10 PLANNED ECONOMY resources belong to the state (planned by the state) role of government vital ( plans andorganises the whole production)production for need rather than profitstandardised goods, little choicemore equal distribution of wealth andincomeworkers less motivated but - safe jobs
12 MIXED ECONOMY resources allocated by government (the public sector) and by the market forces ofdemand and supply (the private sector)role of government depends on the level ofdevelopment, provides a minimum standard ofliving, ensures fair competition / a levelplaying fieldproduction of public goods paid by taxes,all private sector production for profit
14 FREE MARKET ECONOMY resources allocated automatically market mechanism (demand & supply)role of government limited (pass laws, essential products and services like policing, national defence, the judiciary)unequal distribution of incomeproduction only for profitplanning and organising carried out byfirms
15 Disadvantage: a huge rift between the wealthy and the poor
18 2. RB: p 17: a) ADVANTAGES OF FREE MARKET ECONOMIES: ____________________________________B) DISADVANTAGES OF FREE MARKET ECONOMIES:_____________________________________C) ADVANTAGES OF PLANNED ECONOMIES______________________________________D) DISADVANTAGES OF PLANNED ECONOMIES
19 RB: p: 29 INSERT THE MISSING WORDS: Some theorists were for less government _________________ and more reliance on the ________________ . The basic government role is in _____________________ unemployment. As communism _______________, many countries turned towards _______________ economies. State _____________ were sold to private _______________ . The central planners lost their control over __________. ___________ and ______________ were no longer guaranteed by the state.
20 3. FIND OUT THE DIFFERENCES BETWEEN THE TWO TYPES OF ECONOMIES: Market economy Planned economy________________________ _______________________________________________ _______________________
21 4. FILL IN THE MISSING WORDS BELOW: laws, limited, quality, demand, goods, supply, motivated, services, allocated,standard, prices, competition, vital, range, needsIn market economies resources are ________________automatically by the forces of __________________and _____________________. Competition leads to lower _______________, a wider ______________________of goods, goods and services are better ____________.The role of government is _____________: to pass ________, to provide certain ___________and ______________and ensure fair ______________ In planned economies government has a ______________role. Production is for ________________rather than for profit, people are less _______________to work efficiently and the _________of living is lower.
22 5. Explain the following words: 1. Traditional economy = Explain the following words:1. Traditional economy =2. Manorialism =3. Mercantilism =4. Laissez faire capitalism =6. Command economy =