1. Chapter 4 World Economies

2. Economies What to produce How to produce it For Whom to Produce
An economy or economic system is the way a nation makes economic choices & answers the following economic questions…..
What to produce
How to produce it
For Whom to Produce

3. Economic Resources Natural Resources – (land) Labor (people)
Capital (money, equipment, & tools)
Entrepreneurship (Management)

4. Activity #1
Natural Res.
Labor
Capital
Entrepreneur
Hamburger
School

5. Developing vs Developed Nations
Developed Nations – nations which have infrastructure, labor & skills to support business
Developing Nations – nations which do not have the infrastructure, labor and skills to support business.

6. Scarcity
Nations have unlimited wants and needs but only limited resources to meet them.
Scarcity forces everyone – nations, businesses, and people to make economic CHOICES

7. Economies Pure Market Economy No government control Pure Command
USA
CUBA
Pure
Market
Economy
No government
control
Pure
Command
Economy
-Complete Gov.
Control

8. All Economies today are MIXED
Capitalist – democracy, private ownership, competition (USA & Japan)
Socialist – government owns major resources. Equality, social services, high taxes (German, UK, Sweden etc)
Communist – totalitarian gov, dictatorship, CPC (Cuba & North Korea)

9. Economies in Transition
Command Economies Market
Elections
Privatization

10. Measuring Economic Success
Gross Domestic Product (GDP)
Gross National Product (GNP)
Standard of Living – (GNP / Pop)
Inflation Rate – (rising prices from CPI)
Unemployment Rate

11. Activity #2 Look at the charts on Pages 52 & 53
How is our economy doing between the years of ?
What measures of economic success are listed?

12. Business Cycles
Prosperity
Recession
Recovery
Depression