Types of Economic Systems

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Types of Economic Systems
To use its limited resources effectively, every
nation needs an economic system.

• Open Inspiration
• Select File, Page-Setup, Change the orientation
  to Landscape
• Insert a text box
• Type the title Types of Economic Systems
• Select the main idea and select an appropriate
  graphic from the library.
• In the main idea text area type the following

2
Types of Economic Systems
Insert a textbox under the title and type the
following statement The primary goal of an
economic system is to provide people with a
minimum standard of living, or quality of life.
3
Types of Economic Systems
The two basic and opposing economic systems that
have been developed are

• Use the Create Tool to insert 2 subtopics from
  the main idea
• Market economy
• Command economy
• Use the library to insert an appropriate graphic
  for each subtopic.

4
Types of Economic Systems
Market Economy

• Use the note tool to insert a note for the two
  subtopics.
• Market Economy Economic decisions are made in
  the marketplace according to the laws of supply
  and demand.
• Command Economy Central authority makes the key
  economic decisions.

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Types of Economic Systems
Market Economy

• Use the create tool to insert 2 subtopics for
  Market Economy and Command Economy
• Advantage Disadvantage
• Use the create tool to insert 3 subtopics for the
  Advantages of the Market Economy
• Freedom, Incentives, Profit
• Select an appropriate graphic for each subtopic
  from the library

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Types of Economic Systems
Market Economy

• Advantages Use the note tool to insert a note
  for each subtopic
• Offers incentives, such as competition and the
  profit motive, to produce more.
• The profit motive is the reward for taking a risk
  that encourages people to start businesses.
• Provides the individual with the freedom to
  choose from many different competing products,
  and the freedom to start a business or choose a
  career.

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Types of Economic Systems
Command Economy

• Use the create tool to insert 3 subtopics for the
  Advantages of the Command Economy
• Give each subtopic an appropriate name
• Advantages Use the note tool to insert a note
  for each subtopic
• Guarantees everyone an equal standard of living.
• Change direction drastically in a relatively
  short time
• Little uncertainty in this type of economy

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Types of Economic Systems
Market Economy

• Use the create tool to insert 2 subtopics for the
  Disadvantages of the Market Economy
• Give each subtopic an appropriate name
• Use the note tool to insert a note for each
  subtopic
• Disadvantages
• Those who do not have the wanted job skills do
  not get an income.
• Sometimes one or two businesses control the
  market, thus leading to higher prices and lower
  quality products.

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Types of Economic Systems
Command Economy

• Use the create tool to insert 2 subtopics for the
  Disadvantages of the Market Economy
• Give each subtopic an appropriate name
• Use the note tool to insert a note for each
  subtopic
• Disadvantages
• Little choice of what to buy.
• No incentive for entrepreneurship when you cant
  run your own business.

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Types of Economic Systems

• Insert a textbox at the bottom of your diagram.
• Type the following 2 statements in the textbox.
• Most nations have a mixed economy, a combination
  of a market and command economy.
• The state takes care of peoples needs while the
  marketplace takes care of peoples wants.