Transcript Economic Systems of the World.

Traditional
Market
Command
Economic
Systems of the
World.
What are the major types of
Economic systems ?
How does each answer the 3
Basic Economic Questions?
Quick Draw: Pizza Party…its
just pizza how hard can it
be??—5 groups
 How
many Pizzas should we order for the
class???
 The School????
 All high schools in Gwinnett County???
 All high schools in Georgia???
 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
Command
 Gov’t
answers 3 Basic Economic Questions
 No Private Property
Total Government Control
Rights
Government owns
all resources!!!!!
 Strengths
Quick Changes
Basic needs met
Everyone know role
Weaknesses
Central Planning
Consumers Wants Ignored
No incentives to work
Massive Bureaucracy
Day to Day Inflexibility
Circle the words that fit with
Command Economies
Lots of Choices
government housing
Economic freedom
Karl Marx
Merit Pay
Joseph Stalin
Cuba
Incentives to work
Basic needs met
Get what you need
Slow to change
No Technology Equal distribution of Wealth
Happy Consumers
Government control
Private Property
Fast to change
Day to day flexibility
Central Planning
North Korea Tribes
Adam Smith
Expansion of Communism

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 interest
Strengths
Weakness
Flexible
Slow to change
Individual Freedom
Allows Failure
No government
Does not meet needs
Decentralized
decision making
Large Variety of Products
High consumer Satisfaction
Private Property Rights

Stop, Collaborate and Listen
 What
are the similarities and differences
of Traditional and Command Economies?
Command
Marketl
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
China, Vietnam, Sweden, Venezuela
LETS MIX THINGS UP WITH
SOCIALISM!!!!!!
-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 services
Limited
-Economic Freedom
-Voluntary Exchange
-Profit Motive
-Private Property Rights
-There is a shared control of the
economy between the government and
people.
FILL IN THE BLANKS
Economic
System
Traditional
Market/
Capitalism
Command/
Communism
Mixed/
Socialism
Private
Ownership
of resources
Profit
Motive
Consumer
Sovereignty
Competition
Government
Regulation
Distribution
of Wealth