World Economy Types
And other related economic terms.
Standard: SS7E1: The student will
analyze different economic
systems.
Define the following terms:
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Voluntary trade
Trade barriers (tariff, quota,and embargo)
International trade
OPEC
Human capital, Natural, Capital resources
GDP
Currency
Specilization
Exchange rate
Entrepreneurs
What is economy?
• The wealth and resource of a nation.
The Four Types of Economies
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Traditional economy
Command economy
Market economy
Mixed
Traditional Economy
Is an economic system in which most
ecnomic decisions are based on customs
or the habit of how such decisions were
made in the past.
It is strongly connected to subsistence
farming and is found in countries that are
underdeveloped.
Command Economy
Resources are allocated by the government
or other central authority.
An economy where supply and price are
regulated by the government rather than
market force.
Market Economy
An economic system in which the economic
decisions and the pricing of goods and
services are guided solely by the
interactions of a country’s citizens and
businesses and there is little government
interventions or central planning. “Laissezfaire” French meaning “hand's off”
Mixed Economy
Is located on a continuum between pure
command and pure market economy.
In nearly all modern economies in the world
today are part of a mixed economy.
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Economies in Middle East, Africa
and Asia.
Israel
Saudi Arabia
Iran
Turkey
South Africa
Nigeria
India
China
Japan
North Korea
Israel
• No natural resources; built economy based
on advanced technology; mixed market
• Mining manufacturing industries
Saudi Arabia
One of the largest countries in S.W. Asia or
the Middle East. The country is rich in oil
reserves where they can purchase what
they cannot produce themselves.
• Their nation has invested in technology.
• Moving from command to mixed
Iran
• Rich in oil wealth has a mixed economy,
but more like a command because
Iranians do not share their money.
Turkey
• City of Istanbul in Turkey is seen as the
gateway to Asia from Europe. Turkey has
the least economic freedoms.
• Moving from command to mixed market
• Major role in banking, transportation and
communication
• Agriculture, textiles and manufacturing
South Africa
One of the most technology advanced
market eonomy in this region of the world.
The economy has some government
control; they produce natural resources for
exports such a gold, diamonds; the
produce iron, steel and assembly
automobiles.
Nigeria
Poorly organized economy after a long
period of military dictatorship and
corruption in the government; produces oil
and petrochemicals; still receives foregin
aid and supplies because of such
corruptness.
India
This country has a “booming” electronic
industry; this country is also a blend of
traditional and modern economy types.
Half of the people here stll work in
agriculture; many use old faming
techniques. This country made several
attemps to improve their economy through
a program known as “The Green
Revolution” and the film industry nown as
Bollywood Films.
China
This country's economy has collective
farming method. This country once tried to
improve their economy by such programs
as The Great Leap Forward, and the
Cultlural Revolution. Both attempts were a
failure under Zedong. Currently, this
country has one of the strongest
economies in its region even though half
of the workers in this country still work in
agriculture, like is neighbor, India.
Japan
This country has one of the most technology
advanced economies in the world. Only
the U.S. and China have economies that
are more productive. This country has very
little land for farming and few natural
resources. Because of this this country
has to import a lot of things for their people
even such things as oil. This country's
largest industry is the fishing industry. The
sea is very valuabel to this country.
North Korea
This country has one of the least open and
most government directed econonmy in
S.E. Asia. Command economy, this country
does NOT produce enough agriculture to
feed its population. Farms are organied
into “cooperatives” that are government
owend and controlled. Does have two rich
natural resources: coal and iron. This
country spends its money on the military
and producing nuclear weapons.
Closing activity
Get ready to show me WHAT YOU KNOW!
Which economy type is a combination of
pure command and pure market?
A. command
B. market
C. mixed
D. traditional
Which economy type is based on old
traditional ways; it includes subsistence
farming and bartering.
A. command
B. traditional
C. mixed
D. market
Which economy type is controllled by the
government?
A. command
B. market
C. mixed
D. traditional
Which economy type is based on the
people, entrepreneurs, how much and the
way money is spent, and the goods and
services produce and sold in a country?
A. command
B. traditional
C. market
D. mixed
Which country has the most government
control; they do not have enough
resources to feed their people; spend their
money on the military?
A. China
B. North Korea
C. Japan
D. India
Which country has a mixed economy in that
the people their practice both traditional
and modern ways of living? They also
produce films known as Bollywood.
A. Japan
B. India
C. North Korea
D. China
Which country's economy is one of the most
highly technology advance countries in the
world, they depend heavily on the seas for
their fishing industry; they have little to no
natural resources?
A. India
B. Japan
C. North Korea
D. China
Which country in this region is poorly organized
ecnomy because of its corrupt government and
a history of military dictators; this country's
natural resource of oil is enough to bring country
into economic wealth but unfortunately, this
country STILL needs foreign aid and supplies.
A. South Africa
B. North Korea
C. Nigeria
D. India
Which country below economy is one of the most
technology advanced market in this region; the
economy has SOME government control; they
produced natural resources such as gold and
diamonds in which they export; produce automoble
assembly and textile in iron and steel?
A. South Africa
B. Nigeria
C. India
D. North Korea
Which country is seen as the “gateway” to
Asia from Europe; this country has the
least economic freedom; have industries in
airlines and railroads.
A. Turkey
B. Saudi Arabia
C. Iran
D. Israel
This country is seen as one of the largest
countries in S.W. Asia; much of this
country is desert but rich in oil! This
country exports oil inorder to import the
goods that they cannot produce.
A. Iran
B. Turkey
C. Saudi Arabia
D. Israel
This country's economy has almost no
natural resources but this country has built
an economy based on advanced
technology.
A. Iran
B. Israel
C. Saudi Arabia
D. India
Located along the Persian Gulf, this country
economy wealth is based on OIL. Ths country
has more of a mixed economy however, it is also
a command econmy in that the Persians or
Shias that live here do not share their wealth.
(Money)
A. Israel
B. Iran
C. Turkey
D. Saudi Arabia
Which country has collective farming in their
economy; they tried to improve their economy
years ago by using the The Great Leap Forward
and Cultural Revolution...both failed; today this
country is strong in technology and half of the
workers still work in agriculture?
A. India
B. China
C. Japan
D. North Korea
STUDY!
“A successful man is one who can lay a
firm foundation with the bricks others
have thrown.” --David Brinkley