2. PowerPoint Version is
available at
Slideshare.com
Type in PPT title or dean r
berry
2
3. 3
The economic systems used by countries
vary. All of the freedoms enjoyed by
Americans to work and earn profit are not
the same in China and Russia.
4. 4
The governments in some countries exercise
far more control of businesses, profits,
workers, and trade.
5. 5
Some economic systems provide a significant
amount of freedom in the market place, while
other systems give the government a
significant amount of control over what
people can produce, buy, or trade.
6. How is a centrally planned economy
different from a market economy?
6
7. Many countries in the world have large
numbers of poor people and are still doing
things the way they have for hundreds of
years. They are functioning as traditional
economies. They are considered
underdeveloped countries.
7
8. Most countries in Central America,
Africa, and Asia are traditional,
underdeveloped economies.
8
10. Discuss and Take Notes
The next slide lists the characteristics of
developed and underdeveloped countries.
Discuss the differences between the two types
of countries.
Take notes and prepare to write a
paragraph(half page) describing the
differences 10
11. 11
Nations
Developed
Industrialized
countries
Highly educated
Good highways and
airports
Extensive
technology
Industrial parks
Modern Factories
Skilled workforce
Underdeveloped
3rd world countries
Poorly educated
Limited roads, few
airports
Very limited
technology
Raw materials and
mines
Oil, uranium,
lumber, iron, coal
Agriculture-sugar,
bananas, coffee
13. Quick Write
Write a half page comparing and
contrasting developed and
underdeveloped countries. Add details
and examples to make clear the many
ways that they are very different from
each other.
13
14. What does free enterprise mean? What
is a free market economy?
14
15. How much government control is
allowed in a capitalistic(market)
economy?
15
17. How is a command economic system
different from a market economy?
17
18. Countries with a history of communism
exhibit more government control of the
production of goods in an economy.
18
19. 19
In recent years, Russia and China have
gradually loosened some government
controls on the economy, but remain mostly
government controlled economies.
20. 20
Small businesses okay
Free to leave
Strong government control
Government runs big
companies
McDonalds okay
Government controls most
business
personal freedom restricted
21. Discuss and Take Notes
Use the next 4 pages for information to
write a half page essay about the
differences between a free market
economy, a mixed economy, and a
planned command economy.
21
23. As you write your essay, include the
examples of countries that used different
economic systems.
23
24. Who makes the economic decisions in a
market economy?
In a command economy?
24
25. America is mostly a capitalistic economy
and many European countries are a
mixture of both capitalism and socialism.
25
26. 26
Free Market
(Capitalism)
Mostly
Free Market
Very
Limited
Free Market
Command
Economy
(communism)
No
Government
Intervention
Government
Regulates
Businesses
Government
Controls
Business, but
Allows some
Freedom
Government
Tightly
Controls all
Business
Rare
United States
Most
Developed
Countries
China
Vietnam
Cuba
North
Korea
27. Quick Write
Write a half page essay about the
differences between a free market
economy, a mixed economy, and a
planned command economy.
27
28. Review these questions as you view and
discuss the following 9 slides about
government regulation of businesses.
What kind of rules does government put on
businesses?
Are there rules to protect the environment?
Give examples
Are there rules to protect consumers?
Are there rules to protect workers?
Are there rules to ensure fair competition? 28
34. Regulations on businesses keep them
from dumping chemicals in rivers,
spewing dangerous emissions from
smoke stacks, and using cancer causing
material in their products.
34
37. Whistle blowers cannot be fired,
demoted, or harassed because they
report employer violations.
37
38. Let’s summarize and discuss some of the
regulations that are placed on businesses
by government.
What kind of rules does government put on
businesses?
Are there rules to protect the environment?
Give examples
Are there rules to protect consumers?
Are there rules to protect workers?
Are there rules to ensure fair competition?
38
39. Quick Write
Write a one page essay discussing the
regulations that you think government
should put on businesses. Explain why
you think these regulations are
necessary and provide specific
examples.
39
40. 40
Some countries in the world have advanced
economies with well run factories and high
use of technology. Other countries have more
basic economies and are still developing.
41. Why are all four of these areas needed to
produce goods and services?
41
42. You would like to build and sell a new
solar powered automobile. What will
you need to get in order to begin
production? Why are these important?
42
43. In order to sell your solar cars, you will
need enough buyers to make a profit.
What is the economic term for buyers?
43
53. Meet in a small group and select one
good small business idea. Make a list of
the various tasks that must be done in
order to start the business.
53
54. Check your list of things to do against
these steps. Re-do your list if necessary.
54
55. Share your to do list with the whole
class. Should there be changes?
55
56. Think Twice Before Starting Your Own
Business
Who will need to work more hours per day-
an employee or a new business owner?
Who will have to pay every time they make
a mistake?
Who needs to learn the most and do their
homework?
Who needs to be the most motivated?
56
57. How will you get customers
for your new business?
