1. Economic Systems Europe’s United Kingdom, Germany, & Russia
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2. Traditional Command Market
Let’s Review
Do you remember the three questions that every country must answer when developing its economic plan?
What goods/services will be produced?
How will goods/services be produced?
Who will consume the goods/services?
The way a country answers these questions determines what kind of economic system it will have:
Traditional Command Market
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3. Traditional
All economic decisions are based on customs, traditions, & beliefs of the past.
People will make what they always made and do the same things their parents did.
The exchange of goods is done through bartering.
Bartering = trading without using money
Some examples: villages in Africa & South America, the Inuit in Canada, Aborigines in Australia
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4. Command All economic decisions are made by the Government.
The government owns most of the property, sets the prices of goods, determines the wages of workers, plans what will be made…everything.
This system has not been very successful. More and more countries are abandoning it.
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5. Command
This system is very harsh to live under; because of this, there are no PURE command countries in the world today.
Some countries are close: Cuba, former Soviet Union, North Korea, former East Germany, etc.
All of these countries have the same type of government: Communist! The government is in control of everything.
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6. Market
Economic decisions are made based on the changes in prices that occur as buyers & sellers interact in the market place.
The government has no control over the economy; private citizens answer all economic questions.
In a truly free market economy, the government would not be involved at all. Scary…
There would be no laws to make sure goods/services were safe. *Food! Medicine!
There would be no laws to protect workers from unfair bosses.
Because of this, there are no PURE market economies, but some countries are closer than others.
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7. Hmmm…
Since there are no countries that are purely command or purely market, what does that make them?
Most democratic countries have some characteristics of both systems, so we keep it simple and call them: MIXED.
Of course, most countries’ economies are closer to one type of system than another.
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8. UNITED KINGDOM
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9. United Kingdom The United Kingdom has a Mixed economic system.
It’s actually closer to a Market economy than any other European country.
UK is economically strong; it’s one of the world’s leading industrial powers.
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10. United Kingdom
Over the last thirty years, UK’s government has given up control of many of the country’s state-run companies.
Since 1979, these companies, such as British Steel, British Coal, and British Airlines, are now under private ownership.
This has set up free market competition throughout the country instead of government control.
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11. United Kingdom What to Produce? Individuals and corporations
How to Produce? Individuals and corporations
For Whom to Produce? Individuals and corporations
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12. Economic Struggles Unemployment
Over depletion of natural resources (pollution)
Improving public services (which forces the country to raise taxes)
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13. GERMANY
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14. Germany Germany has a Mixed economic system.
After reunification in 1990, East Germany had to move away from a Command economic system and slowly towards a Market System.
West Germany’s market system experienced a huge set-back when it absorbed East Germany’s command system.
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15. Germany
What to Produce? Individuals and corporations; government has some regulation on agriculture, telecommunications, & energy
How to Produce? Individuals and corporations; government has some regulation on agriculture, telecommunications, & energy
For Whom to Produce? Individuals and corporations; government has some regulation on agriculture, telecommunications, & energy
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16. Economic
Struggles
Modernizing the former East German economy (annual transfers from west to east of $80 billion)
The former East Germany’s decayed economy continues to be a burden on the country.
Unemployment
Over depletion of natural resources (pollution)
Improving public services (which forces the country to raise taxes)
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17. RUSSIA
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18. Russia Russia has a Mixed economic system.
Russia’s economy has been moving away from a Command economy and more towards a free Market economy since the fall of the Soviet Union in 1991…not there yet.
Even though many government-owned companies are being sold to private businesses, Russia still faces many financial problems.
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19. Russia
What to Produce? Individuals and corporations in most cases; government has many restrictions on businesses and controls many of the larger ones
How to Produce? Individuals and corporations in most cases; government has many restrictions on businesses and controls many of the larger ones.
For Whom to Produce? Individuals and corporations in most cases; government has many restrictions on businesses and controls many of the larger ones.
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20. Economic
Struggles
Russia’s economy has struggled as it transitions out of a command economy into a mixed market one.
Upgrading old manufacturing plants and industries to modern, more efficient standards has been a burden to the economy.
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21. Print off the chart below for each student.
TEACHER INFO:
Print off the chart below for each student.
They should complete the charts after discussing the presentation.
Check answers as a class when finished.
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22. Europe’s Economic Systems
Directions: Complete the chart below with information that you learned during the presentation.
Economic System
What to Produce?
How to Produce?
For Whom to Produce?
Economic Struggles
United Kingdom
Germany
Russia
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23. Europe’s Economic Systems
Directions: Complete the chart below with information that you learned during the presentation.
Economic System
What to Produce?
How to Produce?
For Whom to Produce?
Economic Struggles
United Kingdom
Mixed
Individuals and corporations
Unemployment, Over depletion of natural resources (pollution), Improving public services (which forces the country to raise taxes)
Germany
Mixed, East Germany moving away from command
Individuals and corporations; government has some regulation on agriculture, telecommunications, & energy
Modernizing the former East German economy (annual transfers from west to east of $80 billion)
The former East Germany’s decayed economy continues to be a burden on the country
Russia
Mixed, moving away from Command
Individuals and corporations in most cases; government has many restrictions on businesses and controls many of the larger ones
Russia’s economy has struggled as it transitions out of a command economy into a mixed market one.
Upgrading old manufacturing plants and industries to modern, more efficient standards has been a burden to the economy.
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24. TEACHER INFO: FLIPPED Print off the FLIPPED handout for each student.
The students will write questions for the answers inside of the 6 circles.
When they are finished, have the students trade papers with an elbow buddy and check each other’s questions to make sure that they are correct.
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25. FLIPPED The answer is: COMMAND What is the question? The answer is:
Directions: Create accurate review questions for the six answers below.
The answer is:
COMMAND
What is the question?
The answer is:
ECONOMIC SYSTEM
What is the question?
The answer is:
MIXED
What is the question?
The answer is:
TRADITIONAL
What is the question?
The answer is:
United Kingdom
What is the question?
The answer is:
MARKET
What is the question?
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26. TEACHER INFO: European Economies Report Card
Project the following slide onto the board and print off the Report Card handout for each student.
The students will “grade” each of the country’s economies.
In the “comments” section, they will write why they chose that particular grade and also ways the country can improve in the future.
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27. European Economies Report Card
Directions: Give each of the country’s that we have studied a report card grade based on their economies. In the comment section, write why you chose the grade/effort and what things the country can do to improve.
Country
Grade
Effort
Comments
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28. TEACHER INFO: Award Goes To…
Print off the Award handout for each student.
The students will choose one of the countries from the lesson and design an award that the country’s economic will receive.
Next, they will write an acceptance speech from the perspective of the country’s leader where s/he explains why the country deserves the award.
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29. The Award Goes To…
Directions: Choose one of the countries from this lesson and create an award (design the trophy) for that country’s economy. Next, write a speech from the country’s leader’s perspective about why the economy is being honored with the award.
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30. TEACHER INFO: Comprehension Check
Print off the Comprehension Check for each student.
After the lesson, have the students answer the questions. *This could also be used as a quiz.
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31. Comprehension Check Europe’s Economies
1. What are the three economic questions that every country must answer?
2. How do members of a traditional economy trade goods?
3. How does a command economic system answer the three economic questions?
4. Give an example of a pure market economy:
5. What type of economic system do most democratic countries have?
6. What type of economic system is found in the UK?
7. How has the UK set up free market completion over the last 30 years?
8. What type of economic system is found in the Germany?
9. Even though Germany has a strong economy, what problem(s) is it currently facing?
10. What type of economic system is found in the Russia?
11. How has Russia’s economy changed since the fall of the communist Soviet Union?
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Comprehension Check
Europe’s Economies

