- Slides: 9
Communism vs. Capitalism
Types of Economies • Command Economy: Economic system where production of goods and services is controlled by the government. • Market Economy: Economic system where goods and services is determined by the demand from consumers.
Cold War Terms • WARM-UP: Write down on your paper what you think these words mean: –Communism –Democracy –Capitalism
What do these words mean? • Communism: a political system which the government controls production of all food and goods. No privately owned property • Democracy: government by the people • Capitalism: an economic and political system in which businesses belong mostly to private owners, not to the government
Capitalism v. Communism • Which is an example of a COMMAND ECONOMY? • Which is an example of a MARKET ECONOMY? Use your key terms to help you!
Capitalism v. Communism • Which is an example of a COMMAND ECONOMY? – Communism • Which is an example of a MARKET ECONOMY? – Capitalism and Democracy
Fall of Communism • • Communism spread by USSR after WWII Created satellite nations in Eastern Europe Led to COLD WAR Shortages (not enough) of goods Lack of technology development Difficulty selling goods to most of the world These led to the fall of communism in the Soviet Union
• Examine the handout “The Two sides of the Cold War” • Create a Double-Bubble Thinking Map