $20 Tank of Gas
WHICH WOULD YOU LIKE?
OR
$40,000 Chevy Tahoe $40,000 Toward College Education
WHAT IS ECONOMICS?
• Economics is all about making choices with your limited resources!
• “Scarcity” is the concept of not being able to have everything you want because you lack the resources (Money, Time, Products, etc).
TYPES OF ECONOMIES
• Traditional Economy: relies on agriculture (farming), fishing, and hunting.• Do not exist on the national level today.
• Pure Market Economy: involves buyers and sellers interacting to determine what is produced and to negotiate prices; there is no government intervention.• Do not exist on the national level today.• Form(s) of Government: Direct Democracy
TYPES OF ECONOMIES
• Command Economy: supply (what is produced) and price are determined strictly by the government.• Saudi Arabia, China, Vietnam, North Korea• Form(s) of Government: Autocracy, Unitary, Parliamentary,
Oligarchy, monarchy
• Mixed Economy: combination of the government and market forces determine supply and price.• United States, United Kingdom, Canada, Germany, Australia,
Japan• Form(s) of Government: Presidential, Parliamentary, Unitary,
Federal
3 ECONOMIC QUESTIONS
• Question #1: What to produce?
• Which goods and/or services are we going to make and offer for sale in our country?
• How does the Middle East answer this question?
• Producing oil.
3 ECONOMIC QUESTIONS
• Question #2: How to produce?
• How are we going to make the things we want to sell?
• How does the Middle East answer this question?
• Use of capital (oil rigs) and human capital (people) to work the oil rigs.
3 ECONOMIC QUESTIONS
• Question #3: For whom to produce?
• Who are we going to make things for? Who is going to buy our stuff??
• How does the Middle East answer this question?
• Sell to those who use oil.
SAUDI ARABIA
• Form of Government: Monarchy
• Type of Economy: Command Economy
• How does this relationship work?
• The King has complete control, including control over the economy. The government answers the 3 Economic Questions.
ISRAEL
• Form of Government: Parliamentary
• Type of Economy: Market
• How does this relationship work?
• There is very little government involvement in the economy. Market forces are left to answer the 3 Economic Questions.
TURKEY
• Form of Government: Republic
• Type of Economy: Mixed
• How does this relationship work?
• The government sets certain rules and regulations that the market must follow. The government and the market work together to answer the 3 Economic Questions.