10/17/2014
TRADITIONAL
Apply your knowledge!
COMMUNIST
• Country 2: “In my country, all key decisions are made by our central planners. They hold complete power over the political and economic life of our nation. Our d
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government directly owns land, natural resources, and factories for the good of the people.”
• Country 1: “In my country, people produce what they need to survive by doing things as they were done be our ancestors. People hunt for food or grow it l h
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themselves.” SOCIALISM
• Country 3: In my nation, the government owns large industries and sets some prices. However, private businesses are also encouraged and several hundreds are l
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actively traded on the Indonesian Stock Exchange.” FREE ENTERPRISE
• Country 4: “In my nation, people are free to produce whatever they wish and to consume whatever they can afford. People seek to make or sell goods and l
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services so they can earn a profit.”
Let’s review from yesterday…
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10/17/2014
Communist Country 1: People are expected to sacrifice comfort because the production of iron and
the production of iron and steel have high priority. Communist
Country 3: A major goal of the economy is to have a classless society
Traditional
Country 2: Customs greatly influence economic decisions. Free‐Enterprise
Country 4: Profit motivates individuals to set up private businesses. businesses
Socialist
Free‐Enterprise
• Country 5: Government provides low‐cost or free public services: schools health care etc
schools, health care, etc
Country 6: Has the widest selection of consumer goods. 2
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Communist
Country 7: All wage earners paid the same amount
Free‐Enterprise
Country 9: Producers determine the supply and consumers determine the demand. Primary Economic Activity
• In the mid‐nineteenth century, more than two‐
thirds of the labor force were involved in agriculture, mining, forestry, farming, grazing, hunting and gathering, fishing and quarrying. In more developed countries, a decreasing proportion of workers are involved in this economic activity. Today, only about 3% of the U.S. labor force is engaged in this economic activity. Free‐Enterprise Country 8: Farmers compete with each other.
Socialist
• Country 10: Government owns some basic industries. Secondary Economic Activity
• Activities associated with this economic activity include metal working and smelting, automobile production, textile production, chemical and engineering industries
chemical and engineering industries, aerospace manufacturing, energy utilities, engineering, breweries and bottlers, construction, and shipbuilding.
Modified sentence: All of manufacturing, processing, and construction lies within this economic activity.
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Tertiary Economic Activity • This economic activity includes retail and wholesale sales, transportation and distribution, entertainment (movies, television, radio, music, theater, etc.), restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law.
• Modified sentences:‐This economic activity is the service industry. This activity provides services to the general population and to businesses.
businesses
Quaternary Economic Activity • Activities include government, culture, libraries, scientific research, and information technology.
• ‐In more developed, a growing proportion of workers are involved in retail and wholesale sales, transportation and distribution, entertainment (movies, television, radio, music, theater, etc.), restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law. In the U.S., more than 80% of the labor force provide services to people and businesses. Quaternary Identify the economic activity!
Primary
Primary
4
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Secondary
Secondary
Primary
Secondary
Tertiary
Secondary
5
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Quaternary
Tertiary
Quaternary
Tertiary
6