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Different World Economies

Different World Economies. Social Studies/Economics. Lesson Objectives/Goals. Describe and compare the economic systems predominate in the world today. Compare and contrast traditional, command and market economies. Terminology/Vocabulary. Capitalism Traditional Economy Command Economy

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Different World Economies

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  1. Different World Economies Social Studies/Economics

  2. Lesson Objectives/Goals • Describe and compare the economic systems predominate in the world today. • Compare and contrast traditional, command and market economies.

  3. Terminology/Vocabulary • Capitalism • Traditional Economy • Command Economy • Market Economy • Mixed Economy • Free Enterprise

  4. CAPITALISM • an economic system based on the private ownership of the means of production and distribution of goods, characterized by a free competitive market and motivation by profit

  5. Traditional Economy • Economy based on custom, tradition, and family roles. Whereas technology is not used, and new ideas are not encouraged

  6. COMMAND ECONOMY • In a command economy economic decisions are made on behalf of the public by government planners who determine what sorts of goods and services to produce and how they are to be exchanged

  7. MARKET ECONOMY • Rest upon the fundamental principle of individual freedom; freedom as a consumer to choose among competing products and services. The government has little involvement.

  8. MIXED ECONOMY • It is the attempt to gain the advantages of freedom without government having to give up its power. It is a mix between command and market economies.

  9. FREE ENTERPRISE • freedom to trade without government control: the doctrine or practice of giving companies the freedom to trade and make a profit without government control

  10. NOW LET’S BEGIN…

  11. Traditional Economies • Traditional economies are found in rural, non-developed countries • Customs govern the economic decisions that are made • Technology is not used in traditional economies.

  12. Traditional Economies • Farming, hunting and gathering are done the same way as the generation before • Economic activities are usually centered toward the family or ethnic unit • Men and Women are given different economic roles and tasks

  13. Command Economies • The government makes decisions and determines how resources will be used • Change can occur easily • There is little individual freedom • There is no competition • Businesses are not run to create a profit

  14. Command Economies • Consumers have few choices in the market place • Factories are concerned with quotas • Shortages are common because of poorly run factories and farms • The government dictates the job in which you work • The government sets the prices of goods and services

  15. Market Economies • Resources are owned by individuals • Economic decisions are made by individuals competing to earn profits • Individual freedom is considered very important • Economic decisions are made by the basic principles of supply and demand • Profit is the motive for increasing work rather than quotas

  16. Market Economies • Also called capitalist free-enterprise economies • There are many economic freedoms • There is competition among businesses • Competition determines price which increases the quality of the product

  17. Review Four Types of Economics • Traditional Economies • Command Economies • Market Economies

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