Dow down 416 pts! - Why?

The Dow Jones Industrial Average went down 416 points on Tuesday, in relation to what happened to the Chinese Stock Market. I believe that the Chinese Stock market decline affected our Stock Market tremendously. This decline on the stock market created a hectic environment among stockholders because they know if the stock market is going down, they are losing money. The Chinese Stock Market was drastically increasing at one point, but on Tuesday Feb. 27 it went down by 9 percent. A lot of people decide to sell their stocks, and so making the stock market decline. Many people were concerned that the U.S. stock market was stumbling due to the overinflated Chinese stocks. China and the United States are closely linked because they are trade partners, so if something happens to Chinese economy, something is going to happen to our economy. The Dow Jones also went down due to a computer malfunction that slowed down the records of trade. This is the worst decline since after the terrorist attacks back in September of 2001.
This is definitely not as worst as the Great Depression, and I think that to many this might benefit them.

Opportunity Costs

Opportunity Costs are the costs that we pay when we decide to give up something in order to do something else. We usually always have to make a decision between two different things and the things that we give up are usually also the things that in our perspective might benefit us the less. For example, when we go out to buy food and have to decide to buy something nutritional for more money, instead of buying junk food for less, we are going to lose something that would have benefited part of us in some way. If I decide to buy the nutritional food instead, my cost is not being able to eat something that I enjoy the most. I guess there are always opportunity costs in the everyday things that we do, not only related to economics.

Types of Economic Systems

Research and Define these 4 major economic systems.

Traditional Economies: An economic system in which economic decisions are made based on customs, beliefs, religion and habits. TRADITIONAL ECONOMIES USE THE RESOURCES THAT THEY HAVE AVAILABLE TO THEM TO PRODUCE THE NECESSITIES OF LIFE. Traditional economies existed in earlier ages and in some industrialized nations today.

Centrally Planned (Command) Economy: is an economic system in which the state or government controls the factors of production and makes all decisions about their use and about the distribution of income. He planners decide what should be produced and direct enterprises to produce those goods. Important planned economies that existed in the past include the Economy of the Soviet Union, which was for a time the world's second-largest economy.

Market Economy:is an economic system in which the production and distribution of goods and services takes place through the mechanism of free markets guided by a free price system rather than by the state in a planned economy. In a market economy businesses and consumers decide what they will produce and purchase, as opposed to a planned economy where the government decides what is to be produced and in what quantities.

Mixed Economy:is an economy that has a mix of economic systems. It is usually defined as an economy that contains both private-owned and state-owned enterprises or that combines elements of capitalism and socialism, or a mix or market economy and command economy. This economy includes a degree of private economic freedom that mixes in centralized economic planning.

Communism: a theory advocating elimination of private property,a system in which goods are owned in common and are available to all as needed.

Socialism:refers to a broad array of doctrines or political movements that envisage a socio-economic system in which property and the distribution of wealth are subject to social control.

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