1. Create a Tri-Venn Diagram, highlight the info. that answers these questions. Command Economy Traditional Economy Market Economy Who or what makes economic decisions? Also place the following terms where they belong: Equity, Security, Stability, Growth, Freedom, Efficiency Who or what makes economic decisions?

2. 11/9 CTR Agenda Warm up Tri venn diagram Mini mini case studies Objectives Students will be able to distinguish between command, market, and traditional economic systems

3. Tri-Venn Diagram Command Economy Traditional Economy Market Economy Customs and tradition dictate what, how and for whom to produce. Goals: Security and stability A powerful ruler or authority dictate what, how and for whom to produce. Goals: Security and equity Producers and consumers dictate what, how and for whom to produce. Goals: Efficiency and Freedom Check page 46 to see how you did…

4. Economic Systems There is no such thing as a pure command, market, or traditional economy Rather, these three economic systems act as theoretical points that help us make sense of different economies  spectrum Mixed economies are economies that have characteristics of both command and market economies Economic Systems Spectrum Pure Command MixedPure Market

5. Sweden: Sweden provides its people with numerous social services. These include universal single payer health care, generous unemployment benefits and free college tuition. However, Sweden’s tax rates are very high. The government has considerable say over how resources are spent. However, people are free to choose their own professions and ways to spend their money. Economic Systems Spectrum Pure Command Mixed Pure Market

6. Indigenous tribe of Brazil: Deep in the Amazon jungle, some indigenous tribes base economic decisions, such as jobs, on their ancestry or a tribal leader’s command. This society has lived and produced its goods in the same way for hundreds of years. The standard of living is low compared to other nations. Economic Systems Spectrum Pure Command MixedPure Market

7. Hong Kong: Although Hong Kong was annexed by China over 10 years ago, the Chinese government allowed Hong Kong to maintain most of its previous economic institutions. There are few government restrictions on business practices in Hong Kong. Almost everyone can start a new business, and entrepreneurs are highly influenced by the profit motive. In addition, the tax rate is very low. The Hong Kong government provides only a few public services for its people. Economic Systems Spectrum Pure Command Mixed Pure Market

8. North Korea: North Korea is one of the last communist nations in the world. It is ruled by a political dictatorship. All economic decisions will respect to what is produced are decided by the central government. No one is allowed to own private property. Economic Systems Spectrum Pure Command Mixed Pure Market

9. United States: The US has traditionally been a free-enterprise economy. Tax rates are relatively low, and the amount of regulation on businesses is also less than in most countries. The US government does provide some social services for those in need, such as food stamps, public housing and medical care. Economic Systems Spectrum Pure Command Mixed Pure Market

10. Costs and benefits What is one cost and one benefit of each economic system? – Traditional? – Market? – Command?

11. -Why do command economies have a lower standard of living than market economies? -Why do market economies have an unequal distribution of wealth, or a disparity in economic classes? Economic Systems Spectrum Pure Command Mixed Pure Market

12. Pg. 2, Ch. 3.4 and fill out the chart for the economic characteristics in the United States TraditionalMarketCommand 1.Average wages for men are higher than women. 2. 3. 1.People can choose their professions. 2. 3. 1.The government provides publicly funded schools. 2. 3.

13. Which economic system (or combination of economic systems) best represents the US economy? Explain.

14. Economic system where private individuals own the factors of production Generally part of a free market system It’s called ‘capitalism’ because the capital comes from individuals not a central authority Capitalism - clarifications WE are actually a “mixed” economy and many nations are.