Command (planned) system. Presentation: "Types of economic systems" Economic systems their main types presentation
Lesson topic:
Types of economic systems
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Lesson Objectives:
- study the types of economic systems;
- to get acquainted with the main characteristics of economic systems;
- to promote the formation of skills of practical, independent, research activities of students;
- contribute to the systematization of knowledge on the topic "Economic systems", based on interdisciplinary connections.
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economic system
- it is a way of organizing the economic life of society to solve the issues facing it:
- What to produce?
- How to produce?
- For whom to produce?
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Types of economic systems
- Traditional
- Market
- mixed
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System types
Advantages
Traditional
Flaws
Command-administrative
Name of countries
Market
mixed
System types
Advantages
Flaws
Name of countries
Task 1. Fill in the table:
backward technique
Manual labor Agricultural production
Vulnerability to external influences
Bangladesh, Afghanistan, Pakistan, Azerbaijan
Mastery is passed down from generation to generation; Stability and predictability of society
Traditional
Some goods are more than needed, others are less (surplus - shortage); backwardness of technical development. It all depends on agriculture and foreign trade. State planning.
Cuba, Vietnam, North Korea
Stability of society, economy, the possibility of rapid distribution and redistribution of resources
Command-administrative
Greater freedom of choice for producers and consumers. Introduction of advanced technologies. High quality products.
A big difference in incomes of citizens, in the standard of living Problems: unemployment, paid services
Market
Germany, USA, Japan, UK
Producers themselves decide what to produce, and buyers decide what and how much to buy. A large number of industries have been developed. Trade relations are extensive. High production growth.
The state can undermine the normal
the functioning of the market order, if it interferes too much with market laws.
Russia, Hungary, Bulgaria, Poland
mixed
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Conclusion
We live in an age of competition and the market, and we understand perfectly well that the most important thing for all countries, and especially for Russia, is to find your place in this world, to develop better and better.
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Reflection
- - I was surprised...
- - I learned…
- - Now I can
- - I remembered…
- - I didn't get it.
Theme of the lesson "Types of economic systems" Educational goal: students should understand what an economic system is and what problems it should solve, generalize and systematize students' knowledge about economic systems, prove the advantages and disadvantages of each system. Developing goal: to develop analytical thinking, logic, memory, attention stability, to form the ability to make non-standard decisions, to develop creative abilities, to form cognitive interest. Educational goal: the ability to cooperate, develop a sense of collectivism, diligence, a culture of behavior.
Three basic questions in any economic system 1. What to produce? (what goods and services, in what quantities) 2. How to produce? (using what technologies and what resources) 3. For whom to produce? (how these goods and services will be distributed)
The traditional system is a way of organizing economic life in which land and capital are held in common, and limited resources are distributed in accordance with long-standing traditions and customs. Traditional economic systems are characteristic of a number of underdeveloped countries of the so-called third world, which include countries in Africa and Latin America.
Advantages and disadvantages Traditional economy Stability of society Inability to develop and improve, lack of technical progress Poor adaptability to changing external conditions Limited number of goods produced Caste, patriarchy The principle of heredity Raw-material orientation of the economy Conservatism in the spiritual and cultural fields
The command (planned) system is a way of organizing economic life, in which capital and land are owned by the state, and the distribution of limited resources is carried out according to the instructions of the central government and in accordance with the plan. Such economies currently exist in Cuba and North Korea.
Strengths and weaknesses Strengths and weaknesses Command economy Satisfactory standard of living for all Price stability Timely payment of wages Confidence in the future No gap in incomes of citizens No unemployment Social security Free basic services Inability of enterprises to make independent decisions. Shortage of goods Poor quality of goods Poor implementation of advanced technologies due to its focus on the plan, and not on profit. Low level of agricultural development. Food problem.
Advantages and disadvantages Advantages and disadvantages Market economy Greater freedom of choice for producers and consumers. A wide range of goods and services. Introduction of advanced technologies. High quality products. The impact of competition on efficiency, quality improvement No deficit High productivity of farms Significant difference in incomes of citizens, in living standards. Problems of social justice The instability of the economy: it is characterized by ups and downs. Unemployment Uncertainty about the future. Fees for most services.
