Economic Systems

Economic Systems

​What Are Economic Systems?

• ​It describes how a country's economy is organized, because of the problem of scarcity, every country needs a system to determine how to use it productive resources

  ​An Economic system must answer three basic questions:

  • ​What to produce? What kinds of goods and services should be produced?

  • ​How to produce? What productive resources are used to produce goods and services

  • ​For whom to produce? Who ges to have the goods and services?

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​What are the Different Types?

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​Watch the following videos to learn about each type:

1. Traditional Economy

• ​https://www.youtube.com/watch?v=IQwU7NKf02g

2. Command Economy

• ​https://www.youtube.com/watch?v=lIHfNDNRQKs

3. Market Economy

• ​https://www.youtube.com/watch?v=RLIlodkJsOI

4. Mixed Economy (Market + Command)

• ​https://www.youtube.com/watch?v=9EseSEgLsvU&list=RDLV8YMURolHx8Y&start_radio=1&rv=8YMURolHx8Y

Multiple Choice

If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a _____ economy. 

• Traditional 
• Market 
• Command 
• Mixed

Multiple Choice

There are four types of economic systems. Most economies are _____.

• Traditional

• Command

• Market

• Mixed

Multiple Choice

In this type of economy, the individual decides who to sell their products to.  

• Traditional 
• Mixed 
• Market
• Command

Multiple Choice

If you tell me a price on something and I offer you a different price, this is an example of what kind of economy? 

• Traditional 
• Command 
• Market 
• Mixed

​What are the 4 Main Economic Sectors?

​Primary Sectors

• Any industry involved in the extraction and production of raw materials, such as farming, logging, hunting, fishing, and mining

• ​Tends to make up a larger portion of the economy in developing countries than it does in developed countries

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​Secondary Sector

• ​ Manufacturing

• Industries that produce a finished, usable product or are involved in construction

• Ex. textile production, car manufacturing, and handicraft

• ​The Secondary sector promotes the development of the Primary and the Tertiary sectors

​Teriary Sector

• ​Service sector

• ​Wide range of activities from commerce to administration, transport, financial and real estate activities, business and personal services, education, health and social work

• ​Highly developed countries with a high income, the tertiary sector dominates the total output of the economy

​Quaternary Sector

• ​Consists of those industries providing information services

• ​Sometimes called the Knowledge Economy

• Ex. consultancy, financial planning, designing, information technologies, research and development (R&D) and generation of information

• ​This Sector is found in well developed countries where the primary and secondary sectors are a minority of the economy

Multiple Choice

Which economic activity would intellectual occupations which are advanced and specialized such as thinking, research and developing new ideas fall under?

• Primary
• Secondary
• Tertiary
• Quaternary

Multiple Choice

The secondary sector consists of

• processing, farming and manufacturing

• processing, mining and manufacturing

• processing, forestry and manufacturing

• processing, construction and manufacturing

Multiple Choice

Primary sector activities are...

• mining,fishing, forestry, tourism and farming

• mining, fishing, media and comunication, farming

• mining, fishing, forestry and farming

• mining, fishing, forestry and transport

Multiple Choice

The tertiary sector includes...

• Education, healthcare workers, retail workers, tourism, administration, trade, media and communication and transport.

• Education, mining, retail workers, tourism, administration, trade, media and communication and transport.

• Education, healthcare workers, retail workers, tourism, administration, trade, energy industries and transport.

• Education, healthcare workers, retail workers, tourism, administration, trade, forestry and transport.

​You finished the lesson!

​Now go complete your exit ticket which can be found on Google Classroom (hint it's a quiz on Quizizz)