Recent Changes

MARKET ECONOMY
How does a market economy answer the 3 economic questions?How does a market economy answer the 3 economic questions?
Supplythe economic questions are answerd by individuals buying and Demandselling of goods and services in the market place.
They offer the products and services consumers want and are rewarded with profits.
Individuals buying and selling of goods and services through marketplace
system, Laissez FaireFaire- when the goverment has no control over big businesses.
Resources are owned and controlled by people of the country
Pros/Cons:Pros/Cons:
Pro:
Doesn’t tell businesses what to produce. They act on their own self interests.
market economy <--- this isnt a pro.......................................................
Con: less regulation of products
Produces class division
Examples:Examples: Germany, Canada, Netherlands,

US ECONOMY
-another name: Capitalism
-closest thing to market economy
How does a market economy answer the 3 economic questions?How does the US economy answer the 3 economic questions?
-individuals decide what to produce and how to produce it, and what they want to buy
-supreme court decides what we can and can't do
Characteristics:Characteristics:
-private property
-freedom of choice
-profit
-competition
Pros/Cons:Pros/Cons:
Pros:
-individual freedom
- free trade increases sales and profits for the U.S. businesses, thus strenghtening the economy
- free trade creates U.S. middle class jobs over the longterm
-you can choose your own career
-freedom of speech
Cons:
-high unemployment rate (9.1%)
- free trade has caused more U.S. job losses than gains, especially for higher-wage jobs
- many free trade agreements are bad deals for the U.S.
Examples:Examples:
-if customers are not satisfied with one company's offerings, they will look for another choice

*They use old methods as generations before them so hunting farming and gathering would be done the same as generations before them
Pros/Cons:Pros/Cons:
a trade deficit causing your currency to end up being exported and leaving your nation awash in cheap widgets,deficit, it is
Con: There is no real economic growth, Women and men have different tasks and jobs, they consume what they produce
Examples:Examples:
*Cottage industry
*Note there is no purely traditonal economy in the world today but there are some regions in the world that use the thought of traditional economy

COMMAND ECONOMY
then decide. 1. there is a board and they take a survey to see what supplies are present which helps them see what needs to be produced. 2. 3. ties in with #1
Characteristics:Characteristics: an economy run by government, they decide how resources will be used
economical freedom, . pro: they are just told what to do,resources can be sent anywhere the government wants, Con: Greed takes over and it's not spread out equally
Examples:Examples: former USSR
a command economy, also a centrally planned economy.

MARKET ECONOMY
economic questions? Supply
Supply and Demand
They offer the products and services consumers want and are rewarded with profits.
Individuals buying and selling of goods and services through marketplace
Characteristics:Characteristics: Free price system, Laissez Faire
of the country.country
Pros/Cons:Pros/Cons:
Pro: Doesnt
Doesn’t tell buisnessesbusinesses what to produce. They act on their own self interests.
72% favor a free market economy
Con: Produces
Produces class division
Examples:Examples: Germany, Canada, Netherlands,
Market=place where goods and services arwe exchanged (ex:internet or supermarket)

*They use old methods as generations before them so hunting farming and gathering would be done the same as generations before them
Pros/Cons:Pros/Cons:
natural resources
Con: There is no real economic growth, Women and men have different tasks and jobs, they consume what they produce
Examples:Examples:

TRADITIONAL ECONOMYHow does a market economy answer the 3 economic questions?
How does a market economy answer the 3 economic questions?
Characteristics:Characteristics:Produces food, clothing, and shelter.*Use natural resources available to them
*Homemade tools
*Satisfy everyday needs
*Food, shelter, clothing
Characteristics:Characteristics: Generational workers
*Technology is not used
*They use old methods as generations before them so hunting farming and gathering would be done the same as generations before them
Pros/Cons:Pros/Cons:Pros: It is very simpile, in less developed countries Cons: Theyconsume of what they produce.Pros/Cons:Pros/Cons:
Pro: You in cheap widgets
Con:widgets, it is very simple, They don't over use natural resources
Con: There is tasks and jobsjobs, they consume what they produce
Examples:Examples: Cottage
*Cottage industry

COMMAND ECONOMY
then decide. 1. there is a board and they take a survey to see what supplies are present which helps them see what needs to be produced. 2. 3. ties in with #1
Characteristics:Characteristics: an economy run by government, they decide how resources will be used
economical freedom, . pro: nonethey are just told what to do,
Examples:Examples: former USSR
An economy where supply and price are regulated by the government rather than market forces, government planners decide which goods and services are produced and how they are distributed. The former Soviet Union was an example of a command economy, also a centrally planned economy.

How does a market economy answer the 3 economic questions?
Characteristics:Characteristics:Produces food, clothing, and shelter. Generational workers
*Technology is not used
*They use old methods as generations before them so hunting farming and gathering would be done the same as generations before them
Pros/Cons:Pros/Cons:Pros: It is very simpile, in less developed countries Cons: Theyconsume of what they produce.
Pro: You dont have to worry about a trade deficit causing your currency to end up being exported and leaving your nation awash in cheap widgets
Con: There is no real economic growth, Women and men have different tasks and jobs
Examples:Examples: Cottage industry