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What is economics?The study of how people manage their resources.
SCARCITY
What is Production?
What is Consumption?
Person or people that make a good or provide a service (Sellers)
Person or people that use or purchase a good or a service
(Buyers)
Types of Economy
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.
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.
Market- Individuals, private companies, & consumers will determine what will be produced & how it will be distributed & consumed. Individuals and companies are allowed to produce freely without government interference.
Free Market vs. Command
(R20)Economic Systems in
Europe
Today’s Standard
SS6E5 The student will analyze different economic systems.
c. Compare the basic types of economic systems found in the United Kingdom, Germany, and
Russia.
Intro to our……. “Essential
Question(s)”
How are the economic systems of the United Kingdom, Germany, and Russia similar?
How do most countries strike a balance between having a pure market and pure command economy?
Comparing Economic Systems
Russia- “Ruble”
United Kingdom- “Pound”
Germany-“Euro”
PureMarket
PureCommand
Mixed Economy 1000
Russia50.5
Germany71.8
United Kingdom74.5
The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2011. The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom.
ECONOMYTYPES INEUROPE USA is
77.8
Country Type of Economy Growing or Struggling What the Government Controls
United Kingdom
Germany
Russia
Mixed Market
Mixed Market
Mixed Market
Growing
Growing
Struggling(Recent Transition from Command to
Mixed Market)
Less government →More Private
ControlOf Production &
Consumption
Less government →More Private
ControlOf Production &
Consumption
Less government →More Private
ControlOf Production &
Consumption
Return to our……. “Essential
Question(s)”
How are the economic systems of the United Kingdom, Germany, and Russia similar?
How do most countries strike a balance between having a pure market and pure command economy?
