Unit 1, Chapter 2
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The document discusses different economic systems including traditional, command, market, and mixed economies. It provides examples of each system and explores various schools of economic thought that have influenced different systems such as capitalism, communism, socialism, and more. It also outlines the basic questions that different economic systems aim to address around production, distribution, and consumption of goods and services.
Unit 1, Chapter 2
- 1. Daily Warm-Up The lyrics of “I Want It All” remind us that there is a lot to do in one short lifetime. Freddie Mercury, Queen’s lead singer, asserts that he wants it all and he wants it now. Do you prefer to consume goods in the present or future? With reference to these lyrics, explain why individuals charge interest for deferring consumption.
- 2. What are we doing today? Collecting journals Presenting Songs (?) Unit 1, Chapter 2 lecture Forming groups for major project 1 Research/Brain-storming Outline #1 due
- 3. Post Test Stats Avg. Grade: Avg. # of Students who did HW/Class: Avg. current grade of all classes: # of blog page-views: 1,614 # of blog posts: 111
- 5. Unit 1, Chapter 2 Comparing Economic Systems
- 7. Schools of Economic Thought Economists are influenced by personal opinions, beliefs, and the institutions and governments under which they live. This leads to different economic theories. Different schools of thought can have an impact on laws and government policies. Judgments about economic policies depend on a person’s values. Values and beliefs are characteristics that a person or group considers important. The science of economics is not used to judge whether a certain policy is good or bad.
- 9. The Three Basic Questions 1) What goods and services should be produced? 2) How should they be produced? 3) Who will get the goods and how will they be distributed?
- 10. Types of Economic Systems Traditional Economy Command Economy Market Economy Mixed Economy
- 11. “ Hands On” vs. “Hands Off” “ Hands Off” Market, Traditional “ Hands On” Command, Traditional Compromise Mixed
- 14. Examples
- 15. Command Economy
- 16. Examples
- 19. Schools of Thought Communism Socialism Feudalism Mercantilism Corporatism/Fascism
- 20. Market Economy
- 21. Examples
- 22. Schools of Thought Capitalism Gift economy Mutualism Corporatism/Fascism Anarchism Mutualism Non-Property System Socialist Market Economy
- 23. Econophysics One driving force behind econophysics arising … was the availability of huge amounts of financial data, starting in the 1980s. It became apparent that traditional methods of analysis were insufficient - standard economic methods dealt with homogeneous agents and equilibrium, while many of the more interesting phenomena in financial markets fundamentally depended on heterogeneous agents in far-from-equilibrium situations.
- 24. Econophysics – Economic System (Price) Price of a commodity for every one of the 50x50 free-trading agents. Each agent has 8 neighbors. Note the spontaneous formation of a quasiparticle
- 25. Econophysics – Money Owned Money owned by every agent in a 200x200 agent free market simulation. Central part of the screen is composed of agents with different poverty threshold. Periodic boundary conditions.
- 26. Econophysics – Price 2 Price of a dynamically traded commodity for each one of the 200x200 agents in a free market economy. 4 Neighbors per agent. There are two 10x10 agent areas where agents have different poverty threshold than the rest. Due to the initial conditions, this generates two price waves.
- 27. Econophysics - Resources Resources accumulated by each of the 200x200 agents in a free-market economy simulation. Phase transition is observed at iteration 1000 when the effective temperature is changed.
- 28. Mixed Economy
- 31. Schools of Thought Distributism Georgism Mercantilism Planned Market American/Nordic/Japanese/French
- 32. Tony Benn Which economic system is Tony Benn arguing for?
- 33. Group Project #1 Anonymous peer evaluations 3 drafts/outlines Group presentation Group wiki post Individual research paper
- 34. Group Presentation 4 groups: command, traditional, free market, and mixed economy. One question for each of the other groups. How does it answer the 3 questions? Describe 3 schools of thought in detail . Brief biography of two notable thinkers/writers/economists: Adam Smith, Karl Marx, etc. Describe any notable books/writings and why they are important. 3 quotes. Current/Historical examples of this system. Successes, failures, etc.