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OBJECTIVES

consygavoi — 2017-10-12 10:32:13 UTC

Students will identify different types of economic systems and their features.
Students will explain how philosophers and economist affected these economic systems.
Students will analyze primary sources and will compare adavantages and disadvantages.
Students will describe the causes and consequences of the adoption of these systems in different countries.

OBBIETTIVI

consygavoi — 2017-10-12 10:35:52 UTC

Gli studenti dovranno identificare i diversi tipi di sistemi economici e le loro caratteristiche.
Gli studenti dovranno spiegare quali filosofi ed economisti hanno influenzato questi sistemi economici,
Gli studenti dovranno analizzare le fonti primarie e dovranno confrontare i vantaggi e gli svantaggi.
Gli studenti dovranno descrivere le cause e le conseguenze dell'adozione di questi sistemi in diversi paesi.

TYPES OF ECONOMIC SYSTEMS

consygavoi — 2017-10-12 10:37:59 UTC

Planned economy
Free market economy
Mixed economy

PLANNED ECONOMY

consygavoi — 2017-10-12 10:41:50 UTC

The kind of economy represents the maximum intervention of a government in the countries.
The government is responsible for all decisions regarding production and distribution.
It establishes which goods will be produced, the quantity and their price. In fact the government doesn't rely on the market forces of supply and demand.
Socialism and communism are associated with a centrally planned economy.
Countries such as the ex-USSR and other Eastern European countries used to follow this model. Today the countries which follow a planned economy system are Cuba and North Korea

FREE MARKET ECONOMY

consygavoi — 2017-10-12 10:45:41 UTC

This system is called the capitalist or laissez-faire.
The leader of this system is Adam Smith. This kind of economic system is in favour of minimal government intervention. Resources are privately owned and decisions regarding production, distribution and price are determined by the factors of supply and demand. Free market economy with no government intervention does not exist. U.S.A follow the free market economy.

MIXED ECONOMY

consygavoi — 2017-10-12 10:59:27 UTC

The mixed economy system is a combination of the characteristics of both the free market and planned economy models.
In this system, both the private sector and public sector have a role in the economic decisions regarding the country.
Production in mainly within the private sector which is free to operate following the price mechanism of supply and demand. The public sector, is generally responsible for providing many essential services such as education.

KARL MARX

consygavoi — 2017-10-12 11:08:22 UTC

Marx was born in 1818 and died in 1883. He was considered a filosoph, sociologist, scientist, revolutionary. He has wrote comunity manifesto and das capital.

His perceptions were:
history is dinamic, struggle between social classes, political and economic crisis. He was in favour of collective ownership and control  of factories and capital assets. He advocated  leads to rapid increase in production and efficiency and influenced  "Democratic Party of Germany" (1875) and "E V debs candidate for US presidence" (1920)
He foresawed worldwide expansion of capitalism, rise of large working class organisations and advented of large corporations.

consygavoi — 2017-10-12 11:17:13 UTC

consygavoi — 2017-10-18 16:35:31 UTC

consygavoi — 2017-10-18 16:36:41 UTC

ADVANTAGES OF PLANNED ECONOMY

consygavoi — 2017-10-18 16:41:19 UTC

Prices are kept under control and thus everybody can afford to consume goods and services.
There is less inequality of wealth.
There is no duplication as the allocation of resources is centrally planned.
Low level of unemployment as the government aims to provide employment to everybody.
Elimination of waste resulting from competition between firms.

John Keynes

alemolinari45 — 2017-10-18 16:41:51 UTC

John Keynes Was born in Cambridge in 1883, and died on 21st April 1946.
John Keynes investigated the reasons for Britain's economic problems in The General Theory of Employment, Interest and Money. His most famous work revolutionised the way people looked at the economy and the role of government in society.
He introduced the theory of aggregate demand as the total of consuption, investment and government expenditure and stated that the key to reduce unemployment is to increase government spending and to run a budget deficit.

ADVANTAGES AND DISADVANTAGES

consygavoi — 2017-10-18 16:46:39 UTC

DISADVANTAGES OF PLANNED ECONOMY

consygavoi — 2017-10-18 16:49:29 UTC

Consumers cannot choose and only those goods and services are produced which are decided by the government.
Lack of profit motive may lead to firms being inefficient.
Lot of time and money is wasted in communicating instructions from the government to the firms.

ADAM SMITH

giuseppinamarceddu27 — 2017-10-18 16:55:22 UTC

Adam Smith was born in 1723 and was died in 1790. In 1759 Smith published his first work, The Theory of Moral Sentiments in which he described the principles of human nature. In 1764 he meeting contemporaries such as Voltaire and Rousseau. In 1767 he wrote An Inquiry into the Nature and causes of the Wealth of Nations.
He defined methods of producing national wealth and the circumstances for rapid economic expansion.
Smith is commonly associated with the notion of the invisible hand and the concept of laissez-faire(that is freedom from the intervention and restrictions of government in the economic process).
Smith argues that manufactures will naturally produce goods for which there is the most demand and therefore market forces will ensure the production of the right goods and services. Finally,he believed a monopoly was negative for consumers.

ADVANTAGES OF A FREE MARKET ECONOMY

consygavoi — 2017-10-18 16:58:20 UTC

Equal opportunity for every individual to improve his/her standard of living.
Incentive to innovation and efficiency to beat competitors.
It encourages entrepreneurship because people can easily set up their own business.

DISADVANTAGES OF A FREE MARKET ECONOMY

consygavoi — 2017-10-18 17:03:19 UTC

Rigid class systems and the gap between the rich and poor increases as there is limited government control.
Money tends to remain concentrated in a few hands.
Large private companies can easily monopolise the market.

consygavoi — 2017-10-18 17:07:14 UTC

consygavoi — 2017-10-18 17:10:20 UTC

ADVANTAGES OF MIXED ECONOMY

consygavoi — 2017-10-18 17:14:18 UTC

All national resources are utilised.
Public and private sectors work together.
Private companies have the freedom to operate but the government can intervene, e.g to stop the production of harmful goods.

DISADVANTAGES OF MIXED ECONOMY

consygavoi — 2017-10-18 17:16:51 UTC

There may be unnecessary government interference.
The government may allocate more resources to welfare rather than other necessary areas.
It can suffer from the drawbacks of both capitalism and socialism.

consygavoi — 2017-10-18 17:20:26 UTC

Examples of Centrally Planned Economies

consygavoi — 2017-10-18 17:30:57 UTC

Communist and socialist systems are the most noteworthy examples in which governments control the factors of economic production. Central planning is often associated with Maxist-Leninist theory and the former Soviet Union, China, Vietnam and Cuba. The economic performance of these states have been mixed, though they generally trailed more capitalist countries in terms of growth. Historically, most centrally planned economies have been administered in authoritarian states, though participation in such an economy could theoretically also be elective.

FREE MARKET COUNTRIES

giuseppinamarceddu27 — 2017-10-18 18:07:41 UTC

The countries which follow this system are:
1)Singapore-Imposes no tariff,there are a few restriction on investments
2) Australia-Has very low tariffs and strong private property rights.
3) The United States is considered the world's premier free market economy . That's because the U.S. Constitution guarantees the three critical elements that create a free market. They are ownership of private property, a competitive market, and unregulated prices. The U.S. free market depends on capitalism to thrive. That means the law of demand and suplly sets prices and distributes goods and services.

MIXED ECONOMY COUNTRIES

alemolinari45 — 2017-10-24 18:17:51 UTC

The countries which follow this system are: Italy, French, USA...