Economic Systems Capitalism, Communism and Socialism Michael Quinones, NBCT

___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ APK: Activation of Prior Knowledge Write at least 3-5 sentences describing a time when… you had absolutely no choice[s] with regard to what you wanted/needed to buy or you had so many choices to choose from you didn’t know where to begin [you select either of these prompts]. Question of the Day [Use specific examples from what you learn] How can governments impact consumers and producers?

Terms, topics and information to keep track of and take notes on Economy Economy Market economy Market economy Command Economy Command Economy Mixed economy Mixed economy Capitalism Capitalism Socialism Socialism Communism Communism

Economy The mechanism [fancy word for way or device] and practice of people exchanging items of value. The mechanism [fancy word for way or device] and practice of people exchanging items of value. Deals with the production [making], distribution [giving out] and consumption [use or buying] of goods and services. Deals with the production [making], distribution [giving out] and consumption [use or buying] of goods and services.

Market Economy Producers and consumers decide what, when and how the factors of production are used. Producers and consumers decide what, when and how the factors of production are used. Consumers have many different types of choices of products. Consumers have many different types of choices of products. different types of choices of products different types of choices of products Government’s role is very limited. Government’s role is very limited.

Command Economy The government owns nearly all factors of production such as land and capital. The government owns nearly all factors of production such as land and capital. Government makes all decisions on production. Government makes all decisions on production. Consumer has fewer choices. Consumer has fewer choices. Consumer has fewer choices Consumer has fewer choices Communist Dictator Fidel Castro

Mixed economy Most typical economy in the world. Most typical economy in the world. Most businesses privately owned and most decisions left to producers. Most businesses privately owned and most decisions left to producers. Government regulates certain areas of business as a way to protect consumers. Government regulates certain areas of business as a way to protect consumers. Government agencies help regulate [control and make rules] companies so citizens and customers can be protected against abuse. Government agencies help regulate [control and make rules] companies so citizens and customers can be protected against abuse. Government agencies Government agencies

Capitalism System that prevailed in the United States for many years. System that prevailed in the United States for many years. Main goals: Main goals: Free and open market. Free and open market. Free and open market Free and open market Privately owned business. Privately owned business. Generate a profit. Generate a profit.

Socialism System common in South America and Asia. System common in South America and Asia. Factors of production owned collectively by groups of people. Factors of production owned collectively by groups of people. Factors of production owned collectively by groups of people Factors of production owned collectively by groups of people Worker Unions and other organized labor groups have forced this due to abuses by the rich. Worker Unions and other organized labor groups have forced this due to abuses by the rich. Goals: to provide equality in ownership of resources Goals: to provide equality in ownership of resources Venezuela’s president Hugo Chavez Peruvian rebels Tupac Amaru

Communism Economic system that prevailed in the former Soviet Union and exists in a different form in present day China. Economic system that prevailed in the former Soviet Union and exists in a different form in present day China. Nearly all factors of production controlled by the government. Nearly all factors of production controlled by the government. Often corruption at the top results in suffering for country as a whole Often corruption at the top results in suffering for country as a whole Often corruption at the top results in suffering for country as a whole Often corruption at the top results in suffering for country as a whole Goals: To maintain tight government control over the economy Goals: To maintain tight government control over the economy

Closure Assignment: RAFT paper Write a first person narrative essay as if you were person living and working under one of the economic systems or economies we have just learned about [capitalism, socialism, communism, market, mixed or command]. Write a first person narrative essay as if you were person living and working under one of the economic systems or economies we have just learned about [capitalism, socialism, communism, market, mixed or command]. Some suggested ideas include but are not limited to: Some suggested ideas include but are not limited to: 1. Worker 2. Government official 3. Consumer 4. Producer You might choose to complain or support the practices and results of the economies and economic systems that you choose to write about. You might choose to complain or support the practices and results of the economies and economic systems that you choose to write about.