Unit 3. THE ECONOMY

This week  we are working on the Market Economy. Previously in class we learnt about the different types of economic systems in the World. subsistence, communist, and capitalist  system.

A capitalist or  market economic system is a type of economic system where supply and demand regulate the economy. In a market economy most of the decisions are made by buyers and sellers, not by the goverment. Free competition and private ownership are guaranteed.

Although market economy has advantages, such as a higher quality of products and lower prices because of competition, it also has many disadvantages, such as difficulties for poor people, and greed as a principle of the economy.

Download the activity sheet that I have handed out in class.

TASK

1. Go to the site of the North Korea Government and explore the "bussiness" part the differences between a market and planned economy.

List three aspects which shows that it is a planned economy.