1 / 19

Understanding Economic Systems: Types and Evaluation

Learn about different types of economic systems including traditional, command, and market economies. Explore the features of mixed economies and evaluate economic performance based on criteria like economic freedom, efficiency, equity, security, employment, price stability, and growth. Understand the principles of free enterprise capitalism, including economic freedom, voluntary exchange, private property rights, profit motive, and competition. Discover the important roles of entrepreneurs and consumers in a capitalist economy, as well as the role of government in providing goods and services, protecting property rights, enforcing contracts, regulating, and promoting national goals.

oberle
Download Presentation

Understanding Economic Systems: Types and Evaluation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit 2 ECONOMIC SYSTEMS

  2. Warm Up 1. What does equality mean to you? 2. How do you define equality? 3. Should we be equal in every aspect of our lives?

  3. TYPESOF ECONOMICSYSTEMS TraditionalEconomies–the allocationof scarceresources,and nearlyallother economicactivity,stemsfromritual,habit orcustom. CommandEconomies–are economiesin which acentralauthoritymakesmost of WHAT,HOW,and FOR WHOMdecisions. Economicdecisionsare madebythe government. MarketEconomies–Peopleand firmsact intheirownbest intereststoanswerthe WHAT,HOW,and FOR WHOMquestions.   

  4. MIXED ECONOMIES OR MODIFIEDFREEENTERPRISEECONOMY Most economiesinthe world todayfeature some mixoftraditional,command, economies. TheUnitedStateshas a combinationofcommand (planned)and market economies. Wehaveamarket(free enterprise)economy with some government intervention. and market

  5. PLACETHE U.S.ECONOMY?

  6. SPECTRUM Planned OF MIXED ECONOMIES Free Socialism India China France Russia Germany Canada GreatBritain UnitedStates Korea HongKong North TheRole ofGovernment Promotescompetition and Supplies'PublicGoods Makesmost,ifnot all EconomicDecisions Ownsmostkeyresources

  7. SECTION2 EVALUATINGECONOMI PERFORMANCE 1)EconomicFreedom– freedomtomakeyourowneconomic decisions 2) EconomicEfficiency– C benefitsgainedmustbegreater costs incurred 3)EconomicEquity– astrongsenseofjustice, impartiality,and fairness R than

  8. EVALUATINGECONOMIC PERFORMANCECONTINUED 4)EconomicSecurity–protection adverseeconomiceventsaslayoffs and illnesses from 5)FullEmployment–toproduceas manyjobsaspossible 6) PriceStability–steadyprices,void of inflation 7)EconomicGrowth–tomeetthe needsofpopulationgrowth R

  9. SECTION3 FREEENTERPRISE CAPITALISM InaCapitalisticEconomic Systemindividualsownmost ofthe factorsofproduction. This economicsystemexists due tofreeenterprise.Ina freeenterpriseeconomy, competitionisallowedto flourishwithaminimumof governmentalinterference. R

  10. MAJORFEATURESOF CAPITALISM 1. EconomicFreedom 2. VoluntaryExchange 3. PrivatePropertyRights 4. ProfitMotive 5. Competition

  11. COMPETITION&FREEENTERPRISE EconomicFreedomallows individualsand businesses tochoosetheireconomic destiny. AVoluntaryExchange happenswhenbothparties benefitfromthe transaction. R

  12. COMPETITION&FREEENTERPRISECONTINUED Theprivilegethatentitles people toownand controltheir possessionsastheywish is knownasPrivateProperty Rights.

  13. COMPETITION&FREEENTERPRISE Profitisthe extenttowhich personsororganizationsare betteroffatthe end ofaperiod thantheywere atthe beginnin CONTINUED g. Profitmotiveisthe driving forcethatencouragespeople and organizationstoimprovetheir materialwellbeing.

  14. COMPETITION&FREEENTERPRISECONTINUED TheresultofCompetitionisthat goodsand servicesare producedat the lowestpossiblecostand allocatedtothosewhoare willing and able to pay for them. R

  15. THE ROLE OF THE ENTREPRENEUR Theentrepreneurisoneofthe mostimportant people inafreeenterprise(capitalistic)economy. Theentrepreneurorganizesand managesland, labor,and capitalinordertoseek the reward calledprofit. Inotherwords –Entrepreneurs makethingshappen.

  16. THE ROLE Consumersplay OF THE CONSUMER animportantroleinthe AmericanFreeEnterprise economy. They controlwhatisproducedwhentheyexpress theirwants services. through purchasing goods and R

  17. THE ROLE OF GOVERNMENT(CONTINUED) Provider&Consumer– Federal,Stateand Local governmentsprovidegoods andservicesforcitizens. the processofproviding, governmentconsumes factorsofproduction. In

  18. THE ROLE OF GOVERNMENT Protector–The governmentprotects propertyrightsand enforcescontractsto ensureanefficient and fair economy.

  19. THE ROLE OF GOVERNMENT(CONTINUED) Regulator–Thenationalgovernment chargedwithpreservingcompetition. Localand stategovernmentscontrol businesseswithzoningregulations, is taxes,insurancerates, etc. PromoterofNationalGoals The governmentshouldreflect the willof the majority of its people.

More Related