1 / 27

Economic Systems

tamma
Download Presentation

Economic Systems

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. Economic Systems An organized way of providing the wants and needs of people.

    2. Economic Systems An organized way of determining the importance of the economic goals.

    3. 3 types of Economic Systems Market, Command, and Traditional

    4. 3 types of Economic Systems All Economic Systems are mixed.

    5. The differences between market and command economies -Market Economy Productive resources are owned and controlled by individuals in the economy. Decisions about how resources are to be used are made by numerous individual buyers and sellers in markets. Individuals are motivated by their own self-interest.

    6. The differences between Market and Command economies -Command Economy Except for human resources, most productive resources are owned and controlled by the state or government. Decisions about how resources are to be used are made by central planners of the government. Central planners are motivated by the social goals they establish.

    9. Who Decides? A lesson in resource allocation differences in market versus command economies.

    10. Who Decides?

    11. Results Vesto’s Carbo’s CPC #1 _________________________________ CPC #2 _________________________________ Classroom _________________________________

    12. Who Decides? #1. What type of economy did the Central Planning Commission represent? Why? #2. What type of economy did the classroom exchange simulation represent? Why? #3. In the classroom simulation why was more nech purchased by vesto producers than carbo producers? Why? #4. Why might the market results be different than the Central Planning Commission’s results? #5. What are the advantages and disadvantages of the resource allocation process in each system? #6. Which goals does each economic system attempt to achieve in the simulation?

    13. A Parking Lot Full of Incentives A lesson in command economic systems

    14. Questions from City Council, Free Market Collide Why are the lot owners able to charge more on days when there is a football game or big event?

    15. Questions from City Council, Free Market Collide If the lot owners are allowed to charge whatever they like, what will likely happen in the long run, if they are earning very high profits?

    16. Questions from City Council, Free Market Collide Instead of waiting for all this to occur, the city council passed an ordinance to keep prices low now. What will the probable impact be on game day?

    17. A Parking Lot Full of Incentives A lesson in command economic systems

    25. New York City Parking Lot

    26. New York City Parking Lot

    27. New York City Parking Lot

    28. Innovation

More Related