1. Economic Systems

2. Preview:
What does it mean to be under someone’s command? What happens at a market? What are some things that are mixed? What does the word mixed mean?

3. The three basic questions of economics are used to determine how a country will use its limited resources. 1. ________ will be produced? 2. __________ will produce it? 3. For _______ will it be produced? Each type of economy answers the three basic questions differently. The answers determine the type of economy the country has.
What
Who
Whom

4. The type of economy is determined by the extent of _______________ involvement in economic decision making.
Government

5. up leaving about an inch
Fold bottom of paper
up leaving about an inch
of free space at the top.
Foldable:
fold

6. Major Economic Systems
Write Title
Major Economic Systems

7. Major Economic Systems
Cut three slits down the bottom
section of the foldable.
Be sure they are evenly spaced.
Cutting:
Major Economic Systems

8. Major Economic Systems
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title on this flap.
Traditional
Economy
Traditional
Economy

9. Major Economic Systems
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title on this flap.
Command
Economy
Command
Economy

10. Major Economic Systems
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title on this flap.
Free Market
Economy
Free Market
Economy

11. Major Economic Systems
Write this
title on this flap.
Economy
Mixed
Mixed
Economy

12. Major Economic Systems
Open this flap.
Traditional
Economy

13. Traditional Economy
Economic decisions are based on custom and historical precedent.
People often perform the same type of work as their parents and grandparents
Basic needs are met by hunting, fishing, gathering and farming
Little technology

14. Major Economic Systems
Open this flap.
Command
Economy

15. central = national government
Command Economy
Central (Government) ownership of property and resources
Centrally-Planned (Government-Planned) Economy
Lack of Consumer Choice
central = national government

16. Major Economic Systems
Open this flap.
Free Market
Economy

17. Free Market Economy Private ownership of property and resources
Profit Motive
Competition
Consumer Sovereignty(consumers rule)
Individual Choice
Minimal government involvement in economy

18. Major Economic Systems
Open this flap.
Economy
Mixed

19. Mixed Economy
Individuals and businesses are owners and decision makers for the private sector
Government is decision maker for the public sector
More government than in a free market but less than in a command
Most common economic system today.

20. The United States is a ________ economy.
Mixed

21. Government 10 Command Market Economy Economy Mixed Economy No Example10
No Example
United States
Japan
England
Germany
Spain
Switzerland
China
Cuba
North Korea
Vietnam

22. Complete your processing activity