World Economy Types

And other related economic terms.

Standard: SS7E1: The student will analyze different economic

systems.

Define the following terms:• Voluntary trade• Trade barriers (tariff, quota,and embargo)• International trade• OPEC• Human capital, Natural, Capital resources• GDP• Currency• Specilization • Exchange rate• Entrepreneurs

What is economy?

• The wealth and resource of a nation.

The Four Types of Economies Traditional economy Command economy Market economy Mixed

Traditional Economy

Is an economic system in which most ecnomic decisions are based on customs or the habit of how such decisions were made in the past.

It is strongly connected to subsistence farming and is found in countries that are underdeveloped.

Command Economy

Resources are allocated by the government or other central authority.

An economy where supply and price are regulated by the government rather than market force.

Market Economy

An economic system in which the economic decisions and the pricing of goods and services are guided solely by the interactions of a country’s citizens and businesses and there is little government interventions or central planning. “Laissez-faire” French meaning “hand's off”

Mixed Economy

Is located on a continuum between pure command and pure market economy.

In nearly all modern economies in the world today are part of a mixed economy.

Economies in Middle East, Africa and Asia.

• Israel

• Saudi Arabia

• Iran

• Turkey

• South Africa

• Nigeria

• India

• China

• Japan

• North Korea

Israel

• No natural resources; built economy based on advanced technology; mixed market

• Mining manufacturing industries

Saudi Arabia

One of the largest countries in S.W. Asia or the Middle East. The country is rich in oil reserves where they can purchase what they cannot produce themselves.

• Their nation has invested in technology.

• Moving from command to mixed

Iran

• Rich in oil wealth has a mixed economy, but more like a command because Iranians do not share their money.

Turkey

• City of Istanbul in Turkey is seen as the gateway to Asia from Europe. Turkey has the least economic freedoms.

• Moving from command to mixed market

• Major role in banking, transportation and communication

• Agriculture, textiles and manufacturing

South Africa

One of the most technology advanced market eonomy in this region of the world. The economy has some government control; they produce natural resources for exports such a gold, diamonds; the produce iron, steel and assembly automobiles.

Nigeria

Poorly organized economy after a long period of military dictatorship and corruption in the government; produces oil and petrochemicals; still receives foregin aid and supplies because of such corruptness.

India

This country has a “booming” electronic industry; this country is also a blend of traditional and modern economy types. Half of the people here stll work in agriculture; many use old faming techniques. This country made several attemps to improve their economy through a program known as “The Green Revolution” and the film industry nown as Bollywood Films.

China

This country's economy has collective farming method. This country once tried to improve their economy by such programs as The Great Leap Forward, and the Cultlural Revolution. Both attempts were a failure under Zedong. Currently, this country has one of the strongest economies in its region even though half of the workers in this country still work in agriculture, like is neighbor, India.

Japan

This country has one of the most technology advanced economies in the world. Only the U.S. and China have economies that are more productive. This country has very little land for farming and few natural resources. Because of this this country has to import a lot of things for their people even such things as oil. This country's largest industry is the fishing industry. The sea is very valuabel to this country.

North Korea

This country has one of the least open and most government directed econonmy in

S.E. Asia. Command economy, this country does NOT produce enough agriculture to feed its population. Farms are organied into “cooperatives” that are government owend and controlled. Does have two rich natural resources: coal and iron. This country spends its money on the military and producing nuclear weapons.

Closing activity

Get ready to show me WHAT YOU KNOW!

Which economy type is a combination of pure command and pure market?

A. command

B. market

C. mixed

D. traditional

Which economy type is based on old traditional ways; it includes subsistence farming and bartering.

A. command

B. traditional

C. mixed

D. market

Which economy type is controllled by the government?

A. command

B. market

C. mixed

D. traditional

Which economy type is based on the people, entrepreneurs, how much and the way money is spent, and the goods and services produce and sold in a country?

A. command

B. traditional

C. market

D. mixed

Which country has the most government control; they do not have enough resources to feed their people; spend their money on the military?

A. China

B. North Korea

C. Japan

D. India

Which country has a mixed economy in that the people their practice both traditional and modern ways of living? They also produce films known as Bollywood.

A. Japan

B. India

C. North Korea

D. China

Which country's economy is one of the most highly technology advance countries in the world, they depend heavily on the seas for their fishing industry; they have little to no natural resources?

A. India

B. Japan

C. North Korea

D. China

Which country in this region is poorly organized ecnomy because of its corrupt government and a history of military dictators; this country's natural resource of oil is enough to bring country into economic wealth but unfortunately, this country STILL needs foreign aid and supplies.

A. South Africa

B. North Korea

C. Nigeria

D. India

Which country below economy is one of the most technology advanced market in this region; the economy has SOME government control; they produced natural resources such as gold and diamonds in which they export; produce automoble assembly and textile in iron and steel?

A. South Africa

B. Nigeria

C. India

D. North Korea

Which country is seen as the “gateway” to Asia from Europe; this country has the least economic freedom; have industries in airlines and railroads.

A. Turkey

B. Saudi Arabia

C. Iran

D. Israel

This country is seen as one of the largest countries in S.W. Asia; much of this country is desert but rich in oil! This country exports oil inorder to import the goods that they cannot produce.

A. Iran

B. Turkey

C. Saudi Arabia

D. Israel

This country's economy has almost no natural resources but this country has built an economy based on advanced technology.

A. Iran

B. Israel

C. Saudi Arabia

D. India

Located along the Persian Gulf, this country economy wealth is based on OIL. Ths country has more of a mixed economy however, it is also a command econmy in that the Persians or Shias that live here do not share their wealth. (Money)

A. Israel

B. Iran

C. Turkey

D. Saudi Arabia

Which country has collective farming in their economy; they tried to improve their economy years ago by using the The Great Leap Forward and Cultural Revolution...both failed; today this country is strong in technology and half of the workers still work in agriculture?

A. India

B. China

C. Japan

D. North Korea

STUDY! “A successful man is one who can lay

a firm foundation with the bricks others have thrown.” --David Brinkley