1. Market Vs. Command Market Economy 1. Productive resources are owned and controlled by individuals in the economy. (Individuals decide) 2. Decisions about how resources are to be used are made by consumers & producers. (Individuals Make what they Want and Need) 3. Individuals are motivated by their own self-interest. (Goals set by Individuals) Command Economy 1. Except for human resources, most productive resources are controlled by govt. (Government Decides) 2. Decisions about how resources are used are made by govt. (Government Decides How to Use Resources) 3. Govt. planners are motivated by goals they set for country. (Goals for Whole Country)

2. Command Economy Scenarios Explain why the following scenarios are considered Command Economies. Government supplies everyone with free healthcare. Schools are required to provide one free meal a day to students. The President provides damage relief to those affected by Hurricane Sandy. The government increases section 8 housing throughout the country. Create your own Command Economy Scenario

3. Market Economy Scenarios Explain why the following scenarios are considered Market Economies. Individuals can purchase healthcare from their businesses. There is a shortage of Doctors, so the University of Delaware offers scholarships to pre-med students with 3.8 GPAs. Insurance companies help fix the homes of those insured following the earthquake disaster. More people are sick, so business men start building hospitals. Create your own Market Economy Scenario

4. Copy Down 1.Decide which type of economic system is being used in the scenario presented to your group. 2.Explain how the consumer might be affected in the scenario. 3.Compare and contrast: How could you make the scenario into the opposite type of economy?

5. Scenario 1 Floods and mudslides blanket the coast. Hurricane-force winds destroy homes. People are without food, shelter, and power. As a result, the government calls a state of Emergency and provides assistance for all citizens in need.