1. Today’s Warm Up – 4/20/11 List everything you need to survive. You have five minutes to list everything that comes to mind. (Be ready to share!!! )

2. Good GREEF – How will we survive? Government – for protection Religion – belief system Education – to pass down skills from generation to generation Economic System – means of trading goods and services Family – reproduction, companionship, etc.

3. Economic Systems Unit 7

4. What is an Economic System? The organized way a nation answers the following questions: – What goods and services will be produced? – How will they be produced? – For whom will they be produced?

5. Why do we need economic systems? Resources are scarce (supply < demand) Societies must figure out who gets what and how!!

6. Bead Game Recap Each round of the bead game represents a different economic system: – Command: “We Do What We’re Told Ville” – Market: “Make as Much as We Want Ville” – Traditional: “That’s the Way We’ve Always Done it Ville”

7. “We Do What We’re Told Ville” Command Economic System – Gov’t and central planners determine what, how, and for whom to produce – Gov’t owns productive resources

8. “Make as Much as We Want Ville” Market Economic System – Consumers and Producers interact and answer the basic questions of what, how, and for whom to produce – Resources are owned by the individual

9. “That’s the Way We’ve Always Done It Ville” Traditional Economic System – Basic economic questions of what, how, and for whom to produce are answered by custom – No one has ownership of the productive resources

10. Today’s Lesson Essential Question How do the underlying goals for each economic system impact their choices and decisions?

11. Because of scarcity, tradeoffs have to be made among the six primary goals.

12. Efficiency Getting the most out of one’s resources for the least cost

13. Equity Fair; equal access to goods and services

14. Freedom being able to live and work where you want; owning and controlling your own resources

15. Growth Increasing the amount of goods and services produced in an economy

16. Security Knowing you have a job and can support yourself and your family

17. Stability Level of prices remains about the same

18. Remember… Throughout this unit, think economically… The regular definition of words like stability, security, and equity are different than their economic definitions.