What is an Economic System - Mrs. Oliver's World History
What is an Economic System?
|Background: |Abuses of Industrial Revolution: |Four Basic Economic Questions: |
| | | |
|1. Global trade increase due to Columbian Exchange &|1. Unequal distribution of wealth |What to produce? |
|Industrial Revolution | | |
| | |How to produce it? |
| | | |
| |2. Long Hours |How much to produce? |
|2. Gap between rich and poor widens | | |
| | |How to distribute? |
| | | |
| | |Define: |
|3. Business leaders want governments to stay out of |3. Unsafe working conditions |Economic System: has to do with jobs, money, |
|economic affairs. | |products, and services. What kind of economic system|
| | |a country has depends on who make the decisions |
| | |about jobs, money, products, and services |
| | | |
| | |Traditional: relies on habit, ritual, & the family. |
|4. Reformers believe governments should improve | | |
|conditions for the poor. |4. No worker’s Compensation | |
| | |Market: individuals own the factors of production. |
| | | |
| | | |
| | |Command: Government owns the factors of production. |
| | | |
| | | |
| | | |
| | |Mixed: a mixture of 2 or 3 of the above types = the |
| | |“isms” |
| | |Capitalism, Communism, Socialism |
| | | |
| | | |
|Socialism: Definition |Capitalism: Definition |Communism: Definition |
| | | |
|An economic system in which the factors of |An economic system based on individuals own the |An economic system based on all major industry and |
|production are owned by the public. All major |factors of production and all major industries. |factors of production are owned by the government. |
|industries owned by government. |Private property, profit motive |Private property DOES NOT exist, and all goods and |
| | |services are shared equally. |
| | | |
| | | |
|Socialism: |Capitalism: |Communism: |
|When: Post Industrial Era |When: During the Age of Exploration |When: Begins in 1800 |
| | | |
| | | |
|Reason: Some people blamed the problems of the |Reason: Began as result of the Columbian Exchange |Reason: The reforms of the Industrial Revolution |
|Industrial Revolution on Capitalism. | |sparked Karl Marx to evaluate the inequalities that |
| | |were going on. |
| | | |
|Who: Ideas from Charles Fourier & Saint-Simone |Who: Adam Smith – first to describe the basic ideas | |
|(French Reformers) |in Wealth of Nations | |
| | |Who: Karl Marx – The Communist Manifesto |
| |Basic Ideas: | |
|Basic Ideas: |Law of supply and demand-real price is set by |Basic Ideas: |
|All major means of production are owned by the |consumers. |All factors of production owned by the people |
|government and run for the good of the people. |Individuals own the factors of production |No private property |
|Small businesses can be privately owned but major |Law of Competition-to sell you must reduce price or |All goods and services are shared by the people |
|businesses are owned by the government |raise quality when there is competition. |Extreme government regulations. |
| |Laissez-faire Capitalism-“hands off” or let the | |
| |people do as they choose. | |
| |Private ownership of property, industry, and | |
| |business. People not the government answer the four | |
|Type: Mixed Economy |basic economic questions. | |
| |No/few government regulations. | |
|Modern Examples: | | |
| |Type: Market Economy (Mixed) |Type: Command Economy |
|France and Canada | | |
| |Modern Examples: |Modern Examples: |
| | | |
| |USA and Japan |China and North Korea |
| | | |
|Positive: |Positive: |Positive: |
|Free medical care |Can choose your own doctor. |No unemployment, guaranteed a job |
|Low prices for products |Can own a business. |House is provided for you |
|All Leaders are subject to recall |Various selection of products | |
|All leaders paid an average workers wage. | |Negative: |
|Negative: |Negative: |No incentive to work hard to improve profit |
|Cannot pick your own doctor. |Health care is expensive. |Do not get to choose where you live |
|Very few choices of products. |Assume all risk if business is unsuccessfully. | |
| |Can go into debt. | |
| |Higher cost for products | |
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
Related searches
- what is an economic system
- what is an outline for an essay
- what is the economic problem
- what is an example of an element
- what is an economic structure
- what type of economic system in usa
- what is a economic system
- what is mixed economic system
- an economic system quizlet
- what is an economic system quizlet
- what is my economic status
- what is an s body shape