1. Warm Up
Take 7-8 minutes as a table, and define as many of these terms as you can. Skip the ones you don’t know, but leave space to fill them in:
Goods
Inputs
Outputs
Scarcity
Distribution
Enterprise
Regulation

2. Term Definitions Goods – Things that are bought or sold in an economy
Inputs – Work that is put in or operated on
Outputs – The products of the work
Scarcity – Situation when there’s not a lot of goods available
Distribution – The way goods are spread out to people
Enterprise – A business or corporation
Regulate – Setting rules in order to control

3. Warm Up
Where do you think that the United States of America falls on this economic continuum? Why?____________________________________________________

4. Economic Systems

5. Objective I am learning about different types of economies.
This means that I will be able to differentiate between a market, command, and traditional economies.

6. What is ECONOMICS
all about?

8. Economics focuses on CHOICES!
It is the study of how people choose to use scarce resources to satisfy their wants.

9. Background info
The world’s economic systems fall into one of four main categories:
Traditional Economy
Market Economy
Command Economy
Mixed Economy
However, there are unlimited variations of each type. An economic system must define what to produce, how to produce it, and for whom to produce
Depending on the products produced and the environment, certain economic strategies will be more successful than others

10. Copy this chart onto page 74
Economic Systems
Traditional Economy
Command Economy
Market Economy
Social Services
Countries

11. Essential Question
How do leaders within different economic systems decide the following:
What do produce?
How to produce?
For whom to produce?

12. Economic System
An economic system is the system of producing and distributing of goods and services and allocating resources in a society.

13. Command Economy aka Planned
In a command economy, the government decides how many of which goods are produced.
Ex: production, investment, prices, and incomes

14. Command Economy conti…
Found in North Korea, Cuba and also China
The government makes decisions of what to produce, how much it should cost, what it should look like
Sell what the government lets the people
It's easy to change directions because it is coming from the only power at the top of the pyramid
Don't have a lot of freedom
Planned economy Is the opposite of demand/market economy
The government decide everything you´re doing
The government pays workers
People that is in the command economy listen to the government and so what the government told them to do.
All the money that stores receive will go to the government
Has disadvantages because few people control so much -- corrupt
THERE ARE NO COMPETITION IN "Command economy".
Sets prices for the goods
Most of the resources owned by government
The countries that have this kind of economy usually ended up having a super duper rich government but poor citizens.

15. Traditional Economy
A traditional economy is an original economic system in which traditions, customs, and beliefs shape the goods and the products the society creates. Countries that use this type of economic system are often rural and farm-based

16. Traditional Economy conti…
Work in groups of families to survive
Decisions are not decided by customs/traditions
Not much use of technology/ Not much use of money
Found in rural, non-developed countries, ethnic groups
All activities are centered toward the family/ethnic unit
"barter" - trade
Mostly handmade
Parts in Africa, Southwest Asia, Native American tribes still use traditional economy
They only get enough to eat and feed their families in a traditional economy.
Men/Women are given different roles (might be a reason for sexism.)
Mostly farming
Make enough to survive.

17. Market Economy
A market economy is an economy in which decisions regarding investment, production and distribution are based on supply and demand, and prices of goods and services are determined in a free price system

18. Market Economy conti…
Found in America, Russia, U.K., and most of the countries in Europe*( mixed economy)
People can open their own company and earn money
Individual choices -- highly values individual freedom
FREEDOM is IMPORTANT
Is the opposite of command economy
There is more competition (competition of selling products)
Competition determines the price
More democratic--choices/decisions made by many people
Individual's supply and demand determine the price, not the government

19. Social Services
Government services provided for the benefit of the community, such as education, medical care, and housing.

20. Processing
Pick either traditional economy or command economy and write a short story from the viewpoint of someone who lives within that society

21. Questions to answer as you read
Spiral page 27
Describe in your own words what an economic system is.
What is unique about a traditional economic system?
Where might traditional economic systems be found?
What is another name for a command economy?
What is the difference between a free market economy and a social market economy?
What kind of economy does the USA have?

22. Clean-Up Names on your DBQ packets
Stack them in the center of your tables
“Questions to answer as you read” on top of the DBQ packets