Bell ringer 9/2  What makes the U.S. economy different from other countries? List 3 goals that you believe an economy should set for itself.

Three Economic Questions  What Goods and Services should be produced?  How should these goods and services be produced?  Who consumes these goods and services?

Economic Goals  Economic Efficiency Making the most of resources  Economic Freedom Freedom of gov. intervention in production and distribution  Economic Security and Predictability Assurance that goods and services will be available

 Economic Equity Fair distribution of wealth  Economic Growth and Innovation Leads to a higher standard of living

Small Group Discussion  Discuss with 2-3 other classmates On a separate sheet of paper tell me which of the economic goals we discussed you think the United States is accomplishing. ○ Give 2 examples of how the U.S. is meeting these goals. - Next, think of the goals that you believe that the U.S. is not accomplishing and tell me what ways you think the U.S. could go about meeting these goals.

Four Economic Systems  Traditional Economies  Market Economies  Centrally Planned Economies  Mixed Economies

Bell Ringer 9/4  What are some of the characteristics of a “Free Market”? (Use your book if needed) List examples of how many aspects of the U.S. Economy can be considered those of a Free Market?

Free Market Economy  Market-arrangement that allows buyers and sellers to exchange things  Why? Specialization

Free Market Economy Cont.  In a free market system, individuals and privately owned businesses own the factors of production, make what they want, and buy what they want

Circular Flow Diagram

-Household Consumers, Labor  Firm organization using the resources Transforms inputs (factors of production) into outputs (products)

 Factor Market Purchasing factors of production from households  Product Market Purchase the goods and services that firms produce

Self-Regulating Nature of Marketplace  How do they all cooperate? Self Interest Kgk

Adam Smith  Consumers in pursuit of their self- interest have the incentive to look for lower prices  Competition The struggle among the producers for the dollars of consumers  The Invisible Hand Describes the self-regulating nature of the marketplace

Critical Thinking and Review w/ a partner. COMPLETE WITH BELLRINGER FOR TODAY  How does specialization make us more efficient?  Why is complete economic equity difficult to achieve in a free market economy?  Explain what Adam Smith meant by “the invisible hand of the marketplace.”

Advantages of the Free Market 1. Economic Efficiency 2. Economic Freedom 3. Economic Growth 4. Consumer Sovereignty

Bell ringer 9/5 List 3 characteristics of an economic system that is the opposite of a free market? Be sure to consider who owns production and what different aspects go along with producing a good or service.

Centrally Planned Economy  Central Government answers key economic questions Gov. owns both land and capital

Socialism and Communism  Socialism Social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout society  Communism A political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government

Problems of Centrally Planned Economies  Could be used to jumpstart Economy  Poor quality  Serious shortages  Diminishing production

The Former USSR & China  Read pages 36 & 37 in your textbook  With a partner discuss - Explain 2 reasons why the Soviet Union would be classified as having a centrally planned economy. Use specific examples from the book! - Explain the affects the government had on agriculture and industry -Describe the impact of the economy on Soviet Consumers -Compare and contrast communism in China and the Soviet Union. In other words, how were their systems of communism similar? How were they different?

Modern Economies  Mixed Economies-Combine elements of two or more economic systems  Laissez Faire Doctrine that states government should not intervene in the marketplace

Circular Flow Diagram of Mixed Economy

Comparing Mixed Economies

Bell ringer 9/5  With a partner or small group, create a list of 7 different problems that could arise from a centrally planned government. From there, explain whether or not you believe that our government should have more influence on the economy or less. Be sure to support your viewpoint.

Traditional Economies  Based off of Customs, Habits, or Rituals.  Primarily based off of the barter system. (Trade)

 Read pg. 42 in textbook  Answer the “Applying Economic Principles” Questions in the bottom right hand corner.  On the same sheet of paper, develop a list of 6 pros and 6 cons of government involvement in the market place.

Groups for Country Research  1. Marco, Dakarai 2. Tamiah, Benjamin 3. Cierra, Marisol 4. Kristi, Aurelio 5. Edward, Diamond 6. Alanis, TaRezze 7. Sarah, Joshua 8. Corey, Kayla 9. Martin, Jalin 10. Tavion, Izel 11. Kamesha, Tyaun 12. Anya, Brenden 13. Kyle, Yaritza 14. Jaikese, Jari 1. MarcoDakaraiTamiahBenjaminCierraMarisolKristiAurelioEdwardDiamondAlanisTaRezzeSarahJoshuaCoreyKaylaMartinJalinTavionIzelKameshaTyaunAnyaBrendenKyleYaritzaJaikeseJari

Additional Study Guide Question  List the 5 Economic Goals that we discussed in class.