1. Traditional Command Market ECONOMIC SYSTEMS

2. INUIT PEOPLE INUIT PEOPLEINUIT PEOPLEINUIT PEOPLE

3. Traditional Economy All economic activity stems from ritual, habit, or custom Social behavior comes from habit and custom Individuals not free to make own decisions Roles are defined by customs and elders

4. Examples of Traditional Economy Indigenous Peoples Inuit of Northern Canada Teach children to make tools, to hunt, to fish When hunting they share what they kill Each head of family got a portion Hunter got first choice, next most responsible got second choice Hunter a hero, village fed

5. What were the three questions every economy must answer? Tell your elbow partner 1.WHAT 2.HOW 3.FOR WHOM?

6. Traditional Economy Advantage Everyone knows their roles Everyone knows WHAT to produce Everyone knows HOW to produce FOR WHOM decided by tradition which dictates how to live life Disadvantage Discourages new ideas Punish any “out of the box” thinkers Leads to economic stagnation Lower standard of living

7. TASK Read about Command Economy (page 35) Read Closely Describe a command economy. What are the characteristics of a command economy? Compare the advantages and disadvantages of a command economy

8. TASK Read about Market Economy (page 37) Read Closely Describe a market economy. What are the characteristics of a market economy? Compare the advantages and disadvantages of a market economy