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Final Country Project

Final Country Project. Economic Systems of The World. Cerebral Calisthenics. Why does the economic system in which a person lives matter? How can it affect a person’s everyday comings and goings?. Three Basic Systems….

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Final Country Project

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  1. Final Country Project Economic Systems of The World

  2. Cerebral Calisthenics Why does the economic system in which a person lives matter? How can it affect a person’s everyday comings and goings?

  3. Three Basic Systems… There are Three Basic Economic Systems That Can Be Used To describe The Economic Spectrum…. …All World Economic Systems Fit Within These Categories to Varying Degrees… • Command Economies • Market Economies • Mixed Economies Smaller Role Played By Government Larger Role Played by Government

  4. Distinguishing Economic Systems: Factors of Production Who Controls The Factors of Production: • WHAT is produced? • HOW is it produced? • FOR WHOM is it produced?

  5. Command Economy WHAT? Government Decides What is Produced HOW? Government Decides How Products Are Produced FOR WHOM? Government Decides Who Receives What is Produced

  6. Advantages and Disadvantages of Command Economies Advantages • Theoretically provides equality • Government provides broad range of public services • Public services provided at little to no cost • Government directed economy can shift directions quickly Disadvantages • Loss of individual freedom of choice • Lack of effective incentives for people to work hard • Lack of business competition can decrease quality of goods • Needs and wants of consumers often not met • Central planners often don’t prioritize consumer goods

  7. Market Economy HOW? Means of Production Privately Owned FOR WHOM? Supply and Demand Determine Prices WHAT? Private Businesses Direct Resources into activities that promise greatest profit

  8. Advantages and Disadvantages of Market Economies Disadvantages • Not everyone’s needs are satisfied • Production of Public goods can go ignored – roads, schools, etc. • Pure Capitalist (Market) system ignores those who have no demand, meaning those without ability to pay (Poor) Advantages • Efficiency, directed by consumer supply & demand, and drive for profit • High Quality of Goods Produced • Freedom – choice for buyers and producers • High degree of consumer satisfaction • Flexibility to accommodate change

  9. Which Type of Economy Do These Clips Represent?

  10. Which Type of Economy Do These Clips Represent?

  11. Which Type of Economy Does This Clip Represent?

  12. Mixed Economy WHAT? Government decides the production priorities of some key industries HOW? Government owns and runs some of the basic productive resources FOR WHOM? Government decides how to distribute output of some key industries in the best interest of society

  13. Advantages and Disadvantages of Mixed Economies Disadvantages • Less Efficient than Market economies • Government Guarantees of work can cause over-hiring of workers, increasing production costs • Taxes are higher because more public services are provided Advantages • “For Whom” question answered directly • Those who are not fortunate or productive enough to earn competitive salary still share in benefits of society • People can use their electoral power to influence many of the WHAT, HOW, FOR WHOM, questions that the government controls

  14. Where Does Each System Fall on the Economic Spectrum? Communism Socialism Capitalism Command Mixed Market Smaller Role Played By Government Larger Role Played by Government

  15. How Does The Economic System of Your AssignedCountry Affect The Lives Of Its People? • Natural resources • Trade, transportation, and communication • Health and Education • Capital and labor • What is normal? • Comparisons to neighbors and other countries • Be careful of averages and statistics Factors affecting how (and how well) we meet our Wants & Needs

  16. How Does The Economic System of Your AssignedCountry Affect The Lives Of Its People? Economic Prosperity • GDP and GDP growth (nominal, real, PPP) • Per capita GDP (nominal, real, PPP) • Inflation rate • Unemployment rate • What is normal? • Comparisons to neighbors and other countries • Be careful of averages and statistics

  17. Your Task Task: • Take notes about your country’s economy. Consider the following questions: • What is the basis of the economy? Agriculture? Extraction (mining and fuels)? Manufacturing? Services? Tourism? Other? • How diverse is your country’s economy? • How interconnected is your country to the global economy? • Are economic decisions driven by individuals or the government? • Resource links are found on the class website.

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