Comparative Economic Systems
What would life be like in the North Korean economy?
How would things be different in the economy of Chad?
Why is Liechtenstein so wealthy?
In this lesson, you will have the opportunity to compare these three economies to the U.S. economy, and you’ll practice using some tools that can help you to study any economy in the world.
1. Complete the data worksheet by using the CIA World Factbook at
- If you copy and paste answers – format text appropriately to ensure readability on final copy
- (suggested 8 pt. Arial font)
2. Answer the seven reflection questions after gathering the data.
3. Complete the assignment online and post to your weebly website
Data Worksheet
United States
/ North Korea/ Chad
/ Liechtenstein
Geography
Natural Resources – How many and what types of natural resources are available? / coal, copper, lead, molybdenum, phosphates, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, petroleum, natural gas, timber
note:the US has the world's largest coal reserves with 491 billion short tons accounting for 27% of the world's total / Coal, lead, tungsten, zinc, magnesite, iron, copper, gold, pyrites, salt, fluorspar, hydro power / cotton, sorghum, millet, peanuts, rice, potatoes, manioc (tapioca); cattle, sheep, goats, camels / hydroelectric potential, arable land
Land Use – What percentage of the land is arable (capable of being farmed)? / arable land: 18.01%
permanent crops: 0.21%
other: 81.78% (2005) / Arable land: 19%
Permenent crops: 1.7
Other: 79.22 / arable land: 3.82%
permanent crops: 0.02%
other: 96.16% (2011) / arable land: 21.88%
permanent crops: 0%
other: 78.12% (2011)
People
Life Expectancy at Birth – How long are children born today expected to live? / total population: 78.11 years
country comparison to the world:49
male: 75.65 years
female: 80.69 years (2009 est.) / Total: 69.51 / 50 / total population: 81.59 years
country comparison to the world:12
male: 79.45 years
female: 84.29 years (2013 est.)
Total Fertility Rate – How many children does each woman have, on average? / 2.05 children born/woman (2009 est.)
country comparison to the world:126 / 1.99 / 4.8 children born/woman (2013 est.) / 1.69 children born/woman (2013 est.)
country comparison to the world:171
Literacy Rate – What % of people over the age of 15 can read and write? / definition: age 15 and over can read and write
total population: 99%
male: 99%
female: 99% (2003 est.) / Age 15 and over
100% can read and write / 15 and over- 35.4% of total population / 100%
Government
Government Type –How are leaders elected? / Constitution-based federal republic; strong democratic tradition / Communist one man dictatorship / Republic-vote? / Hereditary constitutional monarchy
Government Spending as Percent of GDP (Budget Expenditures Divided by GDP). Find in Economy section / GDP (PPP): $14.26 trillion (2009 est.)
Budget: revenues: $1.914 trillion
expenditures: $3.615 trillion (2009 est.)
$3.615 trillion / $14.26 trillion = .25 (25%) / 40 billion / $21 billion (2012 est.)
country comparison to the world:129
$19.99 billion (2011 est.)
$19.89 billion (2010 est.) / $3.2 billion (2009)
country comparison to the world:179
$3.216 billion (2008)
$3.159 billion (2007
Military Spending as a Percentage of GDP. Find in Military section / 4.06% of GDP (2005 est.)
country comparison to the world:28 / NA / 5% (2012 est.)
country comparison to the world:64
0.5% (2011 est.)
13% (2010 est.) / No military- national police
Economy
Economy Overview – What are the most serious economic problems facing each of these four nations? Summarize from Economic Overview / Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. / North Korea has a struggling economy, shortages of crops and fuel, they receive much aid from China. 11 billion in debt with Russia. Kim Jong working on economy. / Chad's primarily agricultural economy will continue to be boosted by major foreign direct investment projects in the oil sector that began in 2000. / Highly industrialized, free enterprise economy, second highest capita income in the world. 20% tax rate
GDP Per Capita – What is the value of goods and services produced per person? / $46,400 (2009 est.)
country comparison to the world:11 / $1800 / $2,000 (2012 est.)
country comparison to the world:194
$1,900 (2011 est.)
$1,900 (2010 est.) / $89,400 (2009 est.)
country comparison to the world:2
$90,600 (2008 est.)
$89,700 (2007 est.)
