1. Tuesday March 24, 2015 Types of Economies Eagle Claw Nail Salon
Agenda
Homework
Types of Economies
Eagle Claw Nail Salon
Types of Economies Half Sheet
Types of Economies Half Sheet

2. Civics and Economics Day 126

3. Economics Systems

4. System A group of individual parts that work together to form a whole.
What are the “parts” of the economy?

5. Types of Economic Systems
Traditional
Command
Market
Mixed

6. Traditional
Based on Customs and traditions. Economy based on farming and hunting.
People will make what they always make; they will do the same work their parents did.
Examples: Some parts of Africa, India, Eskimos

7. Command Economy
Government owns and operates the factors of production.
The government answers the questions What?, How? And For Whom?
Communism and some forms of Socialism- examples of a command economy
Examples: North Korea, Cuba

9. Communism
A system where there is no private property ownership and the government owns/controls all of the means of production.

10. Socialism
The Government owns the major means of production, and establishes regulations, but there is still a great deal of private ownership.
A Mixed Style Economy/Command Style

11. Income Level
“The Affluent “
“Working Class”
Tax Rate
40%
10%
Amount Taxed
Government Funds Given
End Result

12. Market Economy
A system in which private individuals control ALL of the means of production.
Means of production- the raw materials and tools used to make things.
1. Business owners answer the questions What?, How? And For Whom?
2. Capitalism- example of a market Economy

13. Origins of Capitalism Where did this idea come from?
Adam Smith wrote a book called A Wealth of Nations.
He said individuals seeking profit (making money) would benefit the whole society.
Came up with the idea of laissez-faire economics.
“ to let alone” meaning the government should stay out of the economy

14. Mixed Economy Has elements of both command and market economies.
Individuals own most resources and determine what to produce.
Government regulates certain industries.

15. Is the United States a Market/ capitalist economy?
Turn to your neighbor and spend 2 minutes answering yes or no and why?

16. Is the U.S. a true capitalist economy?
No the U.S. has a mixed economy.
The U.S. is a mix of both capitalism and socialism.
There is a great deal of private ownership, but there is also government regulation.
The government also has control over wages, social security and some policies.
The U.S. is however, closer to capitalism than any other system.

17. Eagles Claw Nail Salon
Take 10 minutes to answer each of these questions in complete sentences.
What is the goal of all businesses?
What happens if their prices are too high? How can high prices be a bad thing?
What do businesses spend their money on?
How does the money from the salon affect the rest of the economy?

18. Traditional Command Mixed Market Large Businesses Small Business
G= Government I = Individuals B= Both V=Village.

19. Spectrum Government Control Free Economy
Put in Order from most Government control to least (Market, Mixed, Command)