Is there enough demand for your service or
product?
How will you prepare to meet the demand
for your service?
57
58. 58
In a market economy like the United States
prices and production are determined by
supply and demand.
62. Let’s discuss and review the following
ideas about supply and demand.
How does demand affect prices?
How does supply of a product affect prices?
What might happen if three new fast food
restaurants opened on the same block
where two fast food restaurants already
exist?
62
63. Where do many of the products you
purchase come from? Where are they
made?
63
64. Discuss
How many products can you name that
come from other countries?
Where do they come from?
Why do Americans buy these products?
64
65. Which category of imports do we import
the most from China? What percent of
our Chinese imports are computer and
electronic related?
65
66. If a 25% tariff was imposed on solar
imports from Asia, how would the goal of
reducing home energy costs be affected?
66
67. 67
Even hundreds of years ago countries found
it very helpful to trade their products to
other countries in exchange for goods that
they were unable to produce or grow.
68. Over 2,000 years ago ancient
civilizations traded with each other by
ship or overland on the silk road routes.
68
70. Riding camels through deserts and
mountains was much harder than using
modern technology to trade.
70
71. As hard as trade was in the ancient past,
different regions of the world wanted
the goods and products that other areas
had. It was a great exchange for all
parties.
71
79. Trade agreements like NAFTA are
established between cooperating
countries to eliminate tariffs and enable
countries to sell products in each other’s
countries. This usually produces a win-
win situation for all countries.
79
80. 80
Cheap Labor $
Countries that have a lower standard of living
can pay their workers less and produce goods
at a much lower price than wealthier
countries.
Immigrants
Mexico
South
America
Vietnam
India
Minimum
Wage
82. 82
However, some people oppose free trade
because it may result in fewer jobs in the
United States when products can be
purchased much cheaper in other countries.
83. Buying products that are made in the
United States helps create more jobs for
Americans.
83
84. Import tariffs are taxes that force prices
much higher on foreign made products
sold in American stores.
84
86. Adding high tariffs to imported products
is called protectionism because it
protects American made products from
much cheaper imported products.
86
87. The problem with tariffs is that prices
for consumers can go much higher.
87
88. Discuss
Allowing free trade between countries tends
to benefit consumers by offering lower prices
for goods.
Should Wal-Mart be allowed to import
cheaper products and sell them at lower
prices? What if your relatives lose their jobs
because the company they work for cannot
make the product as cheaply as Chinese
companies?
88
90. 90
Tariffs Some people argue that adding a tax
on imports will make competition fair
and save jobs in the U.S.
91. Adding an import tax on products made
in other countries will increase the cost
of the product and make it easier for
products made in the U.S. to compete.
91
93. Chinese workers are paid less to make
tires in Chinese factories. American
workers require higher wages. As a
result, tires made in America have to
cost more to cover the costs of
production.
93
95. If more Chinese products sell to U.S.
consumers, then fewer American made
products will be purchased.
As a result, American companies will need to
hire fewer American workers to make tires.
95
97. President Trump placed 25% tariffs on many
products to help save American jobs but it
backfired and more jobs were lost than saved.
Tariffs have created more problems than they
have solved.
97
98. U.S. tariffs on steel and other materials
cost far more jobs than they saved.
What was the net jobs lost?
98
99. Experts say that global trading is here
to stay for several reasons.
Consumers benefit from imported products since
imports create more competition and lower prices.
Placing tariffs on foreign products will increase prices
for all consumers.
The jobs lost by buying foreign products is offset by
the jobs that are created through global trade.
99
102. 102
Should consumers have the right to buy
less expensive tires that are made in
China? What are the pros and cons of
free trade? Who wins and who loses?
Explain
103. Report Back to the Class
Share your group’s ideas about free
trade.
Give the pros and cons that you
discussed
Now that we have heard the
arguments, let’s vote on free trade to
see where the class stands on this
important issue.
103
104. 104
Check-up and Review
Raise your green card if you believe
the statement is true or your red card
if you think it is false.
105. 105
True or False-1
In the United States
gas and food prices
are determined by
our government.
111. 111
True or False-4
If more people want to
buy Honda automobiles
than the company can
produce, the price of a
new Honda will increase
significantly.
113. 113
True or False-5
China is not a free society
because the government
makes most of the
economic decisions,
operates the means of
production, and seriously
limits personal freedoms.
115. 115
True or False-6
Most underdeveloped
countries have plenty of
skilled workers, but they
lack the money needed to
create new businesses
and factories.
121. 121
True or False-9
Sometimes an import tax is
placed on goods entering
the U.S. to make sure that
American goods are able to
compete with foreign
products with a fair, level
playing field.
125. 125
True or False-11
Russia and China have
converted to a free
market economy and
offer the same freedoms
for business owners as
the United States.
127. 127
True or False-12
Most expert agree that if
we stop trading with
other countries, we will
have more jobs for our
own people and our
economy will prosper.
