Concept: Production – Distribution - Consumption SS7E8a Compare how traditional, command, and market economies answer the economic questions of: (1) what to produce (2) how to produce (3) for whom to produce Concept: Production – Distribution - Consumption

ECONOMIC SYSTEMS

Concept: Production – Distribution - Consumption SS7E8b Explain how most countries have a mixed economy located on a continuum between pure market and pure command. Concept: Production – Distribution - Consumption

ECONOMIC CONTINUUM PURE MARKET ECONOMY Individuals and private businesses DECIDE what is produced, how it is produced, and who they will sell to MIXED ECONOMY Individuals and private businesses AND governments DECIDE what is produced, how it is produced, and who they will sell to PURE COMMAND ECONOMY The Government DECIDES what is produced, how it is produced, and who they will sell to

Concept: Production – Distribution - Consumption SS7E8c Compare and contrast the economic systems in China, India, Japan and North Korea. Concept: Production – Distribution - Consumption

ECONOMIC CONTINUUM Where do the economies of China, India, Japan, and North Korea fall on an economic continuum? ? ? PURE MARKET ECONOMY MIXED ECONOMY PURE COMMAND ECONOMY

Economy of China What to produce? A large part of China’s GDP comes from a highly developed, industrial systems much like many other developed countries. Many Chinese people today have small businesses of their own even though the Chinese government still has final authority.

Economy of Japan How to produce? Japan has very little farmland and few natural resources. For that reason, the country must import raw materials and food. The need for industry and for world trade also means a well-educated work force is an absolute necessity.

Economy of Japan For whom to produce? The private sector produces goods and services for domestic and international markets based on the market price system. The government social services sector produces public goods and services based on the needs of the population throughout the country.

Economy of India What to produce? India leads many of the countries the region in the growth of technology and service industries. There is a booming electronics industry in India, producing computers, software, televisions, CD players, and VCRs. India has launched several communications satellites systems and leads the region in a number of related fields. India is also home to a popular movie and film industry. Bollywood films are as popular in Southern and Eastern Asia as are films made in the United States

ECONOMIC CONTINUUM Where do the economies of South Africa and Nigeria fall on an economic continuum? India Japan China PURE MARKET ECONOMY MIXED ECONOMY PURE COMMAND ECONOMY