Official Course Description: MCCCD Approval: 02/26/91
ECN250 19916-19925	L+L	3 Credit(s)	3 Period(s)
World Economic Systems
A descriptive analysis of capitalist, socialist and mixed economies. Some consideration also given to the problems of less developed economies. Prerequisites: None.

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MCCCD Official Course Competencies:
ECN250   19916-19925	World Economic Systems

1.	Compare economic systems. (I)
2.	Evaluate economic systems. (II)
3.	Identify the key characteristics of a market economy (capitalism). (III)
4.	Describe how the market mechanism works. (III)
5.	List the strengths and weaknesses of a market economy. (III)
6.	Distinguish between the variants of capitalism as illustrated by the economies of the United States, Japan, and the United Kingdom. (IV)
7.	Identify the key characteristics of a socialist economy. (V)
8.	Distinguish between market and command socialism. (V)
9.	List the strenghts and weaknesses of a socialist economy. (V)
10.	Distinguish between the variants of socialism as illustrated by the economies of Hungary, Yugoslavia, and the Soviet Union. (VI)
11.	Identify the major problems of the developing countries. Illustrate by using Mexico as a case study. (VII)

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MCCCD Official Course Outline:
ECN250   19916-19925	World Economic Systems

I. Framework for Classifying Economic Systems A. Types 1. Traditional 2. Feudalism 3. Free Enterprise Capitalism 4. Regulated Capitalism 5. Fascism, Nazism 6. Command Socialism 7. Market Socialism B. Form of Classification 1. System of Ownership a. Social b. Private c. Tribal d. Shared 2. System of Coordination a. Tradition b. Market c. Indicative Plan d. Directive Plan 3. System of Incentives a. Material (greed) b. Coercion (fear) c. Mixed 4. System of Objectives a. Individual Freedom b. National Power c. Collective Security d. Mixed II. Economic Systems: Goal Evaluation A. Types of Goals 1. Individual Freedom 2. Level of Per Capita Consumption 3. Growth in Output 4. Equity in Income Distribution 5. Price Stability 6. Unemployment 7. Allocative Efficiency/Dynamic Efficiency B. Comparative Economic Statistics: Measuring Performance 1. National Income Comparisons 2. Measuring the Quality of Life 3. The Index Number Problem III. Capitalism and the Market Mechanism A. Characteristics of Capitalism 1. Private Property 2. The Profit Motive 3. The Price System 4. Individualism 5. Consumer Sovereignty 6. Freedom of Enterprise 7. Competition 8. Limited Government B. The Market Mechanism 1. The Circular Flow 2. Role of Money 3. Laws of Supply and Demand C. Pure Capitalism: An Assessment 1. Strengths a. Individual Freedom b. Allocative Efficiency c. Growth d. High Per Capita Consumption 2. Business Cycle Instability a. Business Cycle Instability 1. Umemployment 2. Inflation b. Externalities 1. Spillover Costs 2. Spillover Benefits c. Skewed Income Distribution IV. Varieties of Capitalism: From Less to More Regulation A. The United States Economy 1. Industrial Organization 2. Role of Government, Trade Unions 3. Economic Appraisal a. Economic Growth b. Inflation c. Unemployment d. Analysis of other Goals B. True Economy of Japan 1. Industrial Organization 2. Role of Government, Trade Unions 3. Economic Appraisal a. Economic Growth b. Inflation c. Unemployment d. Analysis of other Goals C. The United Kingdom 1. Industrial Organization 2. Role of Government, Trade Unions 3. Economic Appraisal a. Economic Growth b. Inflation c. Unemployment d. Analysis of other Goals V. Socialism A. Historical Development of Socialism B. Influence of Max and Engles C. Characteristics of Socialism 1. Limited Private Property 2. Profit Motive Deemphasized 3. Use of Economic Planning 4. Large Government 5. Narrow Income Distribution 6. Limited Competition D. Market Socialism versus Command Socialism 1. Market Socialism a. Greater reliance on market mechanisms b. Use of indicative planning c. Smaller role of government d. Use of material incentives 2. Command Socialism a. Less reliance on market mechanism b. Use of directive planning c. Large role of governmet d. Use of material and coercive incentives E. Socialism: An Assessment 1. Strengths a. Lack of (or diminished) business cycle 1. Less unemployment 2. Less inflation b. Narrow income distribution 2. Weaknesses a. Diminished consumer sovereignty b. Slowness, inflexibility of economic planning c. Concentration of power d. Loss of allocative, dynamic efficiency VI. Varieties of Socialism: From Command to the Market A. The Soviet Union: A case student in command socialism 1. Mix of politics and Economics: The role of the communist party 2. Economic Planning a. Types of plans b. The planning cycle c. Public finance d. Money and Banking 3. Organization of industry: The soviet enterprise 4. Channels of Distribution 5. Agriculture and Trade Unions 6. Income Distribution 7. Economic Appraisal a. Economic Growth b. Consumption c. Other Goals 8. The Soviet Future B. Hungary and Yugoslavia: Two case students in market socialism 1. Role of Economic Planning 2. Role of the Market Mechanism 3. Yugoslav and Hungarian Enterprises 4. Banking Systems 5. Role of Labor 6. Economic Appraisal a. Growth b. Inflation and Unemployment c. Other Goals 7. The Future of Economic Reform VII. Economic Systems of the Less Developed Countries A. Problems of the Less Developed Countries 1. Characteristics of Less Developed Countries 2. Nature of Economic Development 3. Theories of Economic Developmet 4. Obstacles to Economic Development 5. Possible Solutions B. Mexico: A case study 1. History of Mexico 2. The Economic System 3. An Appraisal of the Mexican Economy

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