economics intro notes

Introduction to Economics

What is it?The study of a region’s wealth and how

goods and services are distributed.

There are three main kinds of economic systems. Each has a different way of distributing goods and services.

1) Subsistence Economy (Traditional)

2) Market Economy (Capitalist)

3) Command Economy (Socialist)

Elements of a Market Economy:

Free Enterprise = Allows competition among businesses to determine the prices of products.

Capitalism = Where businesses, industries and resources are privately owned.

Capitalism and free enterprise are a big part of a market economy.

Element of a Command Economy:

Communism = An economic and political system in which the government owns or controls all means of production.

Economy Type Description Motivator Location

Subsistencea.k.a. Traditional

People make goods for themselves or their families with little or no surplus (leftovers)

Survival

Most subsistence economies are found in poor countries and rural areas.Ex. Bangladesh

Market

People freely choose what jobs they have and what to buy and sell.

Profit

Most of the world’s rich countries have market economies.Ex. United States

Command

The government decides jobs, products, location, and prices.

Government Regulations

Communist countries have command economies.Ex. Cuba

Free Market

Economy

No Government Rules

Government Regulated Command Economy

No Freedom at All

United State

s

Canada

Cuba

Student Slides

Introduction to Economics

What is it?The study of a region’s _________ and

how goods and services are _____________.

There are three main kinds of ___________ ___________. Each has a different way of ___________ goods and ____________.

1) ___________ Economy (Traditional)

2) _________Economy (Capitalist)

3) _________ Economy (Socialist)

Elements of a Market Economy:

________________________= Allows __________________ among _______________ to determine the __________ of _________________.

Capitalism = Where ____________, industries and _____________ are ______________ owned.

Capitalism and free enterprise are a big part of a market economy.

Element of a Command Economy:

_____________ = An ____________ and ___________ system in which the ________________ owns or _____________ all means of _____________.

Economy Type Description Motivator Location

_______________a.k.a. Traditional

People make ________ for _____________ or their __________ with little or no __________ (leftovers)

___________

Most ______________ economies are found in ______ countries and _________ areas.Ex. Bangladesh

____________

People freely _______ what jobs they have and what to ________ and _________.

___________

Most of the world’s ________countries have __________ economies.Ex. United States

____________

The ______________ decides ________, products, __________, and ____________.

______________

______________

___________ countries have ______________ economies.Ex. Cuba

____________Economy

_____ Government _______

Government ____________ Command Economy

___ Freedom at ____

United State

s

Canada

Cuba