1. Mystery Nations

2. Why Are Some Nations Rich While Others are Poor?
Some nations of the world have become wealthy, while others have not.
What do you think most people – say the average student in your classes – would say are possible explanations for this fact?

3. Gapminder.org Income per capita and
Life expectancy
Infant mortality
Malaria deaths per 100,000
Adult literacy
notes: Circle size is proportional to population size. Color of circle indicates continent. Press “play” on bottom to see the cross section graph evolve over time.
This slide provides links to some dynamic graphs at Gapminder.org. I strongly encourage you to invest minutes exploring this site, and then sharing it with your students.
You can start by checking out some or all of the five graphs I’ve linked to here. For class, I suggest you show the life expectancy graph and one or two of the other ones.
Disclaimers/warnings: Gapminder is an external site not under the control of Worth Publishers. It could be taken down at any time (though this is not likely). I had to use “TinyURL” to create links small enough for PowerPoint to recognize; TinyURL is an external service not under the control of Worth Publishers, and it is possible that the TinyURL service could be interrupted or discontinued (though this is not likely).

4. Rank the Nations
Use the following information to rank each nation from 1 to 5 with 1 being the richest and 5 the poorest.
Can you name that nation?

5. Who Is Wealthy? Country B Country A Size: About the size of California
Population: About 127 million
Natural Resources: Fish, no mineral resources
Country A
Size: Three tenths the size of the U.S.
Population: About 43 million (small for a nation this size)
Natural Resources: Rich resources with fertile land, lead, zinc, tin, copper, iron ore, oil, uranium

6. Who Is Wealthy? Country C Size: Twice the size of California
Population: Large population of 174 million
Natural Resources: Vast resources including oil, tin, iron ore, coal, limestone, lead, zinc, natural gas
Country D
Size: 1.8 times the size the United States.
Population: Nearly 142 million
Natural Resources: Vast resources with major deposits of oil, natural gas, coal, many strategic minerals, vast timber supplies

7. Who Is Wealthy? Country E Size: 3.5 times bigger than Washington D.C.
Population: 5 million
Natural Resources: Fish, deepwater port

8. Mystery Nations Revealed

9. Country A Name: Argentina Population: 42,610,981
Per capita income: $18,400
(Purchasing Power Parity)
Life expectancy: 77 years
Literacy Rate: 97.9%
Infant mortality rate: deaths/1,000 live births

10. Country B Name: Japan Population: 127,253,075
Per capita income: $36,900
Life expectancy: 84 years
Literacy Rate: 99%
Infant mortality rate: 2.17 deaths/1,000 live births

11. Country C Name: Nigeria Population: 174,507,539
Per capita income: $2,800
Life expectancy: 52 years
Literacy Rate: 61%
Infant mortality rate: deaths/1,000 live births

12. Country D Name: Russia Population: 142,500,482
Per capita income: $18,000
Life expectancy: 70 years
Literacy Rate: 99%
Infant mortality rate: 7.19 deaths/1,000 live births

13. Country E Name: Singapore Population: 5,460,302
Per capita income: $61,400
Life expectancy: 84 years
Literacy Rate: 95.9%
Infant mortality rate: 2.59 deaths/1,000 live births

14. Some Others Just for Fun…

15. USA Name: United States Population: 316,668,567
Per capita income: $50,700
Life expectancy: 77 years
Literacy Rate: 99%
Infant mortality rate: 5.90 deaths/1,000 live births

16. Saudi Arabia Name: Saudi Arabia Population: 26,939,583
Per capita income: $31,800
Life expectancy: 74 years
Literacy Rate: 87%
Infant mortality rate: deaths/1,000 live births

17. Natural Resources Paradox
Natural resources have contributed to the economic success of some nations.
Yet, many nations with vast stocks of natural resources are poor.
If not natural resources, what then accounts for high levels of prosperity in some nations and not others?

