Economies in Transition COPY and Define in binder LEQ1: How does the transition from command to market effect individual’s and the nation’s economy as a whole? VOCABULARY – INFLATION UNEMPLOYMENT PRIVATIZATION TRADE-OFFS

Making Transitions (copy in binder) Think About It and Discuss It What Economic System is it like living with your parents? Why? What Economic System is it like living on your own? Describe the transition that you would experience going from living with your parents (Command Economy) to living on your own (Market Economy). Food/Clothing Home Jobs Loans

Command to Market Economy (copy in binder) Positives Negatives More Products More Private Ownership More Efficiency Higher Wages Luxury Goods Increase in Standard of Living Unemployment Inflation (Rise in Prices) Debt Homelessness Greed Strikes

A Real Economic Transition Individual Assignment Use the reading packet to complete the activity DO NOT WRITE ON THE READING.

Public to Private Objectives – Think/Pair/Share – Define privatization Understand transition from public to private Identify problems of privatizing a state-owned enterprise Think/Pair/Share – Our society has applauded the efforts of nations of Eastern Europe to make the transition toward market economies. In a society that believes in free markets, why is there so little freedom of choice in our public education system? Answer question in binder. Share with partner. Be prepared to share discussion with class

Activity #1 – Vouchers for Schools Read “Part 1 – Proposal” Individually Write any questions you have about the proposals in your notebook WHO HAS QUESTIONS ABOUT THE PROPOSALS? Read “Part 2 – Economic Reasoning” Instructions as a class Each table will be assigned three statements In your binder, analyze your statements by completing A through D for each. Make sure to write the number of the statement. T/P/S – In a society that believes in free market, why is there little freedom of choice in our education system? (complete in binder)

Transition within the former Soviet Union (copy in binder) Newly independent states transitioning to market economy No longer state-run enterprises Extremely difficult process WHY?

Activity #2 – Read “Privatization in Transition Economies” Answer questions in COMPLETE SENTENCES. Use DETAILS and EVIDENCE from the reading to support your answer. COMPLETE IN YOUR Binder. LABEL PAPER CORRECTLY.

Exit Ticket Analyze the data on the left. Speculate about that factors that would influence how quickly these countries were able to privatize. HINT - (explain why some countries were able to and others not) TURN INTO BIN

Going from Command to Market Diary Create a diary with at least 5 entries explaining the transition your country is going through as it switches from a Command to Market Economy. (Be Specific) Each entry must be at least 3 sentences. What did you have before in a Command Economy and how is it changing in a Market Economy? TURN INTO BIN