1. Economics & Economic Decision Making Have out your notebook to your economic system’s chart from yesterday. Be ready for a top ten!!!

2. The Top Ten Longest Land Animals 10.Tiger 9. Camel 8. Bison 7. Hippopotamus 6. Rhinoceros 5. Giraffe 4. Crocodile 3. Elephant 2. Tapeworm 1. Python

3. Have out your systems chart from yesterday: What are the advantages or disadvantages of each system?

4. Traditional Economy Advant ages Dis- advant ages always KNOW ROLE in society STABLE and predictable life BASIC NEEDS provided LOWER STANDARD of living WANTS are not met No NEW IDEAS LACK of progress, NO CHANGE

5. COMMAND Economy Advant ages Dis- advant ages always KNOW ROLE in community Capable of DRAMATIC change BASIC NEEDS provided NEW IDEAS discouraged Requires large GOVERNMENT WANTS not met NO INCENTIVES to get people to work

6. MARKET Economy Advant ages Dis- advant ages Lots of FREEDOM & CHOICE (job / g&s) Lack of GOVERNMENT interference High degree of consumer SATISFACTION NEW IDEAS and productivity are REWARDED People face UNCERTAINTY & FAILURE Does not meet NEEDS of PEOPLE (homeless, hungry, uneducated!!)

7. ANSWER THE QUESTIONS ON THE CARTOON. TAKE OUT YOUR- Circle of SOCIO-ECONOMIC GOALS We did it on Friday. Look at the Index card you have and determine which goal you think it is trying to meet and WHY?

8. Economic Growth Economic FreedomEconomic Security Economic Efficiency Economic Equity Price StabilityFull Employment

9. The USA has a MIXED, MARKET economy based on a CAPITALIST ideal! MIXED: the U.S. system is a MIX of both MARKET & COMMAND qualities –Citizens have freedoms but gov’t also regulates Capitalism: private CITIZENS OWN the FACTORS of production

10. Question to ponder: The U.S. economic system is often called a mixed system. We are not purely market but also not a command economy. Where do you think we fit on the spectrum?

11. Homework: Take your textbook home Read Pages: 46-51. Complete the question sheet to be collected tomorrow.

12. What is unique about the U.S. economic system? Our 5 Unique Characteristics: 1.Economic Freedom 2.Private Property Rights 3.Voluntary Exchange 4.Competition 5.Profit Motive