Types of Economies ELABORATE

Scenario You have been chosen as a contestants on the next season of a survival-based reality TV show. A packet arrives in the mail explaining the details of your contract. You may not bring any items with you on the journey. They have provided you with a form to complete where you need to create your “Survival Wish-List”. Consider what your true basic necessities are to survive; these are your NEEDS. Think of that items might be useful to make the conditions more bearable; these are WANTS.

Your Survival Wish-list Items I need to surviveItems I want to make life better

What items are “needs”- things we must have to survive? What were some items that were “wants”- things that improve our quality of life? Think About It: Items I need to survive Items I want to make life better

HOW PEOPLE GET WHAT THEY NEED: FOOD, HOMES, CLOTHING, MONEY… Types of Economies

The way a country produces, buys, and sells it’s goods and services varies around the world. Type of Economy DefinitionSynonymExamples

1.Traditional Economy  PEOPLE MEET THEIR NEEDS BASED ON CUSTOM.  FAMILIES PASS ON THEIR WORK TO THEIR CHILDREN.   PEOPLE LIVE A SIMPLER LIFE.

Native Groups in Central and South America Traditional Economy

Type of Economy DefinitionSynonymExamples Traditional People meet their needs based on custom. None Native Groups in Central and South America

Free Enterprise System Synonyms: Capitalism or Market Economy An economy where people make their own decisions about money and own businesses with little government interference. The individual decides: What to sell How much to make How much to charge

It’s important for everyone in a free enterprise not to cheat the system, lie about profits, or overprice goods and services. MORALITY AND ETHICS

Free Enterprise System U.S.A., Canada, Mexico, Haiti, Panama 1.Economic freedom- “I can choose my job, what I want to buy, and what I want to sell.” 2. Voluntary exchange- “I’ll sell you this, if you sell me that. Now let’s make a deal.”

Free Enterprise System 3. Private property- “I own my home and business.” 4. Profit motive- “If I work hard, I can make as much money as I want!” U.S.A., Canada, Mexico, Haiti, Panama

Type of Economy DefinitionSynonymExamples Free Enterprise System A type of economy where people make their own decisions and own their own businesses. Capitalism Market Economy USA Canada Mexico Haiti Panama Traditional People meet their needs based on custom. NoneNative Groups in Central and South America

Communism Synonym: Command Economy Government controls all industry and there is little private property. People do not decide what to sell or how much to charge for it.

Communism Synonym: Command Economy Cuba

Communism Synonym: Command Economy North Korea

Type of Economy DefinitionSynonymExamples Traditional People meet their needs based on custom. Native Groups in Central America Free Enterprise System A type of economy where people make their own decisions and own their own businesses. CapitalismUSA Canada Mexico Haiti Panama Communist Government makes all the decisions. There is no private property. Command Economy Cuba North Korea

Socialism Synonym: Mixed Economy PEOPLE MAKE MOST DECISIONS FOR THEMSELVES, BUT THE GOVERNMENT HAS SOME CONTROL.

Socialism Synonym: Mixed Economy EX: MANY EUROPEAN COUNTRIES FREE COLLEGE FREE MEDICINE FREE DOCTOR’S VISITS FREE CHILDCARE

Socialism Synonym: Mixed Economy “I CAN OPEN MY OWN BUSINESS AND THE GOVERNMENT WILL NOT INTERFERE.” “I GET FREE HEALTHCARE AND EDUCATION, BUT PAY VERY HIGH TAXES.”

Type of Economy DefinitionSynonymExamples Traditional People meet their needs based on custom. Native Groups in Central America Free Enterprise System A type of economy where people make their own decisions and own their own businesses. CapitalismUSA Canada Mexico Haiti Panama CommunistGovernment makes all the decisions. There is no private property. Command Economy Cuba North Korea SocialismMany, but not all, businesses are owned and controlled by the government. Mixed Economy Many European Union countries

Journaling Explain which economic system you believe is the best for a country to practice. Provide and explain at least 3 reasons supporting your opinion.

Show what you know: Read the description. Decide in which type of economy it would most likely be found. Free Enterprise System Communist Economy Socialist Economy Traditional Economy

People live off the land and sell their crops in village markets for items they need. Traditional Economy Show what you know:

Buyers and sellers make the decisions. FREE ENTERPRISE SYSTEM Show what you know:

Supply and demand determines how much an item costs. FREE ENTERPRISE SYSTEM Show what you know:

The food supply is rationed, or divided, so everyone gets the same amount. Communist Economy Show what you know:

Citizens receive a free college education, but also have freedom to make their own career and business decisions. Socialist Economy Show what you know:

Workers are free to work wherever they choose. FREE ENTERPRISE SYSTEM Show what you know:

Families pass on skills, land, and animals from generation to generation. Traditional Economy Show what you know:

Equal distribution of goods and services for everyone. Communist Economy Show what you know:

Competition limits the abuse of economic power. FREE ENTERPRISE SYSTEM Show what you know:

There is no unemployment. Communist Economy Show what you know: