1. Economics Lesson Agenda Political versus Economic Systems T-chart
The Purpose of the U.S. Gov’t Preamble Activity
Homework: Current Events

2. What’s the Difference? Governmental versus Economic Systems
There is a difference between economic and governmental systems
These systems are independent of one another, yet do work together.
Each nation has a system of government and economic system
A government system addresses issues of who has both power and authority to make decisions for a nation, state, or community.
An economic system describes who answers the three basic economic questions (what to produce, how to produce, and for whom to produce).

3. Both economic and governmental systems can be combined in a variety of ways
Make a t-chart with Governmental Systems on one side and Economic Systems on the other. Place the terms and correct definitions appropriately on your t-chart chart.
DEFINITIONS
Blend of voluntary exchange and governmental control
Collective ownership
Rule by small group of people
Rule by the people
Rule by dictator
Government planned and controlled system
Trade and barter system
Voluntary exchanges by buyers and sellers
Rule by heredity
Rule by religious authority
SYSTEMS
Traditional
Democracy
Communism
Oligarchy
Capitalism
Authoritarian
Theocracy
Socialism
Monarchy
Mixed

4. How is our government involved in our economy?
Dependent on the economic and governmental systems in place, government acts differently toward economic issues.
How is our government involved in our economy?
RECORD YOUR RESPONSES ON THE TOP OF THE WORKSHEET
In the United States, the government derives its power and authority from the people. Their power is defined in the U.S. Constitution.
The Preamble lists the purposes of government and the text of Article I: Section 8 of the Constitution grants specific powers to the federal government (legislative branch) with respect to the economy.

5. Role of Government in the U.S. Economy
Read the text of the Preamble to locate the six purposes of government
Next, explain what each purpose means in your own words
Finally, pull examples from the class list (top of your paper) and Article I-Section 8 of the US Constitution (back side of your paper).