Lesson 1
Land, Labor, Capital, Entrepreneurship
What are the factors of production?
A social and economic system with a rigid social structure and an economic system that benefits the rich
What is Feudalism?
economic system in which production and prices are determined by unrestricted competition between privately owned businesses
What is a Market Economy?
Uses resources according to supply/demand and government intervention
What is a mixed economy?
State planners in Country A meet to decide what the country should focus on producing. After much deliberation, they divided it would be in the country’s best interest to use their limited resources to produce automobiles instead of other consumer goods, such as electronics or textiles. The state planners passed their decision down to factories, and allocated to them raw materials, workers, and other resources needed to produce automobiles. Factories were then told how much they should produce with these resources and who the final products should be shipped to.
Name the economic system.
Command Economy.
System that a country or community uses to manage their resources
What is an Economy?
method of land ownership in parts of Europe
What is Manoralism? (Manors)
the development of industries in a country or region on a wide scale
What is Industrialization?
The total value of all goods and services produced in a single year
What is Gross Domestic Product (GDP)?
In Country B, business owners decided what to produce, how much to produce, and who to produce for. The CEO of World Audio, one of the leading audio equipment producers in the country, recently decided to increase production levels of the company’s newest Google Phone model, and at the same time decrease production levels of their most popular iPhones. The reason for the emphasis on the new Google Phone is that demand for the iPhones has decreased dramatically as Google Phone technology has taken over the market. Simply put, there is more profit to be made in the Google Phone market now.
Market Economy.
Lacking resources, forces you to choose
What is scarcity?
Economic system that operates based on cultural values & beliefs
What is a Traditional Economy?
a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs
What is Communism?
Class inequality
What is a disadvantage of Capitalism?
In Country C, people rarely engage in market transactions. For the most part, they do not need to. Families grow their own vegetables and raise their own animals or hunt to get meat. Certain times get tough for people in Country C, like when winters are particularly cold or animals change their migration patterns. For this reason it is important that families stock up in “good times” and develop relationships with neighbors with whom they can share or trade.
Traditional Economy.
a nation that has a high quality of life, strong economy, and advanced technological infrastructure
What is a Developed Nation?
What is a warrior class, hired to protect land/property, and often paid in food,armor, or land.
What is a Samurai?
a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole
What is Socialism?
Low wages, deplorable working conditions, overcrowding, and pollution
What are the disadvantages of the Industrial Revolution?
In Country D, business owners make most economic decisions. As long as they abide by fair trade policies, they can decide what to produce, how to produce, and for whom to produce without government intervention. These decisions are made by business wonders based on what happens in the market. For example, a computer manufacturer recently developed a new video gaming system, but decided to wait until closer to the holidays to release the system to the public because it believed anticipation among consumers would allow the company to charge a higher price for the system.
Mixed Economy.
a nation with a less developed industrial base & a lower Human Development Index relative to other countries
What is a Developing Nation?
Large estate owner. (owns lots of land)
What is a Daimyo?
economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state
What is Capitalism?
Low birth rate, high literacy rate, high standard of living
What is a trait of a Developed nation?
What are most countries economies today?
Mixed Economy