https://padlet.com/dowen4/ux0v5ic6tpyx Group Work 10-7 en-us 2016-09-16 04:18:38 UTC 2016-09-16 04:47:43 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Condos.png https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124248922 Market Economy
An unplanned or free market economy 
Decisions about allocation of scarce resources are made by two groups: businesses and consumers
Production of goods and services is based on what consumers demand and what businesses are willing to supply
Government plays a minor role, making sure the market is stable enough to carry out its economic activities properly
Decision to change price or production amount are driven by change in cost and competition
It is governed by the laws of supply and demand
Businesses can decide what goods to produce and in what quantity, and consumers and businesses can decide what they want to purchase and at what price
Advantage is that there is lots of individual freedom in the market, little to no government interference
The economy adjusts to changes based on consumer wants and as a result there is a wider variety of goods and services available.
Disadvantage with this system is that it does not provide for people's basic needs as the motivation for providing goods is profit.
This can create a large division between the poor and the wealthy.

Australia is a market economy as the investment and production decisions are made based on supply and demand]]> 2016-09-16 04:29:05 UTC https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124248922 https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124248935 Mixed Economy:

A mixed economy is an economy that has a combination of economic systems, usually defined as an economy that contains both privately owned and government-owned enterprises.

To put it simply, the government takes care of people’s needs and the marketplace takes care of people’s wants.

Benefits:
• Market is more or less free of government ownership except for a few key areas.
• Government programs such as education, transportation, USPS, etc.
Disadvantages:
• Can suffer from similar downfalls found in other economies.
• Not just in imposing laws and regulations, but in actually gaining control, becoming more difficult to access while simultaneously becoming less flexible.
Examples:
• France (52.8%)
• United Kingdom (47.3%)
• United States (38.9%)


]]> 2016-09-16 04:29:21 UTC https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124248935 https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124248966
What is mixed economic system?

A mixed economy is defined as an economic system consisting of a mixture of either markets and economic planning, public ownership and private ownership, or free markets and economic interventionism.

Good points:

Most business and industry can be left to private firms. Private firms tend to be more efficient than government controlled firms because they have a profit incentive to cut costs and be innovative.

Mixed economies can reduce the amount of government regulation and government control prevalent in a command economy.

Bad points:

Can be difficult to know how much governments should intervene, e.g. discretionary fiscal policy may create alternative problems such as government borrowing.

Mixed economies are criticised by socialists for allowing too much market forces, leading to inequality and an inefficient allocation of resources.

Monopolies can exploit the system.

Interesting Case Study

There are many examples of mixed economies:

Share of government spending as a % of GDP

Iceland (57%)
Sweden (52%)
France (52.8%)
United Kingdom 47.3%
United States 38.9
Russia 34.1
China – 20% of GDP
Hong Kong 18.6%]]> 2016-09-16 04:29:57 UTC https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124248966 123635 https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249011 .Traditional econom is an original economic system in which traditions, customs, and beliefs shape the goods and the services the economy produces, as well as the rules and manner of their distribution. Countries that use this type of economic system are often rural and farm-based.
There is no central authority or commercial activity, and customs govern the decisions that are made. Economic activity and production are very simple and occur in "primitive" "underdeveloped" economic systems.

Rural India, Africa

https://m.youtube.com/watch?v=NCgfOJnc_XA

https://m.youtube.com/watch?v=LA54DtOWbuA - Purely audio

2. Pros + Cons see below \/  \/

Ugly - the system will only work when the goods and services being exchanged are simple in nature. As soon as more sophisticated products are introduced into the Market, it is almost impossible to work out how much they are worth.

