When we talk about the different “market systems” in the world, it is often really a discussion about how much Government Involvement there is in an economy that determines whether a country is considered “capitalist” with a laissez faire approach or a “command” economy with total government intervention or some sort of “mixed economy”. You have observed the Index of Economic Freedom that measures how much government involvement there is in various countries. You can clearly see that the United States is not at the top of the list which indicates that we do not have a completely “capitalist” economy. Many would described a “mixed economy” with more government intervention as “socialist” which means that an economy is democratic but has more government involvement in it’s market system than would a capitalist economy.
When you think “market systems” and about the 3 fundamental questions and how an economy answers those, I would like you to view a video of your textbook author, Dr. Brad Schiller, on our Lake Worth campus and his lecture on the Cuban Economy.
https://palmbeachstate-mtis.mediaspace.kaltura.com/media/CubaA+Past+Declines+%26+Future+Prospects/1_xnmbuonz/23571881 (Links to an external site.)
After viewing the lecture, please post the following:
1. How you see this lecture relating to the above discussion of production possibilities, market systems and the 3 fundamental questions from Chapter 1. Chose one “concept” and discuss in some detail
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