1. The study of how people manage their resources.
What is economics?
The study of how people manage their resources.

3. SCARCITY

4. What is Production? What is Consumption?
Person or people that make a good or provide a service (Sellers)
What is Consumption?
Person or people that use or purchase a good or a service
(Buyers)

5. Types of Economy
Traditional- customs & habits of a society will determine what will be produced & how it will be distributed & consumed (Usually includes bartering, rather than money). Traditional economies are becoming more rare.
Command- Government will determine what will be produced & how it will be distributed & consumed. Government will set prices and set regulations (rules) that industries must follow.
Market- Individuals, private companies, & consumers will determine what will be produced & how it will be distributed & consumed. Individuals and companies are allowed to produce freely without government interference.

6. Free Market vs. Command

7. (R20) Economic Systems in Europe

8. Today’s Standard
SS6E5 The student will analyze different economic systems. c. Compare the basic types of economic systems found in the United Kingdom, Germany, and Russia.

9. Intro to our……. “Essential Question(s)”
How are the economic systems of the United Kingdom, Germany, and Russia similar?
How do most countries strike a balance between having a pure market and pure command economy?

10. Comparing Economic Systems
Russia- “Ruble”
United Kingdom-
“Pound”
Germany-
“Euro”

11. 100 ECONOMY TYPES IN EUROPE United Kingdom 74.5 Germany 71.8
USA is 77.8
Russia 50.5
100
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.
Pure Market
Pure
Command
The numbering system is based on The Heritage Foundation’s Economic Freedom Index 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.

13. Mixed Market Mixed Market Mixed Market
Country
Type of Economy
Growing or Struggling
What the Government Controls
United
Kingdom
Germany
Russia
Mixed
Market
Less government →
More Private Control
Of Production & Consumption
Growing
Mixed
Market
Growing
Less government →
More Private Control
Of Production & Consumption
Mixed
Market
Less government →
More Private Control
Of Production & Consumption
Struggling
(Recent Transition from Command to Mixed Market)

14. Return to our……. “Essential Question(s)”
How are the economic systems of the United Kingdom, Germany, and Russia similar?
How do most countries strike a balance between having a pure market and pure command economy?