Chapter 2 Economic Systems Long Term Objective (LTO) Explain the three economic systems.
Chapter 2: Economic Systems
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Transcript of Chapter 2: Economic Systems
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Chapter 2: Economic Systems
Turn right 1 mile
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Warm Up
» What is a PPC?
» How can a PPC be used to help analyze decision making?
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Agenda
» Discuss Marshmallow Mansions» Chapter 2 Intro Activity» Cover all of Chapter 2» Still have time at the end for extra credit activity
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Discuss MM
» Make sure to turn in your handouts
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Activity» Groups trying to win a “special” prize
» Win by scoring the most points» Groups will receive 3 sheets of paper & one pair of scissors
» Can make any combo of the following:» Paper footballs- 5 points each» Paper cards- 3 points each» Crumpled balls- 1 point each
» ALL PAPER MUST BE CUT
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Follow up
» As a group, what did you do?
» What did you have to figure out?
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You just had one
» Definition?» What’s it mean?» What to make?» How to make it?» Who gets it?
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We all do it…are we all the same?
» Absolutely not!» Differ in 7 goals we favor» Efficiency» Freedom» Security & predictability» Equity» Growth & innovation
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Biggest diff
» Not in the 3 key questions» Not in 7 goals preferred» Biggest occurs in who has the power
» 4 different options: market, command, mixed, & traditional
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Traditional
» All you need to know
System based on TRADITION…don’t change
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People or Government?
» Market Command
All people, no gov’t All gov’t, no people
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Mixed
» Taught to share» Some people power, some gov’t
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Markets rock
» Name 3 markets found in town
Anywhere things are bought & sold
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What makes it work?
» Each person does their own thing
» What does that do when we SPECIALIZE?
» What else do we all do?» Why do you buy bananas?http://www.youtube.com/watch?v=GeoFcgq_PlY
QuickTime™ and ampeg4 decompressor
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Who has more power?
» Wal-Mart is huge (2.1m employees & $400b + in revenue)
» How are you more powerful?» CONSUMER SOVEREIGNTY
» Market is a beautiful thing
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Breather
» Make sure first two sections are finished
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All about the gov’t
» Central gov’t has all the power
» Decide what? How? For whom?
versus
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What was the focus?
» http://www.youtube.com/watch?v=VVGMAhFxH9A
» http://www.youtube.com/watch?v=HJoyOl7_QBg
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What problems arise?
» All guns; no butter» People die
» How is the workforce affected if everyone is guaranteed a job?
» Think about it from your perspective
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NO INCENTIVE
» Why would you work hard?» What happens when you always have a job?
» Cuba 1.8% unemployment (14th)» $12,700 average income
» Canada 6.1% unemployment» $40,200
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Government doesn’t rock
» System is inherently flawed
» We do as little as we need to to get by
» Preaching to the choir
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Warm Up
» Explain the difference between command and market economies.
» Which would you want to live in?
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Good & bad news
» Technically we have no market or command economies today
» All count as mixed» Part people, part gov’t
» Vary in amount of gov’t control» Chart in book» Why do even we need some gov’t?
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Think about the recession
» Right now things are not going well
» Adam Smith knew his stuff» What would happen without gov’t?» We’d fall apart» What else do they do for us?» PROVIDE THINGS MARKET DOES NOT…HELP US WHEN WE FALL
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SUMMARY
» We all have to live, function, and survive together (ECONOMIC SYSTEM)
» Vary in amounts of gov’t control
» MORE MARKET, MORE MONEY» NEXT CHAPTER WE EXPLORE OUR SYSTEM FURTHER
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