Economic Systems Chapter 6

To what extent do different economic systems affect quality of life? Guiding Question To what extent do different economic systems affect quality of life?

Introduction to Economics – House Budget Must Haves Include… Rent/Mortgage $1000 Heat/Electricity $200 Water/Sewage $50 The rest is up to you. Don’t forget…internet, cell phone, groceries, transportation, eating out, entertainment (be specific), clothing, savings, health, hair cuts, etc. In groups of 2 pretend that you are creating a budget for your household. Each group will be given $2500.00 for the month Create a list of priorities for your family and decide where the money will go to.

Budget Discussion Post Reflection Did your group buy everything that you needed and wanted with the money you had? Did you have enough money to meet your basic needs? If you had more money, what would you have budgeted for? How do you determine what was a priority and what was not?

Chapter 6 Introduction Pg 194 What you did in your groups is what governments do everyday They must determine what they are going to provide for their society based on the money (taxes) they collect Some governments provide extensive goods and services for their societies, and are very involved in economic decision making Others have more of a “hands off” approach by allowing private sector (buisnesses) and consumers to make economic decisions Governments base these decisions on the needs and wants of their society, as well as the values and belief system of the country they are running