CE 11b Economic Systems/ US Economy 12a Notes

CE 11b Economic Systems

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The key factor in

determining the type
of economy a country
has is the amount of
government
involvement.

Poll

Government involvement has nothing to do with the type of economy a country has.

• True

• False

3 Basic Economic Questions

1.What will be produced?

-What is being made?

2.Howwill it be produced?

- What resources will be used?

3.For whom will it be produced?

- Who will be receiving the goods and services?

*NOTE: Each type of economy answers the basic questions differently!

The book and movies series the Hunger Games provides a great example of answers to the basic economic questions. Read the excerpt below and be ready answer questions on the next slide.

​District 12 was the smallest and poorest of the thirteen districts of Panem; the central government. Located in Appalachia, District 12 had a population of around 10,000 people prior to being firebombed by the Capitol's government. District 12's main industry is coal mining. All of the coal produced in District 12 has to be shared with Panem. District 12 is the home of victors Katniss Everdeen, Peeta Mallark, Haymitch Abernathy, and Lucy Gray Baird.

Dropdown

1. What will be produced in District 12?

​ ​ ​

Select answer

2. How will it be produced? ​

Select answer

​ ​



3. For whom will it be produced? ​

Select answer

​

Traditional Economy

●Economic decisions are based on history
and customs

●People often perform the same. type of work
as their parents and grandparents,
regardless of ability or potential.

●Example: Typically small, usually made up of a
few tribes or family groups and appear in
developing regions of the world, like the Inuit of
northern Canada.

Multiple Choice

Which statement best describes a traditional economy?

• I can chose to be a nurse or I can be a teacher.

• I don't have to work; my economy lets me do whatever I want.

• The government tells me that I have to be a nurse.

• My parents were nurses, so I have to be a nurse.

Free Market Economy

1. Private ownership of property/resources

2. Profit motive (You can make money)

3. Competition

4. Individual choice

5. Consumer sovereignty (The right for individuals

& businesses to own personal property)

6. Minimal government involvement in the economy

Multiple Choice

Which statement best describes a free market economy?

• The government and the people have a say

• I can make money, choices, and own my own things

• I follow in the ways of the past

• The central government controls what I do

Command Economy

●Central ownership by the government of
property/resources

●Centrally-planned economy

●Lack of consumerchoice

●Examples: Cuba,

North Korea, Soviet Union

YOU HAVE TO

DO WHAT I

SAY!

Multiple Choice

Which statement best describes a command economy?

• The government and the people have a say

• I can make money, choices, and own my own things

• I follow in the ways of the past

• The central government controls what I do

Mixed Economy

●Private Sector: Individuals and businesses are the
owners and decision makers.

●Public Sector: Government is the owner and decision
maker.

●Government’s role is greater than in afree market
economy and less than in a command economy.

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

Multiple Choice

Which statement best describes a mixed economy?

• I can chose to be a nurse or I can be a teacher.

• I don't have to work; my economy lets me do whatever I want.

• The government tells me that I have to be a nurse.

• My parents were nurses, so I have to be a nurse.

Match

Match the following examples to their type of economic system.

• Katie lives in the US and the government provides public goods, like her school.

• Eddie is told that he has to work in a factory and doesn't get a choice.

• John is a farmer because his father was farmer.

• Kathy can make profit from a job that she chose to do.

Mixed Economy

Command Economy

Traditional Economy

Free Market Economy

• Mixed Economy

• Command Economy

• Traditional Economy

• Free Market Economy

Practice

Directions- Label each situation as a type of economic system. Circle or
underline key words.

3 .John is a farmer
because his father
was farmer.

4. Kathy can make
profit from a job
that she chose to
do.

2. Eddie is told that
he has to work in a
factory and doesn't
get a choice.

1. Katie lives in the
US and the
government
provides public
goods, like her
school.

Traditional
Economy

Command
Economy

Free Market

Economy

Mixed

Economy

Use the notes you have just completed to answer the remaining questions.

