Economic Systems

1
Economic Systems
EconomicsAnchor Bay High School
2
Objectives

• Define an economic system.
• Describe the three basic economic system.
• Relate the political-economic spectrum to the
  three basic economic systems.
• Describe how Democrats and Republicans are
  similar to and different from one another
  regarding economic issues.

3
What is an Economic System?
An economic system is a way that a society
answers the three economic questions of what to
produce, how to produce it and who gets the goods
and services.
4
Traditional

• In a traditional economy, economic questions
  are answered as they have always been for many
  generations

5
Command

• In a command economy, government answers the
  three economic questions.

6
Market

• In a market economy, consumers, producers and
  government interact to answer the three economic
  questions.

7
The Isms
8
Fascism

• Fascists believe in a return to a supposed
  better time at the expense of groups that are
  not regarded by the group in power.

9
Conservativism

• Conservatives believe in less government
  involvement in peoples lives and traditional
  religious and family values.

10
Liberalism

• Liberals believe that government should
  actively solve social problems.

11
Liberalism

• Liberals feel government should provide low
  cost housing for people.

12
Liberalism

• Liberals feel the government should provide
  free or low cost health care to people.

13
Socialism

• In socialist countries, people may own private
  homes and small businesses.
• But major industries and services are provided
  by government.

14
Communism

• Under communism, all property is owned b all
  the people and everyone is paid an equal amount
  to create a classless society.

15
Anarchy

• In true anarchy, there is no need for
  government as everyone works for the good of his
  fellow man.

16
Democrats and Republicans
17
Democrats

• Democrats are usually more liberal and
  advocate government leadership in solving social
  problems.

18
Republicans

• Republicans tend to be more conservative and
  advocate less taxation and government involvement
  in peoples lives.