Transcript Slide 1 - Humble ISD

Economic system where the major resources and
production are owned and controlled by the government.
Theory: Equal sharing of work, needs, and benefits.
Economic system where private individuals and
businesses own the means of production and carry on
an exchange of goods and services through supply and
demand. Also called the free-enterprise system.
Government decides what to make, how much to make,
what to charge, and how long it should take.
Individuals or companies decide what to make, charge,
etc. Consumers will pay for quality and value.
Materials are not always available to produce the
desired product.
Materials are abundant. Materials can be bought for a
price
Land and companies are owned by the government.
Government makes all the profit to share equally to all
the people
Land and companies are individually owned or owned by
a group of individuals (stock holders)
Workers are assigned jobs for the government’s needs not necessarily ability.
Workers choose where to work. Companies decide who
to hire. Either party can terminate employment
No competition – Only what the government provides is available.
Competition brings a variety of products and better
prices
Long lines, shortages, high prices, and little variety
Supermarkets
Black market trades in consumer goods
Black market deals in illegal items
No freedom of speech, movement, or assembly
Freedom of speech, movement, and assembly
No incentive to work. Workers are paid equally
regardless of production
Paid by quality and production
Focus is often on quantity rather than quality.
People will buy products that are well made at a fair
price. Supply and Demand
1 party government (Socialist) examples: North Korea,
Cuba, China, and Vietnam
At least a two party government (Democracy)
examples: USA, UK, Germany, and Australia
The group is very important – one does what is going to
help the whole society.
No unemployment – government gives jobs to all
Focus on heavy industry (factories and mines) not light
industry (consumer goods)
Quantity over Quality sometimes caused serious
pollution problems.
Goal during the Cold War was to be #1 in industry,
space, and weapons.
Individual rights – The Bill of Rights
Government’s role is to help trade and protect people
US produces enough food to feed the entire world
US has some of the most expensive workers in the
world – unions, minimum wage, pollution controls, work
place conditions
Goal during the Cold War was to stay one step ahead of
the Communists.