1. Economic Theories And How They Affect Governments

2. Economic Systems Feudalism Imperialism Colonialism Mercantilism

3. Capitalism

4. Private ownership Free enterprise Competition among businesses Freedom of choice Possibility of profits

5. The Wealth Of Nations Capitalism

6. Adam Smith said an invisible hand guides everyone in their personal decision making about their businesses. If we just leave them alone they will usually do what is best for themselves. Often that is also best for the nation. Capitalism

7. Free Market – Buyers and sellers are free to make economic decisions. Laissez-faire – “To let alone” No nation has “pure” capitalism Mixed Market Economy – Free market is supported by government decisions Capitalism

8. Socialism

9. Industrial revolution in 1700’s and 1800’s left many people in Europe in terrible poverty. Working conditions were horrible and dangerous. Socialism

11. 1.More equal distribution of wealth and opportunity. 2.Government control of all major decisions about production. 3.Government ownership of most land, factories and major means of production. Socialism

12. Most countries of western Europe –Great Britain –Denmark –Norway –Sweden Socialism

13. Communism

14. The Communist Manifesto

15. Capitalists who own the means of production. Workers Communism

16. Concept: Struggle between workers and owners. Workers want more pay. Workers do not get full compensation. Owners want more profit. This struggle will result in revolution. The goal is government ownership of all means of production. Communism

17. All decisions are made at the upper levels of government and handed down to managers. The government owns the land, natural resources, industry, banks, transportation, mass communication, newspapers, etc. Communism