Economics Lesson Agenda Political versus Economic Systems T-chart The Purpose of the U.S. Gov’t Preamble Activity Homework: Current Events

What’s the Difference? Governmental versus Economic Systems There is a difference between economic and governmental systems These systems are independent of one another, yet do work together. Each nation has a system of government and economic system A government system addresses issues of who has both power and authority to make decisions for a nation, state, or community. An economic system describes who answers the three basic economic questions (what to produce, how to produce, and for whom to produce).

Both economic and governmental systems can be combined in a variety of ways Make a t-chart with Governmental Systems on one side and Economic Systems on the other. Place the terms and correct definitions appropriately on your t-chart chart. DEFINITIONS Blend of voluntary exchange and governmental control Collective ownership Rule by small group of people Rule by the people Rule by dictator Government planned and controlled system Trade and barter system Voluntary exchanges by buyers and sellers Rule by heredity Rule by religious authority SYSTEMS Traditional Democracy Communism Oligarchy Capitalism Authoritarian Theocracy Socialism Monarchy Mixed

How is our government involved in our economy? Dependent on the economic and governmental systems in place, government acts differently toward economic issues. How is our government involved in our economy? RECORD YOUR RESPONSES ON THE TOP OF THE WORKSHEET In the United States, the government derives its power and authority from the people. Their power is defined in the U.S. Constitution. The Preamble lists the purposes of government and the text of Article I: Section 8 of the Constitution grants specific powers to the federal government (legislative branch) with respect to the economy.

Role of Government in the U.S. Economy Read the text of the Preamble to locate the six purposes of government Next, explain what each purpose means in your own words Finally, pull examples from the class list (top of your paper) and Article I-Section 8 of the US Constitution (back side of your paper).