Economic Systems CE.9b

The type of economy is determined by… CE.9b

…the extent of government involvement in economic decision making. CE.9b

Characteristics of a free market economy Private Ownership of property/resources Individual Choice (Profit motive) Supply and Demand determines price Other Competition Consumer Sovereignty CE.9b

Private Ownership of Property/Resources You the consumer have the right to own your own property and resources What do you think this means? CE.9b

Private Ownership of Property/Resources Billy Bob owns his own restaurant, while Mickey owns his own ice cream shop Both are privately owned businesses CE.9b

Private Ownership of Property/Resources Many of your parent’s own their own homes in Prince William County Some of your relatives may own their own vehicle, but more and more people today lease their cars CE.9b

Drawing Time! Draw your own picture of something that reminds you of a free market economy CE.9b

Free Market Economies No purely Free Market Economies actually exist in the world. It is only a theory! CE.9b

Free Market Economies Citizens own everything in a free market economy The government owns nothing CE.9b

Government Control HIGH Free Markets LOW CE.9b

A command economy is the opposite of a… CE.9b

…free market economy! CE.9b

Government Control HIGH Command Free Markets LOW CE.9b

Characteristics of a command economy Central (government) Ownership of property/resources No Individual Choice Central Planning determines price and production Other CE.9b

Command Economy We the Government control the economy! Not you, the citizens, like in a free market! CE.9b

Muaaaah hahahahahahhha Command Economy! The ECONOMY is MINE! Muaaaah hahahahahahhha Muahhhhh hahahahahah CE.9b

Command Economy The Government owns property and all resources This is called being “centrally owned” CE.9b

Command Economy People work in the government to plan and control the economy The government decides on how much of everything will be produced and consumed NO consumer sovereignty CE.9b

Command Economy There is no individual choice Everyone gets the same Most command economies in the world are Communist countries CE.9b

Command Economies Today CE.9b

Drawing Time! Draw your own picture of something that reminds you of a command economy CE.9b

A mixed economy is a blend of a free market economy… CE.9b

…and a command economy CE.9b

Characteristics of a mixed economy Private and Public ownership of property/resources (2 sectors) Individual Choice in private sector Supply and Demand usually determines price and production Gov't controls some prices and production (energy, food, roads, etc.) CE.9b

Government Control HIGH Command Mixed Free Markets LOW CE.9b

Mixed Economy Private sector is the area in which the individuals own things Cars House Own Businesses Property CE.9b

Mixed Economy People can purchase what they want People have many choices Variety of brands and products Tons of stores CE.9b

Mixed Economy The government owns many things in the public sector Buildings Mass transportation services Major construction projects CE.9b

Mixed Economy Government plays a role in the economy Tax cuts Stimulus plans Spending proposals Federal/State budgets Income Taxes Property Taxes CE.9b

Mixed Economies CE.9b

Drawing Time! Draw your own picture of something that reminds you of a mixed economy CE.9b

Exit Slip In 4-5 Sentences, complete one of the following options: Journal Entry (what would a typical day be like for someone living in a command economy?) One Word Summary (select any one of the economic systems Persuasive Paragraph (which system is best and why)