1. The Economic Spectrum
World Geography Unit 6, Lesson 4
©2012, TESCCC

2. Economic Systems Communism Capitalism Socialism Free Market
Traditional Economy
(Subsistence agriculture - farmers grow enough for their family
Communism
Capitalism
Economic Systems
Free Market
Free Enterprise
Controlled Economy
Socialism
High degree of government control
Public Ownership (land and/or natural resources
Low degree of government control
©2012, TESCCC

3. What is economics?
A social science concerned with description and analysis of the production, distribution and consumption of goods and services.
Goods: things you use or consume (food, books, cars, cell phones, etc.) these are things you can touch
Services: something someone does for you; a service provided for you (haircut, someone fixes your car, someone tutors you, etc.) these are things you cannot touch
If time permits or for homework, students may keep a vocabulary journal throughout this lesson because it is heavy on terminology relevant to economics.
Production
Distribution
Consumption
Goods and Services
©2012, TESCCC

4. Economic Systems Communism Capitalism Socialism Free Market
Subsistence Agriculture
(Farmers grow enough for their family
Communism
Capitalism
Economic Systems
Free Market
Free Enterprise
Controlled Economy
Socialism
Government Control
Public Ownership (land and/or natural resources
Low degree of government control
©2012, TESCCC

5. Economic Systems Capitalism (Free-Market Economy; Free Enterprise
Traditional
(Subsistence agriculture - farmers grow enough for their family
Capitalism
(Free-Market Economy; Free Enterprise
Communism
(command economy)
Socialism
How much control over the means of production (how much to produce/what to produce, to whom/how it is distributed and the overall decision making process
Production
Distribution
Consumption
Goods and Services
©2012, TESCCC

6. Economic Systems
Traditional: This economic system is based on hunter-gather or subsistence agriculture
Free Enterprise: This economic system is based on private ownership of business and individual decisions on what to buy or sell.
Command Economy: This economic system is based government control of businesses and decisions regarding types and locations of economic activity and production. Citizens can be assigned or strongly encouraged into various employment. There is little or no private ownership of businesses.
Mixed Economy: This economic system forms the array between free enterprise (capitalism) and command economies (communism) with some private ownership and some government control of businesses.
©2012, TESCCC

7. Economic Activities
Primary: Extracting natural resources or harvesting goods directly with no processing or manufacturing.
Secondary: Manufacturing or processing raw materials.
Tertiary: Providing a service.
Quaternary: Researching, collecting, recoding, storing, exchanging, and disseminating information and data. Providing services for producers.
©2012, TESCCC