1. Today’s Warm Up Pick up the packet from the front of the room. Based off the sentence in the middle of the page, complete the top two boxes for the term allocate.

2. Economic Systems (Continued) Today’s LEQs: What basic economic problem does every society face and how does this create the need for an economic system? What are the main economic systems and how do they compare and contrast?

3. Recall from Yesterday… What were the three basic questions every economic system must answer? In one word each, how do the three main economic systems answer these questions? – Command? – Market – Traditional?

4. CommandBasic QuestionsMarket Central planners base production on politically determined goals What and how much to produce? Consumer preferences (demand) and producer cost and profit considerations (supply) determine what to produce Central planners determine the combination of productive resources used based on the country’s goals (i.e. using more labor and less capital if full employment is a major goal) How to produce?Individual businesses determine the mix of natural, human, and capital resources they will use to minimize production costs and maximize profits Wags and other incomes are set by central planners, as are prices for goods and services consumers can buy. Prices often set below equilibrium. For whom to produce?Consumers reflect their preferences for goods and services through “dollar” votes. Price dictates who gets what.

5. Visual 2 Activity Use the information from Activity 1 or 2 (depending on which you were assigned) and determine how your economy will respond. Discuss the following: – What changes will be made (if any) in the goods and services produced? – How will these teenagers be prepared to enter the workforce of their country?

6. Visual 3 Activity Break into new groups of 2 or 3 (you need someone who was originally in a command economy group and at least one who was in a market economy group) Discuss resource allocation responses to the problem in your assigned news event from either a command or market perspective, or a combination of both. You will report your decisions back to the class.

7. Assessment: Activity 4 Be ready to share your response!

8. Today’s Exit Ticket What are the major advantages and disadvantages of command economies and market economies? Answer on the exit ticket provided.