1. { Types of Economic Systems

2.  Economic System  Traditional Economy  Command Economy  Market Economy  Mixed Economy Terms to Know

3.  Economic System – way of determining how to use resources to satisfy people’s wants and needs  Are your needs the same as someone in Israel?  Do you want the same things as someone in China?  There are different economic systems to meet the different needs and wants of the people. Intro to Economic Systems

4.  Every economic system must answer three basic questions:  What goods and services should be produced?  How should they be produced?  Who will get the goods and how will they be distributed? Three Basic Economic Questions

5.  Traditional System is based on traditional customs and religious beliefs passed down for generations.  Command System is when the government controls all factors of production and makes all the decisions  The government even decides what jobs people will hold Types of Economic Systems

6.  Market Economy (also known as Capitalist)- the government does not intervene. Market is freely chosen activities between buyers and sellers of goods and services.  Mixed Economic System – a combination of all three types of economic systems Types of Economic Systems

7.  Some decisions are made by individuals reacting to the market  Squinkies  Ipods  Federal, state, and local governments make laws regulating areas of business.  Health Inspectors  Commercial zones – not shopping centers in a neighborhood  Customs and traditions affect portions of the economy  Christmas, Valentines Day, etc. In The United States…

8.  Gross Domestic Product (GDP) – the market value of all final goods and services within a country in a given period of time.  Refers to products produced and sold in the same country  Hershey is an American candy company, so every Hershey product made & sold in the U.S. is part of it’s GDP.  Gross National Product (GNP) – the total value of all final goods and services produced by a country’s factors of product and sold on the open market in a given period of time.  Refers to product in one country & sold in another  Example: Any Hershey bars sold in Mexico will count towards the U.S.’s GNP GDP vs. GNP

9.  http://www.youtube.com/watch?v=1ZTRH- bFomI&feature=related  http://www.youtube.com/watch?v=1ZTRH- bFomI&feature=related http://www.youtube.com/watch?v=1ZTRH- bFomI&feature=related http://www.youtube.com/watch?v=1ZTRH- bFomI&feature=related  http://www.youtube.com/watch?v=_hu9i2C7cK 8&feature=related http://www.youtube.com/watch?v=_hu9i2C7cK 8&feature=related http://www.youtube.com/watch?v=_hu9i2C7cK 8&feature=related  http://www.youtube.com/watch?v=bvdN0IGo HSU&feature=related http://www.youtube.com/watch?v=bvdN0IGo HSU&feature=related http://www.youtube.com/watch?v=bvdN0IGo HSU&feature=related Kingdom of Mocha

10.  Typically a government follows one of four types of economic systems: traditional, command, market, and mixed. Explain how each system answers the basic economic questions of what to product, how to produce, and whom to produce for. Include details and examples to support your response. ECR

11.  Traditional Economy  What goods and services should be produced?  Example  How should they be produced?  Example  Who will get the goods and how will they be distributed?  Example  Command Economy  What goods and services should be produced?  Example  How should they be produced?  Example  Who will get the goods and how will they be distributed?  Example  Market Economy  What goods and services should be produced?  Example  How should they be produced?  Example  Who will get the goods and how will they be distributed?  Example  Mixed Economy  What goods and services should be produced?  Example  How should they be produced?  Example  Who will get the goods and how will they be distributed?  Examplle ECR Outline