We are both business teachers and are going to travel around the world to restaurants in the capitals of multiple countries to show you the different economic systems and teach you what each means.
We're also going to discuss the 4 principles of capitalism and how they benefit the economy.
Setting: restaurant in Addis Ababa, Ethiopia
In Ethiopia, they have a traditional economy, meaning that goods and services are produced the way they have always been in the past.
In this restaurant, they have been making the same goods and services for many generations. This leads to an economy more centered around the family and ethnic group/culture.
France is controlled by a market economic system, which means that resources are owned and controlled by the citizens of the country.
Setting: restaurant in Paris, France
That means that in this restaurant, the owner makes decisions for his/her business such as prices, supply, and when a certain good or service is available to consumers.
Setting: restaurant in Havana, Cuba
Cuba falls under a command economy, meaning that economic resources are controlled by the government and the country's people have no say in regulations regarding their businesses, distribution, prices, etc.
This means that the owner of this restaurant has no say in production, pricing, or income because it is all regulated/decided by the government.
Setting: restaurant in Beijing, China
In China, they use a mixed economy which uses elements of both command and market economies.
This means that the government controls/regulates some businesses and parts of the economy, and the citizens control and make decisions for other businesses and aspects of the economy
Now that we've covered the 4 different types of economic systems, we can move on to the 4 principles of capitalism.
The 4 principles of capitalism are: Profit, Freedom of Choice, Competition, and Private Property.