What is economics?
The study of how
people manage
their resources.
SCARCITY
What is Production?
Person or people that make a good or provide
a service (Sellers)
What is Consumption?
Person or people that use or purchase a good
or a service
(Buyers)
Types of Economy
Traditional- customs & habits of a society will determine what will be
produced & how it will be distributed & consumed (Usually includes bartering,
rather than money). Traditional economies are becoming more rare.
Command- Government will determine what will be produced
& how it will be distributed & consumed. Government will set prices and
set regulations (rules) that industries must follow.
Market- Individuals, private companies, & consumers will
determine what will be produced & how it will be distributed &
consumed. Individuals and companies are allowed to produce
freely without government interference.
Free Market vs. Command
(R20)
Economic Systems in
Europe
Today’s sTandard
SS6E5 The student will analyze different economic
systems.
c. Compare the basic types of economic systems
found in the United Kingdom, Germany, and
Russia.
Intro to our…….
“Essential Question(s)”
How do most countries strike a balance between having a pure
market and pure command economy?
How are the economic systems of the United Kingdom, Germany,
and Russia similar?
Comparing Economic Systems
United Kingdom“Pound”
Russia- “Ruble”
Germany“Euro”
ECONOMY
TYPES IN
EUROPE
United Kingdom
74.5
Germany
USA is
Russia
71.8
77.8
50.5
Pure
Market
Pure
Command
The numbering system is based on The Heritage Foundation’s Economic Freedom
Index 2011. The Heritage Foundation is a conservative organization that has
partnered with the Wall Street Journal for over a decade to evaluate each country
based on a set of 10 criteria to determine economic freedom.
Country
Type of Economy
Growing or Struggling
What the Government
Controls
United
Kingdom
Mixed Growing
Market
Less government →
More Private
Control
Of Production &
Consumption
Germany
Mixed Growing
Market
Less government →
More Private
Control
Of Production &
Consumption
Mixed
Market
Less government →
More Private
Control
Of Production &
Consumption
Russia
Struggling
(Recent Transition
from Command to
Mixed Market)
Return to our…….
“Essential Question(s)”
How do most countries strike a balance between having a pure
market and pure command economy?
How are the economic systems of the United Kingdom, Germany,
and Russia similar?