In this exercise, we will build three societies: pure capitalism, mixed capitalism, and pure socialism. On...

  

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In this exercise, we will build three societies: pure capitalism, mixed capitalism, and pure socialism. On the last page of this document, there is a diagram portraying a generic society. We cannot tell what type of economic system it has just by looking at it. The stick figure, whose name is Sticky, plans to develop a piece of real estate into residential or commercial use. Developing real estate development requires many players. Look at the diagram, starting from the top left, there are raw material providers, building material retailers, and builder/construction companies, including all subs. On the right, there are Central National Bank, Secondary Market, and institutional and non-institutional lenders that finance the project. Task. Choose one role to play in this project. Describe what it would be like to work in each of the three economic systems: pure capitalism, mixed capitalism, and pure socialism. Use your imagination and creativity. You may present your role in narrative form or you can write a business letter, email, copy of an advertisement, conversation, or any economic activity you can describe. Here are some possible roles to choose from: banker processing loan applications, construction company, government official such as Federal Reserve chairman, manager of a credit union, concrete subcontractor, seller of raw material, property manager, and real estate agents. It is important to show that you understand the three types of economic systems by not contradicting your roles in each system. For example, in a command economy, I would not be able to say that I own 20 acres of forest land because the government owns all natural resources. k Raw material provider Logging co. Steel co Construction material Co. GENERIC TEMPLATE OF A REAL ESTATE DEVELOPMENT Building material retailer Contractor Builder Construction co. GOVERNMENT Central National Bank (Federal Reserve) hi Housing Office buildings Industrial buildings Commercial properties land Secondary markets Lenders Banks Savings and Loans Credit Unions In this exercise, we will build three societies: pure capitalism, mixed capitalism, and pure socialism. On the last page of this document, there is a diagram portraying a generic society. We cannot tell what type of economic system it has just by looking at it. The stick figure, whose name is Sticky, plans to develop a piece of real estate into residential or commercial use. Developing real estate development requires many players. Look at the diagram, starting from the top left, there are raw material providers, building material retailers, and builder/construction companies, including all subs. On the right, there are Central National Bank, Secondary Market, and institutional and non-institutional lenders that finance the project. Task. Choose one role to play in this project. Describe what it would be like to work in each of the three economic systems: pure capitalism, mixed capitalism, and pure socialism. Use your imagination and creativity. You may present your role in narrative form or you can write a business letter, email, copy of an advertisement, conversation, or any economic activity you can describe. Here are some possible roles to choose from: banker processing loan applications, construction company, government official such as Federal Reserve chairman, manager of a credit union, concrete subcontractor, seller of raw material, property manager, and real estate agents. It is important to show that you understand the three types of economic systems by not contradicting your roles in each system. For example, in a command economy, I would not be able to say that I own 20 acres of forest land because the government owns all natural resources. k Raw material provider Logging co. Steel co Construction material Co. GENERIC TEMPLATE OF A REAL ESTATE DEVELOPMENT Building material retailer Contractor Builder Construction co. GOVERNMENT Central National Bank (Federal Reserve) hi Housing Office buildings Industrial buildings Commercial properties land Secondary markets Lenders Banks Savings and Loans Credit Unions

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Role Construction Company Pure Capitalism In a purely capitalist society the construction company operates in a market with minimal government intervention The company is driven by the profit motive a... View the full answer