1. Economic Systems Understand the 3 types of economic systems: traditional, command, and market Analyze historical examples of different economic systems in order to understand cultural/governmental differences in reasoning for different systems Examine a real-world scenario where different systems of solving an economic system could be implemented…strengths and weaknesses We have a problem…

2. What is an Economic System? Society’s organized way of providing for the needs and wants of their people – Production…how, what, for whom? – Distribution…get what you want? 3 broad types

3. 3 Types Traditional—economic decisions stem from ritual, habit, or custom. – Individuals not free to make decisions based on what they want or have—defined by customs, elders, ancestors Command—central authority makes all decisions on economic matters – Government (king, dictator) decide what, how, and for whom to produce…ONLY – Private ownership is limited Market—people making decisions in their own best interest drives exchange of goods and services – Buyers and sellers come together – $=vote, thus freedom

4. Conclusion Why are the means by which economic decisions are made important? Why does examining history impact economics? Why did we examine the “Stanford Parking Lot”? What is the best economic system?