Southwest Asia The Middle East FSMS 7th Grade Social Studies; Unit 3 Production, Distribution & Consumption (Economic Systems) Georgia Standard SS7G7a.b

The Middle East Production, Distribution & Consumption Standard SS7E5 The student will analyze different economic systems. a. Compare how traditional, command, and market economies answer the economic questions of (1) what to produce, (2) how to produce, and (3) for whom to produce. b. Explain how must countries have a mixed economy located on a continuum between pure market and pure command.

FIRST FIVE Agenda Message: All late or missing assignments are due by Thursday, November 8th. SWA Country Projects due on Thursday, November 15th followed by presentations. Standard: Compare how traditional, command, and market economies answer the three basic economic questions. E.Q. Monday; 11/5/18: What are the three (3) basic economic questions that must be answered by all economies? Warm Up: Provide a brief description of the types of government for Israel, Saudi Arabia & Iran. TODAY WE WILL Start Economies

ANSWERS E.Q. Answer for Monday November 5, 2018: What goods and services will be produced How will goods and services be produced, & Who will consume or use the goods and services that are produced. Warm-Up Answer: Israel – Parliamentary Democracy Saudi Arabia – Hereditary Monarchy Iran – Theocracy (or Theocratic Republic)

FIRST FIVE Agenda Message: All late or missing assignments are due by Thursday, November 8th. Announcement for Select-A-Project Due Friday December 14th. Standard: Compare how traditional, command, and market economies answer the three basic economic questions. E.Q. Wednesday; 11/7/18: Why are economies important to all countries? Warm Up: Provide a brief description of the types of government for Israel, Saudi Arabia & Iran. TODAY WE WILL Introduction to Economies

ANSWERS E.Q. Answer for Wednesday November 7, 2018: All societies must deal with limited resources while providing goods and services for its people. Economics allows for those limits to be managed effectively. Warm-Up Answer: Israel – Parliamentary Democracy Saudi Arabia – Hereditary Monarchy Iran – Theocracy (or Theocratic Republic)

ECONOMICS Definition: Economics is the study of production, consumption and amassing of wealth.

The Middle East Production, Distribution & Consumption Why do Nations Need Economic Systems? Every society must deal with providing goods and services for its people. Each society must develop an “economic system” that can help them manage the limited resources of that society.

The Middle East Production, Distribution & Consumption Three basic economic questions must be answered: What goods and services will be produced? How will these goods and services be produced? Who uses, or consumes, the goods and services that are produced?

The Middle East Production, Distribution & Consumption A Traditional Economy In a traditional economy, economic decisions are made are based on the “custom and on habit” of how such decisions were made in the past. (The word tradition means something that has been passed down in a culture from one generation to the next.)

The Middle East Production, Distribution & Consumption Traditional Economy cont. Many traditional economies are found in rural areas where people depend on members of their extended families and where the work is often subsistence farming, herding animals, or working in simple crafts.

The Middle East Production, Distribution & Consumption Often very little money changes hands in a traditional economy. Bartering, or trading goods and services, replaces money as a way of paying for things people need. In Southwest Asia, traditional economies can still be found in rural areas of many of the countries of this region.

The Middle East Production, Distribution & Consumption Traditional Economy cont. No modern country today can be described as having a primary traditional economy.

The Middle East Production, Distribution & Consumption A Command Economy A command economy is a more centralized economy, one in which “government planning groups” make most of the basic economic decisions for the workers. A central planning group would decide which goods and services should be produced, as well as prices for the goods and wages paid to the workers.

The Middle East Production, Distribution & Consumption Command Economy cont. No individual could decide to start a new business on his or her own. The government would decide what to produce and who would own the places where the goods were produced. The government would also decide what jobs the workers would do and how and where the goods produced would be sold.

FIRST FIVE Agenda Message: TODAY is the last day to turn in Late or Missing assignments. After-school tutoring is available TODAY from 4- 5p. Parents will need to pick you up by 5p. Standard: Compare how Traditional, Command, and Market economies answer the 3 economic questions. E.Q. Thursday; 11/8/18: Who answers the three basic economic questions in a Market Economy? Warm Up: What are the three basic economic questions? TODAY WE WILL Economic Systems

ANSWERS E.Q. Answer for Thursday November 8, 2018: Individuals consumers decide what to produce, how to produce and what to buy. Warm-Up Answer: What goods and services will be produced How will goods and services be produced, & Who will consume or use the goods and services that are produced.

The Middle East Production, Distribution & Consumption A Market Economy The third type of economic system is a market economy, one in which a society’s economic decisions are made by “individuals “ who decide what to produce and what to buy. Other names for a market economy are capitalism, free enterprise, or laissez-faire (a French phrase that means “to allow them to do as they please”). Many countries in Southwest Asia use a market system or free enterprise system.

The Middle East Production, Distribution & Consumption Standard SS7E5 The student will analyze different economic systems. b. Explain how must countries have a mixed economy located on a continuum between pure market and pure command.

The Middle East Production, Distribution & Consumption A Mixed Economy Nearly all modern economies in the world today have characteristics of both market and command economic systems. That is why they are called mixed economies. Traditional economies are very hard to find and could not function effectively for a whole nation. Nearly all countries in Southwest Asia today would be described as mixed economies.

FIRST FIVE Agenda Message: Last day to work in-class on SWA Country Project is this coming Monday. Project presentations start November 15th. Standard: Compare and contrast the economic systems in Israel, Saudi Arabia, Turkey, and Iran. E.Q. Friday; 11/9/18: Why has Saudi Arabia found it necessary to change its economy? Warm Up: What type of economy do most modern nations in the world have? TODAY WE WILL: Introduction to Economies Comparative SWA Governments, Chapter 22.

ANSWERS E.Q. Answer for Friday November 9, 2018: In the 1980’s, realizing that oil wouldn’t last forever, Saudi Arabia saw the need to diversify its economy. Warm-Up: Mixed Market Economy