SS7E8 The student will analyze different economic systems
A:
Traditional- 1. What will be produced?
Traditional Items, food, and natural resources.
2. How will it be produced?
Following traditions.
3. For whom will it be produced?
Personal use, or barter.
Command- 1. What will be produced?
Government chooses.
2. How will it be produced?
Government chooses.
3. For whom will it be produced?
Government chooses.
Market- 1. What will be produced?
Goods that are in demand.
2. How will it be produced?
Producers choose.
3. For whom will it be produced?
Anyone who wants it.
B:
There is no country that is completely market or command. Every country is mixed. Some might be VERY close to either one.
C:
SS7E8 c:
China
(1) What to produce?
40 % of the Chinese economy is still based in state-run industries
60% of the economy is based on the private sector in where producers and consumers make production decisions
(2) How to produce?
The many inefficiencies found in the state-run industries, particularly in the area of agriculture, limit China’s growth.
In the private market, the speed of economic growth has caused Chinese officials to have increasing difficulty monitoring consumer safety and environmental pollution.
(3) For whom to produce?
China requires food production to meet self-sufficiency level for the nation and only the surplus may be exported. In reality, there is not enough proper storage of food to meet the self-sufficiency requirement.
China exports a large amount of manufactured goods. However, the expanding middle class in China is seen as a growth market for both Chinese and foreign companies.
Place on the continuum: China is moving slightly to the market side of center on the continuum.
India
(1) What to produce?
Since 1991, India has slowly allowed the markets to open up to private sector domestic and foreign businesses.
The majority of the population relies on subsistence agriculture as a means of survival.
There is a lot of bureaucracy and corruption involved in setting up and operating business.
(2) How to produce?
India is increasing its oversight of intellectual and private property rights, but legal challenges are fraught with bureaucracy.
India has an increasingly educated workforce particularly in areas of engineering and computer science.
A complex, corrupt, and hefty tax system can sometimes make operating a business in India difficult.
(3) For whom to produce?
Food production is largely for domestic consumers with many citizens producing food mainly for their own family consumption.
The software and business process outsourcing industries are rapidly expanding export markets for private Indian companies.
Place on the continuum: India would be more to the market side of the continuum than China.
Japan
(1) What to produce?
Japan’s economy is primarily market driven with supply and demand determining what will be produced.
The few industries that are highly government-controlled, such as agriculture, have much lower productivity rates than those industries controlled by market forces.
(2) How to produce?
Private businesses determine their own production processes in most of the economy.
(3) For whom to produce?
Japan’s population enjoys a high standard of living and creates a strong domestic market for goods and services.
The efficiency of Japan’s production and its reputation for quality products/services has made it a major exporter.
Place on the continuum: Out of all four countries in this element, Japan would be the closest to the market side of the continuum.
North Korea
(1) What to produce?
Although there have been some small market reforms recently, the majority of legal economic activities are centrally controlled by the government.
Due to natural disaster and inefficient government-run industries, North Korea is a major recipient of food and basic service aid from Non-Governmental Organizations (NGO) and foreign nations. The U.S. provides the people of North Korea with a large amount of aid.
Like in many highly centralized economies, there is a large underground economy that runs on a more market based system.
(2) How to produce?
Production decisions and methods are primarily determined by the government.
(3) For whom to produce?
Approximately one fourth of all domestic output is devoted to maintaining the military. This severely limits the amount of goods and services that make it to the rest of the people of North Korea.
North Korea produces natural resources and manufactured goods for export.
Place on the continuum: North Korea would be much more to the command side of the continuum than any of the other nations discussed. One of the most command economies in the world today.
SS7E9 The student will explain how voluntary trade benefits buyers and sellers in Southern and Eastern Asia.
A:
Specialization encourages trade because every country will specialize in one area and each country will have a lot of something certain and they can trade it with something else they need that a different county produced.
B:
Tariff- a tax on an imported good (protects local businesses by making prices of foreign goods higher)
Embargo- temporarily suspends trade (caused by political disagreements)
Quota- a limit on the number of goods imported (reduces competition with foreign companies)
C:
They require a currency trade system because most countries do not have the same currency, and if you can't trade with anyone, than that country will not be able to get what it needs.
SS7E10 The student will describe factors that influence economic growth and examine their presence or absence in India, China, and Japan.
A:
Human Capital is the value of people’s work. Providing education, training, and healthcare to a worker is an investment in human capital.
GDP is determined by taking the total value of all goods and services produced by a country in a single year.
B:
Capital goods (the factories, machines, and technology that people use to make other goods) are important to economic growth. Advanced technology and the organization of this technology into factories, where many workers can work together, increases production and makes that production more efficient. Producing more goods for sale in a quicker and more efficient way leads to economic growth and greater profit. This greater profit leads to higher gross domestic product (GDP).
C:
Natural resources have a big role in a country's economy. If a country has a lot of natural resources, it is very good because it is a good trading source, and also a country needs a lot of it because the lots of countries are in need of natural resources. A big one is oil.
D:
Entrepreneurship is also important because if no one started any businesses, then all of them would be run by the government. All market economies have entrepreneurs in their country.
