FEC #5- Productivity
Picture of handout
FEC#6- Economic Systems
The ways in which people (Micro or Macro) organize economic life to deal with the basic economic problem of scarcity
Micro Economic Systems
Macro Economic Systems- how an entire country would use its resources to satisfy its population’s needs and wants
\n
Every country/goverment has to answer 4 questions:
What should be produced?
How should it be produced?
Who should get it?
How do you promote progress within the system
\n
Types of Economic systems -
Traditional system -
Comand system - when the government answers the meets of production
Socialism and/or communism? - North korea, russia, china, cuban
Property - government government is choosing social or economic system telling what jobs no private property
Market System - The people are the ones answering for economics and people are controlling what to do
Also known as capitalism - political freedom because we started in economic freedom
Characteristics of a Market System:
Private property
Freedom of Enterprise and choice - you can do with what you want you have you can choice to do what you want freedom of choice, mutual gain
Competition - good the more options the better products and the cheaper product
Specialization and technology - you want them to get really good
Use of Money - use of currency that is universal conversal universal of money
Active, but LIMITED, Government - regulate the economy to protect the people we do not want the governments to dictator what to do
Its a supply and demand issue and not a political issue
\n \n \n
FEC #7 - Circular Flow Model
Also called graph of the market
Shows producers and Consumers and their interactions
FEC #8 Interdependence
\