Comparative Economics Systems Project

What would life be like in the North Korean economy? How would things be different in the economy of Chad? In this project, you will have the opportunity to compare these two economies to the U.S. economy, and you’ll practice using some tools that can help you to study any economy in the world.

A market economy is characterized by private ownership of the means of production (for example, farms and factories), and supply and demand are responsible for the price and allocation decisions. The United States, Hong Kong, and Germany are considered market economies. A command economy is characterized by government (or central) control ownership of the means of production, and with a central authority setting prices of goods and services and for most allocation decisions. North Korea and Cuba are command, or more specifically communist, economies. A developing economy is one which is not yet industrialized, but is developing. Chad, Ecuador, and Bangladesh are considered developing nations.


You will need to access the CIA Factbook at https://www.cia.gov/library/publications/the-world-factbook/
and the Comparative Systems Worksheet.

Go to the CIA World Factbook website to find the information needed to complete the Comparative Systems Worksheet.

Use the information from the worksheet to consider the following seven 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?
2. How can life expectancy and literacy rates affect the quality of labor in the economy?
   
3. How can fertility rates affect the use of scarce resources?
   
   
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?
   
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).

This project is due on Thursday, Oct 6. You will turn in the worksheet and answers to the seven questions.