Economic Systems Exam C

Government Unit E02

Name: Nikita Reznik
Date: 4/16/2020
TSW 1
Accurately describe of the following components of a political economy in your own words.

1. Social Expenditures:

_________________________________________________________________________________

_________________________________________________________________________________

2. Regulation:

_________________________________________________________________________________

_________________________________________________________________________________

3. Trade:

_________________________________________________________________________________

_________________________________________________________________________________

Explain the impact each of the following components has on the economy and their relationship to the
debate of Freedom and Equality.

4. Public Goods:

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

5. Taxation:

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

6. Money:

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

1
 Economic Systems Exam C
Government Unit E02
TSW 2
Accurately describe of the following economic systems in your own words.

7. Social Democracy:

a. A social democracy is an economic system that prioritizes both the individual freedom of its

citizens as well as their equality. Social democracies aim to make it that more citizens participate

in the state’s government, because the more people participate in the government the less of a

chance that most of the power will be in the hands of the few. Therefore, by ensuring equal

opportunities and rights, social democracies ensure that everyone’s freedom isn’t treaded on by

the minority or an elite.

8. Communism:

a. A communistic state aims to eliminate individual freedom in order to promote universal equality.

Communists believe that power should be allocated to the state, so that state can in turn make

sure that its citizens are free. By allowing too much unchecked freedom, individuals can start to

disregard the role of society, therefore to avoid that, freedom should be given up to ensure that

everyone works for “the greater good”.

Explain the similarities and differences between the following economic systems

9. Liberalism & Social Democracy

a. Liberalism hates the idea of government intervention. In the minds of liberalists, the best way for

a state to develop is to limit government intervention, for this allows individuals to do what is

right for them, which in turn pushes society forward. Therefore, liberalists promote individual

freedom above all, and equality isn’t as important as a result. Social Democracies on the other

hand, try to balance both freedom and equality, by promoting the idea that in order for people to

be free the government must ensure that everyone is equal. What’s the point of being able to do

anything you want, if you don’t have anything that you can do?

2
 Economic Systems Exam C
Government Unit E02
10. Liberalism & Mercantilism

a. Liberalism focuses above all else on individual freedom, so to ensure that their citizens can live

prosperous lives making money however they want without the government hindering that.

Mercantilist states don’t care about anything but the state. Mercantilists don’t care about freedom

or equality, they believe that if the state can benefit, everyone will benefit. If it benefits the state

to have individuals open their own businesses that will contribute to the economic growth of the

state, then the state will allow it. If the businesses however are a burden to the state, where the

state constantly needs to provide financial support for them, then the state will take the

businesses over and run them how they see fit.

11. Communism & Mercantilism

a. Communism prioritizes equality above all else, because communists believe that by not

allocating all power to the state, inequality will occur and that in turn will cause individuals to

exploit each other, not benefiting anyone in society. Mercantilist states don’t care about equality.

Having the state run everything is inefficient in the eyes of most mercantilists, therefore they will

only interfere in sectors that provide money for the whole economy, benefiting the entire state as

a result. Both systems value the “greater good”, just mercantilism doesn’t see it necessary to

exploit equality or freedom to achieve the greater good (just do what’s good at the moment).

TSW 3
Analyze the following states using the data presented.

Philippines Kazakhstan Columbia

GDP Per Capita $44,300 $46,500 $1,800
PPP $38,800 $36,000 $2,700
Gini Index 27 38 44
Happiness Index 7.1 6.5 5.7

HDI Philippines Kazakhstan Columbia

UN Human
10 11 142
Development Ranking
UN Health Ranking 20 1 173
UN Education
7 21 134
Ranking
3
 Economic Systems Exam C
Government Unit E02
UN Income Ranking 19 22 143
UN Gender-Equality
8 16 153
Ranking

12. Based on your analysis, rank the states in order from best to worst. You need to explain your answer
fully in order to show your understanding of the different economic measurement tools.
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
TSW 4
Throughout this section the author has offered several weaknesses and strengths of each of the economic
models. Describe the strengths and weaknesses of each of the following economic systems. Original
thought should be present in your description.

13. Social Democracy:

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
4
 Economic Systems Exam C
Government Unit E02
_________________________________________________________________________________
_________________________________________________________________________________

14. Communism:
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

15. Mercantilism:
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________