1. SS.912.E.1.3 Compare how the various economic systems (traditional, market, command, mixed) answer the questions: (1) What to produce?; (2) How to produce?; and (3) For whom to produce? Standard 1 Understand the fundamental concepts relevant to the development of a market economy SS.912.E.1.3 Compare how the various economic systems (traditional, market, command, mixed) answer the questions: (1) What to produce?; (2) How to produce?; and (3) For whom to produce?

2. Video: Schoolhouse Rock-new country

3. Characteristics of economic systems: Traditional –Private property rights usually exist –Limited trading; usually barter trade –Minimal use of price system or currency Market –Private property rights are predominant –Extensive trading –Heavy emphasis on price system Command –Private property rights are limited, at best –Moderate trading –Limited use of price system Mixed –Various combinations of market and command

4. Traditional (1) What to produce? Whatever is needed or desired by the household (2) How to produce? With the resources owned by the household Some borrowing or trading with neighbors (3) For whom to produce? The household Perhaps some for trading

5. Market (1) What to produce? Whatever is desired by consumers (2) How to produce? The most efficient and inexpensive way (3) For whom to produce? Whomever has the ability to pay

6. Command (1) What to produce? Whatever the government decides Presumably some consumer demand is considered (2) How to produce? With the existing technology and resources Much less incentive to innovate and reduce costs (3) For whom to produce? Whomever the government decides Whomever waits in line

7. Mixed Various combinations of market and command

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9. Focus: Understanding Economics in Civics and Government Lesson 1 How Do Constitutions Shape Economic Systems?

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11. Focus: Understanding Economics in US History Lesson 2 Property Rights Among North American Indians

12. Video: Stossel 2011 Property rights and the status of Native Americans