Name.

Ted Wolfe Comparative Economic Systems Economic Systems: The institutional framework of formal and informal rules that a society uses to determine what to produce, how to produce and how to distribute goods and services.

Date. 9/16/13

What would life be like in the North Korean economy? How would things be different in the economy of Chad? Why is Liechtenstein so wealthy? In this lesson, you will have the opportunity to compare these three economies to the U.S. economy, and youll practice using some tools that can help you to study any economy in the world.

1. Complete the data worksheet by using the CIA World Factbook at https://www.cia.gov/library/publications/the-world-factbook/index.html
If you copy and paste answers format text appropriately to ensure readability on final copy (suggested 8 pt. Arial font)

2. Answer the seven reflection questions after gathering the data. 3. Complete the assignment online and post to your weebly website

Data Worksheet
United States North Korea Chad Liechtenstein

Geography 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)?

coal, copper, lead, molybdenum, phosphates, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, petroleum, natural gas, timber note: the US has the world's largest coal reserves with 491 billion short tons accounting for 27% of the world's total arable land: 18.01% permanent crops: 0.21% other: 81.78% (2005)

Coal, lead, tungsten, zinc, graphite, magnesite, iron ore, copper, gold, pyrites, salt, fluorspar, hydropower

petroleu m, uranium, natron , kaol in, fi sh (Lake Chad) , gold , limestone , sand and gravel , sal t

hydroele ctric poten tial , arable land

Arable land: 19.08% Permanent: 1.7% Other: 79.22%

arable land: 3.82 % permanent crops: 0.02 % other: 96.16% (2011

arable land: 21.88 % permanent crops: 0% other: 78.12% (2011)

Name. Ted Wolfe

People Life Expectancy at Birth How long are children born today expected to live?

Date. 9/16/13

total population: 78.11 years country comparison to the world: 49 male: 75.65 years female: 80.69 years (2009 est.)

69.51 years Male: 65.65 years Female: 73.55 years

total population: 49.07

years
country comparison to the world: 2 2 3 male: 47 .95 years female: 50.22 years

total population: 81.59

years
country comparison to the world: 1 2 male: 79 .45 years female: 84.29 years

(2013 est.)

(2013 est.)

Total Fertility Rate How many children does each woman have, on average?

2.05 children born/woman (2009 est.) country comparison to the world: 126

1.99 children born/woman

4.8 ch ildren born/wo man (2013 est.) country comparison to the world: 2 4

1.69 ch ildren born/wo man (2013 est.) country comparison to the world: 1 7 1

Literacy Rate What % of people over the age of 15 can read and write?

definition: age 15 and over can read and write total population: 99% male: 99% female: 99% (2003 est.)

Age 15 and over can read and write. Total population: 100% Male: 100% Female: 100%

definition: age 15 and over can read and write French or Arab ic total population: 35.4 % male: 45 .6% female: 25.4% (2011

definition: age 10 and over can read and write total population: 100% male: 100% female: 100%

est.)

Government Government Type How are leaders elected? Government Spending as Percent of GDP (Budget Expenditures Divided by GDP). Find in Economy section

Constitution-based federal republic; strong democratic tradition

Communist state one man dictatorship

$40 billion (2011 est.) country comparison to the world: 1 0 4 $40 billion (2010 est.) $40 billion (2009 est.)

republic

hereditary constitutional monarchy

$3.2 bil lion (2009) country comparison to the world: 1 7 9 $3.216 bil lion (2008) $3.159 bil lion (2007)

GDP (PPP): $14.26 trillion (2009 est.) Budget: revenues: $1.914 trillion expenditures: $3.615 trillion (2009 est.) $3.615 trillion / $14.26 trillion = .25 (25%)

$21 billion (2012 est.) country comparison to the world: 1 2 9 $19.99 bil lion (2011 est.) $19.89 bil lion (2010 est.)

Military Spending as a Percentage of GDP. Find in Military section Economy Economy Overview What are the most serious economic problems facing each of these four nations? Summarize from Economic Overview

4.06% of GDP (2005 est.) country comparison to the world: 28

N/A

NA

NA

Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups.

Indu str ial capi tal stock is nearl y beyond repair as a resul t of years of underinve stment, shortages o f spare parts, and poor maintenan ce. Largesca le mili tar y spending draw s off resour ces needed fo r inve stmen t and ci vilian consump tion .

Chad's primar ily agricul tura l econom y will continue to be boosted by major foreign dire ct in vestment projects in the oil sector tha t began in 2000. Economi c condi tion s have been positive in recen t yea rs, wi th real GDP grow th reaching 13 % in 2010 becau se of high

Despi te i ts small size and limi ted na tural resou rce s, Lie chten stein has developed in to a prospe rous, highl y industrial ized , freeenterpr ise econo my wi th a vi tal finan cial ser vi ce sector and li kel y the se cond highe st per cap ita income in the world .

Name. Ted Wolfe

Date. 9/16/13
in ternational pri ces for oil and a strong local harvest.

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 % of GDP is industry and services? Labor Force by Occupation What % of workers is in agriculture?

$46,400 (2009 est.) country comparison to the world: 11 12% (2004 est.)

$1, 800 (2011 est.)

$2,000 (2012 est.)

$89,400 (2009 est.) country comparison to the world: 2

NA

80% (2001 est.)

