1. Aim: To understand different Types of Economies Warm up: Any situations where opportunity cost was in play?

2. Current Events Anything you would like to discuss? A brief article.

3. Traditional Economies Economic roles and economic decisions are defined by custom. Examples include Central African Mbuti and Northern Canada’s Insuits. The advantages of a traditional economy are that everyone knows which role to play and there is little uncertainty about production. A disadvantage of a traditional economy is the discouragement of new ideas and new ways of thinking. This leads to a lower standard of living than in other societies. How would Long Island be different if it was a traditional economy?

4. Command Economies In a command economy a central authority determines What, How, and For Whom to produce. Command economies include North Korea, Cuba, the former Soviet Union, and the People’s Republic of China. Two advantages to a command economy: the ability to drastically change direction in a relatively short period of time and little uncertainty for its citizens. Several disadvantages to a command economy: consumer needs may not be met; hard work is not rewarded; the necessary decision-making bureaucracy delays decisions; little flexibility to deal with day-to-day problems; and individual initiative goes unrewarded.

5. Market Economies In a market economy, producers and consumers determine What, How, and For Whom to produce. In each market transaction the consumer’s dollar acts like a “vote” ensuring that producers continue to bring to market the goods and services that consumers want to buy.

6. Market Economy Exs. include U.S., Canada, Japan, S. Korea, and parts of W. Europe Advantages of a market economy: Ability to adjust; high degree of individual freedom; small degree of government involvement; ability to have a voice in the economy; variety of goods and services; and the high degree of consumer satisfaction. Disadvantages to a market economy include inability of market to meet everyone’s basic needs. Markets also do an inadequate job providing some highly valued services such as justice, education, and health care. Citizens also face a high level of personal uncertainty and the prospect of economic failure.

7. Assessment Wait to be assigned a group. Your group will show the differences between the three economies either by using sound (no words), movement, or drawing.