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Economic and Legal System

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Economic System

What is Economics?

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What is Economic System?

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Economic System

o

An economic system is comprised of the variousprocesses of organizing and motivating labor,

producing, distributing, and circulating of the fruits

of human labor, including products and services,

consumer goods, machines, tools, and othertechnology used as inputs to future production, and

the infrastructure within and through which

production, distribution, and circulation occurs.

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What are needs?

What are wants?

Satisfying Needs and Wants

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Goods

oare things that you can see and touch.

Services

oare activities that are consumed at the same

time they are produced.

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What are Natural resources?

Many natural resources are

nonrenewable.

What are Human resources?

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The Four Types of Economic System

Four very different types of Economic

Systems have evolved as different

societies have placed different emphasison different goals and priorities in their

efforts to answer the Three Key

Economic Question.

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Traditional Economy

Family or Community based on Economic System that relies

on custom and ritual to make its choices.

Examples:

o Aborigines

o Amazon Tribes

o Any Substainance Economy

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Market Economy

Individual or Consumer based Economic System that relies on

the consumption choices of consumers.

Examples:

o

U.S.A.o Japan

o Any Capitalist Economy

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Command Economy

Centrally Controlled Economy where the Government makes

all decisions.

Examples:

o Cubao China

o Any Communist Country or Dictatorship

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Mixed Economy

Economic System that incorporates some Governmental

involvement into a Market Based Economy.

Examples:

o U.S.A.

o Japan

o Most Modern Economies

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Legal System

What is Legal System?

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Legal System

o Of a country refers to the rules or laws thatregulates behavior along with the processes by

which the laws are enforced and through which

redress for grievances is obtained.

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Three Types of Legal System

Common

Law

Civil LawTheocraticLaw

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Common Law

o is based on tradition, precedent, and

custom.

o Refers to a countrys legal history, precedent

to cases that have come before the courts in the

past, and custom to the ways in which laws are

applied in specific situations.

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Differences in Contract Law

Contract

o Is a document that specifies the conditions

under which an exchange is to occur anddetails the rights and obligations of the parties

involved.

Contract LawoIs the body of law that governs contract

enforcement.

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Private and Public Action

Private Action

o Refers to theft, piracy, blackmail, and the like

by private individuals or groups.

Public Action

o To violate property rights occurs when publicofficials, such as politicians and government

bureaucrats, extort income, resources, or the

property holders.

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Reported by: Michellin Ann GutierrezBSBA 4th year