Chapter 3 Lesson 3 The Worlds Economies Essential

Chapter 3, Lesson 3 The World’s Economies

Essential Question: Why do people make economic choices?

The Basic Economic Question Resources are the supplies that take care of our wants and needs. Renewable Resources: Can be totally replaced or always available naturally Water, trees, wind and sun energy Nonrenewable Resources: Cannot be totally replaced and are gone once they are consumed Oil, coal, natural gas

Nations Build Economies 1. traditional economy, resources are In a ______ families distributed through ______. Developing societies that depend largely on _____ agriculture tasks like farming, herding, and hunting/gathering often have this kind of economy. 2. In a _____ economy, the means of market production are privately owned. In this kind of _____ economy, production and income are determined by supply and demand. This is also called a ______ capitalism _____.

command A ______ economy is controlled by ______. The means of production are owned by government production the government that also controls ________ and distribution. ______ Communism is a form of command economy. 3. mixed In a ______ economy, parts of the economy privately are _______ owned and parts are owned by the government. 4.

A Global Economy 1. WTO World Trade Organization helps regulate trade between nations 2. IMF International Monetary Fund monitors economic development, lends money to nations in need, and provides training and technical help 3. NAFTA North American Free Trade Agreement Encourages free trade among the United States, Canada, and Mexico

4. EU European Union Group of European countries that operate as one economic unit and share a common currency 5. ASEAN Association of Southeast Asian Nations Group of countries in Southeast Asia that promote economic, cultural, and political development 6. CAFTA-DR Dominican Promotes Republic-Central American Free Trade Agreement free trade among the U. S. five Central American countries, and the Dominican Republic