Dec 14, 2013

World Economies

Economy is a system in which money is transferred, obtained, or given. It is important for a country to have an  good economy so the country can have enough income to fund businesses and fund their own expenses. The economy also tells if the country's living standard is good or bad. These are called economic indicators. The following list contains the 4 indicators. 

GDP ( Gross Domestic Product)- the salary of the average family in a country 
High for good country

Literacy Rate- percentage of people who could read and write in country 
High for good country

Life Expectancy- how long an average person is expected to live in a country
High for good country

Infant Mortality Rate- number of deaths in 1,000 births 
Low for good country 

There are 3 kind of economies.

Free Enterprise System- economy in which anybody can start a business and receive income, and production of goods are based on the people, not the government, government regulations  protect the workers and consumers.  

Socialism- economy in which there are high taxes, and it operates for the welfare for all. 

Communism- economy in which it is SUPPOSED to be good, by all goods and services are shared equally, the government owns all businesses and tells what the businesses can produce and sell, they also tell the prices, and no private property is allowed, but healthcare and education is free because it is government funded.


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