Multiple Choice

Which of the following is NOT a basic question of Economics?

• What will be produced?

• For whom will it be produced?

• What will be supplied?

• Who will produce it?

Multiple Choice

Most countries today have which type of economic system?

• Mixed

• Market

• Traditional

• Command

Multiple Select

Select the 3 situations that describe a traditional economy.

• Kayce is a cowboy because is father was a cowboy.

• The ranchers always brand their cattle because that was done in the past.

• Ralph has many choices when he is shopping because the government isn't really involved.

• It is a custom to wear the fur of the animal that you killed.

Multiple Choice

Which economy best belongs under the green arrow?

• Democratic Economy

• Capitalist Economy

• Traditional Economy

• Free Market Economy

Multiple Choice

Private ownership of property/resources Profit motive. Competition. Consumer sovereignty. NO government involvement in the economy.

• Free market economy

• Traditional economy

• Command economy

• Mixed economy

Multiple Choice

Central ownership (usually by government) of property/resource. Centrally-planned economy. Lack of consumer choice

• Free market economy

• Traditional economy

• Command economy

• Mixed economy

Multiple Choice

Georgia runs a car dealership selling only government produced cars. At the end of the month Georgia must give all of the money she made back to the government.

• Traditional

• Free Market

• Mixed

• Command

Multiple Choice

Nike and Under Armour sell similar products.  This leads to a decrease in price and an increase in quality.

• Free Market

• Command

• Traditional

Multiple Choice

Select the best example of Free Enterprise-

•  I made $20 after spending $30!

• Everyone is buying Crocs, so more are being made

•  I bought my very first cell phone today; I own it!

• Wawa had lower  gas prices than 7-11

• The government cannot interfere with my business

Multiple Choice

Select the best example of Private Property-

•  I made $20 after spending $30!

• Everyone is buying Crocs, so more are being made

•  I bought my very first cell phone today; I own it!

• Wawa had lower  gas prices than 7-11

• The government cannot interfere with my business

Multiple Choice

Select the best example of Profit Motive-

•  I made $20 after spending $30!

• Everyone is buying Crocs, so more are being made

•  I bought my very first cell phone today; I own it!

• Wawa had lower  gas prices than 7-11

• The government cannot interfere with my business

Fill in the Blank

History Club sold $250 of concessions at the dance. The club spent $75 on all of the snacks. 

Calculate History Club's profit.

Multiple Choice

Select the best example of Competition-

•  I made $20 after spending $30!

• Everyone is buying Crocs, so more are being made

•  I bought my very first cell phone today; I own it!

• Wawa had lower  gas prices than 7-11

• The government cannot interfere with my business

Multiple Choice

Select the best example of Consumer Sovereignty-

•  I made $20 after spending $30!

• Everyone is buying Crocs, so more are being made

•  I bought my very first cell phone today; I own it!

• Wawa had lower  gas prices than 7-11

• The government cannot interfere with my business

Use the notes you have just completed to answer the remaining questions.

Multiple Choice

Select the type of economy the United States has-

• Command

• Traditional

• Mixed

• Free Market

Multiple Choice

To figure out what his profit is, Reggie must______. His profit is_______.

• Add his earnings to his expenses; $150

• Divide his expenses by his earnings; $2

• Subtract his expenses from his earnings; $50

• Multiply his earnings times his expenses; $5,000

Multiple Select

Select the 2 characteristics of free enterprise-

• Consumers determine what will be produced.

• Prices determined by supply and demand

• Government provides a structure

• Markets operate without interference from the government

Multiple Choice

Which factor is the cause to the effect?

• Private Property

• Free Enterprise

• Competition

• Profit Motive

Multiple Choice

Consumers have the ability to determine what goods and services will be produced through their purchases-

• Consumer Sovereignty

• Central planning

• Free Enterprise

• Private Property

Open Ended

Tell me 1 thing from today that you could teach to someone else and 1 thing that you need help with.