Economy
SS7E1 The student will analyze different economic systems.a. Compare how traditional, command, and market economies answer the economic questions of
(1) what to produce, (2) how to produce, and (3) for whom to produce.b. Explain how most countries have a mixed economy located on a continuum between pure
market and pure command.c. Compare and contrast the economic systems in South Africa and Nigeria.SS7E2 The student will explain how voluntary trade benefits buyers and sellers in Africa.a. Explain how specialization encourages trade between countries. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargos .b. Explain why international trade requires a system for exchanging currencies between nations.SS7E3 The student will describe factors that influence economic growth and examine their presence or absence in Nigeria and South Africa.a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).c. Explain how the distribution of diamonds, gold, uranium, and oil affects the economic development of Africa.
d. Describe the role of entrepreneurship .SS7E4 The student will explain personal money management choices in terms of income,spending, credit, saving, and investing.
(1) what to produce, (2) how to produce, and (3) for whom to produce.b. Explain how most countries have a mixed economy located on a continuum between pure
market and pure command.c. Compare and contrast the economic systems in South Africa and Nigeria.SS7E2 The student will explain how voluntary trade benefits buyers and sellers in Africa.a. Explain how specialization encourages trade between countries. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargos .b. Explain why international trade requires a system for exchanging currencies between nations.SS7E3 The student will describe factors that influence economic growth and examine their presence or absence in Nigeria and South Africa.a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).c. Explain how the distribution of diamonds, gold, uranium, and oil affects the economic development of Africa.
d. Describe the role of entrepreneurship .SS7E4 The student will explain personal money management choices in terms of income,spending, credit, saving, and investing.
#KindsofEconomies-3
Today, most counties are markets, such as The United States and Kingdom, France, Mexico, and many others. Market economies have no central government controlling the economy. The entrepreneurs get to decide what the make and everything.
After that, there is traditional. Traditional economy consist of mostly tribes. These tribes make things with the influence of culture and many times with the same practices that the greatly, amazing, grandparents used.
Next, there is command economy. These seem to mostly be communism, but that isn't always the case. Command economies are when the government has control over everything being the produced and even who gets the items produced.
No countries in the whole wide world meet all of these standards, really every countries is a mixed economy. However some countries fall on the scale closer to one or the other.
After that, there is traditional. Traditional economy consist of mostly tribes. These tribes make things with the influence of culture and many times with the same practices that the greatly, amazing, grandparents used.
Next, there is command economy. These seem to mostly be communism, but that isn't always the case. Command economies are when the government has control over everything being the produced and even who gets the items produced.
No countries in the whole wide world meet all of these standards, really every countries is a mixed economy. However some countries fall on the scale closer to one or the other.
Look at the little Kangaroo, he is more important than this economy scale thing.
Questions so Far?
3 main questions for entrepreneurs are, What to produce? How to produce? and For whom to be produce? Let's give an example with a business.
Joey want to make a business. He likes kangaroos, so he wanted to make stuffed animal kangaroos. That answers the first question, what will be produced, the stuff animals. Next, as an entrepreneur he has to decide if it will be worth the money, if he does he will need to decide how he will make it. In the end he decides that Ireland will be the best spot, will the lowest taxes. Joey builds a factory and imports fur, eyes, and stuffing for the little kangaroos, this answers the second question, how to produce. Now, he just to find a perfect home for them.
Still in Africa?
The are 4 main points that help a good get produced. There are Capital- Machines, Natural- things found in natural, Human- workers, and Entrepreneurial- ideas. So, when these get put together, you can get a little kangaroo. These are different from GDP because these things make up the GDP. Countries use these to make exports.
Trade! Specialization!
Trade helps countries get what they need. Like Japan has to trade for food, but has technology to return. Most of the time trade benefits both sides. Countries today have to use something call the currency exchange rate to trade with each other. Like the Ruble isn't worth as much as the Chinese Yen. So, countries find a central system to make the money the same.
Also, not all countries have everything they need, so, they trade for what they need. At the same time other countries make up for they don't have. Like, Nigeria has oil and not food, so they trade oil for food.
Also, not all countries have everything they need, so, they trade for what they need. At the same time other countries make up for they don't have. Like, Nigeria has oil and not food, so they trade oil for food.
What could hurt trade?
There are 3 different kinds of trade barriers.
Quota- A limit on imports
Tariff- A tax of imports
Together these don't do very much and are mainly used to keep domestic companies safe. However, if you put one on someone else, they generally fight back.
Embargo - Are no trading with the countries, no matter what. Most of the time these don't just pop out of the ocean. These mainly happen during wars or for countries that don't treat their people right. After a while embargoes really can hurt a country's economy.
Quota- A limit on imports
Tariff- A tax of imports
Together these don't do very much and are mainly used to keep domestic companies safe. However, if you put one on someone else, they generally fight back.
Embargo - Are no trading with the countries, no matter what. Most of the time these don't just pop out of the ocean. These mainly happen during wars or for countries that don't treat their people right. After a while embargoes really can hurt a country's economy.