1. Jumpstart Write 2 advantages and 2 disadvantages of market and command economies.

2. Agenda Economic Value Ranking Hershey’s Kisses Capitalism Debrief Country Profiles

3. Objectives Rank the importance of economic values and identify the inherent conflict between some values. Explain the tradeoffs and the costs and benefits of different economic systems

4. Economic and Social Goals With your partner trade off reading the goals. Both of you must… 1.Define ALL of the economic goals in your own words 2.Rank ALL of Economic goals from most important to least important 3.Explain the reasons for your rankings

5. Capitalism v. Socialism Hershey’s Kisses Game Debrief

6. The “Game” Revealed Just like everything we do in economics, this game has a point. By analyzing the two rounds of the game, we will learn the characteristics of two different economic systems: – Capitalism (Round 1) – Socialism (Round 2).

7. The Goal Capitalism… – The goal is to make individuals as free and powerful as possible; people take care of their own needs first Socialism… – The goal is to have an equal society without) where everyone’s basic needs are met In the Game… Capitalism (Round 1): Socialism (Round 2): In the Game… Capitalism (Round 1): Socialism (Round 2):

8. Role of Government Capitalism… – The role of government is small; The government may promote competition and provide public goods (e.g., education) Socialism… – The role of government is large; the government makes many economic decisions In the Game… Capitalism (Round 1): Socialism (Round 2): In the Game… Capitalism (Round 1): Socialism (Round 2):

9. Government Ownership of Factors of Production Capitalism… – Productive resources are privately owned and operated; individuals have control Socialism… – Productive resources are owned and operated by the government; government (aka: society collectively) has control In the Game… Capitalism (Round 1): Individuals controlled the tokens Socialism (Round 2): The teachers (the government controlled the tokens) In the Game… Capitalism (Round 1): Individuals controlled the tokens Socialism (Round 2): The teachers (the government controlled the tokens)

10. Regulation Capitalism… Socialism… In the Game… Capitalism (Round 1): Socialism (Round 2): In the Game… Capitalism (Round 1): Socialism (Round 2):

11. Taxes & Social Services Capitalism… Socialism… In the Game… Capitalism (Round 1): Socialism (Round 2): In the Game… Capitalism (Round 1): Socialism (Round 2):

12. Which System Promotes Which Economic & Social Goals? 1.Economic Freedom – Individuals have the right to make choices about their occupation and employer, and where and how to use or invest their resources. Businesses have control over where and how they make their products. 2.Economic Efficiency – Resources are not wasted; the goal is to use productive resources well in order to produce the greatest amount goods and services and meet as many wants and needs as possible. 3. Economic Equity – The economy promotes fairness and equity; all people are treated equally and all people receive equal benefits. Examples include: anti- discrimination laws, “lemon laws,” and laws that prevent advertisers from making false claims about their products 4. Economic Security – Protection from adverse events like layoffs or disability. Often takes the form of collective insurance where lots of people pay into a pool and collect benefits when necessary. Examples include: Welfare, Social Security, and Medicare/Medicaid

13. Scales Role/Control of Government A Little Ownership of Factors of Production A Little Regulation Taxation & Social Services A Little ECONOMIC SYSTEMS Socialism Capitalism

14. Exit Ticket If you were the president/prime minister/dictator/king/queen of a country would your economic system be oriented towards a command economy or a market economy. What will be the benefits of your choice? What will be the costs? What values does your economic system prioritize?