Transcript 8.01-2 Review - andrewwcollins

Warm Up
Finish practice test on page 512-513
(ALL questions)
 What is scarcity?
 What is a cost-benefit analysis?
 Define marginal cost and marginal
benefit

Warm Up

-In light of the recent shooting in New Orleans
and what happened last year in Newtown,
respond to the following questions:
-Does the 2nd amendment’s right to bear
arms protect the American people or does
it ultimately lead to more violence?
 -Do you think we need more gun control
or less gun control?
 -What can be done to prevent tragedies
like those listed above?

Economics 8.01-2
Comparing Economic Systems
I. Types of Economics Systems:
Answer key economic questions of what to
produce, how to produce, for whom to
produce
A.
Traditional Economies
1.
1.
2.
custom, culture, or ritual to decide
revolves around family/community
2.
Market Economies1.
2.
3.
free market, free enterprise, capitalism
individuals and companies decide, not gov’t
Command Economies1.
2.
centrally planned economy
the central gov’t alone decides
4.
Mixed Economies1.
2.
3.
combination of other three economies
most modern economies are mixed
US is a free market economy but the gov’t
intervenes to keep order, regulate, provide
services, and promote general welfare
II. Free Market Economies
A.
Adam Smith’s “Wealth of Nations” (1776)
1.
2.
called for restricting gov’t in the economy (laissezfaire- leave alone)
believed that competing self-interest would regulate
the economy (“the invisible hand”)
B.
C.
Self-Interest- personal gain is motivating
force in economy
Competition1.
2.
3.
D.
struggle among producers for consumer’s $
competition is regulating force in economy
keeps prices low and quality high
Advantages:
1.
2.
3.
4.
Economic efficiency
Economic freedom
Economic growth
Consumer sovereignty
Exit Ticket
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What are the four types of economies?
Give an example of each
State what Laizzez-faire is in your own
words
Do you think that the economy should be
free of control, somewhat controlled, or
completely control?
Karl Marx



Who are the proletariat and what are they
going to do to the bourgeoisie?
The 10 Steps: in what ways are these
similar to our society, in what ways are
they different?
Are there any of these ideas that you
agree with?
III. Centrally Planned Economies
Government controls resources
and production
A.
Karl Marx’s
“Communist Manifesto”
(1848)
1.
2.
believed all politics and
history is driven by the
struggle of the proletariat
(workers) vs the
bourgeoisie (rich upper
class)
believed a socialist society
can only come after a violent
revolution
B.
Socialism
1.
2.
3.
philosophy that wealth
should be redistributed
throughout society
can allow for
democracy and private
ownership
in socialist countries,
gov’t often owns major
industries and uses
wealth for social
programs
C.
Communism
1.
2.
3.
centrally planned
economy with all
economic and political
power residing in the
central government
little to no private
ownership with societal
equality
communist governments
are authoritarian- strict
obedience to the
government, no
individual freedom
1.
2.
3.
“The ruling ideas of each age have ever
been the ideas of its ruling class.”
“It is not from the benevolence of the
butcher, the brewer, or the baker that we
expect our dinner, but from their regard to
their own interest.”
“Every man is, no doubt, by nature, first
and principally recommended to his own
care; and as he is fitter to take care of
himself than of any other person, it is fit
and right that it should be so. “
4.
5.
6.
“Sell a man a fish, he eats for a day,
teach a man how to fish, you ruin a
wonderful business opportunity.”
“The real tragedy of the poor is the
poverty of their aspirations”
“Every man, as long as he does not
violate the laws of justice, is left perfectly
free to pursue his own interest his own
way, and to bring both his industry and
capital into competition with those of any
other man, or order of men.”
7.
8.
9.
10.
“From each, according to his ability; to
each, according to his need”
“Consumption is the sole end and
purpose of all production; and the
interest of the producer ought to be
attended to, only so far as it may be
necessary for promoting that of the
consumer.”
“Abolish all private property”
“Workers of the world unite; you have
nothing to lose but your chains.”
Exit Ticket



The United States can best be described
as which type of economy?
Why are capitalism (free market) and
communism inherently opposite in
doctrine?
How are socialism and communism
different?
You must include




Term
What it is (in your words)
Example
Visual
Create your own Government
and Economy!

Imagine you are the ruler of a country. You
can choose what kind of country and
government it is. Pick what economic
system you will have in your country and
explain how your economy works. Is it a
traditional, market, command, or mixed
economy? How do you address the three
key economic questions?
8.01-2 Review
1.
The US economy is best described as
what type of economy?
a.
b.
c.
d.
Free-market
Command
Mixed
Traditional
2.
According to supporters of capitalism,
which country would be least efficient in
terms of adjusting supply to meet
demand?
a.
b.
c.
d.
Japan
Germany
Cuba
China
3.
List the benefits of a free enterprise
system.
4.
Which of the following encourages
individual initiative?
a.
b.
c.
d.
Economic self-interest
Public property
Monopolies
Multinational corporations
5.
How do consumers demonstrate their
sovereignty in a market system?
6.
Which economic policy is most
associated with socialism?
a.
b.
c.
d.
Free trade
Competition
A guaranteed job
Economic freedom
7.
Who owns many of the factors of
production in a socialist system?
8.
According to supporters of free
enterprise, what makes an economy
inefficient?
a.
b.
c.
d.
Rejecting customs and traditions
Meeting wants instead of needs
Allocating scarce resources
Adding government regulations
9.
What role does the US government play
in the economy?
10.
What is the main difference between
socialism and communism?
a.
b.
c.
d.
in communism, the government has social
programs to help the poor
in socialism, the government is always
authoritarian
in socialism, the government redistributes
wealth but allows private ownership
in communism, the government can be
democratic and protect individual liberties