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Why would people stand in line all day for one roll of toilet paper?

Why would people stand in line all day for one roll of toilet paper? . Moscow 1988. Command. Traditional. Market. Economic SYSTEM $. Every society has an economic system in which people make and distribute goods and services. . What is AN ECONOMIC SYSTEM?.

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Why would people stand in line all day for one roll of toilet paper?

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  1. Why would people stand in line all day for one roll of toilet paper? Moscow 1988

  2. Command Traditional Market Economic SYSTEM $

  3. Every society has an economic system in which people make and distribute goods and services.

  4. What is AN ECONOMIC SYSTEM? • An economic system describes how a society determines what to produce, how to produce, and for whom to distribute goods and services.

  5. In any type of economic systems 3 basic questions must be answered. • What will be produced? • Howwill it be produced? • For whomwill it be produced?

  6. The 3 Economic Systems • Traditional • Command • Market

  7. TraditionalECONOMIC SYSTEM • Traditional economic system is a community based system in which all factors of production rely on customs, and beliefs. • There is very little change. • Trade is usually very limited. • Today traditional economies are not common.

  8. TraditionalECONOMIC SYSTEM • What? Tradition, customs, and beliefs decide what goods and services will be produced. • How? Tradition, customs, and beliefs decide how goods and services will be produced. • For whom? For people who live in the community or the village.

  9. COMMANDECONOMIC SYSTEM In a command economy the factors of production is owned and controlled by the government.

  10. CommandEconomic System What?The government decides what products are needed. How?Since the government owns all means of production, it decides how goods and services will be produced. For whom? The government decides who will get what is produced. .

  11. MarketECONOMIC SYSTEM In a market economic system the factors of production is controlled by individuals or corporations.

  12. MarketECONOMIC SYSTEM What? Consumers and producers decide what should be produced. How? Consumersand producers decide how to produce. For whom? Consumers.

  13. IMPORTANT! • Traditional economies only make up a small part of a country’s economy. • There are NOPURE Market economies in the world • There are NO PURE Command economies in the world. All economies in the world have aspects of both command and market.

  14. Therefore… All modern economies in the world are MIXED economies. But the mix is different in every nation.

  15. USA 77% United Kingdom 74% Germany 71% Russia 50% PURE COMMAND 0% PURE MARKET100% In which country do you think it would be the easiest to start a business?

  16. Percentage of Market

  17. Economic Freedom Index

  18. Identify the economic System • The Inuit of northern Canada serve as a prime example of a ___________economy. For thousands of years, the Inuit parents have taught their children the survival skills needed to survive in the Arctic Circle's severe climate. The children are taught to fish, hunt, and make effective tools. Once learned, these skills are passed down to the next generation. When the Inuit hunt, it is traditional for them to distribute the harvest with other families in the community.

  19. Review • True of False. The economies of Germany, Russia, and the United Kingdom have aspects of both command and the market economic systems. Explain.

  20. REVIEW • An entrepreneur is someone who starts their own business. In a command economy entrepreneurs rarely exist. Why?

  21. Review • Which economic system is the MOST centralized?

  22. Review This picture BEST represents a _______ economic system.

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