Economic Systems of the World.What are the major types of Economic systems ?How does each answer the 3 Basic Economic Questions?

Traditional

Market

Command

The 3 Questions What should be produced? How should it be produced? Who gets what is produced?

Quick Draw: Pizza Party…its just pizza how hard can it be??—5 groups How many Pizzas should we order for the

class??? Coppell High School???? All high schools in Dallas County??? All high schools in Texas??? All high schools in the USA????

Traditional Economic Systems

Tradition, Tradition, Tradition What, how and for whom to produce are answered by

ritual, habits, customs Tribal Societies Across the world Communal living, little private property Advantages Disadvantages Methods Work Subsistence living Everyone knows Role Low standard of living Discourages new ideas

Never changes

Time to Get Creative!!!!!3 groups

Describe what each of the following would look like in a traditional economy

Waking up in the morning

You and your friends hangout in the afternoon

Going to get food for dinner

Communism : Command Gov’t answers 3 Basic Economic Questions No Private Property Total Government Control RightsGovernment owns all resources!!!!!

Strengths WeaknessesQuick Changes Central PlanningBasic needs met Consumers Wants Ignored

Everyone know role No incentives to work Massive Bureaucracy Day to Day Inflexibility

Which words fit with Command Economies?Lots of Choices government housingEconomic freedom Karl Marx Merit Pay Joseph Stalin CubaIncentives to work Basic needs metGet what you need Slow to changeNo Technology Equal distribution of WealthHappy Consumers Government controlPrivate Property Fast to changeDay to day flexibility Central PlanningNorth Korea Tribes Adam Smith

Expansion of Communism

Stop, Collaborate and Listen What are the similarities and differences

of Traditional and Command Economies?

CommandTraditional

Market Economy: Capitalism

USA, Japan, UK, South Korea, South Africa, Canada

Market economies: Capitalism People/individuals answer the What, How, For

Whom to Produce Adam Smith- laissez faire “leave it alone”

Invisible hand of self interestStrengths WeaknessFlexible Slow to changeIndividual Freedom Allows FailureNo government Does not meet needs Decentralized decision makingLarge Variety of ProductsHigh consumer SatisfactionPrivate Property Rights

Time to Think…… How would your life be different if you

lived in a market economy??

Home work: Letter to a friend You are living in Boys Communism, girls

Traditional economic systems. Write a letter to a friend living here in the

USA. Discuss how your lives are different. Discuss what you like and do not like about your economic system and if you would prefer to live in the USA.

¾ to 1 page in length

-Socialism is a blend of communism and capitalism.

-The 3 Basic Economic Questions are answered by the government and individuals

-The government owns and controls only key resources and industries while individuals own the rest of the resources and have private control of most businesses

-Basic needs of the people are met by the government-People pay high taxes to fund things like healthcare, insurance, and other social servicesLimited -Economic Freedom -Voluntary Exchange -Profit Motive -Private Property Rights-There is a shared control of the economy between the government and people.

Lets Mix things up with Socialism!!!!!!

China, Vietnam, Sweden, Venezuela

Fill in the blanks

Economic System

Private Ownership of resources

Profit Motive

Consumer Sovereignty

Competition Government Regulation

Distribution of Wealth

Traditional

Market/ Capitalism

Command/Communism

Mixed/Socialism