Download Intro to Economics PPT

• Economic Systems is the way people and
nations go about meeting their daily needs.
• They all are concerned with producing
consumer goods.
• 4 Types of Economic Systems
*Traditional Economies
*Command Economies
*Market Economies
*Mixed Economies
• Based on customs
• Trades are passed down through generations
• Some families do the same work from generation
to generation.
• Found in rural/developing nations
• Not a lot of technology
• Many of the peoples survival depend on this
economy.
• Main Examples: farming, hunting, and gathering
• Government makes all the decisions.
• Individuals have little or NO say about the basic economics,
such as, how much to produce and what to charge (The
government makes these decisions.)
• Example: North Korea is a country with a command
economy.
Communism is an example of a command economy.
• Factories must meet a quotas.
• Government decides what your occupation will be.
• Shortages are common.
• There is no competition.
• Individuals determine for themselves what
to use and they own their own business.
• Individuals are competing to make a profit.
• Sometimes referred to as capitalism.
*Capitalism-economic system that allows
private ownership and open competition of
business.
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Who will want it is the DEMAND
How much to produce is the SUPPLY
How much to charge is the PRICE
Sometimes this economic system is called the “free
enterprise system”
*Free Enterprise System- economic system that operates
on free competition, in which people start and own
businesses with limited government intervention. (United
States economic system is mostly based upon free
enterprise)
• Individuals keep the profit.
• Competition determines the price and increases the quality
of a product.
• Government and individuals share the decision making
process.
• Individuals control SOME aspects of economy.
• Government regulates selected industries and restricts
others.
• Most nations run this kind of economy.
• Government protects workers from unfair policies.
• Most effective economy for providing goods and
services.
• Example: United States (Airlines); Government
regulates prices or set rules as in the airline industry
and companies provide gas and electricity.
• US and most European countries have this economy.
• Primary Industries
• Secondary Industries
• Tertiary Industries
• Quaternary Industries
• Takes natural resources from the earth.
*Mining, forestry, fishing, and agriculture
• Makes products using the natural resources.
(Primary Source)
*Construction, factories, and processing
plants are in the classification.
• Provides a service.
*Examples: restaurants, supermarkets,
hospitals, education, and emergency services.
• Gathers information
*Industries in this classification research,
gather, and provide information.
Differences in Development
Industrialized ________
countries hold ___
97% of all
___________
patent ownerships (rights to inventions).
America, Europe, Japan, South Korea,
Australia.
________
countries grow only enough ____
food
Developing ________
for their own families. Africa, Asia, and Latin
America.
people from
Industrialized countries are using _____
the developing countries to help create
economies.
Problems facing all Countries
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Increasing __________
populations
Pollution
______
Crime fighting
Health services
______
Drugs