What is Scarcity? The idea that there are not enough resources to meet everyone’s needs & wants.

What is Economics?????? Economics is the study of how people manage their resources.

Today’s Standard analyze economic systems SS6E5 The student will analyze different economic systems. Comparetraditional, command, and market, economies answer the economic questions what howfor whom to produce 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. Explain how most countries have a mixed economy b. Explain how most countries have a mixed economy located on a continuum between pure market and pure command.

Intro to our……. “Essential Question(s)” What types of economic systems exist in the world today?

Types of Economic Systems Types of Economic Systems Traditional- customs & habits of a society will determine what will be produced & how it will be distributed & consumed (Usually includes bartering, rather than money). Traditional economies are becoming more rare.

Types of Economic Systems Types of Economic Systems Command- Government will determine what will be produced & how it will be distributed & consumed. Government will set prices and set regulations (rules) that industries must follow.

Types of Economic Systems Types of Economic Systems Market- Individuals, private companies, & consumers will determine what will be produced & how it will be distributed & consumed (Supply & Demand). Individuals and companies are allowed to produce freely without government interference.

Types of Economy MIXED MIXED- May have aspects of both market & command. Most common type in the world.EXAMPLES The United States is thought to have a “mixed” economy. The government does not decide what will be produced & how much it will cost, but it does regulate certain goods & services, such as illegal drugs Canada is thought to have a “mixed” economy. The government does not decide what will be produced & how much it will cost, but it does regulate certain goods & services, such as illegal drugs. The government also directly controls healthcare & education. A little bit closer to command than the USA.

Return to our……. “Essential Question(s)” What types of economic systems exist in the world today?

ECONOMY What is Produced? How Goods are Produced How People Get Products Traditional Command Market Types of Economic Systems What people need to survive (food, shelter, & tools) Farming Hunting Gathering People make their own, share, or trade

ECONOMY What is Produced? How Goods are Produced How People Get Products Traditional Command Market Types of Economic Systems What people need to survive (food, shelter, & tools) Farming Hunting Gathering People make their own, share, or trade Whatever the government decides However the government decides -Class -Reward System -Waiting in Line

ECONOMY What is Produced? How Goods are Produced How People Get Products Traditional Command Market Types of Economic Systems What people need to survive (food, shelter, & tools) Farming Hunting Gathering People make their own, share, or trade Whatever the government decides However the government decides -Class -Reward System -Waiting in Line Whatever people are willing to buy & sell Business Owners determine the most efficient (cheap) legal methods of production Determined by how much a person is able or willing to pay