1. What type of economic system does each picture represent ?

3. review Your notes on economic systems For a quiz

4. Political and Economic Philosophies Yesterday, we said the difference in the economic systems (that we talked about) was what? Now, one step further….

5. We use these philosophies to further classify Actually addresses more about gov’t control Political and Economic Philosophies

6. 1. Capitalism (aka: free enterprise, private enterprise) Characteristics: govt concerned about it’s people (well-off and not); govt has some involvement in the market: keeps a balance. Political foundations: usually democracy; usually more than one party; elections; Ex: US and Japan

7. 2. Communism Theory: goods owned in common (govt repping the community) are available to a classless society based on need Characteristics: able-bodied assigned work; no unemployment; ALL paid; govt decides on education and living (subsidized) for all, based on need; free medical; NO economic freedom b/c NO financial incentive: no entrepreneurship Ex: Cuba, South Korea, China (but is lessening)

8. 3. Socialism Used to mean Used to mean: that a system was moving toward a communist ideal (classless society) Now means Now means: democratic with increased govt involvement to meet basic needs and provide employment for many Characteristics: more social services (medical, education, pensions and elderly care; MUCH higher taxes than capitalist countries  financing the govt Ex: govt runs key industries and makes economic decisions on state-controlled, non-comp companies (utilities, transportation, banking) Canada, Germany

9. activity Partners Facebook page for each philosophy Profile, cover picture 15 comments (can be conversations) 10 likes Occupation, 5 friends, favorite quote, 3 ads on the side Additions= more points