Do Now: Political Cartoons Cartoon 2 How would you describe each scene? Which store would you prefer to shop in and why?

Quiz on Wednesday! Wants Renewable Resources Needs Nonrenewable Resources Scarcity Human Capital Economics Financial Capital Trade-off Physical Capital Opportunity Cost Entrepreneurship Goods 4 roles of Entrepreneurship Services Production Economic Systems (4) Resources CELL Perpetual Resources

Economic Systems Objective: Define and describe four types of economic systems. “The production of too many useful things results in too many useless people.”  ― Karl Marx

Three Key Economic Questions Every society must determine…. 1. What to produce? 2. How to produce? 3. For whom to produce? How a society answers these three questions determines their economic system……

Economic Systems Economic System: the way a society decides what goods to produce, how to produce them, and for whom goods will be produced Do you think all societies will make the same decisions?

Types of Economic Systems Symbol Key Features Economic Goals Traditional Economy Command Economy Free Enterprise Economy Mixed Economy

Types of Economic Systems Symbol Key Features Economic Goals Traditional Economy Dictated by custom and tradition Stability Security Command Economy Government imposes economic choices Equity Free Enterprise Economy Individuals voluntarily exchange Freedom Efficiency Mixed Economy Blend of different systems Depends on the society

Directions: List the seven key characteristics of the American free enterprise system. Write a sentence explaining each characteristic. Give one example of where you have seen each characteristic in our economy. List and define all vocabulary (bolded and underlined)

Economic Systems Traditional System Command System Rely on traditions or customs to determine what occupations are available, how property is held, and what goods are produced Command System Government holds most property Government decides what is produced and how things are produced Free Enterprise (Market) System Individuals own most property and control the use of most resources People in their economic roles are free to make choices Mixed Systems Blend of traditional, command, and market systems Most Countries in the world have mixed economies

Review: Economic Systems Cartoon 1 Cartoon 2 Who or what decides what consumers get in each cartoon? Which economic system is represented in cartoon 1? Which economic system is represented in cartoon 2?

Review What are the three key economic questions? Define economic system What kinds of economic systems are there? What is a traditional economic system? What is a command economic system? What is a free enterprise economic system? What is a mixed economic system?

Inequality for All