Transcript Econ Basics and Middle Eastern Economies

Warm Up November 10, 2010
Which are the most important in a command
economy?
A. Custom and habit
B. Government planners
C. Consumers and the market
D. A combination of consumers and
government planners
Economic Systems
Sorting Activity
You will work in groups of three to four as
determined by your teacher and complete a
sorting activity in which you will accurately
classify items that would fall into the following
three economic systems: command, market
and traditional. Please use your time wisely!
Standards
SS7E5 The student will analyze different
economic systems
a. Compare and contrast how traditional,
command, and market economies answer the
economic questions of (1) what to produce, (2)
how to produce, and (3) for whom to produce.
b. Explain how most countries have a mixed
economy located on a continuum between pure
market and pure command.
c. Compare and contrast the economic systems in
Israel, Saudi Arabia, Turkey, and Iran
Essential Question
Compare and contrast the
economic systems in Israel, Saudi
Arabia, Turkey, and Iran.
Middle Eastern
Economies
Economic Systems
Pure
Command
Pure
Market
Israel
(1) What to produce?
A large portion of Israel’s GDP
comes from high tech
manufacturing, financial
services, and agriculture.
(2) How to produce?
Israel has substantial
government ownership of
business, but is gradually
privatizing companies.
(3) For whom to produce?
The private sector produces
goods and services for domestic
and international markets based
on the market price system.
Israel
68%
Place on the continuum: Israel would fall in the
middle of the market side on the continuum.
Pure
Command
Pure
Market
Saudi Arabia
(1) What to produce?
Saudi Arabia is the
world’s leading
producer of oil. The
Saudi government
continues to invest in
industrial production.
They are a leader in
petrochemicals,
mining, and refining.
Saudi Arabia
(2) How to produce?
•
Over 95% of the oil industry in the
country is operated by the
government. Most other major
industries have significant
government involvement.
•
Saudi Arabia relies heavily on
specialized labor from other
countries. Estimates are that a third
of the labor force falls in this
category.
•
Since the 1980s, the Saudi
government has been trying to
increase private ownership of
business and encourage more joint
ventures with private foreign
companies.
Saudi Arabia
3) For whom to produce?
• One third of Saudi
Arabia’s GDP is based
on exports to other
countries. (This is due
to the economy’s
reliance on the oil
sector.)
Saudi
Arabia
64%
Place on the continuum: Saudi Arabia would fall
to the left of Israel on the continuum.
Pure
Command
Pure
Market
Turkey
(1) What to produce?
Turkey has a diversified economy with
large service, manufacturing, and
agricultural
sectors.
(2) How to
produce?
Since the late
1980s, Turkey has
gradually moved
from a
government
directed economy
to more private
enterprise.
(3) For whom to produce?
One fifth of Turkey’s production is
exported. The remainder is
consumed by domestic
consumers and
the government.
Turkey
62%
Place on the continuum: Turkey would fall to the left of Saudi
Arabia and Israel on the market side of the continuum.
Pure
Command
Pure
Market
Israel
68%
Turkey
62%
Saudi Arabia
64%
Pure
Command
Pure
Market
Closing
Acrostic
Create an acrostic using any of the following
three words: Market, Command or Traditional.