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Economic Systems and Economic Tools. All economic systems produce two things, these are:. Economic Goods – These have value and can be seen Economic Services – Have value but cannot be shown. Factors of Production.
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All economic systems produce two things, these are: • Economic Goods – These have value and can be seen • Economic Services – Have value but cannot be shown
Factors of Production • In order to produce goods and services an economic system will utilize the factors of production which is sometimes call productive resources. • These are the basic resources needed to produce economic goods and services. There are three:
Entrepreneur • Sometimes what is referred to as the unofficial fourth factor of production is the entrepreneur. These individuals bring together the 3 factors of production to seek financial gain through profit or accept the losses. Richard Charles Nicholas Branson(born 18 July 1950) is an English industrialist, best known for his Virgin brand of over 360 companies. Branson's first successful business venture was at age 16, when he published a magazine called Student.[1] He then set up an audio record mail-order business in 1970. In 1972, he opened a chain of record stores, Virgin Records, later known as Virgin Megastores and rebranded after a management buyout as Zavvi in late 2007. With his flamboyant and competitive style, Branson's Virgin brand grew rapidly during the 1980s—as he set up Virgin Atlantic Airways and expanded the Virgin Records music label. Richard Branson is the 261st richest person according to Forbes' 2009 list of billionaires, with an estimated net worth of approximately £1.5 billion (US$2.5 billion).[2]
When the factors are brought together to make economic goods they can produce two types, consumer goods which are sold to consumers for personal use and public goods which are for our collective benefit.
Three Basic Economic QuestionsEvery nation must ask itself: • What must be produced • How will it be produced • For whom will it be produced
Economic Systems • Now that we have the three basic questions we can now relate them to the type of systems that different economies utilize. Keep in mind that in today’s world a pure economy is rare and the most realistic model is a mixed economy
Traditional Economy • An economy in which the basic economic questions are answered by the people with the answer being usually based on how things were done in the past. Bol, Croatia Trough the history, main occupation of Brac inhabitants was cattling. Even today, you will enjoy the taste of traditional specialty - lamb.Few centuries after arrival of Croatians on Brac started the development of agriculture and fishing. Brac maritime tradition dates quite late - in 18th century it became one of the main source of income.
Command Economies (Centrally Planned) Preface 30 minute Video 9 minute Video
Berlin-Center of the Cold War • In April of 1945 the city was devastated by the last battle of WW2 • Germany sued for peace and the city was divided into four zones in 1945
Berlin is divided • In the summer of 1945 the city was host to four occupiers, the Russians took the eastern half of the city while England, France and the United States occupied the western zones
The Soviets try to eject the allies in May1948 by stopping all supplies coming into Berlin
Life in Berlin in the winter of 48/49 was rough as supplies were scarce. • Berliners pitched in at airbases to provide the labor needed to empty the aircraft • By the spring things were getting better as the allies were dropping 4,000 tons of food and supplies daily
An uneasy tension in the 1950’s • In 1949 the Soviets lifted the blockade when it was decided that the allies would not abandon Berlin • Throughout the 50’s and uneasy acceptance by both sides allowed life to proceed somewhat normally
The Trabant.. Not just for Commies anymore
East Berlin rebuilds at a slower pace than West Berlin inspiring envy and Soviet anger. The Adlon Hotel in East Berlin was still repairing bomb damage from 1944 in 1954.
1961-1989 East Germany creates a prison state when they put up the first barbed wire barricades around Berlin and along the border with West Germany. The first wire is erected August 13th, the Brandenburg Gate is closed on the 14th and West Berliners are barred from East Germany for two years
August 12/13, 1961In the afternoon of August 12 at 4 p.m. Walter Ulbricht, the East German leader, signed the commands to close the border. Next Sunday at midnight the army, police and the "Kampfgruppen" began to bolt the city. The wall is built and separates the city into two parts for more than 28 years.Streets, the railway and the S-Bahn (city railway) are broken, stations of the U-Bahn (underground railway) are closed, even cemeteries are not spared. Nothing is forgotten and the East Germans will not be allowed to free travel to the West until 1989.
Conrad Schuman, a border guard escapes from East Germany in August 1961
To prevent people from jumping into the West the windows are blocked up.
A view of the second generation Berlin wall at the Potsdammer Platz. Note the observation platform erected by the West German government.
The first fatality at the wall was Peter Fecther, an 18 year old boy. On August 17th 1962 Peter and a friend Helmut Kubeik jumped from a building window and sprinted to the wall. The guards fired 21 times cutting Fecther down with shots to his abdomen and spine. Paralyzed, Fecther called out for help for fifty minutes as hundreds of shocked West Berliners helplessly looked on.
From the year 1975 the third generation of Berlin Wall was replaced by the fourth generation. New concrete segments were used which were easy to build up and more resistant to breakthroughs and to environmental pollutions.This kind of Berlin Wall was also called "Grenzmauer 75" (Border Wall 75). 4th Generation Wall
