ࡱ>  nAbjbjWW .==8', , 8"$#)8Q7D{$((((((($[+ .(/"Q(3(8((VB'@(Dzc' ((0#)'x.E.(.(((#)., L: Comparative Economic Systems 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  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/index.html" 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  INCLUDEPICTURE "https://www.cia.gov/library/publications/the-world-factbook/graphics/flags/large/us-lgflag.gif" \* MERGEFORMATINET North Korea  INCLUDEPICTURE "https://www.cia.gov/library/publications/the-world-factbook/graphics/flags/large/kn-lgflag.gif" \* MERGEFORMATINET Chad  INCLUDEPICTURE "https://www.cia.gov/library/publications/the-world-factbook/graphics/flags/large/cd-lgflag.gif" \* MERGEFORMATINET Liechtenstein  INCLUDEPICTURE "https://www.cia.gov/library/publications/the-world-factbook/graphics/flags/large/ls-lgflag.gif" \* MERGEFORMATINET GeographyNatural Resources How many and what types of natural resources are available? 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 totalCoal, lead, tungsten, zinc, graphite, magnesite, iron, ore, copper, gold, pyrites, salt, fluorspar, hydropowerPetroleum, uranium, natron, kaolin, fish, gold, limestone, sand and gravel, saltHydroelectric potential, arable landLand Use What percentage of the land is arable (capable of being farmed)? arable land: 18.01% permanent crops: 0.21% other: 81.78% (2005) Arableland: 19.08% Permanent crops: 1.7% Other: 79.22% (2011)Arable land: 3.82% Permanent crops: 0.02% Other: 96.16% (2011)Arable land: 21.88% Permanent crops: 0% Other: 78.12% (2011) PeopleLife Expectancy at Birth How long are children born today expected to live? total population: 78.11 years country comparison to the world:  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/rankorder/2102rank.html?countryName=United States&countryCode=us®ionCode=na&rank=49" \l "us" \o "Country comparison to the world" 49  male: 75.65 years female: 80.69 years (2009 est.) Total: 69.51 years Country comparison to the world: 155 Male: 65.65 years Female: 73.55 years (2013 est.)Total: 49.07 years Country comparison to the world: 223 Male: 47.95 years Female: 50.22 years (2013 est.)Total: 81.59 years Country comparison to the world: 12 Male: 79.45 years Female: 84.29 years (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:  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/rankorder/2127rank.html?countryName=United States&countryCode=us®ionCode=na&rank=126" \l "us" \o "Country comparison to the world" 126 1.99 children born/woman (2013 est.) Country comparison to the world: 1314.8 children born/woman (2013 est.) Country comparison to the world: 241.69 children born/woman (2013 est.) Country comparison to the world: 171Literacy 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.) Definition: age 15 and over can read and write Total population: 100% Male: 100% Female: 100% (2008 est.)Definition: Age 15 and over can read and write Total population: 35.4% Male: 45.6% Female: 25.4% (2011 est.)Definition: age 10 and over can read and write Total population 100% Male: 100% Female: 100%GovernmentGovernment Type How are leaders elected?Constitution-based federal republic; strong democratic tradition Dictatorship Republic; president elected by popular vote for five-year termHereditary constitutional monarchyGovernment Spending as Percent of GDP (Budget Expenditures Divided by GDP). Find in Economy sectionGDP (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%)GDP (PPP): $40 billion (2011 est.) Budget revenues: $3.2 billion Expenditures: $3.3 billion (2007 est.) GDP (PPP): $21 billion (2011 est.) Budget revenues: $2.748 billion Expenditures: $2.979 billion (2012 est.)GDP (PPP): $3.2 billion (2009) Budget revenues: $1.29 billion Expenditures: $1.372 billion (2011 est.)Military Spending as a Percentage of GDP. Find in Military section4.06% of GDP (2005 est.) country comparison to the world:  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/rankorder/2034rank.html?countryName=United States&countryCode=us®ionCode=na&rank=28" \l "us" \o "Country comparison to the world" 28 N/AN/AN/AEconomyEconomy Overview What are the most serious economic problems facing each of these four nations? Summarize from Economic OverviewLong-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.One of the worlds most centrally directed and least open economies. Industrial capital stock is nearly beyond repair as a result of years of underinvestment, shortages of spare parts, and poor maintenance. Economic conditions have been positive in recent years, because of high international prices for oil and a strong local harvest. Chads economy has long been handicapped by its landlocked position, high energy costs, and a history of instability.Liechtenstein has developed into a prosperous, highly industrialized, free enterprise economy with a vital financial service sector and likely the second highest per capita income in the world. GDP Per Capita What is the value of goods and services produced per person?$46,400 (2009 est.) country comparison to the world:  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/rankorder/2004rank.html?countryName=United States&countryCode=us®ionCode=na&rank=11" \l "us" \o "Country comparison to the world" 11 $28 billion (2009 est.) Country comparison to the world: 168$2,000 (2012 est.) Country comparison to the world: 194$89,400 (2009 est.) Country comparison to the world: 2Population Below Poverty Line How many people live in poverty?12% (2004 est.) NA80% (2001 est.)NA%GDP Composition by Sector What % of GDP is industry and services?agriculture: 1.2% industry: 21.9% services: 76.9% (2009 est.) Agriculture: 23.3% Industry: 42.9% Services: 33.8% (2012 est.)Agriculture: 47.1% Industry: 9.2% Services: 42.7% (2012 est.)Agriculture: 8% Industry: 37% Services: 55% (2009)Labor Force by Occupation What % of workers is in agriculture?farming, forestry, and fishing: 0.7% Agriculture: 35% Industry and services: 65% (2009 est.)Agriculture: 