Africa Economic Systems - Ms. Naylor's 7th grade ssUntil 2011 Libya was considered a command economy . Command Economy The government dictates the job in which you work The government
Post on 07-Apr-2020
5 Views
Preview:
Transcript
3 Types of Economies…
▪Traditional
▪Command
▪Market
How do these economies answer these questions?
▪ What to produce?
▪ How to produce?
▪ For whom to produce?
4 Types of Economies
Traditional Economy
▪Based on what has been done in the past▪Traditions, Rituals, Habits, and Customs are maintained▪Shaped by customs and religion ▪Found in rural areas with hunter/gather societies.
Mbuti in Central Africa
Traditional Economy
▪ Elders and ancestors decide who produces what and when.
▪ Sharing goods
▪ Farming, hunting and gathering done traditionally
▪ Economic activities are centered around the family or ethnic unit
▪ Men and women are given different roles and tasks
Mbuti in Central Africa
Command Economy
▪ The government or central authority makes decisions and determines how resources will be used
▪ There is little individual freedom
▪ There is no competition
▪ Businesses are not run to create a profit
▪ Consumers have few choices in the market place
Until 2011 Libya was considered a command economy
Command Economy
▪ The government dictates the job in which you work
▪ The government sets the prices of goods and services
▪Only one command economy left – North Korea
▪All others have mixed in market economy with their command structure (China and Cuba)
Market Economy
▪Also called a Free Market Economy or Free Enterprise Economy
▪Businesses and consumers decide what they will produce and purchase and in what quantities
▪ Supply and demand of goods and services determine what is produced and the price that will be charged.
Mall in Nairobi, Kenya
What is a Mixed Economy?
▪ Combination of a market and a command economy
▪ Government takes care of people’s needs; Marketplace takes care of people’s wants.
▪ Most nations have a mixed economy
▪ Advantage— balance of needs and wants met by government and in marketplace
▪ Disadvantage— citizens have to pay taxes
Vocabulary
GDP per capita
• Gross Domestic Product (GDP) per capita (per person). It’s the division of total GDP ( total value of everything produced by a country) by the population
Literacy Rates
• People over the age of 15 with the ability to read and write.
School Life Expectancy
• How many years of education a child will receive during their lifetime.
top related