1. Economics
The study of how people, businesses, and societies choose to use scarce resources to satisfy their unlimited wants 1

2. Economics
Economic systems answer the questions of 1-what to produce, 2-how to produce, and
3-for whom to produce? 2

3. Economics How many basic types of economic systems are there? 3
Name the economic systems. Traditional, Command, Market
Which economic system do most textbooks say is the most common throughout the world? Mixed. The GCEE states that mixed is not an economic system but rather a blending of two different types of systems.

4. Economics
Traditional Economy- A system in which social roles and culture determine how goods are made, sold, and bought. 4

5. Economics
Command Economy-A command economy, also called planned economy, is directly controlled by the government 5

6. Economics
Socialism- an economic system in which the government owns some or all of the factors of production 6

7. Economics
Communism- an economic system based on one-party rule, government ownership of economic resources, and decision-making by government officials 7

8. Market Economy - Based on individual choices and voluntary trade.
Economics
Market Economy - Based on individual choices and voluntary trade. 8

9. Economics
Capitalism- an economic system based on the private ownership of economic resources and in which all individuals make economic decisions 9

10. Economics
Free Enterprise System- an economic system that allows business owners to compete in the markets with little government control 10

11. Economics
Mixed Economy
an economy in which there are elements of both public and private enterprise 11

12. Economic Systems
Pure
Command
Pure Market
Mixed Economy

13. 100 Economic Systems Israel 68% Saudi Arabia 64% Iran 45% Pure Market
7th Grade- This information is meant to be used in conjunction with the 6th and 7th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
100
Pure
Command
Pure Market
Mixed Economy 13

14. 100 Economic Systems South Africa 64% Nigeria 55% Pure Market Pure
7th Grade- This information is meant to be used in conjunction with the 6th and 7th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
100
Pure
Command
Pure Market
Mixed Economy 14

15. 100 Economic Systems Japan 73% India 54% China 53% North Korea 2%
7th Grade- This information is meant to be used in conjunction with the 6th and 7th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
100
Pure
Command
Pure Market
Mixed Economy 15

16. Economics
Factors of Production- the resources needed to produce goods and services 16

17. Economics
Land- a factor of production that includes all natural resources found on or under the ground 17

18. Raw materials that are used to support life and make goods (2 types)
Economics
Natural Resources-
Raw materials that are used to support life and make goods (2 types) 18

19. Renewable- Resources that can be replace such as trees and freshwater
Economics
Natural Resources
Renewable- Resources that can be replace such as trees and freshwater 19

20. Economics
Natural Resources-
Non-renewable- resources that cannot be replaced such as oil and natural gas 20

21. Economics
Capital Goods- resources such as factories, machinery, and tools that people use to make other goods 21

22. Economics
Human Capital- the knowledge and skills that allow workers to produce goods and services and earn income 22

23. Labor- all the time, effort, and talent that goes into production
Economics
Labor- all the time, effort, and talent that goes into production 23

24. Economics
Entrepreneur- someone who brings together land, labor, and capital goods to produce goods and services 24

25. Economics
Expenses – Money that is spent by a person, a business, or a government. 25

26. Economics
Income- Money that a person receives in exchange for work or from the use of property 26

27. Economics
Economic Growth- the increase in the value of all the goods and services a country makes from one year to the next 27

28. Economics
Specialization- countries produce the goods and services that they can produce most efficiently 28

29. Economics
International Trade- the exchange of goods and services between countries 29

30. Economics
Imports- goods brought into one country from another through trade or sale 30

31. Exports- goods and services traded with or sold to other countries
Economics
Exports- goods and services traded with or sold to other countries 31

32. Free Trade- an exchange of goods without the use of tariffs or quotas
Economics
Free Trade- an exchange of goods without the use of tariffs or quotas 32

33. Economics
Supply and Demand- Producers supply goods and services and consumers demand them.  Prices in the market are determined by supply and demand. 33

34. Economics
Organization of Petroleum Exporting Countries (OPEC) - a cartel of twelve countries They decide how much oil will be produced during a certain period of time in order to regulate and set the prices (laws of supply and demand). 34

35. Economics
Trade barrier- any regulation or policy that restricts international trade, especially tariffs, quotas, etc. 35

36. Tariff - a tax placed on goods when they cross a political boundary
Economics
Tariff - a tax placed on goods when they cross a political boundary 36

37. Economics
Quota- a limit on the quantity of goods that can be imported into a country 37

38. Economics
Embargo- Government prohibition of exports or imports with respect to specific products or specific foreign countries 38

39. Economics
Balance of Trade- the difference in value between a country’s exports and imports 39

40. Economics
Currency- money in any form that is accepted as a medium of exchange, but especially paper money 40

41. Economics
Foreign Exchange Market- a place where money from different countries is bought and sold for a price 41

42. Economics
Exchange Rate- the amount of one currency that can be purchased for a given unit of another 42

43. Economics
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