3) interesting case study 

in today's world having a traditional economy is much more rare and not many places still comply by this system 
These few community's consist of the Middle East parts of Asia, Africa and South America 
They are low populated places and are still devolving and catching up with the the world 
The jobs mainly consist of being farmers, hunters or gatherers and then trading with others 
These countries have an economic system that involves cooperative decisions in social communities based on tradition or customs. 
The people that live in these countries work collectively to meet daily needs and produce goods. 
These particular community's don't have currency or dollar, they have more simple solutions to share and trade needed items, goods and services
Pros 
Less Destructive, century long traditions are often at the root of these economies. The goods are not as much “produced” as they are harvested. This causes much less impact on the environment and allows the markets to be completely self sustaining.

Little uncertainty and very simple

Sense Of Community, each individual person has a vital role in this system. It also has very tight knit groups of people, they all support each other and work together, selfishness and greed is very rare.

Vital Needs Met, all of the basic necessities and needs of life are provided, along with living a wholesome life.

There is minimal waste and very little surplus, due to having limited resources, everything is utilised and very little is left behind

It is also preservative of customs and traditions 

Cons 
Very little change and slow development, the traditions are so deeply rooted in these systems that any form of change or adaption is very rare. This makes it hard for the development of a nation.

Lower Standard Of Living, people within this system are only really concerned with the basic necessities of life, they live a basic, and often impoverished lifestyle, in comparison to most 1st world countries.

Unpredictable Problems, things like weather, natural disaster, bad crops etc all impact the society massively.

This means that this system is highly fragile and extremely risky]]> 2016-09-16 04:31:16 UTC https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249011 https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249068 Market economy: 
What is a market economy:
Market economy is based on supply and demand where the prices of goods and services are determined within a free price system. This system encourages economic freedom and was set up so that it would regulate itself due to money flowing where the demand is greatest and encouraging competition and initiative. There are many advantages and disadvantages of market economy. An example of a market economy is the United States economy where the investment and production decisions are based on supply and demand.

Advantages of market economy:
1: Harder working employees due to the threat of losing their job or being laid off because the product or service is not selling.
2: Friendly competition between companies will encourage efficiency among employees to lower costs for success.
3: Companies become creative in finding new products to sell or manufacture and less expensive ways to accomplish their goals.
4: As companies grow due to market economy, foreign investors will begin to take an interest and help expand.
5: Private companies take over activities and venues that were in the past public sector. This reduces the size, power and cost of state bureaucracies.
6: Production increases for the frivolities that will cost more money but people want. This is a classic example of supply and demand.
7:  Social and technical skills needed to function within a market economy system are quickly learned as is the knowledge to succeed.
8: There is a larger variety of consumer goods available for a wide range of people ranging from middle-class to the very affluent.
9: Encourages people to step up and try their hand in the market economy. Encourages entrepreneurs to start up a business and sell merchandise or offer services at competitive rates.


]]> 2016-09-16 04:32:47 UTC https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249068 1012871 https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249075 Definition:
Economy where decisions about investment, production and distribution are based on supply and demand.
Prices of goods and services are set by supply and demand (Free Price System).

Features a market that isn't controlled by the government but by private owners, (a capitalism-based economy).

Positives:
Complete freedom for business owners on prices and production.
Better efficiency, businesses are forced into competition with other businesses so they have to cut down on inefficient processes.
Better economic growth as people have an incentive to do well (less of their money goes to the govt. through taxes).
People are spending their money where THEY want and get to spend the money they earned on themselves. (E.g. With planned economy people may be paying for other people's education etc.)

Negatives:
Private business have purely profits in mind, compared to the government that wants to please the people.
Wealth inequality.
Less government funded free services for the poor. (E.g. Free health services or free public transport).

Case Study (Singapore and N. Korea):
Singapore’s market:

One of the least corrupt countries 
It's freedom score is 87.8 
In terms of economic freedom it's ranked the second in the world 

North Korea’s market 

Is the most repressed economy in the world- every aspects of economic activity is controlled by the supreme leader
Corruption is endemic at every level of the economy 
Government sets production levels,  industries, and wages
Almost all properly belongs to the state and even chattel property (domestic goods, imports and exports)

Stance:
We would prefer a market reason for the following reasons:
Economy is not controlled by govt. people can make their own decisions.
An individual's funds are spent where they would like to spend them (freedom over their funds).]]> 2016-09-16 04:32:58 UTC https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249075 https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249154 A planned economy is an economic system in which inputs are based on direct allocation. Economic planning maybe carried out in a decentralised, distributed or centralised manner depending on the specific organisation of economic institutions.

