Type of Economy ECONOMY
2 Types of Economic Systems ECONOMY
What is Produced?How Goods are ProducedHow People Get ProductsTraditionalCommandMarketWhat people need to survive(food, shelter, & tools)FarmingHuntingGatheringPeople make their own, share, or tradeEX→ AustralianAborigines3 Types of Economic Systems ECONOMY
What is Produced?How Goods are ProducedHow People Get ProductsTraditionalCommandMarketWhat people need to survive(food, shelter, & tools)FarmingHuntingGatheringPeople make their own, share, or tradeEX→ AustralianAboriginesHowever the government decides-Class-Reward System-Waiting in LineWhatever the government decidesHowever the government decidesEX→ Soviet UnionCubaBusiness Owners determine the most efficient legal methods of productionDetermined by how much a person is able or willing to payWhatever people are willing to buy & sellEX→ CanadaUnited Kingdom4 Return to our……. “Essential Question(s)”
What are the major physical features of Australia, and where are they located on a map (Great Barrier Reef, Coral Sea, Ayers Rock, and Great Victoria Desert)?5 Coral
SeaGreat Barrier ReefAyers Rock“Uluru”Great Victoria Desert8 Today’s Standard c. Describe the economic system used in Australia.
SS6E8 The student will analyze different economic systems.a. Compare how traditional, command, and market, economies answer the economic questions of 1 -what to produce, 2-how to produce, and 3-for whom to produce.b. Explain how most countries have a mixed economy located on a continuum between pure market and pure command.c. Describe the economic system used in Australia.9 Intro to our……. “Essential Question(s)”
What is the economic system used in Australia?What types of economic systems exist in the world today?10 Economics is the study of how people manage their resources.
What is Economics??????Economics is the study of how people manage their resources.12 Types of Economic Systems
Traditional- customs & habits of a society will determine what will be produced & how it will be distributed & consumed (Usually includes bartering, rather than money). Traditional economies are becoming more rare.13 Types of Economic Systems
Command- Government will determine what will be produced & how it will be distributed & consumed. Government will set prices and set regulations (rules) that industries must follow.14 Types of Economic Systems
Market- Individuals, private companies, & consumers will determine what will be produced & how it will be distributed & consumed (Supply & Demand). Individuals and companies are allowed to produce freely without government interference.15 Types of Economy
MIXED- The most common type in the world. Most nations today have some form of “mixed economy.” This means that the national economy may have some aspects of a market economy & some aspects of a command economy.EXAMPLESThe United States is thought to have a “mixed” economy.The government does not decide what will be produced & how much it will cost, but it does regulate certain goods & services, such as illegal drugsAustralia is thought to have a “mixed” economy. The government does not decide what will be produced & how much it will cost, but it does regulate certain goods & services, such as illegal drugs. Australia is thought to have one of the most free economies in the world.17 Economic Systems Pure Command Pure Market Mixed Economy AUSTRALIA CUBA
(Total Government Control)PureMarket(No Government Control)AUSTRALIACertain things are regulated , like illegal drugs & the Govt. runs the Postal ServiceCUBAThe Govt. runs all industry.BRAZILCertain things are regulated & the Govt. runs the Postal Service & HealthcareMixed Economy(All modern economies fall into this category)19 What government controls Some substances are illegal
CountryType of EconomyGrowingOr
StrugglingWhat government controlsAustraliaMixedMarketNot Much-Postal Service &Some substances are illegalGrowingAustralian Economic DataSource: CIA World Fact BookType of Currency:Gross Domestic Product (GDP):World Rank:GDP per Capita:What does a high GDP & GDP per Capita tell us about the Standard of Living in a country?______________________________________________________________Australian Dollar$889.6 Billion est.201018th$41,300 est. 201017thIt is probably pretty good20 Specialization- When a country focuses on producing what they can produce and sell most easily.
Hey Australia! What is your Specialty???????Australia specializes in the production and export of:Coal, Iron Ore, Wool, Wheat, & Mineral Resources21 ****EVERYBODY WINS****
SPECIALIZATION:______________________________________________________________________________________3 Ways “specialization” benefits (helps) Australia and/or encourages worldwide trading:_____________________________________________When a country produces the few things that it canproduce & sell most easily.Specializes & makes products from its own natural resourcesExports its products & makes moneyImports products it can’t make itself & other countries make money****EVERYBODY WINS****22 Human-Made Trade Barriers
Tariff – a Tax on Imported Goods (makes them more expensive & makes it less likely consumers will buy)Quota- A Limit on the amount of goods that can be imported from another country.Embargo- A total Ban on trade with a country – Usually motivated by politics to hurt another country economically.23 TARIFF QUOTA EMBARGO Tax on imported goods
Human-Made Trade BarrierWhat is it?Why is it done?TARIFFQUOTAEMBARGOTo raise the prices of imported foreign goods, so people choose to buy cheaper goods made domesticallyTax on imported goodsLimit on the amount of imported goodsTo raise the prices of imported foreign goods, so people choose to buy cheaper goods made domesticallyTotal ban on imported goods from a countryTo punish a country economically25 Return to our……. “Essential Question(s)”
What is the economic system used in Australia?What types of economic systems exist in the world today?
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