Economic Definitions
Name 3 goods available for consumers to purchase.
So many right answers! A good is something you can touch or use that satisfies a want or need, like food, clothes, or a phone.
What does economic freedom mean?
Can the government tell you what to buy? Or do you choose how and where to spend your money?
What does economic efficiency mean?
What is the best use of our resources?
1600s France: the king had full control of the government and was seen as divinely chosen by God to rule.
Absolute monarchy
North Korea is led by one man who controls its whole government and the ruling political party.
The ruling party chooses candidates for an Assembly, and citizens vote. The candidates do not have opponents, so citizens have no choice.
autocracy--> dictatorship
What is a producer?
provide consumer goods & services, manufacturing
What does economic stability mean?
Stable jobs & prices
Available resources
What does the future
look like?
What is a traditional economy?
First and oldest
Hunter/gathering societies
Custom and tradition dictate:
1. What to produce - tradition/survival
2. How to produce it - gender roles
3. Who receives it - working to maintain the group as a whole
Russia: Vladimir Putin is the current leader, he fully controls the government. He assassinates political opponents, controlling the media, and violently puts down. suppressing protests.
Dictatorship
Brazil is led by a president who is elected by the citizens. Citizens in Brazil elect a new president every four years. Citizens also elect representatives to serve in two different legislative bodies.
Representative Democracy
What are consumers?
households, businesses, and governments that purchase goods & services
What is a command economy?
Powerful ruler or authority
Kings, rulers, pharaohs, emperors
Wealth for the ruling class
1. What to produce - keep the masses alive
2. How to produce it - dictate work for the masses
3. Who receives it - rulers get the most, keep people alive
What is a market economy?
Individuals decide what to produce/consume
Economic decisions are made by individuals
Economic freedom and liberty w/ competition
1. What to produce - demand dictates supply
2. How to produce it - efficient use of resources
3. Who receives it - consumers decide best value/need
Saddam Hussein, Kim Jong Un, and Putin are all modern examples of....
Dictators
Saudia Arabia is let by a king. The king appoints ministers to help him govern, but there are no elections. The country's constitution is the Islamic holy book, the Qur'an.
Monarchy -- theocracy
What is an economy?
The system where producers make goods and services, and consumers buy and use them.
What does economic growth mean?
Improve standard of living
Scientific & technological
innovation
Better goods & services
What is a mixed economy?
Free market w/ government intervention
Individuals are free to make economic choices
Government provides supports/regulations
Ancient Athens: a city-state in Greece around 500 BCE, free adult men voted directly on laws and decisions.
Women, slaves, and foreigners could not participate, so only a portion of the population had a say in government.
Direct democracy with elements of oligarchy.
In South Africa from 1948-1994, the official government policy gave white people all the political power, even though the majority of South Africans were black. Only white people were allowed to elected representatives to a legislature.
Oligarchy (only loosely a representative democracy)
What is the global economy?
The economy of our planet, made up of economically independent nations that are intertwined and interdependent.
What does economic security mean?
Providing for old, sick, poor? Safety nets?
What does economic equity mean?
Fairness & Justice
Who gets what?
Switzerland: citizens elect representatives to sit in lawmaking assemblies, but citizens can also vote to propose their own laws and vote directly on them.
Democracy: elements of representative and direct
Denmark: the people elect representatives to sit in Parliament and make laws. The Queen of Denmark heads the country but only has a small role in government. The government is also led by a Prime Minister, who is appointed from among elected officials.
Constitutional monarchy (with elements of representative democracy)