Warm Up

Market economies vs command economies

Differences Market-Based Economies Two fundamental aspects 1) Private ownership of the means of production 2) Voluntary exchanges/contracts These answer: what to produce?/how to produce?/ and for whom? Commonly known as Capitalist

Differences Command-based economy Government controls all factors of production Commonly known as Communist Planned economy Where and how production is handled

Differences Draw a Venn Diagram One side lists Market based and the other list Command Based, the middle represents a mixed economy. List out the characteristics of each Include: Government’s role Individuals role What the markets look like What economic values to each value -Pie chart

3rd Economy? Traditional economy An economy based around traditions, customs, and beliefs of a culture Rules for goods and services production based on beliefs and culture Often rural and farm based Often use bartering as a system for currency Depend on agriculture, farming, fishing etc Have elements of capitalist, communist, and socialist economies

Economic Freedom Reports Part I Look at your Banished! Activity worksheet and look at the country you picked You need to start to determine what the economic environment looks like according to the data. Once you have completed the explanations, we will go through this as a class.

Economic Freedom Reports Part II Using the Economic Freedom Reports from various countries organize which countries are Market or Command based. You will then chose two countries (either two Market based, two Command Based or one of each) to compare and determine what their economic development. Engage with this for two reasons 1. We will be talking about this 2. This is a great study tool

Why is Communist China doing so well?