ECON 2000 1st Edition Lecture 5Outline of Last Lecture XIII. Economic Systemsa. Pure Capitalismb. Pure SocialismXIV. Classification Criteriaa. Which economic player owns the factors of production (economic resources)?b. Which economic player makes the primary decision when it comes to answering the three fundamental questions of economicsc. What mechanism is used to implement these decisions? (How are decisions carried out)XV. Classifyinga. Pure Capitalismb. Pure Command SocialismXVI. Characteristicsa. Pure Capitalismb. Pure Command SocialismXVII. Pure Capitalism Strengths and weaknessesa. Strengthsb. WeaknessesXVIII. Pure command socialism strengths and weaknesses a. Strengthsb. WeaknessesOutline of Current Lecture XIX. Values associated with economic systemsa. Pure Command Socialismb. Pure CapitalismXX. Adam Smith (1776) The Wealth of Nationsa. Invisible Hand TheoremXXI. Parts of a marketb. Buying side (Demand side)c. Selling Side (Supply)Current LectureXIX. Values associated with economic systemsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.c. Pure Command Socialismi. Social Stabilityii. Harmonyiii. Equality of Opportunityiv. Securityd. Pure Capitalismi. Efficiencyii. Price Stability1. Because of markets keeping prices downiii. Creativity/ noveltyiv. Individual Responsibility v. Economic GrowthXX. Adam Smith (1776) The Wealth of Nationsd. Invisible Hand Theoremi. Interactions between buyers and sellers will act in their self-interest beingled by an invisible hand that will lead to desirable social outcomesii. You do not need govt.XXI. Parts of a markete. Buying side (Demand side)i. Inter-industry (firms)ii. Consumersiii. Foreigners (exports)f. Selling Side (Supply)i. Current productionii. Inventoryiii.
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