18. Economic Freedom These include:
Political stability
Secure property rights
Limited government
Low regulation
Sound money
Legal systems based on the rule of law
Together these are called “economic freedom.”
Economists have found that political and legal institutions are fundamental to growth.

19. Economic Freedom
Economic freedom establishes a context which promotes long-term investments in:
Physical capital
Human capital

20. Economic Systems & The 3 Economic Questions
Econ. Ch. 2 Section 1
Economic Systems & The 3 Economic Questions
Goals:
1. Identify the 3 key Economic Questions
2. Explain how social values affect the 3 Economic Questions.
3. List and define the 4 types of Economic systems.

21. Economic Systems
Method used by a society to produce and distribute goods and services to its people
Based on how the society answers the
3 Economic Questions
What goods and services should be produced?
How will these goods and services be produced?
Who will consume these goods and services?

22. 1. What goods and services should be produced?
Needs like food and shelter are a given.
What else?
What about national defense, education, healthcare or welfare programs?
What about the range of consumer goods?
What will the society make for itself, and what will it trade for?

23. 2. How will goods and services be produced?
How will the society divide up its resources to meet its needs and wants?
i.e. electricity- solar, fossil fuels, or nuclear?
Production Possibility Curves

24. 3. Who will consume these goods and services?
How will the society distribute the goods to their people?
By need?
By contribution to society?
By ability to pay?

25. Distribution of Goods & Services is tied to Distribution of Income
Distribution of income is determined by factor payments (income people receive in return for supplying factors of production) i.e. wages for labor, rent for land, interest or profits for capital
Society must also decide what its Standard of Living will be. (quality of life based on a person’s income/wages and how many possessions they have)

26. Economic Goals and Social Values
Societies answer the questions based on their values. Economic Efficiency- Making the most out of available resources with as little waste as possible by using best production methods. Economic Freedom- Individuals are free to make their own choices with little or no government interference Economic Security & Predictability- Confidence in the availability of goods and services, wages, and the presence of safety nets for bad times. (i.e. unemployment, welfare, social security)

27. Societies must decide the answers to these questions themselves.
Goals and Values cont.
Economic Equity – distributing wealth and goods fairly to all
What is fair?
By Needs – those who need the most get the most
By Contribution – those who did the most get the most
By Ability to Pay- those with the most money get the most
What if someone doesn’t want to work, but is capable of working? How much should they get?
What about fair wages? How do we compare nurses vs. lawyers? Truck drivers vs. Computer programmers?
Societies must decide the answers to these questions themselves.

28. Goals and Values cont.
Economic Growth and Innovation- as populations grow, the economy needs to grow as well population = jobs and goods are needed Innovation encourages improved technology = greater production of goods & services Growth also leads to higher standard of living- level of economic prosperity people experience in daily lives i.e. poverty level vs. middle class vs. wealthy

29. Societies take their goals and values into account when answering the Economic Questions The type of system they decide to use within their society will reflect the values and goals they believe to be most important. There are 4 types of Economic systems that have been developed in response to the questions.

30. 4 types of Economic Systems
Traditional Economy- system that is relies on customs, traditions and rituals to decide the answers to economic questions. Usually small communities, tribal, gender-based work, agriculture and hunting main sources of income and food

31. 4 types of Economic Systems cont.
Market Economy- Economic decisions are made by individuals and businesses based on trades and exchanges that are made in the marketplace without government interference

32. 4 types of Economic Systems cont.
Command Economy- also called Centrally Planned system where a central authority (gov’t) makes all the major economic decisions

33. 4 types of Economic Systems
Mixed Economy – a market based system where the individuals and business are the major players but the gov’t plays a limited role in decision making and regulating of the marketplace

34. 1. What are the 3 Key Economic Questions?
Goal Check
1. What are the 3 Key Economic Questions?
2. How do social values affect the 3 Questions?
3. List and define the 4 types of Economic systems.