Mixed system A mixed system is a way of organizing economic life in which land and capital are privately owned, and the distribution of scarce resources is carried out both by markets and with significant state participation. Almost all existing economies in the modern world should be classified as a mixed type. In the real life of any country, not a single economic system is present in its pure form. In England, for example, about 30% of the workforce is employed in the public sector, the remaining 70% is employed in the private sector.
Table. “How do the traditional, command (planned) and market economies respond to the main questions of the economy?” Economic system Way of decision-making What to produce? How to produce? For whom to produce? Traditional Command (planned) Market
Table. “How do the traditional, command (planned) and market economies respond to the main questions of the economy?” Economic system Way of decision-making What to produce? How to produce? For whom to produce? Traditional Those goods that were produced by ancestors According to tradition, the same According to customs. Command (planned) Market
Table. “How do the traditional, command (planned) and market economies respond to the main questions of the economy?” Economic system Way of decision-making What to produce? How to produce? For whom to produce? Traditional Those goods that were produced by ancestors According to tradition, the same According to customs. Command (planned) Goods according to the state plan The issue is decided by the state, enterprises have little interest in updating equipment. All goods produced are distributed by the government on the principles of equality. Prices for goods are set by the state. Market
Table. “How do the traditional, command (planned) and market economies respond to the main questions of the economy?” Economic system Way of decision-making What to produce? How to produce? For whom to produce? Traditional Those goods that were produced by ancestors According to tradition, the same According to customs. Command (planned) Goods according to the state plan The issue is decided by the state, enterprises have little interest in updating equipment. All goods produced are distributed by the government on the principles of equality. Prices for goods are set by the state. Market Those goods that people need, otherwise they will not be able to sell The issue is decided by private firms, the most advanced technology is selected. Competition between firms. For those who have money to buy them. There is an inequality, because people have different incomes. Free prices apply.
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Slides captions:
Command and mixed economic systems
Plan: Command economic system. Mixed economic system. Socially regulated market. Economic system in modern Russia.
Command economic system This is a way of organizing economic life in which capital and land are owned by the state, and the distribution of limited resources is carried out according to the instructions of the central government and in accordance with plans.
The heyday of the command economy was after the First World War. An example of a country in the 20th century with a command economic system was Soviet Russia.
The activities of the command economic system were as follows: What to produce - established by the State Planning Department; How to produce - was established by the sectoral ministry; To whom to sell - established the State Committee for Supply; At what price to sell - set the State Committee on Pricing; How much to pay workers - was established by the State Committee on Labor and Wages; How to use income - established by the Ministry of Finance; What to build for production - established the State Committee for Construction; What to sell abroad and buy was established by the Ministry of Foreign Trade.
Planning in a command economic system is very intelligent. The plan must: Be drawn up on the instructions of a private owner who bears full financial responsibility; Be implemented on the basis of a free choice of partners in the transaction; To be checked for reasonableness by the demand of buyers; Rely on existing economic information.
Mixed economic system This is a way of organizing economic life based on the use of various forms of ownership, in which the distribution of limited resources is carried out by markets, and with significant state participation.
A mixed economic system prevailed for the civilizations of the late twentieth century. The basis of a mixed economic system is private ownership of economic resources.
Some countries have a public sector. It includes enterprises whose capital is wholly or partly owned by the state, but which: Do not receive plans from the state; I work according to market laws; Forced to compete on an equal footing with private firms.
The main elements of a mixed economic system:
A socially regulated market This is a kind of mixed economic system in which society and the state are clearly striving not only to ensure economic growth, but also to fully implement the principles of combining economic freedom, reasonable distribution of responsibility for the life of society between citizens and the state, and civil solidarity.
The basis of the mixed economic system is the conscious life position of every able-bodied citizen - "I am responsible for my well-being myself!"
