1. Economic Systems
CE.9b

2. The type of economy is determined by…
CE.9b

3. …the extent of government involvement in economic decision making.
CE.9b

4. Characteristics of a free market economy
Private Ownership of property/resources
Individual Choice (Profit motive)
Supply and Demand determines price
Other
Competition
Consumer Sovereignty
CE.9b

5. Private Ownership of Property/Resources
You the consumer have the right to own your own property and resources
What do you think this means?
CE.9b

6. Private Ownership of Property/Resources
Billy Bob owns his own restaurant, while Mickey owns his own ice cream shop
Both are privately owned businesses
CE.9b

7. Private Ownership of Property/Resources
Many of your parent’s own their own homes in Prince William County
Some of your relatives may own their own vehicle, but more and more people today lease their cars
CE.9b

8. Drawing Time!
Draw your own picture of something that reminds you of a free market economy
CE.9b

9. Free Market Economies
No purely Free Market Economies actually exist in the world. It is only a theory!
CE.9b

10. Free Market Economies Citizens own everything in a free market economy
The government owns nothing
CE.9b

11. Government Control
HIGH
Free Markets
LOW
CE.9b

12. A command economy is the opposite of a…
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13. …free market economy!
CE.9b

14. Government Control
HIGH
Command
Free Markets
LOW
CE.9b

15. Characteristics of a command economy
Central (government) Ownership of property/resources
No Individual Choice
Central Planning determines price and production
Other
CE.9b

16. Command Economy We the Government control the economy!
Not you, the citizens, like in a free market!
CE.9b

17. Muaaaah hahahahahahhha
Command Economy!
The ECONOMY is MINE!
Muaaaah hahahahahahhha
Muahhhhh
hahahahahah
CE.9b

18. Command Economy The Government owns property and all resources
This is called being “centrally owned”
CE.9b

19. Command Economy
People work in the government to plan and control the economy
The government decides on how much of everything will be produced and consumed
NO consumer sovereignty
CE.9b

20. Command Economy There is no individual choice Everyone gets the same
Most command economies in the world are Communist countries
CE.9b

21. Command Economies Today
CE.9b

22. Drawing Time!
Draw your own picture of something that reminds you of a command economy
CE.9b

23. A mixed economy is a blend of a free market economy…
CE.9b

24. …and a command economy
CE.9b

25. Characteristics of a mixed economy
Private and Public ownership of property/resources (2 sectors)
Individual Choice in private sector
Supply and Demand usually determines price and production
Gov't controls some prices and production (energy, food, roads, etc.)
CE.9b

26. Government Control
HIGH
Command
Mixed
Free Markets
LOW
CE.9b

27. Mixed Economy
Private sector is the area in which the individuals own things
Cars
House
Own Businesses
Property
CE.9b

28. Mixed Economy People can purchase what they want
People have many choices
Variety of brands and products
Tons of stores
CE.9b

29. Mixed Economy The government owns many things in the public sector
Buildings
Mass transportation services
Major construction projects
CE.9b

30. Mixed Economy Government plays a role in the economy Tax cuts
Stimulus plans
Spending proposals
Federal/State budgets
Income Taxes
Property Taxes
CE.9b

31. Mixed Economies
CE.9b

32. Drawing Time!
Draw your own picture of something that reminds you of a mixed economy
CE.9b

33. Exit Slip In 4-5 Sentences, complete one of the following options:
Journal Entry (what would a typical day be like for someone living in a command economy?)
One Word Summary (select any one of the economic systems
Persuasive Paragraph (which system is best and why)