1. Unit 9, Lesson 5: Economic Systems
Agenda:
Finish Stock Market video
Review lesson 4 –go over homework
Lesson 5: Economic Systems Notes
Economic Systems survey
Outcome: Students will be able to describe the key characteristic of different economic systems

2. Market Economies/ Capitalism
Decisions in the economy are based on supply and demand
Private citizens, not the government, own the factors of production
Market economies offer a high degree of individual freedom
Businesses make their own decisions regarding what to produce, how to produce it, and for whom to produce it
Consumers make their own decisions about what to buy
Profit and income are the goals of this system

3. Market Economies/ Capitalism
No one runs the economy, it runs itself
No pure market economies in world; US pretty close but government provides services such as defense and a system of justice
Government’s role is to make sure that markets are competitive; avoid monopolies
World’s largest economies are market economies
Advantages: people have lots of freedom and can become wealthy
Disadvantages: people and companies are not promised any level of success
Government tries to prevent monopolies (with regulation)

4. Command Economies /Communism
Major economic decisions are made by the central government, individuals and businesses have little freedom
Government tells producers what to do
System is often referred to as socialism/ communism
Under communism all property would be held in common and everyone would work together and be equal
There is little incentive to work hard and get an education
Command economies tend to be very inefficient because they do not react to supply and demand; North Korea- famine
Many people in communist countries suffer persecution and face harsh economic systems

6. Mixed Economies/ Socialism
Mixed economies combine basic elements of a market economy and a command economy
Major industries such as health care, transportation, and major industries are owned and operated by the government
Smaller businesses are owned by individuals
People are not able to become as wealthy but are guaranteed basic services
Tax rates are higher to pay for these services
Many people work for the government
France, Sweden, and Norway are good examples of mixed economies

7. Traditional Economies are almost completely locally based
Based on a barter system, no money is involved
Common in less advanced areas of the world
Traditional economies are often heavily based on agriculture
Very little flexibility in the economy, little room for growth
People trade for the things they need

8. Guess what?

9. That was our last (official) notes of the year.

10.
“Make Mine Freedom”

11. Read the article about Adam Smith and Capitalism and answer the corresponding questions.