32. Comprehension Check Europe’s Economies
1. What are the three economic questions that every country must answer?
What to produce, how to produce, for whom to produce
2. How do members of a traditional economy trade goods?
Bartering
3. How does a command economic system answer the three economic questions?
Government makes all decisions
4. Give an example of a pure market economy:
There are none, but US is close
5. What type of economic system do most democratic countries have?
Mixed
6. What type of economic system is found in the UK?
Mixed (closer to market)
7. How has the UK set up free market completion over the last 30 years?
Government has given up control of many state-run companies to private ownership
8. What type of economic system is found in the Germany?
9. Even though Germany has a strong economy, what problem(s) is it currently facing?
Reunification caused West Germany’s economy to experience a major set-back when it absorbed East Germany’s economic problems;
10. What type of economic system is found in the Russia?
Mixed (moving away from command and closer to market since 1991)
11. How has Russia’s economy changed since the fall of the communist Soviet Union?
It has been moving away from a command economy and working towards a free market one; not there yet, still many government restrictions and control over businesses
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Comprehension Check
Europe’s Economies

33. TEACHER INFO: TICKET OUT THE DOOR
Print out the exit slip page for each student (two-per-page).
Have the students write down what the most confusing part of today’s lesson was for them.
After class, read over the slips and address the “muddiest points” the next day. This is a helpful slip to use to see what needs to be taught again.
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34. Muddiest Point Muddiest Point
Name:
Name:
Muddiest Point
Muddiest Point
What is the most confusing part of the topic that we’re studying. Write something that you don’t understand below.
What is the most confusing part of the topic that we’re studying. Write something that you don’t understand below.
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35. Thank You! Ansley at Brain Wrinkles
Thank you so much for downloading this file. I sincerely hope you find it helpful and that your students learn a lot from it! I look forward to reading your feedback in my store.
If you like this file, you might want to check out some of my other products that teach social studies topics in creative, engaging, and hands-on ways.
Best wishes,
Ansley at Brain Wrinkles

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Ansley at Brain Wrinkles
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