Economic System Definition Economic System: The institutional framework of formal and informal rules that a society uses to determine what to produce, how to produce, and how to distribute goods and services. L ESSON 11 – E CONOMIC S YSTEMS OF THE I NCAS AND A ZTECS F OCUS M IDDLE S CHOOL W ORLD H ISTORY © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY

Production Specifications L ESSON 11 – E CONOMIC S YSTEMS OF THE I NCAS AND A ZTECS F OCUS M IDDLE S CHOOL W ORLD H ISTORY © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY Production StepsOne BraceletOne Necklace Cut piece of string10 inches long16 inches long Draw dots on macaroni using two different color markers—use one color per piece of pasta 10 pieces of macaroni—5 with each color dot 16 pieces of macaroni—8 with each color dot Place macaroni on string 10 pieces of macaroni—alternate color dots 16 pieces of macaroni—alternate color dots Knot stringKnot two ends of string together to create a bracelet Knot two ends of string together to create a necklace Trim knot using scissorsTrim knot

Production Recording Sheet Group# of Group Members # ProducedValue of Production BraceletsNecklaces L ESSON 11 – E CONOMIC S YSTEMS OF THE I NCAS AND A ZTECS F OCUS M IDDLE S CHOOL W ORLD H ISTORY © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY

Economic Systems GroupWhat to Produce How to Produce For Whom to Produce A B C L ESSON 11 – E CONOMIC S YSTEMS OF THE I NCAS AND A ZTECS F OCUS M IDDLE S CHOOL W ORLD H ISTORY © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY

Systems Definitions Command System: An economy in which most economic issues of production and distribution are resolved through central planning and control. Market System: An economy that relies on a system of interdependent market prices to allocate goods, services, and productive resources and to coordinate the diverse plans of consumers and producers, all of them pursuing their own self-interest. Traditional System: An economy in which customs and habits from the past are used to resolve most economic issues of production and distribution. L ESSON 11 – E CONOMIC S YSTEMS OF THE I NCAS AND A ZTECS F OCUS M IDDLE S CHOOL W ORLD H ISTORY © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY