Transcript Why is the United States a Mixed Economy?

Warm Up
• Think of Differences between Command
and Free Market Economies
Command
Free Market
Why is the United States a
Mixed Economy?
Government Control
Mixed Economy
• Individuals and
businesses are the
decision makers for the
private sector
• Government makes the
decisions for the public
sector
• A greater government
role than in a free market
economy
• Most common economic
system in the world
Mixed Economy
• Discussion:
– Can you think of examples
of how the US has a Mixed
Economy?
– How does the government
get involved?
The 5 Characteristics of the U.S.
Economy
1. Free Markets:
Our markets
operate without
unnecessary
interference from
the government
The 5 Characteristics of the U.S.
Economy
• Government makes
decisions for the
public sector
• The citizens make
decisions for the
private sector
The 5 Characteristics of the U.S.
Economy
2. Private Ownership:
Individuals and
businesses own
their own
property/resources
The 5 Characteristics of the U.S.
Economy
• This is known as
private property,
because the
government is not
supposed to interfere
with our property
The 5 Characteristics of the U.S.
Economy
3. Profit is made in this
country
Profit- Earnings after
expenses have
been paid
The 5 Characteristics of the U.S.
Economy
4. There is competition
which results in better
quality goods and
services at lower
prices
Competition- Rivalry
between
producers/sellers of a
good or service
The 5 Characteristics of the U.S.
Economy
5. We have consumer
sovereignty where we
the consumers
determine what goods
and services will be
produced
Summary
• Select one of the following activities to summarize
your learning:
– One-Word Summary (5-6 sentences)
– Letter to Stalin: Write a letter to former Soviet dictator
Joseph Stalin and attempt to convince him of the merits
of a Mixed Economy (3-4 reasons the USSR should
switch)
– Graphic Organizer Comparing the US Mixed Economy
to a Command Economy (Double Bubble, 3 Similarities,
3 differences minimum)
Assessment
Command Economy
Consumption
Resources
Supply and Demand
Mixed Economy
Profit
Competition
Production
Scarcity
1. Money made after expenses are paid
2. Rivalry between different firms (brings
down prices)
3. Determines price in a free market
4. Government planning determines
production