DO NOW

If you could have anything in the world what would it be and why?

COMPETENCIES/ OBJECTIVES

• Students will be able to discuss the role of the decision-making process of the three major economic systems.

AGENDA

• Do Now• Review Syllabus• What is economics?• Economic System Notes• Economic System Children’s Book• Announcements (Tuesday and Thursday)

ECONOMIC SYSTEM NOTES

ECONOMIC SYSTEMS

• How we get things is determined by our countries economic system.• Economic systems

help people create and obtain goods and services.

THE NEED FOR ECONOMIC SYSTEMS

• Needs- basic things we cannot live without. (food, water, shelter, clothing)•Wants- things

people want to make their lives more comfortable• (write in examples)

THINK…

• Shelter, food, and clothing are all considered basic needs. However, certain types of food, shelter, and clothing can be considered wants. How can we distinguish between the two? (answer in lined space)

3 BASIC ECONOMIC SYSTEMS

• Traditional • Command• Market

TRADITIONAL ECONOMY

• Economic decisions are based on tradition.• Barter system.• It is based on

agriculture, fishing, hunting, gathering or some combination.• )Write in examples.)

COMMAND ECONOMY

• Government makes all economic decisions.

• Government owns capital, tools, and production equipment.

• Government answers 3 basic econ q’s.

• Communist countries tend to have command economies.

• Examples: North Korea and Cuba

MARKET ECONOMY

• Economic decisions are made by individuals.

• People can start businesses to sell any legal products they choose.

• Government does not tell people what to produce or buy.

• Based on freedom.• Opposite of command

economy.• Does not exist in pure

form.

MIXED ECONOMIES

• Mix elements of different economic systems.• US has a mixed

economy because government regulates business.• How does the US

government regulate business? (write in examples)