Strand E3 The International Economy
Standard 3.1 Economic Systems Grade Level HSCode22.214.171.124.126.96.36.199.188.8.131.52.6 GLCE/HSCE
3.1.1 Major Economic Systems – Gives examples of and analyze the strengths and weaknesses of major economic systems (command, market and mixed), including their philosophical and historical foundations
(e.g., Marx and the Communist Manifesto, Adam Smith and the Wealth of Nations).
3.1.2 Developing Nations – Assess how factors such as availability of natural resources, investments in
human and physical capital, technical assistance, public attitudes and beliefs, property rights and free trade can affect economic growth in developing nations.
3.1.3 International Organizations and the World Economy – Evaluate the diverse impact of trade policies of the World Trade Organization,World Bank, or International Monetary Fund on developing economies of Africa, Central America, or Asia, and the developed economies of the United States and Western Europe.
3.1.4 GDP and Standard of Living – Using current and historical data on real per capita GDP for the United States, and at least three other countries (e.g., Japan, Somalia, and South Korea) construct a relationship between real GDP and standard of living.
3.1.5 Comparing Economic Systems – Using the three basic economic questions (e.g., what to produce,
how to produce, and for whom to produce), compare and contrast a socialist (command) economy (such
as North Korea or Cuba) with the Capitalist as a mixed, free market system of the United States.
3.1.6 Impact of Transitional Economies – Analyze the impact of transitional economies, such as in China and India, on the global economy in general and the American economy in particular.Key conceptsEssential understandings(Procedural or Conceptual)Vocabulary- economic systems, natural resources, human/physical capital, property rights, free trade, WTO, World Bank, IMF, real GDP, standard of living, socialist (command) economy, mixed economy, market economy, transitional economy
Aligned AssessmentsStudents will know1. Various types of economic systems2. Various factors that affect economic growth in developing nations3. The impact of international trade organizations4. How to use GDP data to show relationships between real GDP and standard of living5. The three basic economic questions6. How transitional economies can influence the global economy Students will be able to1. Identify and evaluate the strengths and weaknesses of major economic systems including their historical/philosophical roots2. Identify and interpret the factors that impact the economic growth of developing nations3. Identify various international organizations and asses the impact they have on developing and developed nations of the world4. Cite evidence to compare and contrast the GDP and standard of living between the USA and three other countries5. Identify the three basic questions of an economy and use them to compare and contrast various economic systems6. Asses the impact transitional economies like China and India have on the global economy Student Friendly Lnguage Target Asesment1. I can identify and evaluate the strengths and weaknese of major economic systems including their historical/philosophical roots
*One of the weaknesses of the market economy is:
a. People with problems like a disability have a hard time surviving without help
b. It is not quite flexible enough to handle change
c. A large bureaucracy is required to run itd. It does not react to new problems well2. I can identify and interpret the factors that impact the economic growth of developing nations3. I can identify various international organizaton and asses the impact they have on developing and developed nations of the world.* The country of Uganda wants to build a highway system but does not have enough money to do it. What international organizations could they approach, and where do those organizations get the money to fund those kind of projects? What are the benefits to Uganda, and what are the effects on the suppliers of the money?4. I can cite evidence to compare and contrast the GDP and standard of living between the USA and three other countries5. I can identify the three basic questions of an economy and use them to compare and contrast various economic systems6. I can ases the impact transitional economies like China and India have on the global economyAssessment Activity 2:
Examining Market vs. Command vs. Developing Economies
Instructions: Go to the website http://www.cia.gov/cia/publications/factbook/index.html and fill in the information pertaining to United States, China and Chad. Then answer the questions below using this information and information about the four factors of production which you learned last unit?
Natural Resources- How many and what types of natural resources are available?
Land Use- What percentage of the land is arable (Capable of being farmed)
Life Expectancy- how long are children born today expected to live
Total Fertility Rate- How many children does each woman have on average
Literacy Rate- What percentage of people over the age of 15 can read and write?
Government Type-How are leaders elected
How much does the government spend per year (Expenditures)
Military spending as a percentage of GDP
Economy Overview- What are the most serious economic problems facing each of these three nations
GDP-Per Capita- What is the value of goods and services produced per person?
Population below Poverty Line- How many people live in poverty
GDP Composition by Sector- What percentage of GDP is industry and services (add together)
Labor Force by Occupation- What percentage of workers is in agriculture?
Industries- What are the primary industries? Are they primarily producing for consumer or government consumption?
Agriculture Products- What are the primary agriculture goods produced?
Industrial Production Growth Rate- the annual percentage increase in industrial production (includes manufacturing, mining, and construction).
Electricity Production (kWh)
Telephones-Main Line in Use
Internet service hosts
Total Railways (km)
Airports with Paved Runways
Analyzing the data..Answer the following questions
1. How can the presence or absence of natural resources and arable land affect a nation’s economy, regardless of the type of economic system? Which of the four factors of production is this concerning?
2. How can life expectancy and literacy rates affect the quality of labor in the economy? Which of the four factors of production is this concerning
3. How can fertility rates affect the use of scarce resources? Which of the four factors of production is this concerning?
4. How can GDP per capita and poverty rates indicate standards of living in each system?
5. How can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?
6. How can electricity, communication, and transportation facilities indicate the potential for industrial growth? Which of the four factors of production is this concerning?
7. Considering the lack of natural resources, the labor problems, and the lack of capital and little Industrialization of developing countries, how can developing countries develop? (Hint: Look at Economy - Overview for Chad).