Economic Decisions and SystemsEconomic Decisions and SystemsSlideshow 2Slideshow 2

By: Kelsey WinchesterBy: Kelsey Winchester

Opportunity CostOpportunity Cost

• An opportunity cost is the value of the next-best alternative that you did not choose. An example could be which city you want to live in; Cary, North Carolina is a very safe place to live and no crime usually ever occurs. But in Manhattan, New York there is much more excitement but the crime rate is high.

Where to go to College…Where to go to College…

• Pepperdine or Duke? Pepperdine is in California and the weather is always sunny. The college is really nice but it is a lot of money to go there. Duke is in a nice area and has a great law and medical school. Although the crime rate is high.

Job or College?Job or College?

1. After college, should I get a job or go to college.2. If I get a job I can work at a fast- food place, and if I go to

college I can try to get into a good college.3. The advantage of getting a job is I will be able to start getting

money faster, the disadvantage is my job won’t be great. The advantage of going to college is I will be able to have experience living on my own, the disadvantage is college is a lot of money.

4. I choose to go to college.5. I applied to colleges and got into UNC.6. I believe my decision was the best one I could make.

/wEPDwU

Driving or Flying?Driving or Flying?

1. Choosing whether to drive or fly to Florida2. If I drive I will have to put gas in my car and get food for the trip

down. If I fly I will have to buy the ticket and get to the airport on time.

3. The advantage of driving is not having to pay for the plane ticket, the disadvantage is it will take much longer to get to Florida. The advantage of flying is I will get there very fast and won’t have to do anything, the disadvantage is the price of a plane ticket.

4. I choose to fly to Florida.5. I bought a plane ticket, packed my bags and went to Florida.6. I made the right decision because it was a lot less time then what I

would’ve had to drive.

Command EconomyCommand Economy

• A command economy is when the resources are owned and controlled by the government. For example, the former USSR was a command economy. An advantage of a command economy would be the government would handle all of the hard decisions. The disadvantage is you can’t run the business the way you want to.

Market EconomyMarket Economy

• A market economy is when the resources are owned and controlled by the people of the country. An example of a market economy is Germany. An advantage of a market economy would be you can decide how the marketplace will be run. A disadvantage would be some people don’t know what they are talking about and could make a poor decision.

CapitalismCapitalism

• Capitalism refers to the private ownership of resources by individuals, rather than by the government. An example of a capitalist country is the United States. An advantage would be you are free to decide what to produce. A disadvantage would be the products the company chooses to produce, aren’t what the community wants to buy.

Communist EconomyCommunist Economy

• A communist economy is a limited choice and supply of consumer goods. An example of a communist economy is China. An advantage of a communist economy is everyone will be equal. A disadvantage is you can’t decide to do anything without it being fair to everyone else.