Lesson 7: Singapore

Introduction

In this lesson, students learn about the strong economic growth of the Singapore economy since achieving national sovereignty in 1965 and examine the unique mixed economy that brought about that growth.

Key Terms

Incentives
A factor that influences behavior. Incentives can be rewards or punishments, monetary or non-monetary.

Institutions
Laws, customs, moral principles, superstitions, and cultural values influence people’s choices. The institutions of an economy set out and establish the incentive structure and the basic design of the economic system.

Laissez-faire
A French phrase that means “let people do as they choose.” Laissez-faire economies allow private transactions of individuals without government interference.

Market Economy
An economy that relies on a system of interdependent market prices to allocate goods, services and productive resources and to coordinate the diverse plans of consumers and producers, all of them acting according their self-interest.

Mixed Economy
An economy that combines elements of both market and socialist economies.

Property Rights
Legal protection for the ownership of tangible or intangible resources.  Property rights give the holder the ability to do with that property what they choose, including holding on to it, selling it or transferring it to someone else.

Socialist Economy An economy in which the state controls resources and makes decisions about production and equitable distribution.

Objectives

Students will be able to 

• Define Mixed Economy.
• Explain the paradox of Singapore’s market economy with strong government controls.
• Identify the institutions of the Singapore Economy: property rights, rule of law, open markets, and strong cultural norms of self-reliance.

Voluntary National Content Standards in Economics

CONTENT STANDARD 4: Incentives

Students will understand that People usually respond predictably to positive and negative incentives.

• Benchmark 1: Acting as consumers, producers, workers, savers, investors, and citizens, people respond to incentives in order to allocate their scarce resources in ways that provide them the highest possible net benefits.

CONTENT STANDARD 10: Institutions

Students will understand that Institutions evolve and are created to help individuals and groups accomplish their goals. Banks, labor unions, markets, corporations, legal systems, and not-for-profit organizations are examples of important institutions. A different kind of institution, clearly defined and enforced property rights, is essential to a market economy. 

• Benchmark 1: Property rights, contract enforcement, standards for weights and measures, and liability rules affect incentives for people to produce and exchange goods and services.

Time Required

45 minutes