Download Chapter 19: Economies in Transition

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Chapter 19: Economies in Transition
LEARNING OBJECTIVES
#1 - Describe the strengths and weaknesses associated with different types of economic systems.
Step 1
Read the sections in your textbook titled “Basic Types of Economic systems,” and “The
Isms.”
Step 2
Play the “Causation Chains Game” titled “Central Planners Fixing Prices.”
Step 3
Listen to the “Ask the Instructor Video Clip” titled “What Would Happen If Everyone
Were Paid the Same?” You will learn how the production possibilities curve is related to
socialism.
Step 4
Read the EconNews article titled “Mickey the Red.” This article describes differences
between capitalism and socialism.
Step 5
Read the EconDebate titled “How Should We Reform the Current Tax System?” This
article describes the conflict between equity and efficiency.
The Result
Following these steps, you have learned that Adam Smith is the father of modern
economics, while Karl Marx advocated communism as the ideal system.
#2 - Compare economies in transition.
Step 1
Read the section in your textbook titled “Comparing Economic Systems.”
Step 2
Watch the CNN Video Clip titled “Will the Sun Rise Again?” and analyze the Japanese
government’s attempts to stimulate its economy.
Step 3
Read the EconNews titled “Japanese Growth Spurred by Chinese Demand.” This article
describes the importance of China to Japan’s economy.
Step 4
Read the EconNews titled “Chinese Inflation?” This article describes monetary policy in
China.
The Result
Following these steps, you have learned about economies in transition from communism
to market economies to allocate goods and services including Cuba, Russia, and China.
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