Transcript Unit 2 Learning Goal 2

UNIT 2 LEARNING GOAL 2
Economic Systems
How the distribution of goods and services is determined in free enterprise, socialist, and communist economic systems and classify where various countries fall
along the economic spectrum.
(do not write)
U2LG2
Learning Goal:
Outline the distribution, characteristics, and interactions of
the economic systems in the world.
Criteria For Success:
• (A) Students determine the forces which distribute
goods and services in the free enterprise, socialist, and
communist economic systems
• (B) Students outline specific countries of where they fall
along the economic spectrum between free enterprise
and communism
Question: What is the difference between Gross
Domestic Product (GDP) and Gross National Product
(GNP)?
ANSWER:
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GDP is the market value
of everything produced
within a country
GNP is the value of
what’s produced by a
country’s residents, no
matter where they live.
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In your ISN:
Write the question and
the responses then tell…
What do these answers
mean to you?
Can you list or draw
examples?
Pair with another to
share your thoughts /
illustrations.
Free Enterprise Economies
Business governed by
the laws of supply and
demand, not
restrained
by government interfer
ence, regulation or
subsidy.
Also called free market
and capitalism.
The Good:
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The Bad: Free markets don’t create
utopia. Businesses can fail and workers
be displaced.
The Ugly: Capitalism is prone to
corruption. People get greedy, and they
cheat, and they exploit the weaker
elements of society.
Socialist Economies
•
An economic system in
which goods and
services are provided
through a central system
of cooperative and/or
government
ownership rather than
through competition and
a free market system.
Tax rates extremely high
but, services (healthcare,
education, child care,
housing subsidies)
The Good: Everyone Shares (just
like mom and dad told you to do
with your brothers and sisters
The Bad: See above
The Ugly: See above
Command Economy
•
Economic and social system in which all (or
nearly all) property and resources are
collectively owned by a classless society and
not by individual citizens
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Communist Countries, Past and Present
Current Communist Countries: China, Cuba, Laos, North
Korea, and Vietnam.
Formerly Communist countries (by current name):
Formerly part of the Soviet
Union: Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhs
tan, Kyrgyzstan, Latvia, Lithuania, Moldova, Russia, Tajikistan, T
urkmenistan, Ukraine, and Uzbekistan.
Other Asian countries:
and Yemen.
Afghanistan, Cambodia, Mongolia,
Soviet-controlled Eastern bloc countries:
Bulgaria, Czech
Republic, Germany (East), Hungary, Poland, Romania, Slovakia
.
The Balkans: Albania, Bosnia and
Herzegovina, Bulgaria, Croatia, Rep. of
Macedonia, Montenegro, Serbia, and Slovenia.
Africa: Angola, Benin, Dem Rep. of
Congo, Ethiopia, Somalia, Eritrea, and Mozambique.
(according to the Young Communist League)
The Good: Everyone is guaranteed a job.
The Bad: no one has the right to become wealthy.
The Ugly: Generally No Taxes = no money for roads, schools, etc.
Communism Map of the Past
Look at the following countries and HK, Which would YOU
consider one that has a Free Enterprise Economic System?
A Socialist Economic System? A Communist Economic
System?
One-By-One, Which Economic System Do You & Your
Classmates Believe Each Country Falls Under?
France
Hong Kong, China
Japan
Laos
Vietnam
Germany
Ireland
Australia
Denmark
Free Enterprise
(capitalism)
Socialism
Command
4:34 minutes of the World’s Largest
Economies 2001 to Present to 2018
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http://www.youtube.com/watch?v=p3UzJtA4yRw