Warm up Who decides what goods are marketed and sold in the United States?

https://www.youtube.com/watch?v=N2x- x6MMRuY

Traditional Economy Goods and services traded without exchanging money. “Bartering” Habit and customs determine the rules for all economic activity.

Modern Economic Systems Tied to the country’s political system. The way people produce and exchange goods and services. 3 basic types:

Command Economy Also known as communist economy ex) Cuba and North Korea

Command Economy Government controls the factors of production. determine job, own the land, etc.

Command Economy Government determines the distribution of goods and services. ration food/supplies, who can own what

Command Economy Government provides all basic needs. healthcare, shelter, etc.

Free Enterprise (Capitalism) Also known as market or capitalist economy ex) U.S.

Free Enterprise (Capitalism) Private ownership of factors of production. People own the land, businesses, money, etc.

Free Enterprise (Capitalism) Consumer demand controls production and distribution. things are made because people want them market

Free Enterprise (Capitalism) Government provides few/no basic needs. social programs, welfare, etc.

Socialism Also known as mixed economy ex) France, India, China

Socialism Major factors of production owned by government. energy, healthcare, etc. private owners too

Socialism Distribution of goods and services determined by both. a blend

Socialism Government provides some basic needs. healthcare, more extensive social programs, welfare, etc. Emphasis on “being fair” to all.

Economic Spectrum Create an economic spectrum on the cover of your foldable with most government control on the left and least government control on the right. more government less government

Modern Economic Spectrum Command Economy Socialism Free Enterprise more government less government

Communism is like ____________ because ___________________________. Socialism is like ____________ because ___________________________. Capitalism is like ____________ because ___________________________.