80% (2006 est.) Industry and services: 20% (2006 est.)Agriculture: 0.8% Industry: 39.4% Services: 59.9% (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 Military products; machine building, electric power, chemicals; mining (coal, iron, ore, limestone, magnesite, graphite, copper, lead, precious metals), metallurgy; textiles, food processing; tourismOil, cotton textiles, meatpacking, brewing, natron, soap, cigarettes, construction materialsElectronics, metal manufacturing, dental products, ceramics, pharmaceuticals, food products, precision instruments, tourism, optical instruments Are the industries primarily producing for consumer or government consumption? Determine this by assessing the industries and their consumers answer not found at CIA WorldFactBookMostly producing for the consumer (private citizens)Mostly government consumption Mostly producing for the consumerconsumerAgriculture Products What are the primary agricultural goods produced?wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; fish; forest products Rice, corn, potatoes, soybeans, pulses; cattle, pigs, pork, eggsCotton, sorghum, millet, peanuts, rice, potatoes, manioc (tapioca); cattle, sheep, goats, camelsWheat, barley, corn, potatoes; livestock, dairy productsIndustrial Production Growth Rate-5.5% (2009 est.) country comparison to the world:  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/rankorder/2089rank.html?countryName=United States&countryCode=us®ionCode=na&rank=110" \l "us" \o "Country comparison to the world" 110 NA%10.6% (2012 est.) Country comparison to the world: 8NA%Electricity Production4.11 trillion kWh (2008 est.) country comparison to the world:  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/rankorder/2038rank.html?countryName=United States&countryCode=us®ionCode=na&rank=1" \l "us" \o "Country comparison to the world" 1 20.45 billion kWh (2009 est.) country comparison to the world: 7295 million kWh (2009 est.) Country comparison to the world: 197NACommunicationsTelephones Main Lines in Use150 million (2008) country comparison to the world:  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/rankorder/2150rank.html?countryName=United States&countryCode=us®ionCode=na&rank=2" \l "us" \o "Country comparison to the world" 21.18 million (2011) Country comparison to the world: 7131,200 (2011) Country comparison to the world: 17519,600 (2011) Country comparison to the world: 191Internet Users231 million (2008) country comparison to the world:  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/rankorder/2153rank.html?countryName=United States&countryCode=us®ionCode=na&rank=2" \l "us" \o "Country comparison to the world" 2 8 (2012) Country comparison to the world: 227168,100 (2009) Country comparison to the world: 14523,000 (2009) Country comparison to the world: 190TransportationRailwaystotal: 226,427 km country comparison to the world:  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/rankorder/2121rank.html?countryName=United States&countryCode=us®ionCode=na&rank=1" \l "us" \o "Country comparison to the world" 1 Total: 5,242 km Country comparison to the world: 33N/ATotal: 9km Country comparison to the world: 134Roadways (Paved and Unpaved Highwaystotal: 6,465,799 km country comparison to the world:  HYPERLINK "https://www.cia.gov/library/publications/the-world-factbook/rankorder/2085rank.html?countryName=United States&countryCode=us®ionCode=na&rank=1" \l "us" \o "Country comparison to the world" 1  paved: 4,209,835 km (includes 75,040 km of expressways) unpaved: 2,255,964 km (2007) total: 25,554 km country comparison to the world: 101 paved: 724 km unpaved: 24,830 km (2006)Total: 40,000 km Country comparison to the world: 88Total: 380 km Country comparison to the world: 201Airports with Paved Runwaystotal: 5,174 Total: 39Total: 9N/A 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? It can affect a nations economy because without natural resources there is nothing to make an economy out Of. Theres no businesses, nothing. 2. How can life expectancy and literacy rates affect the quality of labor in the economy? If life expectancy is shorter than the people work for shorter amounts of time, and literacy affects their abilityto work certain, and most jobs. So the quality would be lower if the rates were lower. 3. How can fertility rates affect the use of scarce resources? The more people that are born in the world, more resources are used.  4. How can GDP per capita and poverty rates indicate standards of living in each system? If there is more poverty then the standard of living in the country is probably a lot lower.  5. How can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization? If there is more need for industrial/service and agriculture employees than the level of industrialization would be higher.  6. How can electricity, communication, and transportation facilities indicate the potential for industrial growth? If there are more facilities than more can be used which means that the industrial growth could increase a lot. 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). When international prices are higher than they have a better chance of developing. Investment projects.  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 means that whatever is needed is what is produced and purchased such as Liechtenstein and the United states. Command economy is when the government has control over what is produced and who gets it, such as north Korea, where the government has strong control over everything. Developing economy is when a developing country is starting to slowly build its economy the best it can when it doesnt have the best natural resources, like Chad its not in the best location and doesnt have the best natural resources but it is slowly making its way into a better economy.      Aubree McNiven9/17/13 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.   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