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Economic Systems. - ppt download

By A Mystery Man Writer

Objectives Objectives To compare different types of economic systems To identify characteristics of the private enterprise system To explore the four types of economies the United States has experienced
To identify characteristics of the private enterprise system. To explore the four types of economies the United States has experienced.
The way a society produces goods & services. The way a society provides and distributes goods & services to its citizens.
1. Command. 2. Market. 3. Traditional.
Maintains strong governmental control. Requires all productive resources to be owned and operated by the government. Forbids competition. Permits little to no freedom in selecting a career and workplace. Practices heavy taxation. Occurs in North Korea, Cuba and People’s Republic of China.
Advantages. allows for large changes to quickly be made. chooses jobs for everyone, including government provided medical and social services. Disadvantages. lacks in meeting consumer needs. prevents people from making their own economic decisions.
Maintains medium governmental control. Practices governmental control in key industries, such as utilities and transportation. Allows private ownership in only non-vital industries.
Allows competition in smaller, private sector. Permits the right to choose career and place of employment. Practices high taxation. Occurs in Sweden and France.
Advantages. provides medical care, education and social security benefits. allows businesses and individuals to keep some profits for their efforts. Disadvantages. discourages small business ownership by heavy taxation and diminished income. controls important business sectors.
Derives from the principle of individual rights. Practices little governmental control. Encourages private ownership of business in all sectors. Supports competition in all areas. Allows full freedom to choose career and workplace. Practices moderate taxation. Occurs in the United States, Hong Kong and Germany.
allows freedom to make economic decisions. practices low amount of governmental control. Disadvantages. means sometimes great personal and financial risks must be taken with little or no guarantee of even a minimal return.
Occurs in less developed countries. Allows economic activities to be ruled by tradition. Ranks religious and cultural values as more important than economics. Determines jobs according to ancestors’ jobs. Chad, Ecuador and Bangladesh.
Advantages. raises everyone to know his or her station in life. provides a stagnant and unchanging economic life because of resistance to change. Disadvantages. stifles new ideas, technology and efficiency. differentiates the economic roles and status of men and women.
What is the degree of governmental control What freedoms are the people allowed Is competition allowed If so, to what degree
Adam Smith, Karl Marx, John Maynard Keynes
Is synonymous with the Market/Capitalist economy. Emphasizes private sector. Allows ownership of resources and businesses by individuals in society. Permits individuals, rather than government, to make economic decisions. Allows individuals to receive benefits and wages from employers.
Individuals have high levels of freedom to: buy desired goods & services. produce & sell items. choose any career & workplace. People must have the freedom to buy, the freedom to sell, the freedom to try and the freedom to fail. Adam Smith. Wealth of Nations.
Motivates businesses to succeed by: promoting competition. meeting the wants & needs of customers. encouraging profits. Promotes entrepreneurship as an important aspect of an economy. an entrepreneur organizes, manages and assumes the risks of a business or enterprise.
Characteristics of an Entrepreneur: Persistance. Risk Taking. Communication Skills. Desire for Self Expression. Financial Resources. Knowledge of. Business Operations. Decision-Making Skills. Patience. Ambition. Creativity. Pioneering Spirit. Initiative.
United States has Experienced: Four Basic Economies the U.S. has Experienced: 1. Agricultural Economy. 2. Industrial Economy. 3. Service Economy. 4. Information Economy.
Inventions increase agricultural. production and efficiency. (increases overall standard of living) Based on. Farming invention of cotton gin. Dawn of. Civilization. Early America Glidden. barbed wire pattented.
Industrial Economy. Industrial Economy. Inventions lead to. industry growth. Poor working. environments. People fled to cities. ( agriculture employment. declined from 90% to 2.9%) People began. working in factories. Late 1700s. Into 1800s. 1793: Samuel Slater constructed the first successful textile mill in America.
Service Economy. Service Economy. As standard of living. increases. . . Demand for services. increase. People sell their services. Early 1900s.
Society increasingly needs easily accessible, accurate information. Technology development is increasing. at an exponential rate. Emergence of the. Internet & World Wide Web. Bill Gates. made a large. impact. Late 1900s.
(T/F) Complete governmental control is a characteristic of moderate command/socialism. What is another name for the private enterprise system What three freedoms do individuals have in a private enterprise system Answers: Communism, Socialism, Capitalism. False. Capitalism. Buy goods & services, produce & sell goods & services, choose career or workplace.
Identify one feature for each of the four economies the United States has experienced. Answers: 5. initiative, risk taking, pioneering spirit, desire for self expression, knowledge of business operations, patience, financial resources, decision-making skills, communication skills, persistence, creativity, ambition. 6. See slides on agricultural economy, industrial economy, service economy, information economy.
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