Economic Systems: Comparison Charts (Include Definition) Advantages Disadvantages Traditional: Command: Mixed: Economic Systems: Comparison Charts What are you making: Paper airplanes Task: In your groups—read about each of the economic system’s method of making the paper airplanes. Try out making a paper airplane (or 2) using each method. Identify some advantages and disadvantages of each economic system (discuss this within your groups) create and fill out the chart (Like the example above)—Each person in your group needs to do this.

Economic Systems comparison charts ADVANTAGES DISADVANTAGES TRADITIONAL Everyone has a say Life is certain Anything can be made (as long as made before) Allows for specialization Limited resources No progress One leader (elder)in charge of everything Lower standard of living Inefficient/not productive COMMAND No way to make a mistake (directions are very clear) Assembly line Government has control Has a lot of points Honor and respect is important!  No freedom You have to praise leader even if the product is a failure Waste of time (too many steps before you have to start new) No innovation No competition to do better MIXED Abundant resources People have a say Room for innovation Government can assist in mishaps More entrepreneurs ---More competition—chance for better products Taxes If you are bad at what you are producing---you just fail. No Guidance Lack of human capital= failure Competition may be “scary” if you are the seller

Economic Systems: Paper Airplane Simulation Which system is best? As a group: Decide WHICH economic system you think is best and represent that economic system With your chosen economic system, You will have to make the paper airplanes within your group EXACTLY the way the instructions tell you to. You will have 5 minutes to be as productive as possible. After the 5 minutes is up, EACH group will have 2 minutes to test out their planes for “points” After the competition—think about the following questions as a group: Do you think you chose the correct economic system? Why or why not? How did you feel about the method in which you had to make your planes? What were some characteristics of your instructions? What do you think the advantages and disadvantages of living in this type of economic system are? How did this economic system answer this economic question: HOW TO PRODUCE?

Ticket out the door (Put this on a post it note with your name on it) 3 Economic Systems 2 characteristics of each economic system 1 Example of Specialization