1. Mr. Hicks Ms. Tschudi-Rose 26 January 2011

2.  WHAT to produce?  HOW to produce?  FOR WHOM to produce?

3.  Economic Efficiency Make the most of your resources  Economic Freedom Freedom from government intervention  Economic Security and Predictability Good/services will be available, payments made on time, and a safety net  Economic Equity Fair distribution of wealth  Economic Growth and Innovation Innovation and higher standard of living  Additional Goals IE: environmental protection, full employment, universal medical care, etc.

4.  Traditional Economy Relies on habit, custom, or ritual  Market Economy Decisions on production/consumption are based on voluntary exchanges in the market  Command Economy Central authority is in command of the economy  Mixed Economy Elements of Market-based economic system with varying levels of government involvement

5. STRENGTHSWEAKNESSES -Everyone knows their role Security - Discourages new ideas and new ways of doing things- inefficient - certainty exists over WHAT and HOW to produce -Security - Possible punishment for breaking rules or acting differently-lacks freedom - FOR WHOM = traditions/customs-Lower standard of living -No growth -Life is generally stable, predictable, and continuous -Basic needs are met EXAMPLES: Inuit, small communities around the world, Amish

6. STRENGTHSWEAKNESSSES - Adjust to change over time Efficiency - FOR WHOM (rewards go to the most productive resources) - Freedom exists for everyoneless equity Gov’t involvement is limited to protecting property and providing public goods: Growth Basic needs not met for all -Decision making is decentralized -Freedom/ consumer sovereignty - Variety of goods and services - High degree of consumer satisfaction (consumer sovereignty) EXAMPLES: United States, Hong Kong, Mexico, Canada, Japan There are NO PURE Market economies, but these are the closest.

7. STRENGTHSWEAKNESSES - Can change direction in a relatively short time - Not designed to meet individual wants/needs no consumer sovereignty Equity- all needs are met- Lack of incentives no profit motive or competition - Requires large decision-making bureaucracy ; lacks efficiency -No flexibility to deal with minor day- to-day problems lacks efficiency - People with new/unique ideas can’t get ahead ( no profit motive) EXAMPLES: North Korea, Cuba, Iran, Communist China, former USSR

8. STRENGTHSWEAKNESSES Varying levels of gov’ t interference*- Difficult to transition from centrally planned to free market -High level of economic freedom -More equity, basic needs help -Safety net for all - Not enough involvement from the government vs. too much involvement already - Foreign investment/free trade are encouraged *The government will use influence to keep order, provide vital services, and to promote the general welfare. EXAMPLES: All modern economies

9. FREE MARKET CENTRALLY PLANNED Hong Kong U.S.Mexico France China North Korea Singapore U.K. South Africa Iran Cuba CanadaPoland Japan Russia

10.  http://www.united-states-flag.org/ http://www.united-states-flag.org/  http://www.33ff.com/flags/worldflags/Hong-Kong_flag.html http://www.33ff.com/flags/worldflags/Hong-Kong_flag.html  https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_uk.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_uk.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_ca.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_ca.html  http://www.crwflags.com/fotw/flags/kp.html http://www.crwflags.com/fotw/flags/kp.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_cu.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_cu.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_ch.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_ch.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_ir.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_ir.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_rs.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_rs.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_mx.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_mx.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_fr.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_fr.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_sf.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_sf.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_pl.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_pl.html  https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_ja.html https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_ja.html  http://www.ehow.com/facts_5788388_description-economic-system.html http://www.ehow.com/facts_5788388_description-economic-system.html