SS7E5 The student will analyze different economic systems

E5a Compare how traditional, command, and market economies answer the economic questions
of 1) what to produce, 2) how to produce and 3) for whom to produce.
Traditional Economy
Most economic decisions based on custom and habit (as things were done in the past)
Many found in rural areas
People depend on members of extended family
Work is often farming, herding animals, simple crafts or trades
Very little money changes hands
Bartering and trading goods and services replaces money
No SW Asia country has a primarily traditional economy
Command Economy
More centralized economy
Government planning groups make most of the basic economic decisions for the workers
Decides which goods and services will be produced
Decides on prices of goods and wages for workers
No individual can start new business on their own
Government decides what to make, who owns the place where goods are made, what jobs the
workers will do and how and where the goods produced will be sold
Market Economy
A societys economic decisions are made by individuals who decide what to produce and what to
buy
Also called capitalism, free enterprise, or laissez-faire
Many countries in Southwest Asia use a market economy
E5b Explain how most countries have a mixed economy located on a continuum between pure
market and pure command
Mixed
Nearly all modern countries have a mixed economy (some market and some command)
Generally a combination of market and command
Traditional economies are hard to find and cannot function effectively for a whole nation

E5c Compare and contrast the economic systems of Israel, Saudi Arabia, Turkey and Iran
Israel
Relatively small area
Almost no natural resources
Economy based on advanced technology which allows them to make up for what they lack in
farmland and natural resources
Saudi Arabia
Located on the Arabian Peninsula, its one of the largest countries in SW Asia
Much is desert with rich oil reserves
Can buy whatever they cant produce
King and advisors make most decisions about how and where to use oil profits
Have invested much in technologies to produce goods they would not be able to do otherwise in
a desert climate.
Iran
Has great oil wealth
A more mixed economy than Saudi Arabia in spite of government attempts to maintain control
Irans command economy hasnt been very efficient in recent years
Many Iranians do not share in the oil wealth
Turkey
Located in the northwestern part of the M. E.
Istanbul gateway between Europe and Asia
Turkey has been part of ancient trade routes for thousands of years
Least economic freedom
Airlines, railroads, telephone and television controlled by government
Government has been loosening their hold
More private ownership has been allowed
More laws enacted to protect business owners