Economic Systems of the World. What are the major types of Economic systems ? How does each answer the 3 Basic Economic Questions? Traditional Market Command

Quick Draw: Pizza Party…its just pizza how hard can it be??—5 groups  How many Pizzas should we order for the class???  The School????  All high schools in Gwinnett County???  All high schools in Georgia???  All high schools in the USA????

Traditional Economic Systems

Tradition, Tradition, Tradition  What, how and for whom to produce are answered by ritual, habits, customs  Tribal Societies Across the world  Communal living, little private property  Advantages Disadvantages  Methods Work Subsistence living  Everyone knows Role Low standard of living Discourages new ideas Never changes

Time to Get Creative!!!!! 3 groups  Describe what each of the following would look like in a traditional economy  Waking up in the morning  You and your friends hangout in the afternoon  Going to get food for dinner

Command  Gov’t answers 3 Basic Economic Questions  No Private Property Total Government Control Rights Government owns all resources!!!!!  Strengths Weaknesses Quick Changes Central Planning Basic needs met Consumers Wants Ignored Everyone know role No incentives to work Massive Bureaucracy Day to Day Inflexibility

Circle the words that fit with Command Economies Lots of Choices government housing Economic freedom Karl Marx Merit Pay Joseph Stalin Cuba Incentives to work Basic needs met Get what you need Slow to change No Technology Equal distribution of Wealth Happy Consumers Government control Private Property Fast to change Day to day flexibility Central Planning North Korea Tribes Adam Smith

Expansion of Communism 

Market Economy: Capitalism USA, Japan, UK, South Korea, South Africa, Canada

Market economies: Capitalism  People/individuals answer the What, How, For Whom to Produce  Adam Smith- laissez faire “leave it alone”  Invisible hand of self interest StrengthsWeakness Flexible Slow to change Individual Freedom Allows Failure No government Does not meet needs Decentralized decision making Large Variety of Products High consumer Satisfaction Private Property Rights

Stop, Collaborate and Listen  What are the similarities and differences of Traditional and Command Economies? Command Marketl

Time to Think……  How would your life be different if you lived in a market economy??

Home work: Letter to a friend  You are living in Boys Communism, girls Traditional economic systems.  Write a letter to a friend living here in the USA. Discuss how your lives are different. Discuss what you like and do not like about your economic system and if you would prefer to live in the USA.  ¾ to 1 page in length

-Socialism is a blend of communism and capitalism. -The 3 Basic Economic Questions are answered by the government and individuals -The government owns and controls only key resources and industries while individuals own the rest of the resources and have private control of most businesses -Basic needs of the people are met by the government -People pay high taxes to fund things like healthcare, insurance, and other social services Limited -Economic Freedom -Voluntary Exchange -Profit Motive -Private Property Rights -There is a shared control of the economy between the government and people. LETS MIX THINGS UP WITH SOCIALISM!!!!!! China, Vietnam, Sweden, Venezuela

FILL IN THE BLANKS Economic System Private Ownership of resources Profit Motive Consumer Sovereignty CompetitionGovernment Regulation Distribution of Wealth Traditional Market/ Capitalism Command/ Communism Mixed/ Socialism