Why
Download
1 / 22

Why would people stand in line all day for one roll of toilet paper? - PowerPoint PPT Presentation


  • 64 Views
  • Uploaded on

Why would people stand in line all day for one roll of toilet paper? . Moscow 1988. Command. Traditional. Market. Economic SYSTEM $. Every society has an economic system in which people make and distribute goods and services. . What is AN ECONOMIC SYSTEM?.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Why would people stand in line all day for one roll of toilet paper? ' - goro


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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Why would people stand in line all day for one roll of toilet paper?

Moscow 1988


Economic system

Command

Traditional

Market

Economic SYSTEM $


Every society has an economic system in which people make and distribute goods and services.


What is an economic system
What is AN ECONOMIC SYSTEM?

  • An economic system describes how a society determines what to produce, how to produce, and for whom to distribute goods and services.


In any type of economic systems 3 basic questions must be answered.

  • What will be produced?

  • Howwill it be produced?

  • For whomwill it be produced?


The 3 economic systems
The 3 Economic Systems

  • Traditional

  • Command

  • Market


Traditional economic system
TraditionalECONOMIC SYSTEM

  • Traditional economic system is a community based system in which all factors of production rely on customs, and beliefs.

  • There is very little change.

  • Trade is usually very limited.

  • Today traditional economies are not common.


Traditional economic system1
TraditionalECONOMIC SYSTEM

  • What? Tradition, customs, and beliefs decide what goods and services will be produced.

  • How? Tradition, customs, and beliefs decide how goods and services will be produced.

  • For whom? For people who live in the community or the village.


Command economic system
COMMANDECONOMIC SYSTEM

In a command economy the factors of production is owned and controlled by the government.


Command economic system1
CommandEconomic System

What?The government decides what products are needed.

How?Since the government owns all means of production, it decides how goods and services will be produced.

For whom? The government decides who will get what is produced.

.


Market economic system
MarketECONOMIC SYSTEM

In a market economic system the factors of production is controlled by individuals or corporations.


Market economic system1
MarketECONOMIC SYSTEM

What? Consumers and producers decide what should be produced.

How? Consumersand producers decide how to produce.

For whom? Consumers.


Important
IMPORTANT!

  • Traditional economies only make up a small part of a country’s economy.

  • There are NOPURE Market economies in the world

  • There are NO PURE Command economies in the world.

All economies in the world have aspects of both command and market.


Therefore
Therefore…

All modern economies in the world are MIXED economies.

But the mix is different in every nation.


USA

77%

United Kingdom

74%

Germany

71%

Russia

50%

PURE COMMAND

0%

PURE MARKET100%

In which country do you think it would be the easiest to start a business?




Identify the economic system
Identify the economic System

  • The Inuit of northern Canada serve as a prime example of a ___________economy. For thousands of years, the Inuit parents have taught their children the survival skills needed to survive in the Arctic Circle's severe climate. The children are taught to fish, hunt, and make effective tools. Once learned, these skills are passed down to the next generation. When the Inuit hunt, it is traditional for them to distribute the harvest with other families in the community.


Review
Review

  • True of False.

    The economies of Germany, Russia, and the United Kingdom have aspects of both command and the market economic systems. Explain.


Review1
REVIEW

  • An entrepreneur is someone who starts their own business. In a command economy entrepreneurs rarely exist. Why?


Review2
Review

  • Which economic system is the MOST centralized?


Review3
Review

This picture BEST represents a _______ economic system.


ad