Economic Systems Intro to Macroeconomics Economic Systems O

Economic Systems Intro to Macroeconomics

Economic Systems O Governments determine a country’s economic system O All the countries in the world can be categorized into the 2 economic systems O How many countries are there in the world?

O Economic Systems provide answers for these: O What to produce? O How to produce? O For whom to produce? O Most controversial aspect

2 Economic Systems O 1. Market economy O 2. Command based economy O Complete opposition of each other O Capitalism vs Communism (vs Socialism)

Who gets the candy bar? O Brainstorm some ideas of how we can allocate (give out) this candy bar

Allocation Mechanisms O Helps decide for whom to produce O Lottery O First come O Market O Command O Force O Need

Economic Goals O 1. Economic Equity O 2. Economic ____ O 3. Economic ______ O 4. Economic ____ O 5. Economic ______ O 6. Economic ____

Economic Equity O Same measure of fairness Equality Equity

Economic Goals O 1. Economic Equity O 2. Economic Freedom O 3. Economic ______ O 4. Economic _____ O 5. Economic ______ O 6. Economic _____

Economic Freedom O What can you not buy in the United States? O WHY? ? O Restrictions on freedom O The ability for a member of society to pursue economic activities O Considering the economic freedom and economic equity are in opposition, what does this tell us about our culture?