Population Below Poverty Line – How many people live in poverty? / 12% (2004 est.) / NA / 80% / NA
GDP Composition by Sector – What % of GDP is industry and services? / agriculture: 1.2%
industry: 21.9%
services: 76.9% (2009 est.) / Agriculture: 23.3
Industry: 42.9
Services: 33.8 / agriculture: 47.1%
industry: 9.2%
services: 43.7% (2012 est.) / agriculture: 8%
industry: 37%
services: 55% (2009)
Labor Force by Occupation – What
% of workers is in agriculture? / farming, forestry, and fishing: 0.7% / Agriculture: 35%
Industry: 65% / 4.293 Million / agriculture: 0.8%
industry: 39.4%
services: 59.9% (2010)
Industries – What are the primary
industries? / leading industrial power in the world, highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining / military products; machine building, electric power, chemicals; mining (coal, iron ore, limestone, magnesite, graphite, copper, zinc, lead, and precious metals), metallurgy; textiles, food processing; tourism / oil, cotton textiles, meatpacking, brewing, natron (sodium carbonate), soap, cigarettes, construction materials / electronics, metal manufacturing, dental products, ceramics, pharmaceuticals, food products, precision instruments, tourism, optical instruments
Are the industries primarily producing for consumer or government consumption? Determine this by assessing the industries and their consumers – answer not found at CIA WorldFactBook / Mostly producing for the consumer (private citizens) / Government consumption because since they are a communist gov’t nothing goes through to the people without going through the gov’t / The people produce for themselves a lot. It’s sounds like they are getting away from traditional living and going into
Agriculture Products – What are the primary agricultural goods produced? / wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; fish; forest products / rice, corn, potatoes, soybeans, pulses; cattle, pigs, pork, eggs / cotton, sorghum, millet, peanuts, rice, potatoes, manioc (tapioca); cattle, sheep, goats, camels / wheat, barley, corn, potatoes; livestock, dairy products
Industrial Production Growth Rate / -5.5% (2009 est.)
country comparison to the world:110 / NA / 10.6% / NA
Electricity Production / 4.11 trillion kWh (2008 est.)
country comparison to the world:1 / 20.45 billion kWh / 95 million / na
Communications
Telephones – Main Lines in Use / 150 million (2008)
country comparison to the world:2 / 1.18 million / 31, 200 / 19600
Internet Users / 231 million (2008)
country comparison to the world:2 / NA / 23,000
Transportation
Railways / total: 226,427 km
country comparison to the world:1 / 5,242 / NA / 9 km
Roadways (Paved and Unpaved Highways / total: 6,465,799 km
country comparison to the world:1
paved: 4,209,835 km (includes 75,040 km of expressways)
unpaved: 2,255,964 km (2007) / total: 25,554 km
country comparison to the world:101
paved: 724 km
unpaved: 24,830 km (2006) / total: 40,000 km
country comparison to the world:88
note:consists of 25,000 km of national and regional roads and 15,000 km of local roads; 206 km of urban roads are paved (2011)
/ total: 380 km
country comparison to the world:201
paved: 380 km (2010)
Airports with Paved Runways / total: 5,174 / 39 / Na / na
Reflection:
1. How can the presence or absence of natural resources and arable land affect a nation’s economy, regardless of the type of economic system?
Well, if a country has a natural resource it can create jobs for people, because you need someone to extract it and since its already existing in that country they don’t have to pay anything for it, just the price of managing and extracting it then from there out its all profit.2. How can life expectancy and literacy rates affect the quality of labor in the economy?
If you have educated and literate workers there is a way less chance of injury on the job site and you can have people work for longer periods of there life because they have longer life expectancy.3. How can fertility rates affect the use of scarce resources?
With more and more kids being brought into the world they need stuff as well as everyone else so that resource is being used that much more.4. How can GDP per capita and poverty rates indicate standards of living in each system?
If the GDP per capita is high and the poverty rates are low you can indicate a good healthy standard of living where people have proper health care and housing for all. If the GDP per capita is low and poverty rates are high you can indicate that the people there are rather poor and this could lead to lack of health care and sick people thus a low life expectancy.5. How can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?
The size of the industrial/service sector and the agriculture can indicate how industrialized a country is.6. How can electricity, communication, and transportation facilities indicate the potential for industrial growth?
If a country has a sufficient electricity, sources of communication and transportation facilities then they have maximum potential for industrial growth.7. Considering the lack of natural resources, the labor problems, and the lack of capital and little industrialization of developing countries, how can developing countries develop? (Hint: Look at Economy - Overview for Chad).
Developing countries such as Chad can continue to gain profit on their oil sales, then continue to develop their gov’t then set up programs to get people the health care they need and put people back into work there and out of poverty.8. Now that you have studied the economic characteristics of these three countries, define the terms market-oriented, command, and developing economy in your own words. For each term, describe the specific characteristics of the countries you studied that would help to support your definition.
The US and Liechtenstein are developed countries with developed economies. Liechtenstein claimed to be a market oriented economy and the US is a mixed economy. Chad is a developing country they are just getting oil fields extracted and starting to make their economy sufficient.