Entrepreneurship Intensive Training ECONOMIC WORKSHOP Entrepreneurship Intensive Training

WORD SPLASH goods wants government exchange services needs consumers Essential Question: What is an economy? Use the words on this page to write a definition for economy. exchange services needs consumers

Definition Economy How producers, consumers and the government decide how to exchange goods and services to meet needs and wants of society

What are the types of economic systems? Market Mixed Command Traditional

Traditional Economy An economic system in which economic decisions are based on customs and beliefs People will make what they always made & will do the same work their parents did

Traditional Economy Who decides what to produce? People follow their customs and make what their ancestors made Who decides how to produce goods & services? People grow & make things the same way that their ancestors did Who are the goods & services produced for? People in the village who need them

COMMAND ECONOMY ALL businesses owned by the government.

MARKET ECONOMY ALL businesses owned by private citizens

Mixed Economy Market + Command = Mixed There are no pure command or market economies. To some degree, all modern economies exhibit characteristics of both systems and are often referred to as mixed economies.

Mixed Economy Who decides what to produce? businesses Who decides how to produce goods and services? Businesses, but the government regulates certain industries Who are the goods and services produced for? consumers

Economic questions: WHAT goods and services will be produced? HOW will goods and service be produced? FOR WHOM will goods and services be produced?

Pure vs. Mixed Now that you have learned about the different types of economic systems, where do you think the United States is on this continuum? Be prepared to share your answer. Pure Command Pure Market

LET’S REVIEW

Summarizing Activity Partner A (First Name is first alphabetically): Tell your partner your answer to the first essential question. What is an economy? Partner B (The other person): Listen to your partner’s answer to the second essential question. What are the four different types of economies?

Summarizing Activity- Last Word E C Write words or phrases that show what you have learned about the economy. O N O M Y