2. Mystery nations revealed: Country A: Argentina Population: 37,384,816 Per capita GDP: $12,900 Life expectancy: 75.26 yrs Literacy rate: 96.2% Infant mortality rate: 17.75/1000 Country B: Japan Population: 126,771,662 Per capita GDP: $24,900 Life expectancy: 80.8 yrs Literacy rate: 99% Infant mortality rate: 3.88/1000 Country C: Nigeria Population: 126,635,626 Per capita GDP: $950 Life expectancy: 51.07 yrs Literacy rate: 57.1% Infant mortality rate: 73.34/1000 Country D: Russia Population: 145,470,197 Per capita GDP: $7700 Life expectancy: 67.34 yrs Literacy rate: 98% Infant mortality rate: 20.05/1000 Country E: Singapore Population: 4,300,419 Per capita GDP: $26,500 Life expectancy: 83.35 yrs Literacy rate: 93.5% Infant mortality rate: 3.62/1000

3. The countries, richest to poorest: 1.Singapore (E) 2.Japan (B) 3.Argentina (A) 4.Russia (D) 5.Nigeria (C)

4. Factors contributing to long-term economic growth: Greater economic freedom High investment levels in physical and human capital Strong incentives to save and invest Competitive markets Low inflation Political stability Free trade

5. Countries with highest levels of economic freedom, 2012 1. Hong Kong 2. Singapore 3. Australia 4. New Zealand 5. Switzerland 6. Canada 7. Chile 8. Mauritius 9. Ireland 10. United States

6. Countries with lowest levels of economic freedom, 2012 171. Democratic Republic of Congo 172. Burma 173. Eritrea 174. Venezuela 175. Zimbabwe 176. Cuba 177. North Korea

7. Capitalism vs. Socialism vs. Communism (9/16/15) I.Capitalism (modified free-enterprise) A.Means of production privately owned B.Adv: efficiency, freedom, high satisfaction C.Disadv: cannot satisfy all needs D.Examples: US, Canada, GB, Japan

8. II. Socialism A. Means of production controlled by government (at least to some extent) B. Still allows for democratic elections C. Adv: basic needs are provided D. Disadv: less efficient, higher costs = higher taxes E. Examples: Scandinavian countries (kinda sorta), China, N Korea

9. III. Communism(9/23/15) A. All property collectively owned 1. Never been true communism B. Govt has complete control –usually becomes totalitarian state C. Adv: basic needs taken care of D. Disadv. No freedom, private property, incentives, does not cover consumer “wants” E. Examples: USSR, N. Korea, Cuba

10. Warm-up: February 14, 2014 Explain how economic freedom leads to economic growth and in turn, creates a wealthy nation.

11. Political cartoon/comic strip assignment – economic systems Choose one of the following options: 1.Depict an advantage or disadvantage (or both if you want) of a traditional, communist, socialist, or capitalist economy, or 2.Choose one characteristic and compare two economic systems (ex: capitalism vs. communism and providing basic needs) Include an explanation of what’s going on (you can do this on the back) Turn it in at the end of the period – or finish it for homework

16. Capitalism I. Competition and free enterprise A. Economic freedom 1. Individuals: 2. Businesses: B. Voluntary exchange 1. Buyers and sellers engage in transactions freely C. Private property rights 1. Why it’s important:

17. D. Profit motive 1. Entrepreneurs – start new businesses in search of profit a. Many fail, very few become extremely wealthy b. Successful entrepreneur – everyone benefits: 2. Profit: people, organizations better off than before

18. E. Competition 1. Attract consumers while lowering costs 2. Consumers: find best products at lowest prices II. The role of the government A. Protector 1. Examples:

19. B. Provider and consumer 1. Examples: C. Regulator 1. Examples: D. Promoter of national goals

20. Evaluating Economic Performance I. Economic and social goals A. Freedom: B. Efficiency: C. Equity: D. Security:

21. E. Full employment: F. Price stability: G. Economic growth:

22. II. Trade-offs among goals A. Example: banning foreign cars 1. Goal preserved: 2. Goal forsaken: B. Example: raising minimum wage 1. Goal preserved: 2. Goal forsaken: C. Government deregulation: 1. Goal preserved: 2. Goal forsaken:

23. Comparative Economic Systems Use the info in Chapter 18. In your notebooks: 1.Come up with a chart that details the advantages and disadvantages of communism, socialism, and capitalism. 2. Write at least one paragraph in response to this: Why did communism ultimately fail in the Soviet Union?