A:
Traditional- 1. What will be produced?
Traditional Items, food, and natural resources.
2. How will it be produced?
Following traditions.
3. For whom will it be produced?
Personal use, or barter.
Command- 1. What will be produced?
Government chooses.
2. How will it be produced?
Government chooses.
3. For whom will it be produced?
Government chooses.
Market- 1. What will be produced?
Goods that are in demand.
2. How will it be produced?
Producers choose.
3. For whom will it be produced?
Anyone who wants it.
B:
There is no country that is completely market or command. Every country is mixed. Some might be VERY close to either one.
C:
SS7E8 c:
China
(1) What to produce?
40 % of the Chinese economy is still based in state-run industries
60% of the economy is based on the private sector in where producers and consumers make production decisions
(2) How to produce?
The many inefficiencies found in the state-run industries, particularly in the area of agriculture, limit China’s growth.
In the private market, the speed of economic growth has caused Chinese officials to have increasing difficulty monitoring consumer safety and environmental pollution.
(3) For whom to produce?
China requires food production to meet self-sufficiency level for the nation and only the surplus may be exported. In reality, there is not enough proper storage of food to meet the self-sufficiency requirement.
China exports a large amount of manufactured goods. However, the expanding middle class in China is seen as a growth market for both Chinese and foreign companies.
Place on the continuum: China is moving slightly to the market side of center on the continuum.
India
(1) What to produce?
Since 1991, India has slowly allowed the markets to open up to private sector domestic and foreign businesses.
The majority of the population relies on subsistence agriculture as a means of survival.
There is a lot of bureaucracy and corruption involved in setting up and operating business.
(2) How to produce?
India is increasing its oversight of intellectual and private property rights, but legal challenges are fraught with bureaucracy.
India has an increasingly educated workforce particularly in areas of engineering and computer science.
A complex, corrupt, and hefty tax system can sometimes make operating a business in India difficult.
(3) For whom to produce?
Food production is largely for domestic consumers with many citizens producing food mainly for their own family consumption.
The software and business process outsourcing industries are rapidly expanding export markets for private Indian companies.
Place on the continuum: India would be more to the market side of the continuum than China.
Japan
(1) What to produce?
Japan’s economy is primarily market driven with supply and demand determining what will be produced.
The few industries that are highly government-controlled, such as agriculture, have much lower productivity rates than those industries controlled by market forces.
(2) How to produce?
Private businesses determine their own production processes in most of the economy.
(3) For whom to produce?
Japan’s population enjoys a high standard of living and creates a strong domestic market for goods and services.
The efficiency of Japan’s production and its reputation for quality products/services has made it a major exporter.
Place on the continuum: Out of all four countries in this element, Japan would be the closest to the market side of the continuum.
North Korea
(1) What to produce?
Although there have been some small market reforms recently, the majority of legal economic activities are centrally controlled by the government.
Due to natural disaster and inefficient government-run industries, North Korea is a major recipient of food and basic service aid from Non-Governmental Organizations (NGO) and foreign nations. The U.S. provides the people of North Korea with a large amount of aid.
Like in many highly centralized economies, there is a large underground economy that runs on a more market based system.
(2) How to produce?
Production decisions and methods are primarily determined by the government.
(3) For whom to produce?
Approximately one fourth of all domestic output is devoted to maintaining the military. This severely limits the amount of goods and services that make it to the rest of the people of North Korea.
North Korea produces natural resources and manufactured goods for export.
Place on the continuum: North Korea would be much more to the command side of the continuum than any of the other nations discussed. One of the most command economies in the world today.
SS7E9 The student will explain how voluntary trade benefits buyers and sellers in Southern and Eastern Asia.
A:
Specialization encourages trade because every country will specialize in one area and each country will have a lot of something certain and they can trade it with something else they need that a different county produced.
B:
Tariff- a tax on an imported good (protects local businesses by making prices of foreign goods higher)
Embargo- temporarily suspends trade (caused by political disagreements)
Quota- a limit on the number of goods imported (reduces competition with foreign companies)
C:
They require a currency trade system because most countries do not have the same currency, and if you can't trade with anyone, than that country will not be able to get what it needs.
SS7E10 The student will describe factors that influence economic growth and examine their presence or absence in India, China, and Japan.
A:
Human Capital is the value of people’s work. Providing education, training, and healthcare to a worker is an investment in human capital.
GDP is determined by taking the total value of all goods and services produced by a country in a single year.
B:
Capital goods (the factories, machines, and technology that people use to make other goods) are important to economic growth. Advanced technology and the organization of this technology into factories, where many workers can work together, increases production and makes that production more efficient. Producing more goods for sale in a quicker and more efficient way leads to economic growth and greater profit. This greater profit leads to higher gross domestic product (GDP).
C:
Natural resources have a big role in a country's economy. If a country has a lot of natural resources, it is very good because it is a good trading source, and also a country needs a lot of it because the lots of countries are in need of natural resources. A big one is oil.
D:
Entrepreneurship is also important because if no one started any businesses, then all of them would be run by the government. All market economies have entrepreneurs in their country.