I am so excited to visit all of these different places!
Freedom of Choice
Would you like something to eat?
Yes, I would like popcorn please.
Day One: Traditional economy and Private Property
I love that you all have your own place to live!
Ella is going on a trip to a few different countries to explore different types of economies. During this trip, Ella will also experience the 4 principles of Capitalism. The 4 Principles of Capitalism are beneficial to an economy because they help the businesses grow in many ways and they help people have freedom.
Day Two: Profit and Market economy
I can't wait to wear this jacket!
Ella is now getting ready for takeoff. As she is sitting down, she has the choice of eating on the plane, or eating when she gets to her destination. This is called Freedom of Choice. Freedom of Choice is the ability to freely make choices, it is also one of the Four Principles of Capitalism.
Day Three: Mixed economy
Ella's first stop was Haiti. Haiti has a traditional economy. A Traditional economy is when the goods and services are produced the way it has always been. In Haiti, Ella also experienced another Principle of Capitalism which is Private Property. The people in Haiti have there own hut or home to live in and it is only theirs. This is an example of this because private property is when you own, use, or dispose things of value.
Day Four: Competition and Command economy
Ella's next stop was France, she noticed France has a Market economy. A Market economy is when resources are owned and controlled by the people of the country. While she was in the store shopping, she decided to buy a jacket. When she buys this jacket, the store will make a profit off of what Ella bought. Profit is the money left from sales after operating costs of business have been paid. Profit is also one of the Four Principles of Capitalism.
Ella has now traveled to her third destination which is India. While she is looking through shops, Ella notices that India has a Mixed economy. A Mixed economy is the combined elements of command and market economies. This means India has resources and items that are controlled by the government and also controlled by the people.
I love the economy in India.
The last destination Ella went to was China. China has a command economy and this is when the resources are owned and controlled by the government. Ella wanted to go to a pastry store, but there were two different ones nearby. Ella needed to know which one was better and more affordable. This is competition, the rivalry among businesses to sell which encourages improved products and practices and lower prices. This is the 4th Principle of Capitalism. Ella loved her trip!