TOPICS
- How Countries Make
Economic Choices: Economic Systems
Market Economies
Command Economies
- Capitalism and the Five
Fundamental Questions
- Capitalism and Efficiency (the invisible hand)
- The Gains from Trade
OUTCOMES
Economic Systems
Pure Laissez-faire
economic system
Centrally Planned
Economy
mixed economic systems
The Bolshevik
Revolution
Contributing factors to the
collapse of the Soviet Union
characteristics of the market
system
the important role of profits and
losses
property rights
the "invisible hand" of
capitalism
the coordination
problem
the incentive problem
be able to draw and explain the
Circular Flow Model
Why are market economies more
efficient than command economies both allocatively and
productively?
What is the "invisible hand" of
capitalism
Gains From Trade
How does trade increase
productive efficiency and therefore output?
calculate how specialization and
trade increases output using the production
possiblilities tables and graphs of two different
countries
straight line PPCs (constant
costs)
absolute advantage
comparative advantage
- calculate
comparative advantage
- specialization and trade
- calculate the gains from specialization and
trade
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