1. • How many basic types of economic systems are
there?
• Name the economic systems.
• Which economic system do most textbooks say is
the most common throughout the world?
2. • How many basic types of economic systems are
there? 3
• Name the economic systems. Traditional,
Command, Market
• Which economic system do most textbooks say is
the most common throughout the world?
Mixed.
4. Georgia Performance
Standards
• SS7E5 The student will analyze
different economic systems.
• b. Explain how most countries have a
mixed economy located on a continuum
between pure market and pure command.
• c. Compared contrast the economic
systems in Israel, Saudi Arabia, and
Turkey.
6. Israel
(1) What to produce?
A large portion of Israel’s GDP
comes from high tech
manufacturing, financial
services, and agriculture.
7. (2) How to produce?
Israel has substantial
government ownership of
business, but is gradually
privatizing companies.
8. (3) For whom to produce?
The private sector produces
goods and services for domestic
and international markets based
on the market price system.
9. Israel
ic
om
on ms 68%
E c te
S ys
Place on the continuum: Israel would fall in the
middle of the market side on the continuum.
Pure Pure
Command Market
10. Saudi Arabia
(1) What to produce?
Saudi Arabia is the
world’s leading
producer of oil. The
Saudi government
continues to invest in
industrial production.
They are a leader in
petrochemicals,
mining, and refining.
11. Saudi Arabia
(2) How to produce?
• Over 95% of the oil industry in the
country is operated by the
government. Most other major
industries have significant
government involvement.
• Saudi Arabia relies heavily on
specialized labor from other
countries. Estimates are that a
third of the labor force falls in this
category.
• Since the 1980s, the Saudi
government has been trying to
increase private ownership of
business and encourage more
joint ventures with private foreign
companies.
12. Saudi Arabia
3) For whom to produce?
• One third of Saudi
Arabia’s GDP is
based on exports to
other countries. (This
is due to the
economy’s reliance
on the oil sector.)
13. ic
om
o n ms
Ec te
S ys Saudi
Arabia
64%
Place on the continuum: Saudi Arabia would fall
to the left of Israel on the continuum.
Pure Pure
Command Market
14. Turkey
(1) What to produce?
Turkey has a diversified economy with
large service, manufacturing, and
agricultural
sectors.
15. (2) How to
produce?
Since the late
1980s, Turkey has
gradually moved
from a
government
directed economy
to more private
enterprise.
16. (3) For whom to produce?
One fifth of Turkey’s production is
exported. The remainder is
consumed by domestic
consumers and
the government.
17. ic
om
o n ms
Ec te
S ys Turkey
62%
Place on the continuum: Turkey would fall to the left of Saudi
Arabia and Israel on the market side of the continuum.
Pure Pure
Command Market
18. ic
om
o n ms
Israel
Ec te 68%
S ys
Turkey
62%
Saudi
Arabia
64%
Pure Pure
Command Market
Notas del editor
7 th Grade- This information is meant to be used in conjunction with the 6 th and 7 th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
