Economic Systems
This economic system where the government controls all of the factors of production
What is a Command Economy
Assume on their Own Country A can make 400 bikes or 40 Cars and country B can make 200 Bikes or 50 Cars What is the opportunity cost of 1 bike for country A?
What is What is for country A by choosing to make one 1 Bike they give up the opportunity to make 1/10 Car
1 USD = 1.25 Euros
1 USD = 25 Pesos
1 USD = 150 Yen
Which Currency is the most appreciated?
What is the US Dollar
Who do Tarrifs help?
Who are domestic producers
List 3 categories that we use to determine if a country is developed or developing
What is What are GDP Per Capita, Literacy Rate, Infant Mortality Rate, Life Expectancy, Access to Electricity, Infrastructure, % of people working in agriculture
Economic System where the government does not exist at all
What is a market economy
Assume on their Own Country A can make 400 bikes or 40 Cars and country B can make 200 Bikes or 50 Cars Who has the absolute advantage in Cars?
Who is Country B
1 USD = 1.25 Euros
1 USD = 25 Pesos
1 USD = 150 Yen
Which Currency is the most deppreciated?
What is the Yen
Compared to Tariffs how does free trade affect prices?
What is it lowers prices
First person to hit the buzzer gets 200 free points
What is LETS GO
Economic System that supply and demand dictates prices unless the government needs to stop people from taking advantage of one another
What is a mixed marekt economy
What are two benefits of specialization and trade instead of producing goods on your own ?
What is you can out consume your PPC on your own and things cost less than if you were to produce it on your own
1 USD = 1.25 Euros
1 USD = 25 Pesos
1 USD = 150 Yen
I want to buy a calculator that costs 6,000 yen, how much would that cost in US Dollars?
What is 6000/150= $40
If 1 USD = 3.50 Euro how much is an eraser that costs 350 Euros in USD?
What is $100 USD
What does the World Trade Organization do?
What is What is Regulate Global Trade so it is fair, settle disputes between nations
List 2 pros and 2 cons of a market system economy
What is
Pros- Incentive to work hard/innovation, Best Product Wins, Consumer Choice, Prices will be Low
Cons - Rich stay rich, No product standards, no safety standards, Monopolies can happen, impossible to compete with walmart
Assume on their Own Country Zeta can make 500 Trucks or 500 Gumballs and country Delta can make 300 Trucks or 150 Gumballs Who has the comparative advantage in Gumballs?
What is Country Zeta has the comparative advantage because of the lower opportunity cost
Zeta 1 gumball = 1 Truck
Delta 1 gumball = 2 Trucks
1 USD = 1.25 Euros
1 USD = 25 Pesos
1 USD = 150 Yen
I want to buy a calculator that costs 6,000 dollars, how much would that cost in Euros?
What is 6000 x 1.25= 7500
How does free trade affect developing nations?
What is What is foreign competition can come in and wipe out domestic industry Or it lowers prices for consumers and gives access to more goods.
What is a reason foreign aid might not work in a developing country
What is corruption or the country becomes dependant on the aid
List 3 pros and 3 cons of a command economy
What is
Pros - Everyone is equal, Government provides everything, Everyone has a job
Cons - No incentive to work hard/innovation, no consumer choice, It has never worked in the history of the world
Assume on their Own Country Zeta can make 500 Trucks or 500 Gumballs and country Delta can make 300 Trucks or 150 Gumballs. What are fair terms of trade in terms of Gumballs for Trucks?
What is What is 1 Gumball for 1.5 Trucks is fair trade both sides gain 0.5 trucks on each trade
June Exchange Rates July Exchange Rates
1 USD = 1.25 Euros 1 USD = 1.20 Euros
1 USD = 25 Pesos 1 USD = 20 Pesos
1 USD = 150 Yen 1 USD = 160 Yen
From June to July Which Currency appreciated and which currency depreciated?
What is What is the Euro Appreciated, The Peso Appreciated and the Yen Depreciated
THREE PARTS Assume on their Own Country Alpha can make 50 Socks or 100 Shoes and country Beta can make 100 Socks or 250 Shoes. Who will sell shoes and who will buy shoes? What are fair terms of trade in terms of Socks for Shoes? AND How much does each nation gain as a result of each trade at the fair price?
What is
Alpha will sell shoes and Beta will buy shoes.
Fair Terms of Trade will be 1 Sock for 2.25 Shoes
Alpha will gain 0.25 Shoes on each trade as they make it for 2 and are selling it for 2.25 and Beta will gain 0.25 Shoes on each trade as they make it for 2.5 and are buying it at a discount of 2.25
Compare and Contrast the World Trade Organization and the International Monetary Fund
What is
Different IMF is short term assistance, focusing on currency, stability and laws
WTO is long term development projects, focusing on Infrastructure, and poverty reduction
Similar they both work in developing countries, they both are made up of developed countries, they both can displace the poor of the developing country