Show Me the Money / Economic Systems

Description

Writers use description to convey how something looks, acts, feels, tastes, sounds and so on.

describe
for example
for instance
most important
in front
beside
near
looks like
sounds like
such as
is a feature of
also another

To understand economic systems, we must first describe what it is. An economic system is the organizing structure of a society that chooses to answer basic economic questions such as what to produce, for whom to produce, who gets the goods and services, and how to produce goods and services.

Sequence or Timeline

Writers use sequence to explain how events or steps in a process take place.

first
second
third
before
after
next
at the same time
on
now
preceding
when
then
following

There are three basic types of economies: traditional, command and market.  In a traditional economy, economic decisions are made based on how things were done in the past. Occupations pass down from one generation to the next. Parents teach their children an occupation, which they then teach their children, and this continues on to each of the following generations.

Compare and Contrast

Writers use compare and contrast to explain similarities and differences.

similar
different from
although
instead
but
yet
likewise
like
unlike
also
too
both
in contrast
on the other hand
however

A command economy is very different from a traditional economy. Instead of letting the traditional ways of doing things determine economic activity, a command economy involves having the government make those decisions. The government determines what to produce, for whom to produce, and how to produce goods and services.

Cause and Effect

Writers use cause and effect to explain how an event caused another to occur.

causes
effects
as a result of
since
because of
for this reason
consequently
if
then
this led to
therefore
in order to
produces

In a market economy, the buyers and sellers make the economic decisions. Consequently, in this economic system, if the buyers do not like a seller’s product, the result is the seller goes out of business. Therefore, the seller wants to produce goods or services that people want to buy.

Problem and Solution

Writers use problem and solution to describe a problem and the steps taken to solve it.

because
the problem is
a solution is
the question is
difficulty
help
solve
one answer is
steps taken to solve (prevent)
solution
resolution
answer

Although most people think of the United States as a market economy, it is actually a “mixed market” economy because the government does make some economic decisions. Market failures require the government to take steps to solve the problem through fiscal or monetary policy solutions.