economics intro notes
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TRANSCRIPT
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