1. -TSW understand the different major economic systems. (Standard 2)
Objectives:
-TSW understand the different major economic
systems. (Standard 2)
-TSW compare the different major economic
systems in terms of their strengths and weaknesses.
(Standard 2)
-TSW understand how values and beliefs influence
economic decisions in different societies.
(Standard 1)

2. Three Types of Economies
1. Traditional Economy--
a society where decisions are
made according to habit,
custom, tradition.
Ex. Polar Eskimos
(Inuit)

3. Disadvantages: Advantages: -Everyone has a role.
-Keeps community life stable
and continuous
Disadvantages:
-Tends to discourage new ideas
-May punish rule breakers
-People not free to make decisions
-They know what will be produced.(same)

4. The main goal of a traditional
economy is survival.

5. Censored

6. society where most economic decisions are made by a central authority.
2. Command Economy--
society where most economic
decisions are made by a central
authority.
Ex. North Korea, China
Shifts resources to whatever
government decides.

7. Advantages: Disadvantages: -Can change drastically
within a short period of time.
Ex: Soviet Union from an agricultural
nation to an industrial one .
Disadvantages:
-Does not always meet the wants and
needs of the people.
-No profit motive
-Little opportunity for advancement

8. The main goal of a Command
Economy is the good of the
state.

11. Economic system where supply demand, and price determine
3. Market Economy--
Economic system where supply
demand, and price determine
what will be produced.
Ex. The United States’
capitalistic system

12. Advantages: -Competition -Freedom -Variety
-Lack of Government Intervention
-Decision making process is
decentralized.
-Producers trying to lower costs of
production and improve quality.

13. Disadvantages: -Rewards only the productive -Some could not survive
without government
help or charity.

14. The main goal of a
market economy is to
make money.

15. Tradition Command Market
Exit Ticket
Tradition Command Market
Adolf Hitler built a great army in a short period of time just by redirecting the resources into defense industries and military.
The Sami of northern Norway, Sweden and Finland
destroyed their way of life based on reindeer herding
when they introduced snowmobiles into the
environment.
3. A good idea can make you a millionaire!

16. If GCHS was a one of the
three types of economies
discussed, which one would it be?
Why?

17. The Four Basic Questions
**Every nation’s economic system
must answer 4 basic questions.
The values and goals of a society
will determine how these
questions are answered.

18. 1. What goods and services will
be produced and how much?
2. Who should produce them?
3. How should they be produced?
4. Who should share in their use?

19. Factors Affecting Income
1. Talent
2. Personal Preference
3. Demand
4. Opportunity