What goods and services will be produced and in what quantities? How will each of the goods and...

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Economic Systems

Transcript of What goods and services will be produced and in what quantities? How will each of the goods and...

Page 1: What goods and services will be produced and in what quantities? How will each of the goods and services be produced? For whom will the various goods.

Economic Systems

Page 2: What goods and services will be produced and in what quantities? How will each of the goods and services be produced? For whom will the various goods.

Different economic systemsWhat goods and services will be produced and in what quantities?

How will each of the goods and services be produced?

For whom will the various goods and services be produced?

Page 3: What goods and services will be produced and in what quantities? How will each of the goods and services be produced? For whom will the various goods.

 4 types of economic systems …the traditional systemthe command systemthe market systemmixed system

Page 4: What goods and services will be produced and in what quantities? How will each of the goods and services be produced? For whom will the various goods.
Page 5: What goods and services will be produced and in what quantities? How will each of the goods and services be produced? For whom will the various goods.

The traditional system

Traditional system: the same goods are produced and distributed in the same way by each successive generation.

+ Provides clear and easy answers 3 central questions.

- Rigid & slow to adapt to changing conditions; resists innovation.

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The command systemCommand system: participants are instructed what to produce and how to produce it by a central authority which also determines how the output is distributed. AKA centrally planned systems.

Central planners answer 3 central questions.

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The market systemMarket system: economic system in which there is free competition and prices are determined by the interaction of supply and demand.

3 central questions answered by market mechanism.

Page 8: What goods and services will be produced and in what quantities? How will each of the goods and services be produced? For whom will the various goods.
Page 9: What goods and services will be produced and in what quantities? How will each of the goods and services be produced? For whom will the various goods.

VIDEO: https://www.youtube.com/watch?v=ulyVXa-u4wE

https://www.youtube.com/watch?v=ulyVXa-u4wE
https://www.youtube.com/watch?v=ulyVXa-u4wE
https://www.youtube.com/watch?v=ulyVXa-u4wE
Page 10: What goods and services will be produced and in what quantities? How will each of the goods and services be produced? For whom will the various goods.

The functions of prices in a market economy

The rationing functionRation scarce supplies to those who place the highest value on them (and can afford to pay for them).

Page 11: What goods and services will be produced and in what quantities? How will each of the goods and services be produced? For whom will the various goods.

The allocative function

Prices send signals • Excess demand• Prices increase

• Higher prices = increased profits• Additional entrants into market

• Supply increases• Prices drop back to equilibrium

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Characteristics of Economic SystemsClick on the following page to unjumble the characteristics of different economic systems…


WILL LEATHER GOODS HOLIDAY 2011 COLLECTION

WILL LEATHER GOODS HOLIDAY 2011 COLLECTION

Section 2. – the quantity of goods that are sold at a specific price. The quantity of goods that are produced/exist.

Section 2. – the quantity of goods that are sold at a specific price. The quantity of goods that are produced/exist.

Graduate Course Paper IV / Discipline Course Principles of ... · (3) How will the goods produced be allocated among the members who make up the society, i.e., whom are the goods

Graduate Course Paper IV / Discipline Course Principles of ... · (3) How will the goods produced be allocated among the members who make up the society, i.e., whom are the goods

Economic Systems Do you remember the three questions that every country must answer when developing its economic plan? 1.What goods/services will be produced?

Economic Systems Do you remember the three questions that every country must answer when developing its economic plan? 1.What goods/services will be produced?

SESEC IV China Standardization Newsletter...will focus on consumer goods such as children's goods, textile and clothing, household goods, decoration materials, etc. SAC will continue

SESEC IV China Standardization Newsletter...will focus on consumer goods such as children's goods, textile and clothing, household goods, decoration materials, etc. SAC will continue

Introduction to International Trade. International Trade Exports—goods and services produced in one country and sold to other countries. Imports—goods.

Introduction to International Trade. International Trade Exports—goods and services produced in one country and sold to other countries. Imports—goods.

Study of how goods and services are produced, distributed and consumed.

Study of how goods and services are produced, distributed and consumed.

Ken Phillips. Belief ◦ Using technology to produce locally produced goods, food, power will be critical to sustainability Problem ◦ How can we enable.

Ken Phillips. Belief ◦ Using technology to produce locally produced goods, food, power will be critical to sustainability Problem ◦ How can we enable.

Mixed Economies & Market Failure. All economies must answer 3 questions. What goods & services should be produced? How should the goods & services.

Mixed Economies & Market Failure. All economies must answer 3 questions. What goods & services should be produced? How should the goods & services.

CHAPTER TWO CHAPTER TWO. 3 Basic Questions 1. What goods and services should be produced? 2. How should these goods and services be produced? 3. Who consumes.

CHAPTER TWO CHAPTER TWO. 3 Basic Questions 1. What goods and services should be produced? 2. How should these goods and services be produced? 3. Who consumes.

WILL Leather Goods AW13 Lookbook

WILL Leather Goods AW13 Lookbook

Dangerous Goods and Rail Safety - Transportation | …...dangerous goods shipping document. Currently a waste manifest or recycling docket produced by Alberta Energy Regulators (AER)

Dangerous Goods and Rail Safety - Transportation | …...dangerous goods shipping document. Currently a waste manifest or recycling docket produced by Alberta Energy Regulators (AER)

05. In an economy, only X and Y goods are produced, due to ...

05. In an economy, only X and Y goods are produced, due to ...

1 The Hopes of Immigrants...Goods produced in factories became cheaper than goods produced by artisans.Suddenly out of work,some arti-sans took factory jobs.Others emigrated. 5. Religious

1 The Hopes of Immigrants...Goods produced in factories became cheaper than goods produced by artisans.Suddenly out of work,some arti-sans took factory jobs.Others emigrated. 5. Religious

Public Goods - | Stanford Lagunita · PDF filePublic Goods Table 15-1 shows the range of goods and services produced by all lev-els of government in the United States: the federal

Public Goods - | Stanford Lagunita · PDF filePublic Goods Table 15-1 shows the range of goods and services produced by all lev-els of government in the United States: the federal

+ Supply and Demand Why are some goods produced and not others?

+ Supply and Demand Why are some goods produced and not others?

ECONOMY What is Produced? How Goods are Produced How People Get Products Traditional Command Market Types of Economic Systems EX→ Australian Aborigines.

ECONOMY What is Produced? How Goods are Produced How People Get Products Traditional Command Market Types of Economic Systems EX→ Australian Aborigines.

Economic Theories€¦ · Economic Theories 1) What and how are much should be produced 2) How goods and services should be produced 3) Who gets the goods and services that are ...

Economic Theories€¦ · Economic Theories 1) What and how are much should be produced 2) How goods and services should be produced 3) Who gets the goods and services that are ...

Chapter 18 TECHNOLOGY. 18.1 Inputs and Outputs Factors of production: inputs to production. Capital goods: inputs that are themselves produced goods.

Chapter 18 TECHNOLOGY. 18.1 Inputs and Outputs Factors of production: inputs to production. Capital goods: inputs that are themselves produced goods.

Measuring the Macroeconomy Gross Domestic Product (GDP) Measures What? Newly produced final goods and services. Where? Goods and services produced within.

Measuring the Macroeconomy Gross Domestic Product (GDP) Measures What? Newly produced final goods and services. Where? Goods and services produced within.