Transcript how to produce

SS7E8a
Compare how traditional, command,
and market economies answer the
economic questions of:
(1) what to produce
(2) how to produce
(3) for whom to produce
Concept:
Production – Distribution - Consumption
ECONOMIC SYSTEMS
TRADITIONAL
ECONOMIC
SYSTEMS
MARKET
COMMAND
SS7E8b
Explain how most countries
have a mixed economy located
on a continuum between pure
market and pure command.
Concept:
Production – Distribution - Consumption
ECONOMIC CONTINUUM
PURE MARKET
ECONOMY
MIXED
ECONOMY
PURE COMMAND
ECONOMY
• Individuals and
private businesses
DECIDE what is
produced, how it is
produced, and who
they will sell to
• Individuals and
private businesses
AND governments
DECIDE what is
produced, how it is
produced, and who
they will sell to
• The Government
DECIDES what is
produced, how it is
produced, and who
they will sell to
SS7E8c
Compare and contrast
the economic systems in
China, India, Japan and
North Korea.
Concept:
Production – Distribution - Consumption
ECONOMIC CONTINUUM
Where do the economies of
China, India, Japan, and North Korea
fall on an economic continuum?
?
PURE MARKET
ECONOMY
?
MIXED
ECONOMY
PURE COMMAND
ECONOMY
Economy of China

What to produce?

A large part of China’s GDP comes from a highly
developed, industrial systems much like many other
developed countries.
Many Chinese people today have small businesses of
their own even though the Chinese government still has
final authority.

Economy of Japan

How to produce?
Japan has very little farmland and few natural
resources. For that reason, the country must
import raw materials and food. The need for
industry and for world trade also means a welleducated work force is an absolute necessity.
Economy of Japan

For whom to produce?

The private sector produces goods and
services for domestic and international markets
based on the market price system.

The government social services sector
produces public goods and services based on
the needs of the population throughout the
country.
Economy of India


What to produce?
India leads many of the countries the region in the growth of
technology and service industries. There is a booming
electronics industry in India, producing computers, software,
televisions, CD players, and VCRs.
 India has launched several communications satellites
systems and leads the region in a number of related fields.
 India is also home to a popular movie and film industry.
Bollywood films are as popular in Southern and Eastern
Asia as are films made in the United States
ECONOMIC CONTINUUM
Where do the economies of
South Africa and Nigeria fall on an
economic continuum?
Japan
PURE MARKET
ECONOMY
India
MIXED
ECONOMY
China
PURE COMMAND
ECONOMY