Which number is
nearest the Red
Sea?
A. 6
B. 2
C. 1
D. 4
Which are MOST important in a
command economy?
A. Custom and habit
B. Governmental planners
C. Consumers and the market
D. A combination of consumers and
government planners
Why is it important for nations to have a
system to convert money from one country
to another?
A. Converting to different currencies makes
it possible to buy and sell goods between
nations with different types of money.
B.Converting to different currencies make
goods cost less.
C. Banks are not able to handle different
types of currencies.
D.The dollar is the most valuable currency in
the world today.
COPY ASSIGNMENT IN AGENDA
Decide whether you want to
complete a Social Studies
Fair or Science Fair Project
by THIS Friday.
Economics Quiz Friday
Every society must deal with providing goods and services
to its people. Due to the availability of resources, countries
have to ask three basic questions.
What are the three questions every country must ask when
deciding what to produce?
1.What goods and services will
be produced?
2.How will these goods and
services be produced?
3.Who uses the goods and
services that are produced?
• How many basic types of economic systems are
there?
• Name the economic systems.
• Which economic system do most textbooks say is
the most common throughout the world?
• How many basic types of economic systems are
there? 3
• Name the economic systems. Traditional,
Command, Market
• Which economic system do most textbooks say is
the most common throughout the world? Mixed.
The GCEE states that mixed is not an economic
system but rather a blending of two different
types of systems.
System based on freeenterprise; open markket
system.
Characteristics:
No government intervention
Economic decisions based on
individuals who decide what to
produce and sell
This type of economic system
supports individual risk takers called
entrepreneurs
People who think of new ways to combine productive
resources (natural, human and capital) to produce goods and
services that they expect to sell to cover production cost.
Entrepreneurs risk their own money in hopes that they will
make a profit.
How does the entrepreneur benefit the economy?
In a market economy, how are
economic decisions made?
Who takes on the financial risk
in starting a new business in a
market economy?
Government planning groups make most
of the basic economic decisions
Characteristics:
Government planners decide
•Which goods and services to produce
•How and where goods are produced and
sold
•What type of jobs the workers will have
What is a negative aspect of the
command economy?
What is a positive aspect of the
command economy?
Economic decisions are
based on customs and habits
of the past.
Characteristics:
•Found in rural areas/regions
•People depend on extended families
•Dominated by subsistence
farming/herding
•Trade includes simple crafts
•Bartering replaces currency
How are economic decisions
made in a traditional economy?
What could be a possible
setback for a community with a
traditional economy?
A mixed economy blends components of two or more of the
following economic systems to varying degrees: traditional,
market, and command.
Characteristics
economies contain economic freedoms for privately owned
businesses
interventions in place for environmental and social
welfare/safety.
What are the benefits of a
mixed economy?
Pure
Command
Pure
Market
Iran
45%
Pure
Command
Israel
68%
Saudi Arabia
64%
Pure
Market
South Africa
64%
Nigeria
55%
Pure
Command
Pure
Market
North Korea
2%
Pure
Command
India
China
54%
53%
Japan
73%
Pure
Market
The ability of a country to produce
products it makes best and that are in
demand on the world market.
BENEFITS
specialization builds a profitable
economy
allows a country to earn money to buy
items that cannot be made or produced
in the country.
Specializations is the foundation of
international trade
Key to healthy market economy
Both trading countries see the
benefit from exchanging goods
Limited government restrictions
and regulations
Encourages specialization that is
more productive and profitable
A strategy that ends trade barriers
by making trade in regions more
open and supportive.
Read the descriptions below and identify areas were specialization
and voluntary trade could benefit the countries below.
1. Southwest Asian countries
have an abundance of oil and
natural gas, but lack farmland
and the ability to produce
food.
2. Japan has few natural
resources, but can produce
advanced technical products
with raw materials.
3. Israel has little oil wealth, but
leads the world in agricultural
technology especially in drier
conditions.
4. Uganda produces high quality
cotton.
5. South Africa has a rich supply of
gold,diamonds, platinum and
other precious metals.
6. Kenya specializes in
manufacturing cotton cloth, but
they do not grow much cotton.
Anything that slows down or
prevents trade or the exchanging
of goods between countries.
POLITICAL TRADE BARRIERS
•Civil War
•Political disputes between countries
•War
GEOGRAPHICAL TRADE
BARRIERS
•Natural Disasters that prevent or
slowdown trade
•Physical features that prevent or
slowdown trade.
A tax placed on imported goods.
Protective Tariff
a tax put on the imported goods coming
into a country to make the imported goods
more expensive than the domestic goods.
Sets a specific limit or number of a
particular product that can be imported over
a given period of time from another country.
A trade embargo occurs when one
country announces it will no longer
trade with another country in order to
isolate the country and cause problems
for that country’s economy.
