1. Warm-up- Honors Journal Activity 1. What are the 4 factors of production used to make goods and services? 2. How does the interaction of supply and demand determine the price of a good or service? And have out your wkst on Supply and Demand to be checked

2. Check Homework have out your wkst to be graded have out your wkst to be graded

3. Economic Systems Objectives Describe 4 different types of economies and determine which type the US has. Language Students will understand the content through learning new vocabulary reading and notes to successfully complete an exit ticket. Content

4. New Vocabulary Lesson #3 Page 204

5. Market Place where goods and services are bought and sold

6. PROFIT Money businesses receive for its product or service after their cost

7. Traditional Economy Economic system where the decisions of what, how and for whom to produce are based on customs or habit

8. Command Economy Type of economic system where major economic decisions are made by the government

9. Free (market) Economy Economic System in which individuals and businesses are allowed to compete for profit with little government involvement

10. Mixed Economy Economic system combining characteristics of more than one type of economy

11. Competition Struggle between buyers and sellers to get the best products at the lowest prices

12. Private Property Rights Freedom to own and use property as long as it does not interfere with the rights of others

13. Consumer sovereignty Role of the consumer as the ruler of the marketplace determining what products will be produced

14. Lesson 3- Economic Systems [page 217] Essential Questions 1. Describe the 4 types of economic systems. 2. Identify which system the US has and why.

15. Economic systems is about how a country decides to use its limited productive resources by answering the 3 basic questions- …decide the ownership of resources… …and structure markets for the distribution of goods and services.

16. Notes 1. Every country needs to answer the 3 basic questions about their economy-  What to produce?  How to produce?  For whom to produce? 2. How will a country decide?  based on its limited productive resources  how much government involvement  try not to rely on just their own markets to deal with scarcity

17. History of Economic Systems ?- current Traditional Economies Traditional Economies1700’s Free (Market) Economy 1800’s Capitalism Big Business Owners 1800’s Command Economy (gov’t rules) 1700-current Mixed Economy

18. TRADITIONAL ECONOMY  Based on customs and traditions  People perform the same work as their ancestors regardless of potential or ability

19. Who owns the Factors of Production? Who makes the decisions in the marketplace? Countries that use this system today. people but there are few resources available people poorer, developing countries Examples

20. Free Market Economy  Can own private property and resources to earn profits  Competition encouraged  Individuals make the choices= Consumer sovereignty  No gov’t involvement*****

21. Who owns the Factors of Production? Who makes the decisions in the marketplace? Countries that use this system today. people – business owners people- consumers no one Examples

22. COMMAND ECONOMY  Centrally planned economy by the gov’t  Property and resources owned by the gov’t  Lack of consumer choice

23. Who owns the Factors of Production? Who makes the decisions in the marketplace? Countries that use this system today. govt communist nations Examples

25. “Communism”

26. MIXED ECONOMY  private sector- People make decisions (free market)  public sector-Gov’t owns some resources and makes decisions (command economy)  Govt role is greater than in free market but less than in command economy

27. Who owns the Factors of Production? Who makes the decisions in the marketplace? Countries that use this system today. People & govt Most countries today Examples

28. CHARACTERISTICS OF THE U.S ECONOMY

29. Notes FREE MARKETS- Little gov’t involvement interaction of supply and demand determines prices

30. Notes CONSUMER SOVEREIGNTY- consumer choices rule the market

31. Notes COMPETITON- rivalry between sellers of a good or service results in better quality goods at lower prices

32. Notes PRIVATE PROPERTY RIGHTS- people can own property and its factors of production

33. Notes PROFIT- Individuals and businesses keep all earnings

34. Vocabulary Check- (practice) Get out your journal

35. Conclusion 1. Write a 2-3 sentence summary 2. Homework- read and highlight pages 208-209 “Lesson 3- Economic Systems” and answer questions 4-8. 3. Get ready for the Economic Quiz #1 NOW.

36. Reading [page 208-209] Reading page 161

37. STORY TIME! What type of economic system is used in this story? What characteristics of the marketplace that helped to make your decision?

38. Click the mouse button or press the Space Bar to display the answer.

39. TRADITIONAL ECONOMIES Decision making based on customs and traditionsDecision making based on customs and traditions FREE MARKET ECONOMIES decision making by individuals and businessesdecision making by individuals and businesses COMMAND ECONOMIES Central planning by the governmentCentral planning by the government MIXED ECONOMIES Central planning and individual decision makingCentral planning and individual decision making