NA

agriculture: 1.2% industry: 21.9% services: 76.9% (2009 est.)

Agriculture: 23.3% Industry: 42.9% Services: 33.8%

agriculture: 47.1 % industry: 9 .2% services: 43.7%

agriculture: 8% industry: 37% services: 55% (2009)

(2012 est.)
farming, forestry, and fishing: 0.7% agriculture: 35% industry and services: agriculture: 80% (2006 est.) industry and services: agriculture: 0.8 % industry: 39 .4% services: 59.9%

65% (2008 est.)

20% (2006 est.)

(2010)

Industries What are the primary industries?

leading industrial power in the world, highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining Mostly producing for the consumer (private citizens)

mili tar y products; machine build ing, electri c power, chemi cals; min ing (coal , iron ore , limestone , magnesi te, graphite, copper, zin c, lead, and precious metal s) , me tallurg y; te xtiles, food processing

oil, cotton texti les, meatpa cking , brewing, natron (sodium carbonate), soap, cigare ttes, constru ction mater ials

electroni cs, me tal manufa ctu ring, dental products, cerami cs, pharmaceu ti cals, food products, preci sion instrumen ts, touri sm, opti cal in stru ments

Are the industries primarily producing for consumer or government consumption? Determine this by assessing the industries and their consumers answer not found at CIA WorldFactBook Agriculture Products What are the primary agricultural goods produced?

Mostly government

Mostly consumer

Mostly consumer

wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; fish; forest products

rice , corn , po tatoe s, soybean s, pulse s; cattl e, pigs, pork, eggs

cotton , sorghu m, mille t, peanuts, rice , pota toes, manio c (tapio ca) ; ca ttle, sheep, goats, camels

wheat, barley, corn, potatoes; livestock, dairy products

Industrial Production Growth Rate Electricity Production

-5.5% (2009 est.) country comparison to the world: 110 4.11 trillion kWh (2008 est.) country comparison to the world: 1 150 million (2008) country comparison to the world: 2

NA
20.45 bil lion kWh (2009 est.) country comparison to the world: 7 2 1.18 mil lion (2011) country comparison to the world: 7 1

10.6% (2012 est.) 95 million kWh (2009 est.)

NA NA

Communications Telephones Main Lines in Use

31,200 (2011)

19,600 (2011)

Name. Ted Wolfe

Date. 9/16/13

Internet Users Transportation Railways Roadways (Paved and Unpaved Highways

231 million (2008) country comparison to the world: 2 total: 226,427 km country comparison to the world: 1 total: 6,465,799 km country comparison to the world: 1 paved: 4,209,835 km (includes 75,040 km of expressways) unpaved: 2,255,964 km (2007)

NA

168,100 (2009)

23,000 (2009)

total: 5,242 km country comparison to the world: 3 3 total: 25,554 km country comparison to the world: 1 0 1 paved: 724 km unpaved: 24,830 km

NA
total: 40,000 km

total: 9 km

total: 380 km country comparison to the world: 2 0 1 paved: 380 km

(2006)

(2010)

Airports with Paved Runways

total: 5,174

total: 39

total: 9

NA

Reflection: 1. How can the presence or absence of natural resources and arable land affect a nations economy, regardless of the type of economic system? With the presence of natural resources and arable land a nation can produce their own resources and be somewhat sustainable by itself with no outside resources or help. When theres an absence a nation cant do this.

2. How can life expectancy and literacy rates affect the quality of labor in the economy? A low life expectancy and low literacy rates affect the quality of labor in the economy by the workers not living long enough to have a sustainable workforce that has experience to know what to do. With low literacy rates the workers dont know how to do anything which leads to unemployment or working in a sweatshop.

3. How can fertility rates affect the use of scarce resources? Fertility rates can affect the use of scarce resources because with a high fertility rate there are too many babies and not enough resources to go around.

4. How can GDP per capita and poverty rates indicate standards of living in each system? GDP per capita and poverty rates can indicate standards of living in each system by showing the cost of living for a person and how many people are below the poverty line in each system.

Name. Ted Wolfe

Date. 9/16/13

5. How can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization? The size of the industrial/service sector and the agriculture employment rate can indicate the level of industrialization by showing how much of the population is industrial and how much is agriculture. It also shows the growth rate of the industrial sector.

6. How can electricity, communication, and transportation facilities indicate the potential for industrial growth? Electricity, communication and transportation facilities can indicate the potential for industrial growth by showing the rise of all these groups that contribute to the 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). Developing countries that dont have those three main assets cant really develop which is why theyre still developing. They need help to move up in the world.

8. Now that you have studied the economic characteristics of these three countries, define the terms market-oriented, command, and developing economy in your own words. For each term, describe the specific characteristics of the countries you studied that would help to support your definition. Market-oriented economy is where businesses decide what to make and buy. They make these decisions based on supply and demand. The higher the demand the higher the supply. Higher the demand less expensive a product is and vice versa. Lichtenstein is similar to this because they are a highly developed free enterprise country. Command economy is where the government decides what goods are produced and how they are and who they are for. Basically the government makes all the decisions and the citizens get no say. North Korea is exactly like this because its run by a dictatorship. Developing economy is where a country doesnt have much resources or money to produce anything. These are third world countries that have not much to offer except cheap labor. Chad is an example because their economy isnt very good and the percentage of people under the poverty line is 80%.