1. Warm Up Answer the following prompt 1. If you would like Doritos, how would you get them? 2. If you live in a totalitarian government, how would you get those Doritos.

2. TPO We will create a story board using notes over free-enterprise and command economies.

3. Economic Systems An economy consists of the production and exchange of goods and services among a group of people.

4. Traditional Economies Goods and services are traded without exchanging money (aka: a “barter” system) Ex: Tribal and rural areas of South America, Africa, and Asia.

5. Free-Enterprise System The production of goods and services is determined by consumer demand. Government has little influence in business.

6. Free-Enterprise System PRICE- the value of the things we buy are determined by supply (how many there are) and demand (how much we want it) ExpensiveNot Expensive Coach Purse $350 Grandma’s Purse $5 Because no one wants to buy grandma’s purse, it is much less expensive.

7. Free-Enterprise System Quantity- How much companies make of a good is determined by demand (how much we want it). Very PopularNot so popular iPHONE 5 Over 2 million pre-ordered PANTECH PN-218 150,000 pantech pn-218 produced

8. Free-Enterprise System Ownership- People own property.

9. Free-Enterprise System Examples of countries that have Free- Enterprise Systems The United States, Canada, Japan

10. Communist Economic System Production of goods and services is determined by a central government which usually owns the means of production. Production does not necessarily reflect consumers demand. (aka socialist & communist economies)

11. Communist Economic System

12. PRICE- the value of the things people buy are determined by the government. Kim Jung Un says: “Bread = $10.” One of the problems with a command economy is that prices do not represent the value of things sold.

13. Communist Economic System Quantity- How much there is of a good is determined by the government. Kim Jung Un says: “We will only make 10 loaves today.” Another problem with Command Economies is that governments often have very little idea how much to make.

14. Communist Economic System Ownership- The Government owns everything and lends it out to people. Kim Jung Un of North Korea Perhaps the biggest problem that Command Economies have is that there is little reason to innovate since, no one owns property..

15. Communist Economy Countries that have Command Economies: Cuba, Burma, North Korea

16. Draw a T-Chart in your notes Political System Economic System

17. Which economic system would these political systems use? Fill out your T-Chart Political System Economic System 1.Totalitarian 2.Republic 3.Democracy 4.Theocracy 5.Monarchy 6.Dictatorship Communist Free-Enterprise Communist Free-Enterprise OR Command Communist

18. Concept Storyboard _______________ _______________ _______________ Complete the concept story board to show your knowledge of the three types of economic systems we discussed. You will include a small cartoon as well as a description in your own words of the economic system. Also make sure to include examples of those places.