1. Economics
• The science that deals with production,
distribution, and consumption of goods
and services or material welfare of human
kind.

2. How do different economies
answer the basic questions…
-What to produce?
-How to produce?
-For whom to produce?

3. Entrepreneur
- an individual who accepts financial risks
and undertakes new financial ventures
Bill Gates of Sam Walton of
Microsoft Wal-Mart

4. Types of Systems
• Market Economy
• Command Economy
• Traditional Economy
• Mixed Economy

5. Market Economy
• – business owners and consumers decide
what to sell and buy

6. Command Economy
• – government decides
what is made and sold

7. Traditional Economy
• – “same way we
have always done it”

8. Mixed Economy
• – a combination of two or three economy
types

9. Traditional
(Same)
– “way we
have always
done it”
Market
(Choice)
– business
owners and
consumers
decide what to
Mixed
(Two or More)
– a
combination of
two or three
economy types
Command
(Government)
– government
decides what is
made and sold
Economies

10. Most Countries have a Mixed
Economy• U.S.A
– Mix of Market and Command Economy

11. Most Countries have a Mixed
Economy• Cuba
– Mix of Command with Traditional moving
toward a Market Economy

12. 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.

13. 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.
.

14. 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.

15. Continuum: Pure Command to
Pure Market
Place China, India and Japan on the continuum
line.
• _____________________________________
Pure Pure
Command Market

16. 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

17. • 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.

18. Trade Barriers
• Any government imposed restriction that
interferes with one country trading with
another

19. Tariffs
• A tax placed on goods imported from
another country

20. Quota
• Limits the amount of a good imported

21. Embargo
• Any restriction by a government that stops
the importing of a good from another
country; ban

22. 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).

23. 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.

24. 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__