Different Economic SystemsDifferent Economic SystemsSOL 11bSOL 11b

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Mrs. Funny: “Do you ever wake up grouchy in the morning?”

Mrs. Hilarious: “No, I usually let him just get up whenever he’s ready.”

SOL 11b

Essential Understandings: Every country must develop an economic system to determine how to use its limited productive resources. The key factor in determining the type of economy a country has is the extent of government involvement.

Essential Questions: What are the basic economic questions all societies must answer? What are the basic characteristics of traditional, free market, command, and mixed economies? How does each type of economy answer the three basic questions?

Vocabulary: traditional economy, free market economy, command economy, mixed economy

Which fundamental political principle Which fundamental political principle means that we elect public means that we elect public

officeholders to make laws and run the officeholders to make laws and run the government on our behalf?government on our behalf?

Which early document established Which early document established the current structure of the U.S. the current structure of the U.S.

government?government?

Name the six purposes of Name the six purposes of government according to government according to the Preamble to the U.S. the Preamble to the U.S.

Constitution.Constitution.

Who ratifies amendments to Who ratifies amendments to the Virginia State the Virginia State

Constitution?Constitution?

What kind of society does What kind of society does America have because of America have because of

immigration and naturalization?immigration and naturalization?

Which First Amendment Which First Amendment freedom is illustrated here?freedom is illustrated here?

Name two civic Name two civic responsibilities.responsibilities.

Which democratic institution Which democratic institution helps get women to register and helps get women to register and

vote?vote?

What is the main benefit What is the main benefit of Third Parties?of Third Parties?

What do we call a slanted What do we call a slanted opinion?opinion?

Do you remember what supply and demand is? Let’s see what Brain Pop

has to say about it.

http://www.brainpop.com/socialstudies/economics/supplyanddemand/

https://www.youtube.com/watch?v=NE6q3ID1vkE

Every country must develop an economic system to determine how to use its limited productive resources. The key factor in determining the type

of economy is the extent of government involvement.

Each type of economy answers Each type of economy answers three basic questions differently.three basic questions differently.

What will be produced?What will be produced?Who will produce it?Who will produce it?For whom will it be For whom will it be produced?produced?

Traditional economyTraditional economy Economic decisions are based on Economic decisions are based on

custom and custom and historicalhistorical precedent. precedent. People often perform the same type of People often perform the same type of

workwork as their parents and grandparents, as their parents and grandparents, regardless of ability or potential.regardless of ability or potential.

https://www.youtube.com/watch?v=jvm68nEAU7o

Free MarketFree Market Private ownership of property/resourcesPrivate ownership of property/resources ProfitProfit motive motive CompetitionCompetition Consumer sovereigntyConsumer sovereignty Individual choiceIndividual choice Minimal Minimal governmentgovernment involvement in the involvement in the

economyeconomy

Command EconomyCommand Economy

Central ownership (usually by Central ownership (usually by governmentgovernment) of ) of property/resourcesproperty/resources

Centrally-planned economyCentrally-planned economy Lack of Lack of consumerconsumer choice choice

Mixed EconomyMixed Economy Individuals and businesses as owners and Individuals and businesses as owners and

decision makers for the decision makers for the privateprivate sector sector Government as owner and decision maker for Government as owner and decision maker for

the the public public sectorsector Government role is greater than in a free Government role is greater than in a free

market economy and less than in a market economy and less than in a commandcommand economyeconomy

Most economies today including the U.S. are Most economies today including the U.S. are mixed economies.mixed economies.

17 minute video17 minute video

On the left side of the notebook, glue the pictures that go with the various economic system. Label each picture as follows:

Farmer – TraditionalFarmer – Traditional

Lion – Free MarketLion – Free Market

Caged monkey – CommandCaged monkey – Command

Mixed – U.S.Mixed – U.S.