Economics Padlet by Hailey https://padlet.com/haileylau0724/ueid5pjel7v2zuxm en-us 2021-06-02 00:31:40 UTC 2021-06-04 00:24:28 UTC hello@padlet.com Market Economy haileylau0724 https://padlet.com/haileylau0724/ueid5pjel7v2zuxm/wish/1577968713 Private Property!
In a market economy people have the right to own property and profit off of it, buying, renting, selling , leasing, etc. You cannot however own human beings.

Freedom of Choice!
We are free to produce, sell and buy  goods and services in a competitive market economy. We have limitations such as how much we are willing to buy and sell for.

Motive of Self Interest!
We can sell our goods to the highest bidder or negotiate for the lowest prices. While it isn't nice, it will benefit the economy. This system run with auctions sets prices that mark their market value.

Competition!
Competitive pressure keeps prices low. It also ensures that we provide goods and services well. As soon as demands increase for a good the prices rise, due to the law of demand. Competitors would see this as an opportunity to produce more, at lower.

System of Markets and Prices.
A market economy relies on a healthy market to sell goods and services. Where buyers and sellers have access to the same information. Price changes are based on supply and demand in a market economy.

Limited Government!
Purpose of government is to make sure that the markets are open and running. For example, it is in charge of national defense to protect the markets. It also makes sure everyone can access the markets.

]]> 2021-06-02 00:37:37 UTC https://padlet.com/haileylau0724/ueid5pjel7v2zuxm/wish/1577968713 Traditional Economy haileylau0724 https://padlet.com/haileylau0724/ueid5pjel7v2zuxm/wish/1577970679
What Is a Traditional Economy?
A traditional economy is that in which customs, traditions, and beliefs are rich in developing the goods and services for the area. In other words, a traditional economy is one that is built around the way a society lives. The goods and services are determined based on the livelihood of the people.


Characteristics of a Traditional Economy
Traditional economies are often based on one or a few of agriculture, hunting, fishing, and gathering.
Barter and trade is often used in place of money.
There is rarely a surplus produced. In other words, most of the goods and services are fully used.
Often, people in a traditional economy live in families or tribes.
Societies may follow herds of animals in order to hunt and sustain those in the traditional economy. Many people progress from hunters to farmers where they can place permanent structures and start a society.


Advantages 

Custom and tradition dictate the distribution of resources. As a result, there is little friction between members. Everyone knows their contribution toward production, whether it's as a farmer, hunter, or weaver.
Members also understand what they are likely to receive. Even if they aren't satisfied, they don't rebel. They understand that it's what has kept society together and functioning for generations.Since traditional economies are small, they aren't as destructive to the environment as developed economies.


Disadvantages 

Traditional economies are exposed to changes in nature, especially the weather. For this reason, traditional economies limit population growth. When the harvest or hunting is poor, people starve.They are also vulnerable to market or command economies. Those societies often consume the natural resources traditional economies depend on or they wage war. For example,Russian oil development in Siberia has damaged streams and the tundra. That has reduced traditional fishing and reindeer herding for traditional economies in those areas.



]]> 2021-06-02 00:38:06 UTC https://padlet.com/haileylau0724/ueid5pjel7v2zuxm/wish/1577970679 Command Economy haileylau0724 https://padlet.com/haileylau0724/ueid5pjel7v2zuxm/wish/1577971481
What is a command Economy?
In a command economy, the government determines what is produced, how it's produced. Private enterprise does not exist in a command economy. The government employs all workers and unilaterally determines their wages and job duties.

There are benefits and drawbacks to command economy structures. Command economy advantages include low levels of inequality and unemployment, and the common good replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.

The Advantages of a Command Economy
Less Inequality 
Because the government controls the means of production in a command economy, it determines who works where and for how much pay. This power structure contrasts sharply with a free market economy, in which private companies. control the means of production and hire workers based on business needs, paying them wages set by invisible market forces.

The Disadvantages of a Command Economy 
Lack of Competition Inhibits Innovation 
Critics argue that the inherent lack of competition in command economies hinders innovation and keeps prices from resting at an optimal level for consumers. Although those who favor government control criticize private firms that esteem profit above all else, it is undeniable that profit is a motivator and drives innovation. At least partly for this reason, many advancements in medicine and technology have come from countries with free market economies, such as the United States and Japan.





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