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    Ss1d - 3 The Economic System

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    Ss1d - 3 The Economic System

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    pearl
    4 views22 pages
    contemporary world

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    Ss1d - 3 the Economic System

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    contemporary world

    Copyright:

    © All Rights Reserved
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    Download as pptx, pdf, or txt
    4 views22 pages

    Ss1d - 3 The Economic System

    Uploaded by

    pearl
    contemporary world

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    UNIT 2
    CHAPTER 4
    GLOBAL ECONOMY
    GLOBAL ECONOMY
    • Refers to interconnected
    worldwide economic activities
    that take place between
    multiple countries.
    • It can have either a positive or
    negative impact on the
    countries involved.
    Every society must answer Three
    Economic questions:
    What goods and services should be
    produced?
    How should these goods and services
    be produced?
    Who consumes these goods and
    services?
    WHAT IS
    ECONOMIC SYSTEM?
    ECONOMIC SYSTEM
    • An organized way in which a
    state or nation produces,
    allocates, distributes its
    resources and apportions goods
    and services in the national
    community.
    • Regulate factors of production,
    including capital, labor, land/physical
    The Global Economy of most
    countries is classified into there
    categories:
    MARKET COMMAND MIXED
    ECONOMY ECONOMY ECONOMY
    MARKET ECONOMY
    Decision making of private individuals
    Economy under the will and interest of the
    individuals.
    Economic freedom to purchase and sell
    MARKET
    ECONOMY

    products, services, and properties.


    This condition is not planned by a single
    person or group that has the ability to
    manipulate or direct the economy solely.
    It promotes competition among business and
    firms.
    HONGKONG NEW ZEALAND

    AUSTRALIA SWITZERLAND
    COMMAND ECONOMY
     A central economic planning body handles the
    entire decision making.
     The quality and quantity of goods and services
    produced is based on the decision of the
    government.
     Production quantity is dictated, consumer behavior
    is directed, and market operation is controlled by
    a single authority.
     Its objective is to mobilize resources for the
    common good of the public and for the interest of
    the nation.
    NORTH KOREA CUBA

    RUSSIA CHINA
    MIXED ECONOMY
     Market-driven economies
     Combination of market and command
    economies.
     Some sectors are under the directions of
    the private individuals while other aspects
    of the economy are left within the guidance
    of the government.
     State can take over the ownership and
    operation of a private company for the
    PHILIPPINES UNITED STATES

    UNITED KINGDOM FRANCE


    ANALYSIS OF ITS EFFECT OR IMPACT TO THE
    PRESENT PARTICULARLY TO DEVELOPING
    COUNTRIES AND INTERNATIONAL RELATIONS
    MARKET ECONOMY: ADVANTAGES
     Large parts of the society take on a
    bright, merry and colorful air as
    everyone busies himself trying to sell
    something to someone else.
     Most people work harder
     Foreign investment is attracted as
    word gets out about new
    opportunities for earning profit
    MARKET ECONOMY:
    DISADVANTAGES
    Increase in corruption in all
    sectors of society.
    Workers/businesses face
    uncertainty as a result of
    competition and change: no
    guarantee for job.
    COMMAND ECONOMY:
    ADVANTAGES

    • Less inequality
    • Common good versus profit
    priority
    • Can prevent abuse of monopoly
    COMMAND ECONOMY:DISADVANTAGES

    • Price controls
    • Bureaucratic
    • Threat to democracy and
    liberty
    MIXED ECONOMY: ADVANTAGES

    • Distribute goods and services to


    where they are most needed.
    • Encourage innovation to meet
    customers need.
    • Everyone is free as long as its
    legal.
    MIXED ECONOMY: DISADVANTAGES

    • Limited economic freedom


    • Not practice to work out very
    well
    • Government decides the
    amount of tax on products.
    CONCLUSION
    • Economic system has an important
    factor in people getting along in a
    balance of nature.

    • It takes a certain number of human


    hours to provide all of the healthcare
    services for these millions of people.

    • Focused on the dichotomies and


    comparisons between market

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