•Caused by political disputes (social, cultural or
economic disputes)
•Hurts all country’s involved
In what ways can a trade embargo
hurt the countries involved?
Since no country produces everything it needs,
embargoes force countries to go without
resources that are needed.
Trade embargoes limit the economic potential
of countries because it limits the amount of
goods that can be sold and produced.
Capital goods include factories,
machines and technology that
people use to make products to
sell.
A country will invest in capital
goods in the following ways:
Investing in transportation
Investing in technology
Investing in building factories
Investing in communications
Investment in
equipment/machinery
The knowledge and skills that make it possible for
workers to earn a living producing goods and services.
Countries invest in human capital in the following ways
1. Investment in training and education
2. Investment in healthcare and safe working conditions
•Command Economy
Listed to the right are words that can be
grouped into four categories. The category
headings are also listed in the boxes to the right.
Read through the words and group them under
the four headings to show your understanding of
the connection between the terms. A few
words will be classified under other words.
Organize the words in a web under the title
“ECONOMICS.”
•Bartering
•Developing Countries
•Economic Systems
•Embargo
•Entrepreneur
•Government Planners
•Gross Domestic Product
•Gross National Product
ECONOMICS
•Industrialized Countries
•International Trade
•Literacy Rate
•Market Economy
•Mixed Economy
•Protective Tariff
•Quota
•Specialization
•Tariff
•Trade Barriers
•Tradition-Based Economy
•Voluntary Trade
•Ways to Measure Economic Development
TICKET OUT THE DOOR
Answer the following essential
questions:
1. How does specialization
encourage trade between
countries?
2. How are tariffs, embargos and
quotas trade barriers?
3. What impact does investing in
human capital and capital goods
have on GDP?
Use pages 56-57 in the textbook to help you complete this graphic
organizer. Copy the graphic organizer onto your notebook paper.
Types of
Economic
Systems
Market
economy
Command
economy
TraditionBased
economy
Mixed
Economy
Definition
In one sentence, explain what you
believe are the benefits/obstacles of
this type of economic system.
Which are a part of a business’s
capital resources?
A. Factories used to make goods
B. Money for scholarships to
graduate schools
C. Workers who make the goods
and perform services.
D. Money spent to train workers to
use new technology
What is a “quota”?
A. Tax placed on imported goods when they
enter the century
B. A decision to prevent certain goods from
being imported at all
C. A tax placed on goods when they are
purchased in the market place.
D. A limit to the number or amount of a
foreign-produced good that is allowed into
the country.
Copy the following chart on to the back of your Table of Contents in your
Interactive notebook.
MONDAY 8/1
TUESDAY 8/2
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MONDAY 8/8
TUESDAY 8/9
WEDNESDAY 8/10
THURSDAY 8/11
FRIDAY 8/12
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MONDAY
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WEDNESDAY 8/3
TUESDAY
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THURSDAY 8/4
WEDNESDAY
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FRIDAY 8/5
THURSDAY
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FRIDAY
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What is an “embargo”?
A.A tax placed on goods coming into
the country from overseas.
B.A limit to the amount of a certain
good allowed into the country.
C.A tax paid by the producer before he
can sell his goods in another country
D. A formal halt to trade with a
particular country for economic or
political reasons.
There are 4 types of “leads” that
can begin a news article.
1. IMPACT
2. “QUOTE”
3. QUESTION
4. IMPRESSSION
WORLD ECONOMIES
Before You Read
While You Read
COMPARING COUNTRIES
As you read pages 53-55, complete the graphic organizer below. List five
characteristics each that describe industrialized countries and developing countries.
Industrialized Countries
Define the following terms
using context clues. DO NOT
USE THE GLOSSARY.
Economics
Industrialized countries
Developing countries
Third-world countries
Literacy rate
Gross national product
Gross domestic product
Examine the photo on page 54.
What in this photo suggests
that this is a city in an
industrialized country?
Examine the photo on page 55.
What in this photo suggests
that this village is in a
developing country?
What role do you think you play
in the world’s economy?
•Many people work in
manufacturing, service
and information
industries.
•Have strong secondary,
tertiary (finished
products), and
quaternary (information
gathering) industries.
•Good system of
education (high literacy
rates)
Developing Countries
•May be poor
•Most people work in
agriculture or other type of
primary industry
•Over crowding in cities
•Poor educational systems
(low literacy rates)
•Little access to
telecommunications
•Poor healthcare
• multiple large cities
•access to
telecommunications
(high level of technology)
After You Have Read
Write a “What I did today” journal entry and pretend that you live in an imaginary developed country or either in
a developing country. Use the characteristics in your “Comparing Countries” chart to describe the way of life
in your country. Write your journal on a separate sheet of notebook paper or unlined paper.