SS7E8aCompare how traditional,

command, and market economies answer the

economic questions of: (1) what to produce(2) how to produce

(3) for whom to produce

Concept:

Production – Distribution - Consumption

ECONOMIC SYSTEMS

TRADITIONAL

COMMANDMARKET

ECONOMIC SYSTEMS

SS7E8bExplain how most countries

have a mixed economy located on a continuum

between pure market and pure command.

Concept:

Production – Distribution - Consumption

ECONOMIC CONTINUUM

PURE MARKET ECONOMY

• Individuals and private businesses DECIDE what is produced, how it is produced, and who they will sell to

MIXED ECONOMY

• Individuals and private businesses AND governments DECIDE what is produced, how it is produced, and who they will sell to

PURE COMMAND ECONOMY

• The Government DECIDES what is produced, how it is produced, and who they will sell to

SS7E8c

Compare and contrast the economic systems

in China, India, Japan and

North Korea. Concept:

Production – Distribution - Consumption

ECONOMIC CONTINUUM

PURE MARKET ECONOMY

MIXED ECONOMY

PURE COMMAND ECONOMY

Where do the economies of China, India, Japan, and North Korea

fall on an economic continuum?

? ?

Economy of China What to produce? A large part of China’s GDP comes from a highly

developed, industrial systems much like many other developed countries.

Many Chinese people today have small businesses of their own even though the Chinese government still has final authority.

Economy of Japan How to produce?Japan has very little farmland and few

natural resources. For that reason, the country must import raw materials and food. The need for industry and for world trade also means a well-educated work force is an absolute necessity.

Economy of Japan For whom to produce? The private sector produces goods and

services for domestic and international markets based on the market price system.

The government social services sector produces public goods and services based on the needs of the population throughout the country.

Economy of India What to produce? India leads many of the countries the region in the

growth of technology and service industries. There is a booming electronics industry in India, producing computers, software, televisions, CD players, and VCRs.

India has launched several communications satellites systems and leads the region in a number of related fields.

India is also home to a popular movie and film industry. Bollywood films are as popular in Southern and Eastern Asia as are films made in the United States

ECONOMIC CONTINUUM

PURE MARKET ECONOMY

MIXED ECONOMY

PURE COMMAND ECONOMY

Where do the economies of South Africa and Nigeria fall on an

economic continuum?

Japan India China