In modern Russia: The foundations of the command system are destroyed; The mechanism of the market system is still being formed; Factors of production have not yet been completely transferred to private ownership. In the near future, Russia will inevitably have to recreate market mechanisms and build a mixed economic system on their basis.
Thank you for your attention The presentation was prepared by Anzhelika Alexandrovna Danilchuk, a teacher of economics at MBOU Secondary School No. 5 in Kashin
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An economic system is an ordered set of socio-economic and organizational relations between producers and consumers of goods and services. economic system
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Various criteria can underlie the selection of economic systems: the economic state of society at a certain stage of development (Russia in the era of Peter I, Nazi Germany); stages of socio-economic development (socio-economic formations in Marxism); economic systems characterized by three groups of elements: spirit (the main motives of economic activity), structure and substance in the German historical school; types of organization associated with ways of coordinating the actions of economic entities in ordoliberalism; a socio-economic system based on two features: the form of ownership of economic resources and the method of coordinating economic activity.
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The traditional economy is based on the dominance of traditions and customs in economic activity. an economic system in which the distribution of limited resources occurs in accordance with customs; the pace of change and development in it is extremely low; people do what their parents used to do; most of the goods are consumed where they are produced Elements of the traditional economy are found in the most remote areas of the world: in isolated tribes or groups (peoples of the Far North, peoples of Africa) Traditional economic system
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The command economy is due to the fact that most enterprises are state-owned. an economic system in which resources are state property; the most important decisions affecting the allocation of resources are made by the government Typical countries with a command economy system: Cuba, North Korea, Vietnam, China, Albania, USSR, countries of Eastern Europe Command economy system
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The market economy is defined by private ownership of resources, the use of a system of markets and prices to coordinate and manage economic activity. an economic system in which economic decisions at the national level are the result of decisions made by individual sellers and buyers in the market A market economic system is typical for countries: Argentina, India, Turkey, Indonesia and others A market economic system
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A mixed economy is an economic system where both the state and the private sector play an important role in the production, distribution, exchange and consumption of all resources and material goods in the country. an economic system that combines elements of public ownership of the means of production with private property A mixed economic system is typical for most countries in the modern world: Japan, Sweden, the USA, Canada, Finland and others. There are five main tasks solved by a mixed economy: providing employment; full use of production capacity; price stabilization; parallel growth of wages and labor productivity; equilibrium of the balance of payments. mixed economy
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Transition economy - an economy that is in a state of change, transition from one state to another, both within one type of economy and from one type of economy to another, occupies a special place in the development of society. At present, various approaches to the study of transitional processes occurring in the economies of post-socialist countries are being proposed. The complexity and versatility of the problem of transition (transformation) of the economy from one type to another, according to a number of authoritative researchers, lies both in the deep root foundations of individual transformation processes and in their interaction. transitional economy
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Summing up, we note that economic systems are multidimensional. They can be formalized: ES = f(A1, A2, A3 ... An). In other words, an economic system (ES) is defined by its properties (A), where there are n such properties. This means that an economic system cannot be defined in terms of a single characteristic.
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Tasks of economic activity
What to produce? (what goods and services, in what quantities.) How to produce? (using what technologies and what resources.) For whom to produce? (how these goods and services will be distributed.) The main task of the economy is the choice of the best solution among alternative options, in which the maximum satisfaction of needs is achieved.
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Functions of the economic system.
Mankind constantly has to adjust its boundless desires and limited possibilities. The more developed the division of labor, the greater the dependence between producers and the greater the need to coordinate their activities. Such coordination should be carried out by the economic system - a certain way of organizing economic life.
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Economic systems are forms of organizing the economic life of society, differing in: The way of coordinating the economic activities of people, firms and the state The type of ownership of economic resources
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Types of economic systems
The command system (socialism) is a way of organizing economic life, in which capital and land are owned by the state, and the distribution of limited resources is carried out according to the instructions of the central government and in accordance with the plan. The market system (capitalism) is a way of organizing economic life in which capital and land are privately owned, and limited resources are distributed through the market. A mixed system is a way of organizing economic life in which land and capital are privately owned, and the distribution of limited resources is carried out both by markets and with significant state participation. The traditional system is a way of organizing economic life in which land and capital are held in common by the tribe, and limited resources are distributed in accordance with long-standing traditions.
