Transcript The Mixed Economy 1 _Student Handout_

Unit 3 Notes:
The Mixed Economy
Warm-Up
REVIEW: What are the THREE ECONOMIC QUESTIONS?
1) List them
2) Provide a summary
**If you don’t remember, look at your notes from last unit or
get a textbook and open to page 34.
HOW TO PRODUCE???
 For
every economy, the goods are
produced by private enterprise, the
government, or a combination of
both.
Government
OR
Private Businesses
 Command (Pure Centrally Planned
Economy)

Government produces everything. All
resources are government owned and
production is coordinated by the central
plans of government.
 Pure
Capitalistic (Pure Market
Economy)

Private enterprise produces everything.
There is no government at all.
 Mixed Capitalism

(Mixed Economy)
Combination of government and private
enterprise
Stop, Drop, and Draw

Draw one big circle map and
write “The Three Different
Economic Systems” as your
subject
 Use a different color to
symbolize each system draw
two symbols for each system
 Create a legend to color code
your symbols
Read about Pure Market Economies
and Pure Centrally Planned Economies
Read on pages 3538
 Create a tree map
with and write
about the
weaknesses
associated with
each economic
systems.

Weaknesses
of
Economic
Systems
Pure Market
Economies
Pure Centrally
Planned
Economies
PURE CAPITALISM
(PME)
 PRIVATE
ENTERPRISE PRODUCES
EVERYTHING…meaning, INDIVIDUALS make
the economic decisions…looking out for
themselves and their families. Profit is the one
and only motive


Advantages: People have the freedom to choose,
provides competition so consumers get the best
Disadvantages: What happens to those that need
help…the young, old, disabled…without the help of
government?
COMMAND
(PCPE)
 GOVERNMENT
DECIDES HOW, AND
PRODUCES EVERYTHING!!!



Only a few countries today still have much of a
command economy. (i.e.-North Korea, China)
Advantages: ability to quickly reroute
resources in case of emergencies [war],
nationwide goals can be set
Disadvantages: creates no incentive to work
hard, lack of consumer choice, inefficient
Dear Abby…
Dear Abby,
I am the leader of a new country
and our Parliament is in the middle
of a heated debate on whether to
design an economy that is
primarily command-oriented or
pure capitalistic-oriented. What
should I advise our new Parliament
members to do? And Why???
Sincerely,
Confused Leader
MIXED CAPITALISM
 BOTH
GOVERNMENT AND PRIVATE
ENTERPRISE

Most countries today are mixed!!!
(United States, Great Britain, Mexico, France,
Canada, Italy, Japan, etc….and the list goes
on and on)
WHY DO YOU THINK MOST COUNTRIES
TODAY ARE MIXED???? (think about it!!!)
REVIEW:
Advantages and Disadvantages

On your paper, create a chart that lists the advantages
and disadvantages of the three different economic
systems.
Advantages
COMMAND
“define it”
PURE
“define it”
MIXED
“define it”
Disadvantages
Review:
 Draw
a tree map on your page. Label the
left branch, “pure market economy” and the
right branch, “pure centrally planned
economy”. Place each of the following
nations under the branch you think
accurately represents the current state of its
economy.

United States, Mainland China, North Korea,
Russia, Mexico
More Review…
Writing Prompt:
-Explain why a MIXED ECONOMY is the best way
for countries to operate. Include the advantages
that comes with being a mixed economy, rather,
than a command or pure capitalistic economic
system.
-Create a CAMPAIGN BUTTON that illustrates the
advantages of having a mixed economy. You
need:


A Slogan
A Symbol
The U.S. Today
There are 3 levels of government:
a. Federal (National)
b. State (50 Individual States)
c. Local (thousands and thousands of
cities/counties)
Stop, Drop, and Draw!
 Draw
tree map and label each
branch with one of the three levels
of government then draw a picture
below to represent each one!!!
What Powers Does Our Gov’t
Have?
1.
Collect Taxes ($$$)
-money, money, money
2.
Provide Services
-Medicare, Welfare, National Defense, etc…
3.
Issue Regulations
-laws for you and me to follow for society’s
general welfare
 By
taxing, spending and regulating, a
government is able to somewhat alter
the answers to the 3 basic questions.
 What:
Production can be based on govt
demand: schools, road
 How: Government regulations can
prevent the production of some goods
and/or services
 Who: By taxing, the govt redistribute
these funds to help the old and the poor
Homework
1)
Read Activity 3 – Student Diary B and
create a double bubble map comparing and
contrasting a Command & Mixed Economy
Command
2)
Mixed
Read the handout on Specialization and
answer questions 1-4 (minimum 1 pg.)