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					Economic Types
Fish Sticks!!!   Wait what?
Will Get to the fish sticks later…

 Yesterday we looked at different economic
   systems. Lets discuss the question from

What system is the best? Explain. Think about
 the basic goal of economics, such as growth,
       efficiency, stability, and equity?
          Essential Questions:
In what ways does economics impact your
Terms to Know
   Economy: It is a system in which people make,
    exchange, and use things that have value and that
    meet their wants and needs.

   Producer: Owners and workers in the economy

   Consumer: People who buy and use products
  Every Economic System has 3 Decisions it has to make:

1. What and how many goods and services should be
         2. How they should be produced?
      3. Who gets these completed products?

   These Decisions Vary based on the Economic
                System you choose
Three types of economic systems
   Traditional Economy: habit and custom determine
    the rules for all economic activity.

   Individuals don’t make decisions on what they would
    like to have. Instead follow customs and behaviors
    of their elders.

   Exist in a very limited part of the world today.
Market Economy (Private Ownership)
    Market Economy: Also called Capitalism,
     individuals and private groups make decisions
     about what to produce.
    Based on Free Enterprise, the idea that private
     individuals have a right to own property and
     businesses with little government involvement.

    People can choose who they work for and what job
     they want to follow for a career.
Market Economy cont.
   No country on Earth has a perfect market system.

   Mixed Economy- government supports Free
    Enterprise, but also has a say in it to protect the
    citizens of that government from possible economic
Example of Mixed Economy
Socialism: 3 main goals.

1.Provide equitable distribution of wealth and economic

2. Society control through government.

3. Public ownership of services and factories that are
    Last type…Command Economy
       (Government Ownership)
 Command Economy: Often associated
  with Communism, the government owns or
  directs the means of production – land
  and labor , and business managers
– controls the distribution of goods.

Example: Communist China
   What are the differences between a Market
    Economy and a Command Economy?
Not only economic systems…..

Not only are the economic systems important, but also what type of
  jobs is available in the country you live in. There are four types of
  jobs: Primary, Secondary, Tertiary, and Quaternary.

       Lets name some jobs and see if you can determine what the
                   definition of each Economic Activity.
   Primary Economic Activities: taking and using
    natural resources directly from the earth.
   Examples: farming, coal mining, and fishing

   Secondary Economic Activities: use raw materials to
    produce something new and more valuable.

   Examples: manufacturing cars, making pottery and
   Tertiary Activates: Do not involve directly acquiring
    and remaking natural resources. Instead, they are
    activates that provide services to people and
   i.e. doctors, bankers, teachers, lawyers, food servers

   Quaternary Activities: concerned with processing,
    management, and distribution of information.
   i.e professionals in education, business, and research
Why do we trade?
   There are two types of countries that exist in the
    world today. Developed and Developing Countries.

     Developed   Nations: Nations with more advanced
      industry and technology. 1/5 of the worlds people live
      in Developed Nations (USA, Canada, Japan, most
      European Nations). Most live in cities and work in jobs
      on the higher end of the Economic system ( tertiary jobs
      or secondary jobs) . Many citizens will work in service
      jobs, while machines work on manufacturing jobs.

    Developing Nations: Nations with fewer industries and
    technology. See this how many African, Asian, and
    South America
      These  countries do not do as many high tech and complex
       jobs ( do Primary and Secondary jobs)
      Usually the jobs are low paying and many of the citizens the
       people will focus on individual farming to support their
So what do we trade
   Trade Resources!

     Natural Resources: useful material found in the

     Renewable   Resources: Resources that can be replaced
      (water, the sun, trees?)

     Non-Renewable    Resources: a resource that cannot be
      replaced (Fossil Fuels include oil, natural gas, coal, etc.)
What do we exchange? Why do
we do exchanging?
   Countries rely on each other to survive in this world
   Every country has an item that other countries want,
    for example:
     USA  specializes in making computers and Saudi Arabia
      specializes in producing oil. USA needs oil and the
      Saudi’s need computers. So we trade to get the items
      that we need to survive.

     We  trade to get the items we need that we cannot have
      or produce in our own countries.