economics review
DESCRIPTION
TRANSCRIPT
![Page 1: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/1.jpg)
Economics
• The science that deals with production, distribution, and consumption of goods and services or material welfare of human kind.
![Page 2: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/2.jpg)
How do different economies answer the basic questions…
-What to produce?
-How to produce?
-For whom to produce?
![Page 3: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/3.jpg)
Entrepreneur
- an individual who accepts financial risks and undertakes new financial ventures
Bill Gates of Sam Walton of
Microsoft Wal-Mart
![Page 4: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/4.jpg)
Types of Systems
• Market Economy
• Command Economy
• Traditional Economy
• Mixed Economy
![Page 5: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/5.jpg)
Market Economy• – business owners and consumers decide
what to sell and buy
![Page 6: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/6.jpg)
Command Economy
• – government decides what is made and sold
![Page 7: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/7.jpg)
Traditional Economy
• – “same way we have always done it”
![Page 8: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/8.jpg)
Mixed Economy
• – a combination of two or three economy types
![Page 9: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/9.jpg)
Traditional (Same)
– “way we have always done it”
Market (Choice)– business owners and consumers decide what to sell and buy
Mixed(Two or More)
– a combination of two or three economy types
Command(Government)
– government decides what is made and sold
Economies
![Page 10: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/10.jpg)
Most Countries have a Mixed Economy• U.S.A
– Mix of Market and Command Economy
![Page 11: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/11.jpg)
Most Countries have a Mixed Economy• Cuba
– Mix of Command with Traditional moving toward a Market Economy
![Page 12: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/12.jpg)
Who? What kind?
-
This government is called the People’s Republic of ….. But the people are just being to receive a voice. Free enterprise is just beginning to become real.
![Page 13: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/13.jpg)
Who? What kind?
- This country is a constitutional monarchy. It has very little natural resources. The education system is excellent. The country is know for it’s technical advances.
.
![Page 14: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/14.jpg)
Who? What kind?
• This country is a • developing
• country. The • government is• encouraging • farmers to use
• new technology instead of doing things the same old way. Entrepreneurs are investing in this country’s economy.
![Page 15: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/15.jpg)
Continuum: Pure Command to Pure Market
Place China, India and Japan on the continuum line.
• _____________________________________
Pure Pure
Command Market
![Page 16: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/16.jpg)
There is a lack of entrepreneurship in Asia.
• This greatly affects the developing economies of the region. List reasons why. Lack of: new businesses, new ideas, employment, developing leadership, new products
![Page 17: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/17.jpg)
• No country can produce everything it needs. • This is due to location, climate, natural
resources, technology.• Countries must “specialize”. • They produce what they can and then sell those
products to other countries and buy what they need.
• This increases the need for voluntary trade among countries. Two or more countries trade with each other, all sell their products and get items they need from the others.
![Page 18: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/18.jpg)
Trade Barriers
• Any government imposed restriction that interferes with one country trading with another
![Page 19: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/19.jpg)
Tariffs
• A tax placed on goods imported from another country
![Page 20: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/20.jpg)
Quota
• Limits the amount of a good imported
![Page 21: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/21.jpg)
Embargo
• Any restriction by a government that stops the importing of a good from another country; ban
![Page 22: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/22.jpg)
Why is investment important to a nation’s economy?
• Create new products
• Develops new ideas
• Creates jobs
• Raises the standard of living (higher GDP per capita).
![Page 23: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/23.jpg)
Why do countries have currency?
• Currency allows people to trade (buy and sell) at an established rate. There is a standard to determine the worth of goods and services. Countries have exchange rates for other countries’ currencies depending on the value of that currency.
![Page 24: Economics review](https://reader034.vdocuments.mx/reader034/viewer/2022051609/5462914aaf7959b92a8b7312/html5/thumbnails/24.jpg)
Project
1. Divide your cards into goods and services.
2. Then divide the goods into agriculture and products.
3. Total the numbers of each category. (3)
agriculture____ products_____services__