Economic Systems
Preview: What does it mean to be under someone’s command? What happens at a market? What are some things that are mixed? What does the word mixed mean?
The three basic questions of economics are used to determine how a country will use its limited resources. 1. ________ will be produced? 2. __________ will produce it? 3. For _______ will it be produced? Each type of economy answers the three basic questions differently. The answers determine the type of economy the country has. What Who Whom
The type of economy is determined by the extent of _______________ involvement in economic decision making. Government
up leaving about an inch Fold bottom of paper up leaving about an inch of free space at the top. Foldable: fold
Major Economic Systems Write Title Major Economic Systems
Major Economic Systems Cut three slits down the bottom section of the foldable. Be sure they are evenly spaced. Cutting: Major Economic Systems
Major Economic Systems Write this title on this flap. Traditional Economy Traditional Economy
Major Economic Systems Write this title on this flap. Command Economy Command Economy
Major Economic Systems Write this title on this flap. Free Market Economy Free Market Economy
Major Economic Systems Write this title on this flap. Economy Mixed Mixed Economy
Major Economic Systems Open this flap. Traditional Economy
Traditional Economy Economic decisions are based on custom and historical precedent. People often perform the same type of work as their parents and grandparents Basic needs are met by hunting, fishing, gathering and farming Little technology https://www.youtube.com/watch?v=rG0_uMt0lKQ
Major Economic Systems Open this flap. Command Economy
central = national government Command Economy Central (Government) ownership of property and resources Centrally-Planned (Government-Planned) Economy Lack of Consumer Choice central = national government http://www.youtube.com/watch?v=fAmSnZKbF2A
Major Economic Systems Open this flap. Free Market Economy
Free Market Economy Private ownership of property and resources Profit Motive Competition Consumer Sovereignty(consumers rule) Individual Choice Minimal government involvement in economy
Major Economic Systems Open this flap. Economy Mixed
Mixed Economy Individuals and businesses are owners and decision makers for the private sector Government is decision maker for the public sector More government than in a free market but less than in a command Most common economic system today.
The United States is a ________ economy. Mixed
Government 10 Command Market Economy Economy Mixed Economy No Example 10 No Example United States Japan England Germany Spain Switzerland China Cuba North Korea Vietnam
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