Lesson 2.2

​Lesson 2.2
Mixed Economies

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Essential Question

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​​How does an economic system help a society deal with the fundamental problem of scarcity?

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• Determine how each type of economic system answers the questions of WHAT, HOW and FOR WHOM to produce.

• Explain the advantages and disadvantages of each economic system.

• Identify the relationship between wages and individual incentives in each of the economies.

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Students will be able to:

​Mixed Economy - economic systems in which tradition, government, and markets each answer so of the WHAT, HOW, and FOR WHOM. Basically, a Mixed Economy is a combination of a Free Market and Command/Planned economic system.

​Depending on the level of government involvement and the capacity for private ownership in answering WHAT, HOW, & FOR WHOM.

​Disadvantages of "Pure" Economies

Open Ended

After viewing the disadvantages of a Command/Planned or Free Market economies, what are the advantages of a Mixed Economy?

Fill in the Blanks

In answering the economic questions of WHAT, HOW & FOR WHOM...the __________ economy is made according to traditions. A_____________ economy will answer it with the government. A ______ ________system will decide by private owner and individual consumers.

Open Ended

How would a Mixed Economy answer the questions of WHAT, HOW & FOR WHOM?

Multiple Choice

A TGV train in Paris operated by the publicly owned SNCF. In many countries, the rail network is partly or completely owned or controlled by the state. What type of economic system does the TGV represent?

• Traditional

• Command

• Free Market

• Mixed

Multiple Choice

What type of economy is seen in the photo?

• Traditional

• Command

• Free Market

• Mixed

Multiple Choice

What type of economy is seen in this photo?

• Traditional

• Command

• Free Market

• Mixed