Beruflich Dokumente
Kultur Dokumente
What do we want? Why do some economic systems perform better than others?
Socialism: You have 2 cows. Give one to a neighbor. Communism: you have 2 cows. Give both cows to government and they may give you some milk. Nazism: You have 2 cows. The government shoots you and takes both cows Anarchism: You have 2 cows. Shoot the government agent and steal another cow. Capitalism: You have 2 cows. Sell 1 cow and buy a bull.
TEACHING Economics
MCEE Economic Learning Modules E L M s
Scarcity
The Desire for Things is Greater than is Freely Available from Nature
4 ELM 1: Scarcity
What will be produced? How will it be produced? For whom will it be produced?
Consumers determine what Producers determine how Market determines for whom
Important attributes:
ELM 6: Prices ELM 13: Property Rights 8 ELM 16: Role of Business
Unintended consequences:
Economic Efficiency
2.
3.
Economic Efficiency (max value, min waste) Economic Equity (fairness) Economic Freedom
Fraser Economic Freedom of the World Index Heritage Inst & WSJ Freedom Index Taxation, property rights, business & trade regulations
11
10
2.
3. 4. 5.
Economic Efficiency (max value, min waste) Economic Equity (fairness) Economic Freedom Full Employment Economic Growth (GDP, health, literacy, . . .)
Gross Domestic Product: Market price of all final goods and services produced in an economy.
16
2.
3. 4. 5. 6. 7.
Economic Efficiency (max value, min waste) Economic Equity (fairness) Economic Freedom Full Employment Economic Growth (GDP, health, literacy, . . .) Security (defense, safety net) Price Stability
18
21
8 6 6.1 4 2 0
1970 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 23
6.0