1. Thursday August 28, 2014 Mr. Goblirsch – Economics
OBJECTIVE – Students Will Be Able To – SWBAT:
- Analyze 2 opinions about Capitalism, and explain why most “modern” economies today are mixed economic systems.
AGENDA:
WARM-UP: Current Event Article – Dust Bowl
VIDEO CLIPS:
Why Capitalism Works (4 min)
Does Capitalism Exploit Workers? (6 min)
INSTRUCTION: Modern Mixed Economies
INDEPENDENT PRACTICE: Ch 2 Sec 2&4 Workbook Pgs. 21 & 23
CLOSURE: Mixed Economies Wrap-Up
Current Event Article – Dust Bowl WARM-UP: (Follow the directions below)
***5 minutes***
Read and Analyze the Modesto Bee article on the Turlock Dust Bowl Brewery:
While reading, highlight/underline points that relate to some of the fundamental economic concepts we have discussed.
When you’re done reading, write a brief summary of the economic concepts this article demonstrates.

2. Modern Economies Why are many modern economies mixed economies?
What role does the government play in a mixed economy?
How do mixed economies in different countries compare?
What role does free enterprise play in the United States economy?

3. The Rise of Mixed Economies
Market economies, with all their advantages, have certain drawbacks.
Limits of Laissez Faire
Laissez faire is the doctrine that government generally should not interfere in the marketplace.
Governments create laws protecting property rights and enforcing contracts. They also encourage innovation through patent laws.

4. Government’s Role in a Mixed Economy
The government purchases land, labor, and capital from households in the factor market, and
Purchases goods and services in the product market.
monetary flow
physical flow
Circular Flow Diagram of a Mixed Economy
Households
Firms
Product market
taxes
government purchases
Government
expenditures
government-owned factors
taxes
Factor market

5. Section 4: Modern Economies
Government Intervention
National Defense
Roads & Highways
Social goals
Public transportation
Education
Healthcare
Gov as an umpire
Protect Private Property Rights
Passing laws to protect competition

6. Comparing Mixed Economies
An economic system that permits the conduct of business with minimal government intervention is called free enterprise. The degree of government involvement in the economy varies among nations.
Look at Index of Economic Freedom –
Continuum of Mixed Economies
Centrally planned
Free market
Source: 1999 Index of Economic Freedom, Bryan T. Johnson, Kim R. Holmes, and Melanie Kirkpatrick
Iran
North Korea
Cuba
China
Russia
Greece
Peru
United States
South Africa
France
United Kingdom
Botswana
Canada
Singapore
Hong Kong

7. CLOSURE: Mixed Economy Wrap-Up
Discuss with your partner why the “modern” economy is a mix of the Free Market and Centrally Planned economic systems.