The Crossing of Unlikely Paths: Freedom (Mixed Economy)
Trapped In (Traditional Economy)
Paths Cross (Market Economy)
This is Jon. Jon lives in the United States which is a mixed economy. A mixed economy is an economy in which the government controls some the resources and market prices, but the people also have some freedom in the economy, as they get to choose most of their resources and prices of their products.
Be Grateful (Command Economy)
This is Joel. Joel lives in Egypt which is a traditional economy. A traditional economy is an economy in which goods and services are produced the way they always have been. Due to the economic process of Egypt being so outdated, much of the society, like Joel, suffer from poverty, food and water scarcity, and constant struggle for success.
Too Many Options (Freedom of Choice)
Jon has been sending letters to Joel as a pen pal for a couple of weeks now. Joel expressed his need for new shoes, and Jon offered him a pair, but it would come at a cost. Joel needed to pay $10 for the pair of shoes. This is an example of market economy. A market economy is an economy in which the price of a product and resources are owned and controlled by the people of a country.
The Race for Profit (Competition)
In their most recent letters, Joel and Jon talked about the characteristics of their economy. Joel expressed how he didn't like how his economy worked because he didn't get payed very much but he worked a lot. Jon then said back that Joel should be at least grateful that his country's economy is not like that of North Korea's. North Korea's economy is an example of a command economy. A command economy is an economy in which the government controls every aspect of the economy.
Jon went to the Nike outlet to look for a pair of shoes to buy Joel. Joel told Jon a couple of days earlier that he wore a size 9 1/2 shoe. So, Jon looked at all the available shoes for size 9 1/2, and he came upon an extreme multitude of options. With the money Jon had, he could buy any pair that was available. This is an example of freedom of choice. Freedom of choice is having the ability to make decisions and accept the consequences of the decision.
Before Joel was able to send another letter back to Jon about the offer for the pair of shoes, a friend of Jon's in the US wanted to sell Joel pair of shoes as well, as Jon told his friend about his plan to give Joel a pair of shoes, but Joel can only afford one pair of shoes. This is an example of economic competition. Competition is the rivalry among businesses to sell their goods and services.