1. RECAP/ REVIEW What is scarcity? Give an example.
What are goods? Give an example.
What are services? Give an example.
What are needs? Give an example.
What are wants? Give an example
What are the economic systems?
How does each economic system answer the 3 basic question?
What to produce?
How to produce it?
For whom to produce?

2. What has always been produced
SSEF4.A Chart:
Learning Target: I can compare and contrast different economic systems.
Traditional
Private Ownership
 Traditional Rules of the culture…commune
Profit Motive
 Work in the field of their ancestors……..example……..medicine man
Consumer Sovereignty
 What has always been produced
Competition
 Little to none….operation the same way as ancestors
Government Regulation
 Traditional leaders, chief, the elders will make decisions based on the culture and the past.

3. SSEF4.A Chart:
Learning Target: I can compare and contrast different economic systems.
Command
Private Ownership
 Very Little, Central Planner can confiscate at anytime , Everyone owns everything…even the Factors of Production!
Profit Motive
 Extreme little, Central Planner takes all income
Consumer Sovereignty
 Little Choice for producers and consumers and limit what is available.
Competition
 Gov’t produces most goods and serves. No competition
Government Regulation
 Complete and total

4. Market Strong Property Rights, firms own the Factors of Production
Market
Private Ownership
 Strong Property Rights, firms own the Factors of Production
Profit Motive
 Incentives is the profit, Keep most if not all profits (Little taxes)
Consumer Sovereignty
 Firms Produce only the goods and service consumers want.
Competition
 Extremely high because firms can open and close freely
Government Regulation
 Minimal (protecting property and consumers from harm.)

5. Mixed Individuals, firms, and the Government can own land ]
Mixed
Private Ownership
Individuals, firms, and the Government can own land
Profit Motive
 Entrepreneurs can start a business, expect to pay taxes and follow government regulations
Consumer Sovereignty
 Business can produce what consumers want to buy, the government may produce certain goods and serves too.
Competition
 Competition exist and some monopolies are allowed to exist while others are broken up
Government Regulation
 Government may require licenses and government paperwork to start a business: Labor, consumer safety and environmental laws.
The government will seize land for government use

6. 7. What is Full Employment?
All those who are willing to and able to work have the opportunity to do so.

7. Generational, based on the passed Central Planner
SSEF4.B
3-econ
Traditional
Command
Market
Mixed
What to produce
 Generational, based on the passed
Central Planner
Consumers taste and preferences
Consumers and governments need
How to produce
 Passed from generation to generation
Central planner selects the methods
Method that results in selling goods and services for the most profit $$$
Methods for a profit, but the government may tax firm profits or mandate production process
Whom to produce
 However the past methods were used
Whomever the central planner says should get a good
Who ever is willing and able to pay
Willing and able to pay, the government may restrict people from getting goods.

8. SSEF4c. Scarce Resource Allocation
Compare and contrast strategies for allocating scarce resources, such as by price, majority rule, contests, force, sharing, lottery, authority, first-come- first-served, and personal characteristics.

9. Price
Auction
Obtain fish by the pound, no money….no fish

10. Majority Rule
Elective REflectives

11. Contest

12. Forced
Factors of production of goods and serves are given or taken away under threats….command economies.
Taxes…The Draft

13. Sharing

14. Lottery
Random selection, gives everyone who wants the good, service, or factor of production equal odds of obtaining it!

15. First Come, First SErved
Good, service or F of P if they get to it first or are one the people close enough to the front of the line to recieve …before none remain!

16. Personal Characteristics
Based on need or merit!

17. Role of Government in the U.S.
SSEF5: Describe the roles of government in the United State economy.
Explain why government provides public goods and services, redistributes income, protects property rights, and resolves market failures.
Explain the effects on consumers and producers caused by government regulation and deregulation and give examples.

18. Protecting Private Property Rights
The Role of Government Copy the Chart below into your notebook if you did not get a handout. Use the textbook to answer.
Protecting Private Property Rights
Promoting competition
Providing Public Goods/Services
Resolving Market Failures
Redistributing Income
Regulation and Deregulation

19. Stossel in the Classroom
What is the difference between Private and Public goods?

20. Protecting Private Property Rights
Protects private property and intellectual property through laws, contracts, patents, and copyrights
Key component of a market economy that is based on private ownership and voluntary exchange
Disputes settled by judicial system

21. Provides Public Goods and Services
The benefits of public goods are shared by everyone in a society.
The government pays for public goods by collecting taxes
There is no incentive for private companies to provide public goods
Examples: roads, schools, national defense, police/fire dept., parks

22. Redistributing Income
Taxes pay for transfer payments – supplement those who have lower incomes or cannot work
Those who earn more are taxed more
Gov’t maintains a min. standard of living for citizens
Examples – welfare, food stamps, Social Security, disability, unemployment, WIC, Medicaid

23. Promoting Competition
Market economy depends on free competition to keep prices low and quality high
Prevents monopolies and trusts
Example – AT&T

24. Resolving Market Failure
Occurs when a private company benefits from production for which other people end up paying some of the costs
Unintended consequences
Pollution, BP/Gulf of Mexico Spill
Regulations result from resolving market failures
BN_MED.mp4

25. Regulation and Deregulation
Using laws to control business activity
Intended to benefit the public (protect consumers)
Examples – breaking up monopolies, fining polluters, taxes on alcohol and tobacco, safety regulations _stossel_dudley1_FBN_MED.mp4

26. Writing Assignment ½ - 3/4 of a page
Write a story or a narrative about what life in the United States would be like if there was no intervention or involvement from the government in the economy.
Think about what kinds of things we might not have or how businesses might operate without government involvement or regulations. Be creative!