02_Economic_Systems

02_Economic_Systems - Economic Systems 2 Outline 1 Choosing an Economic System 2 Communal System 3 Market System 4 Mixed Systems 2 ECONOMIC SYSTEMS

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2. ECONOMIC SYSTEMS Intro to Macro (ECON 0110) Jochem Outline 1. Choosing an Economic System 2. Communal System . Market System 2 Economic Systems 3. Market System 4. Mixed Systems b Choosing an Economic System b Suppose we crashed on a desolate island and need to organize ourselves to survive. 3 Economic Systems b Choosing an Economic System b Suppose we crashed on a desolate island and need to organize ourselves to survive. 4 Economic Systems b Our Options s 1. We can form a community and pool together our resources. ( Communal Economy; “Jack-Approach” ) s 2. Everybody can be responsible for her-/himself, can make whatever s/he is good in and use barter/exchange to get the rest. ( Barter or Market Economy; “Sawyer-Approach” )
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b Choosing an Economic System (cont’d) b Any group/society needs to answer 3 questions: s (1) What to produce (with scarce resources)? s (2) How should the goods be produced? 5 Economic Systems s (3) Who shall receive the final goods? b The answers will determine what sort of an economic system you choose: a communal system or a market system. 6
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This note was uploaded on 03/26/2012 for the course ECON 0100 taught by Professor Kenkel during the Spring '08 term at Pittsburgh.

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02_Economic_Systems - Economic Systems 2 Outline 1 Choosing an Economic System 2 Communal System 3 Market System 4 Mixed Systems 2 ECONOMIC SYSTEMS

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