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2.  Write about your goals.  What do you hope to accomplish in high school?  What do you hope to accomplish beyond high school?  Where do you see yourself in 10 years?

3.  1)What are the 3 questions that all economic systems answer?  2) What are the major types of economic systems?

4.  Economic systems ways in which countries use their resources to satisfy needs and wants  Countries must make decisions on how to distribute limited resources just like people (opportunity cost, scarcity)  3 questions are considered…

5.  1) What to produce?  2) How to produce?  3) For whom to produce?

6.  An economic model is a way of grouping or organizing different theories on how the economy should be run.

7.  1) Traditional Economy  Based on societies values  You do what you saw people doing when you grew up  Farming or fishing  Developing countries

8.  2) Command Economy  Rulers or people in authority decide which products will be produced  Factors of production are owned by PEOPLE OF AUTHORITY (government)  Use the internet to research the feudal system and be prepared to answer how it is an example of a command economy

9.  3) Market Economy  Government has NO say in what, how and for whom goods are produced  Factors of production are owned by INDIVIDUALS  Goods traded on a market – place where goods and services are traded  Adam Smith  Scottish economist and philosopher  Self interest unregulated markets will be shaped by people’s self interests  Since it’s the will of the people and NOT the government, peoples SELF INTERESTS are fulfilled

10.  You’re newspaper carrier. Why did you accept this job?  A) You believe that everyone deserves a newspaper  B) It is a good newspaper and more people should read it  C) You get paid to deliver newspapers

11.  Most said “C”  Good for you and people get to read the newspaper  What would be different if the government regulated how many newspapers could be sold?  Market economy gives incentives something that encourages you to behave a certain wayh

12.  4) Mixed Economies combines traditional, market and command economic models  3 Types of Mixed Economies  1) Communism government owns or controls nearly all factors of production/very little decision making for individuals  Closest to command economy

13.  2) Capitalism  Individuals own the factors of production  Limited government intervention  Closest to market economy  3) Democratic Socialism  Government owns some factors of production – usually utilities  In between capitalism and communism

14. Economic System What to Produce How to Produce For Whom to Produce Example TRADITIONAL COMMAND MARKET