TYPES OF ECONOMIC SYSTEMS

Economic Systems An economic system describes how a country’s economy is organized. Because of the problem of scarcity, every country needs a system to determine how to use its productive resources. An economic system must answer 3 basic questions…

Economic Systems 1. What to Produce? (What kinds of good and services should be produced? 2. How to Produce? (What productive resources are used to produce goods and services?) 3. For Whom to Produce? (Who gets to have the good and services?) The way a society answers these questions determines its economic system.

The types of Economic Systems that Exist 1) Traditional Economy: Few exist today, those that are around operate in remote areas Based on subsistence farming. This is when individuals produce basic crops or raise livestock in only enough quality to meet the needs of their family. Anything that is left over may be shared with others or traded for other items. The equipment use is primitive and the process of production is passed down from generation to generation. Some developing countries still have traditional economies, since some people still rely on hunting, gathering or subsistence farming. Estimates are that around 400 million aboriginal people across the world live in a traditional economy in under developed areas of South America, Africa, Australia, and Asia.

2) Command Economy: In a command economy the government, dictatorship or single political party decide what will be produced, how it will be produced and how much products will be worth. Usually lower standard of living than in a free market economy. This type of economy tends to be unresponsive to wants of consumers. Cuba, North Korea, Iran and Burma are examples of command economies.

3) Market Economy: Goods and services owned by individuals who try and sell them at the highest price people are willing to pay and make a profit. The government does not interfere. Prices are determined based on supply and demand. Usually the standard of living is higher in a market economy than other economies Hong Kong, Singapore, Australia and Ireland are among the top countries with economic freedom. Canada is ranked 7 th behind the United States.

The types of Economic Systems that Exist Mixed Economy: Many countries like Canada, have a mixed economy. Economic freedom intermixed with some centralized government planning and regulation of the market for reasons such as environmental concern or social welfare. Corporations may even be government owned. These include, The Bank of Canada, The Canadian Broadcasting Corporation, Canada Post, Via Rail. the basic idea of the mixed economy is that the means of production are mainly under private ownership; that markets remain the dominant form of economic coordination. The standard of living in a mixed economy is generally relatively high.

Do you remember? Test your memory. Categorizing Activity.

Four Corner Activity Four corners: Using the textbook, pages , You will be given 25 minutes to read & prepare a minimum of 5 advantages (arguments) to your economic system and why it is the best. After each group will present their reasons, and you will be able to debate against one another.

Debate Roles and Rules Opening Statement Presenter: Gathers the main arguments into an introductory statement. Does not give specific information; just says "this is true because of A and B and C." 1.________________________________________ Topic Presenters: Present the main arguments for the team. Each presenter give specific details that prove A and B and C. 1.________________________________________ 2.________________________________________ 3.________________________________________

Rebuttal Presenters: Answer the arguments of the other team. These presenters must take notes as the other team is presenting their arguments and respond to every argument, using specific information to disprove them. 1.________________________________________ 2.________________________________________ Closing Statement Presenter: Presents the closing arguments for the team. Repeats the main idea for this and this and this reasons. 1.________________________________________ Debate Rules No put downs. You must raise your hand if it's not your time to speak. Teams lose 1 point for each interruption. Teams lose 1 point for whispering while another speaker is talking. TIMES Opening statements for both sides = 1-2 minutes each Arguments for both sides = 3 minutes each Rebuttal conference = 1 minute Rebuttals = 2 minutes each Closing statements for both sides = 3 minutes each

You need to gather evidence to support your group’s position. Using this evidence as an aid, the team prepares a set of persuasive arguments designed to sway the judges to your side. Use the best of what you have found to deliver your point. Think through possible arguments your opponents will make. Success in a debate is the to show that the opposing team’s reasoning is weaker that yours. Guiding Questions: 1.How is your economic system the best? What are the benefits? 2.Who decides what is produced in your economic system? Is this harmful to the economy? 3.Who decides how to produce good and services? Does your system make you more or less dependent on the government? 4.Who are the goods and services produced for?

GROUPS Group 1: (Traditional) Daniel A, Carlson, Amanda, Ester, Jacob, Ethan. Group 2: (Command) Mitchell, Matthew, Maya, Robby, Nicholas, Sebastian. Group 3: (Market) Alyssa, Adrian, Steven, Alessia, Robert. Group 4: (Mixed) Daniel B, Megan, Nicole, Samantha, Marc. Roles: Recorder, Time Keeper, Presenter(s) (1. opening statement presenter, 2. Topic Presenter, 3.Rubuttal Presenter, 4. Closing Presenter )

HOMEWORK Complete Map assignment Due Tuesday April 16. Using your map; find & label 1 country for each type of economic system (traditional, market, command, mixed) that exist in the world today. Create a legend using different colours to label countries. Then research one type of trade that goes on between the countries, also include a symbol for this in your legend. Using red pen, draw a line displaying the trading route between the two countries.