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The real economy of any country is not purely market, purely centralized, or purely traditional. Elements of different economic systems are combined in a special way in each country. It is necessary to avoid the emergence of a command system and allow state intervention in the economic life of the country only to solve those economic problems that markets cannot or fail to cope with.
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The share of the public sector in the systems of the economies of some countries
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Thank you for your attention! Think about whether you filled out the table correctly.
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Traditional economy
For most of the history of mankind, the questions of WHAT, HOW and FOR WHOM to produce were decided in accordance with traditions and customs (“as before”). At present, such an economic system has been preserved in its pure form among some tribes of Central Africa, South and Southeast Asia, and the Amazon Valley. In India, for example, people were divided into castes of priests, warriors, artisans, and servants. No one could choose a profession according to his desire, a person necessarily inherited his father's craft. Thus, the distribution of the most important resources at that time - labor - was dictated by indestructible centuries-old traditions.
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The same can be said about the choice of produced goods and technologies. The same products were produced from generation to generation, while the production methods remained the same as they were hundreds of years ago. On the one hand, this allowed hereditary artisans to achieve the highest level of skill, on the other hand, nothing new was invented or produced. Technological progress and the growth of production efficiency were impossible, because each artisan copied the methods of work of his teachers. Distribution and exchange of products were also decided according to custom.
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command economy
In this economic system, decisions about WHAT, HOW and FOR WHOM to produce are made from a single center, which is usually the head of state. A command economy in a relatively pure form existed, for example, in the state of the ancient Incas. After many centuries, a similar economic system developed in the USSR and other socialist countries. At present, such an economy can only be found in Cuba and North Korea. In a centralized economy, all material resources and products of production usually belong to the state. Coordination of economic activity occurs with the help of plans (planned economy). The calculation of the plan in real life goes like this: all industrial and agricultural enterprises existing in the country report to the top how much they could produce in the next year. These figures are summed up and, with minor amendments, a plan is drawn up, which is then returned to the same enterprises.
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All workers are subordinate to a government official, who is a more important official, and so on up the administrative ladder up to the supreme ruler, no matter how he is called: pharaoh, emperor, or general secretary of the ruling party. The technology of production is determined by the state, because it owns all buildings, structures, machines, resources, etc. To operate the complex mechanism of a centralized economy, a huge number of managers, planning, calculating and checking officials are required.
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mixed economy
A mixed economy is designed to capitalize on the strengths and overcome the weaknesses of market and centralized economies. The main economic issues are mainly decided by the market, but national and regional economic problems are solved by the state. The basis is private ownership of economic resources, although in some countries there is a fairly large public sector. Part of the resources is centralized and distributed by the state through command mechanisms in order to compensate for some of the weaknesses of the market mechanisms.
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I - scope of market mechanisms II - scope of command mechanisms, i.e. control by the state. Redistribution of income and resources Creation of public goods Weakening of externalities The right of private property Markets of resources and goods Private economic initiative Mixed economic system
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Market economy
In a market economic system, there are people who are free from the power of traditions and not subordinate to a single center. The factors of production and its result - the product - does not belong to the community or the state, but to private individuals. Therefore, the problem of incentives for production in a market economy is not worth it. Each of them decides for himself what to produce, how and in what quantity, proceeding from one single goal - personal interest, increasing their own wealth and well-being. In conditions of division of labor and personal freedom, producers are connected with each other through the exchange of goods. This system does not guarantee everyone that he will always be able to exchange his product for others. The flip side of freedom of choice is risk and full personal responsibility. Only by exchanging goods, the manufacturer can get everything necessary to meet his needs.
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Markets of resources and goods Fundamentals of the capitalist economic system.
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