1. Types of Economic Systems

2. 3 Types of Economies

3. Economics How many basic types of economic systems are there?
Name the economic systems.
Which economic system do most textbooks say is the most common throughout the world?

4. Economics How many basic types of economic systems are there? 3
Name the economic systems. Traditional, Command, Market
Which economic system do most textbooks say is the most common throughout the world? Mixed. The GCEE states that mixed is not an economic system but rather a blending of two different types of systems.

5. Economic Systems
Pure
Command
Pure Market
Mixed Economy

6. What determines which type of economy a country has?
COPY ALL
What determines which type of economy a country has?
The type of economy is determined by the extent of government involvement in economic decision making.

7. Traditional Economy
Allocation of resources is based on rituals, habits, or customs
2. Roles are defined by family
3. People work together for the common good      
4. Little individual choice

8. Free Market Economy 1. Private ownership of property/resources
Business decisions are driven by the desire to earn a profit
There is a great deal of competition.
Consumers have many choices

9. Mixed Economy
Individuals and businesses as decision makers for the private sector
Government as decision maker for the public sector.
A greater government role than in a free market econom
Most common economic system today      Examples: England, Germany, Russia

10. Command Economy Central ownership of property/resource
Centrally planned economy
Lack of consumer choice      
Example: Cuba and Former Soviet Union

11. 100 Economic Systems United Kingdom 79% Germany 71% Russia 51% Pure
6th Grade- This information is meant to be used in conjunction with the 6th and 7th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
100
Pure
Command
Pure Market
Mixed Economy

12. 100 Economic Systems Canada 81% Brazil 57% Cuba 28% Pure Command
6th Grade- This information is meant to be used in conjunction with the 6th and 7th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
100
Pure
Command
Pure Market
Mixed Economy

13. 100 Economic Systems Australia 83% Pure Command Mixed Economy
6th Grade- This information is meant to be used in conjunction with the 6th and 7th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
100
Pure
Command
Pure Market
Mixed Economy

14. Three Basic Economic Questions
What to produce? This question asks what people will make and sell. Many countries produce goods or services based on which resources are available and which will make the most money for the lowest cost. A country's type of economy usually has less influence on this question than it does on the other questions.
How to produce? This question asks how people will make a good or service. Manufacturing is a way to produce. Sometimes production is outsourced, or sent to other countries, in order to keep cost down. Downsizing reduces the number of employees, also allowing cost to be kept down.
For whom to produce? This question asks whom goods are services will be made for. People in market economies will produce for a target market. This will allow them to make the greatest profit.