1. Warm up
Who decides what goods are marketed and sold in the United States?

2. https://www.youtube.com/watch?v=N2x- x6MMRuY

3. Traditional Economy
Goods and services traded without exchanging money.
“Bartering”
Habit and customs
determine the rules for all economic activity.

4. Modern Economic Systems
Tied to the country’s political system.
The way people produce and exchange goods and services.
3 basic types:

5. Command Economy Also known as communist economy
ex) Cuba and North Korea

6. Command Economy Government controls the factors of production.
determine job, own the land, etc.

7. Command Economy
Government determines the distribution of goods and services.
ration food/supplies, who can own what

8. Command Economy Government provides all basic needs.
healthcare, shelter, etc.

9. Free Enterprise (Capitalism)
Also known as market or capitalist economy
ex) U.S.

10. Free Enterprise (Capitalism)
Private ownership of factors of production.
People own the land, businesses, money, etc.

11. Free Enterprise (Capitalism)
Consumer demand controls production and distribution.
things are made because people want them
market

12. Free Enterprise (Capitalism)
Government provides few/no basic needs.
social programs, welfare, etc.

13. Socialism
Also known as mixed economy
ex) France, India, China

14. Socialism Major factors of production owned by government.
energy, healthcare, etc.
private owners too

15. Socialism Distribution of goods and services determined by both.
a blend

16. Socialism Government provides some basic needs.
healthcare, more extensive social programs, welfare, etc.
Emphasis on “being fair” to all.

17. Economic Spectrum
Create an economic spectrum on the cover of your foldable with most government control on the left and least government control on the right.
more government
less government

18. Modern Economic Spectrum
Command Economy
Socialism
Free Enterprise
more government
less government

19. Communism is like ____________ because ___________________________.
Socialism is like ____________ because ___________________________.
Capitalism is like ____________ because ___________________________.