1. Quick Draw: Pizza Party…its just pizza how hard can it be? How many and what toppings?  How many Pizzas should we order for the class???  The School????  All high schools in Georgia???  All high schools in the USA????

2. Economic Systems of the World. What are the major types of Economic systems ? How does each answer the 3 Basic Economic Questions? Traditional Market Command

3. Traditional Economic Systems

4. Tradition, Tradition, Tradition  What, how and for whom to produce are answered by ritual, habits, customs  Tribal Societies Across the world  Communal living, little private property  Advantages Disadvantages  Methods Work Subsistence living Low standard of living Discourages new ideas Never changes

5. Command… ex: Communism  Gov’t answers 3 Basic Economic Questions  No Private Property Total Government Control Rights Government owns all resources!!!!!  Strengths Weaknesses Quick Changes Central Planning Basic needs met Consumers Wants Ignored Everyone know role No incentives to work Massive Bureaucracy Day to Day Inflexibility

6. The Soviet Economy  What is the reason why people didn’t work hard?

7. Circle the words that fit with Command Economies Lots of Choices government housing Economic freedom Karl Marx Merit Pay Joseph Stalin Cuba Incentives to work Basic needs met Get what you need Slow to change No Technology Equal distribution of Wealth Happy Consumers Government control Private Property Fast to change Day to day flexibility Central Planning North Korea Tribes Adam Smith

8. Expansion of Communism 

10. COMMANDCOMMAND

11. Market Economy: Capitalism USA, Japan, UK, South Korea, South Africa, Canada

12. The EntrepreneurThe GovernmentThe Consumer “The Spark plug of the economy” -risk takers -innovators -they organize the 4 factors of production Protector of consumers rights and freedom, private property Provider of services like national defense, welfare, education, public goods Consumer of resources 2 nd largest only to citizens Regulator of markets to ensure competition and safety, redistribute income, limit market failures Promoter of National Goals Consumer Sovereignty - rulers of the market -Answer the 3 basic questions KNOW YOUR ROLES!!!!!!!!!!!!!!!!!!!! Mixed Economy Modified Private Enterprise Economy

13. CONSUMER SOVEREIGNTY WE RUN THIS ECONOMY!!!!!!!!!!!!

14. Market economies… ex: Capitalism  People/individuals answer the What, How, For Whom to Produce  Adam Smith- laissez faire “leave it alone”  Invisible hand of self interest StrengthsWeakness Flexible Slow to change Individual Freedom Allows Failure Winners/losers Decentralized decision making Large Variety of Products High consumer Satisfaction Private Property Rights

15. Time to Think……  How would your life be different if you lived in a market economy??  It would not be any different because you currently live in a Market Economy….Silly

16. Stop, Collaborate and Listen  What are the similarities and differences of market and Command Economies? Command Market What would a mix of command and market look like?

17. -Socialism is a blend of communism and capitalism. -The 3 Basic Economic Questions are answered by the government and individuals -The government owns and controls only key resources and industries while individuals own the rest of the resources and have private control of most businesses -Basic needs of the people are met by the government -People pay high taxes to fund things like healthcare, insurance, and other social services Limited -Economic Freedom -Voluntary Exchange -Profit Motive -Private Property Rights -There is a shared control of the economy between the government and people. LETS MIX THINGS UP WITH SOCIALISM!!!!!! China, Vietnam, Sweden, Venezuela

18. FILL IN THE BLANKS Economic System Private Ownership of resources Profit Motive Consumer Sovereignty CompetitionGovernment Regulation redistributio n of Wealth Traditional Market/ Capitalism Command/ Communis m Socialism

19. Home work: Letter to a friend  Boys, You are living in a Command economy, girls Traditional economic systems.  Write a letter to a friend living here in the USA. Discuss how your lives are different. Discuss what you like and do not like about your economic system and if you would prefer to live in the USA.  ¾ to 1 page in length

20. Warm- UP - Review  Describe what each of the following would look like in a traditional, command, and market economy  What do you produce?  How do you produce?  For whom?