In this structure the government decides what is best for the people and makes all decisions eg, who will work, where they work and what'll be made. 

http://www.investopedia.com/terms/c/centrally-planned-economy.asp]]> 2016-09-16 04:35:12 UTC https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249154 https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249171 Is an original economic system in which traditions, customs and beliefs shapes the goods and services that the economy produces, as well as the rules and manner of their distribution. 

Vast portions of the world still use function under a traditional economic system.

These areas tend to be rural, second or third world and closely tied to the land

They often interact with other economies in order to sell, trade and barter.

Advantages
• That tradition and customs is preserved while it is virtually non-existent in market/mixed economy.
• Each member of a traditional economy has a more specific and pronounced role and these are often very close knit and socially satisfied

Disadvantages
• Traditional economies do not enjoy the things that other economies take for granted
• Vulnerable type of economy
• Lower standards of wealth and living of the people.

The Inuit people of north Canada are a perfect example of traditional economy. For thousands of years the Inuit parents have thought there children to fish, hunt, make effective tools.

When the Inuit hunt, it is traditional for them to harvest with the other families in the community.

If a walrus or a bear is harvested, hunters divide it evenly into as many pieces as there are heads of families in the hunting party.

The hunter responsible for the most successful hunt get to pick first.

Unlike traditional economies, in a market economy individuals generate wealth by pursuing those activities

We believe that a traditional economy is not very good because not many countries use it now and countries still use are 2nd and 3rd world countries and they stay with the same tradition without changing for the better.



]]> 2016-09-16 04:35:55 UTC https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249171 https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249314 Planned economy:
1) what is it ?
A planned economy is an economic system in which inputs are based on direct allocation. Economic planning may be carried out in a decentralized, distributed or centralized manner depending on the specific organization of economic institutions. This allocation is typically done by the government and this form of the economy is closely tied to socialism and communism.

2) Where is it?
Most countries that employ a planned economy are left leaning on the political scale and are typically socialist or communist. Communist countries like North Korea and the former Soviet Union are examples of a planned economy in a communist state. Examples of a planned economy in a democratic state are countries such as Sweden and Norway.

3) The good the bad and ugly
Advantages :
Since government has control over all factors of production the chances of.                                           monopoly happening are next to nil under planned economy.

It may help in reducing the gap between poor and rich because all government policies are designed to bring social equality which may sometimes lead to dictatorship sort of environment.

Disadvantages:
It leads to destruction of entrepreneurs and innovators which in turn leads to lower productivity and also lower growth for a country.

This system leads to dissent among the citizens as the basic right of human being which free will is challenged under this system and therefore eventually this system may lead to revolution by the citizens of the country against the government.

This system suffers from government bureaucracy, delay in decision making on the part of government officials bottlenecks in production and inefficient use of resources.

4) Group stance
There is a direct correlation and causation between an extreme  planned economy and a corrupt political system. This is based on examples such as North Korea and the Soviet Union that lead through fear and manipulation. Therefore we recommend avoiding an extreame planned economy to prevent government corruption and manipulation

5) Case study
North Korea is a communist state with a highly (98.6%) planned economy. It's economy has been in decline since the collapse of the Soviet Union, its main trading partner. There have been several famines in recent years do to a poor economy and lack of willing trade partners. There are rumours of mild economic reform in Korea to privatise small sections of the economy.


]]> 2016-09-16 04:39:21 UTC https://padlet.com/dowen4/ux0v5ic6tpyx/wish/124249314