Economic Systems

1
Economic Systems

• Americans tend to have strong reactions to the
  following terms. In your Geography notebook,
  write down 2 or 3 characteristics that come to
  mind for each of the following terms
• It is ok if you dont know for sureguess.
• Free Enterprise (also called Free Market or
  Capitalism)
• Socialism
• Communism

2

• Economic Systems
• Number 1-3 in your Geography notebook. Next to
  each number, write the economic system that you
  think goes with each phrase.
• From each according to his ability, to each
  according to his deeds.
• From each according to his ability to each
  according to his needs. Decisions on what to
  produce are based on the needs of the whole
  society, not an individual.
• Production is privately owned operated for
  profit, usually in competitive markets.

3
Answers

• FREE ENTERPRISE Production is privately owned
  and operated for profit, usually in competitive
  markets. (Supply/Demand)
• SOCIALISM From each according to his ability, to
  each according to his deeds.
• COMMUNISM From each according to his ability to
  each according to his needs.

4
Economic Systems Characteristics

• Fundamental Questions
• What should be produced?
• How should it be produced?
• Who gets what is produced?
• Advantages and Disadvantages?

5
Economic Systems Characteristics

• Copy this in your Geography notebook.
• Free Enterprise based on supply/demand,
  produced in privately owned businesses with
  little government involvement, individuals with
  the means to purchase the goods receives the
  product. Who has the power?? Consumer
• Socialism based on what is needed for the
  greater good (NOT the individual). Produced by
  collective labor, those who contributed to the
  labor receive the finished product. Reduced
  incentives. Who has the power?? Laborer
• Communism based on what is needed for the
  greater good (NOT the individual). Produced by
  collective labor, those with the biggest NEEDS
  receive the finished product. Government, or a
  small elite group typically owns factories,
  businesses etc. This elite group, or the
  government makes the decisions. Who has the
  power? Government

6
Free Enterprise Socialism
Communism

• Now, take what you have learned about these three
  economic systems and use what you know about
  other countries to classify each country into one
  of these economic systems using a chart similar
  to the one below.
• USA Cuba
• Japan Sweden
• China Venezuela
• Canada N. Korea
• Vietnam Norway
• Laos England
• Mexico

Free Enterprise Socialism Communism







7

• These Countries have self proclaimed
  Communist governments, however, they claim to
  practice Socialist Economic systems.

Free Enterprise (Free Market/Capitalism) Socialism Communism
USA Norway China
Sweden (yes, surprise!) Sweden (over here too) Vietnam
Canada Canada (yes, you are seeing double) Cuba
Japan North Korea
England Laos
Mexico
Venezuela
8
Production of Goods Services

• Subsistence Agriculture v. Commercial Agriculture
• Think about the difference between these two
  types of agriculture. What are the primary
  differences and what do they each look like?
• Cottage Industries v. Commercial Industries
• Now think about the difference between these two
  types of industry. What are the primary
  differences and what do they each look like?
• You are going to view a slide show of photos. Use
  the clues in the photos to determine which
  category each falls into.

9
Levels of Economic Activities

• Primary
• Secondary
• Tertiary
• Quaternary
• Questions to consider
• 1. How do each of these influence the economic
  development of a country?
• 2. If a country is mainly primary, will it ever
  become a developed country?