Economic types Is defined as "pertaining to the production, distribution, and use of income, wealth, commodities." (5)
What do you think of when you hear the word ¨economics¨? Money, money, money! However, economics is not just money. Economics includes producing and distributing goods, trading goods, and, of course, money! In most of the ancient civilizations we studied, economics depended heavily on trading. In this page you will learn how the ancient civilizations were affected by what economic types their cultures had. For example, in Ancient Greece there were many boat makers because Greece is surrounded by water. These people learned to make boats and could use this skill to trade for commodities they would need...food, clothes, etc. That's economics!
Traditional Economic System is when a job is determined by the job one's parents and grandparents had.
Schema Connection: I think I would like this system. If my parents had a job that was fun and exciting then, I would most likely have fun doing the same job. However, there would the possibility of my parents having a boring job. That's no fun!
Market Economic System is when all the buyers and sellers and citizens make all the economic decisions regarding what is made and how much it costs. This means that the government has no control over what economic decisions are made. The market drives what is produced, how much is produced and how much it costs. This is supply and demand!
Schema Connection: The American people enjoy a market economic system (mostly). In the U.S., people and businesses determine production and distribution of goods. Our country is a mix of economic systems because there is some government control. The government tries to regulate trade that is fair and honest businesses. It also tries to prevent businesses from building monopolies.
Command Economic System is the opposite of a market economic system. A command economic system is when the government makes all the economic decisions. Decisions like what goods to produce, how much to produce and how much these goods should be sold for. Most often, communist countries have a command economic system. Examples of command economic systems include North Korea, China and Cuba.
Schema Connection: I don't think I would like to live in a place where the government was in charge of everything produced. The government might might not know exactly what its citizens need. This could cause shortages and problems for the citizens who live in this type of economy.
Scarcity is when you are short on a certain resource. A drought is a good example of when scarcity strikes. In a drought, crops would be scarce because all of them dry out and die. Water is also scarce. You could also have a scarcity in supplies if you don't have enough of a certain material to make a commodity.
Communism is when the government owns and operates almost all of the nations means of product. A modern day example of a big means of product company is Xbox or Coke. An example of a small business is Arizona Pizza company. In a communist rule, the government would own and make all the decisions regarding these companies.
Schema Connection: I would not like to be a citizen living with this type of economic system because then it would be hard to get a good paying job. Pay and hours would be made by the government.
Socialism occurs when the government owns and operates the nation's big means of product, but allows individuals to own their own smaller businesses like a farm or a candle shop. This would be good for the people because the government gets their way and and small businesses get their way too. It could also be bad for the people of a culture. If a person creates a very successful business and it were to become a big hit, the government would take ownership and control. That would really stink!
Capitalism is when the government doesn't own any businesses. This means people can create small businesses and let them grow and become successful...even growing to become a big world wide company! Capitalism is when a country's trade and production of goods are run by private owners, often to make a profit.
Schema Connection: I live in a country that practices capitalism. When I get older, if I want to create a business I could and I wouldn't have to worry about the government trying to take it over.
Feudalism is the social and legal way that allows thieves to serve under a war lord in battle. In the Qin (ch-in) Dynasty they would put the thieves in front of their real warriors to fight. The thieves were expendable to the leaders. The trained soldiers were less expendable. If a thief survived battle, then they were lucky! In some cases it was better to die then go back to jail because the jails were so brutal to the people inside.
Schema connection: I would not like to live in a place that used this system. If my brother or sister or another family member became thieves, then they would very likely die in battle.
Guild is a group of men that all held the same interest. These men would go into business with each other.
Schema Connection: For example, my dad was part of a start- up company that builds X-ray machines. Eventually his company found another company who built X-ray machines and they they started a business together. A guild is a system that creates businesses. That is why we have so many businesses in the U.S. today.
What do you think of when you hear the word ¨economics¨? Money, money, money! However, economics is not just money. Economics includes producing and distributing goods, trading goods, and, of course, money! In most of the ancient civilizations we studied, economics depended heavily on trading. In this page you will learn how the ancient civilizations were affected by what economic types their cultures had. For example, in Ancient Greece there were many boat makers because Greece is surrounded by water. These people learned to make boats and could use this skill to trade for commodities they would need...food, clothes, etc. That's economics!
Traditional Economic System is when a job is determined by the job one's parents and grandparents had.
Schema Connection: I think I would like this system. If my parents had a job that was fun and exciting then, I would most likely have fun doing the same job. However, there would the possibility of my parents having a boring job. That's no fun!
Market Economic System is when all the buyers and sellers and citizens make all the economic decisions regarding what is made and how much it costs. This means that the government has no control over what economic decisions are made. The market drives what is produced, how much is produced and how much it costs. This is supply and demand!
Schema Connection: The American people enjoy a market economic system (mostly). In the U.S., people and businesses determine production and distribution of goods. Our country is a mix of economic systems because there is some government control. The government tries to regulate trade that is fair and honest businesses. It also tries to prevent businesses from building monopolies.
Command Economic System is the opposite of a market economic system. A command economic system is when the government makes all the economic decisions. Decisions like what goods to produce, how much to produce and how much these goods should be sold for. Most often, communist countries have a command economic system. Examples of command economic systems include North Korea, China and Cuba.
Schema Connection: I don't think I would like to live in a place where the government was in charge of everything produced. The government might might not know exactly what its citizens need. This could cause shortages and problems for the citizens who live in this type of economy.
Scarcity is when you are short on a certain resource. A drought is a good example of when scarcity strikes. In a drought, crops would be scarce because all of them dry out and die. Water is also scarce. You could also have a scarcity in supplies if you don't have enough of a certain material to make a commodity.
Communism is when the government owns and operates almost all of the nations means of product. A modern day example of a big means of product company is Xbox or Coke. An example of a small business is Arizona Pizza company. In a communist rule, the government would own and make all the decisions regarding these companies.
Schema Connection: I would not like to be a citizen living with this type of economic system because then it would be hard to get a good paying job. Pay and hours would be made by the government.
Socialism occurs when the government owns and operates the nation's big means of product, but allows individuals to own their own smaller businesses like a farm or a candle shop. This would be good for the people because the government gets their way and and small businesses get their way too. It could also be bad for the people of a culture. If a person creates a very successful business and it were to become a big hit, the government would take ownership and control. That would really stink!
Capitalism is when the government doesn't own any businesses. This means people can create small businesses and let them grow and become successful...even growing to become a big world wide company! Capitalism is when a country's trade and production of goods are run by private owners, often to make a profit.
Schema Connection: I live in a country that practices capitalism. When I get older, if I want to create a business I could and I wouldn't have to worry about the government trying to take it over.
Feudalism is the social and legal way that allows thieves to serve under a war lord in battle. In the Qin (ch-in) Dynasty they would put the thieves in front of their real warriors to fight. The thieves were expendable to the leaders. The trained soldiers were less expendable. If a thief survived battle, then they were lucky! In some cases it was better to die then go back to jail because the jails were so brutal to the people inside.
Schema connection: I would not like to live in a place that used this system. If my brother or sister or another family member became thieves, then they would very likely die in battle.
Guild is a group of men that all held the same interest. These men would go into business with each other.
Schema Connection: For example, my dad was part of a start- up company that builds X-ray machines. Eventually his company found another company who built X-ray machines and they they started a business together. A guild is a system that creates businesses. That is why we have so many businesses in the U.S. today.