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Economic Systems

In this research project, students will explore the economies of three different nations (Russia, China, and Cuba) by summarizing articles that describe the type of economic system, primary goals, and values of each country. They will also analyze the four different economic systems and answer key questions about economic systems.

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Economic Systems

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  1. Economic Systems

  2. Warm UP • Identify three types of Economic Systems that you learned about in US or World History and explain what each means in one sentence

  3. Homework: Research Project Part 1 • You will be researching the economies of three different nations • For each nation, print out an article that describes what kind of economy that nation has • For each article, in one paragraph, summarize what type of economic system and explain the primary economic goals and values

  4. Homework: Research project Part 1 • The countries that you can choose to research are: • Russia • China • Afghanistan • Venezuela • Cuba

  5. Learning Objectives • Interpret the three economic questions • Analyze the four different economic systems • Build connections to your own lives

  6. Brainstorming • Why doesn’t every country have the same economic system? • What factors determine what type of economic system a country has? • What role does government play in a country’s economic system?

  7. Economic Systems and Questions • Economic System: A society’s way of coordinating the production and consumption of goods and services • A country’s economic system is largely determined by its answers to the three key economic question • What goods/services should be produced? • How should these goods/services be produced? • Who consumes these goods/services?

  8. You create the economy You are a governmental economist for the nation of Liberty • Identify the three most important economic goals of the nation • List the five most important Factors of Production for your nation’s economy • In 2-3 sentences explain the role of the government in the economy • Answer the three key economic questions and explain your answer

  9. The four Economic systems • Market: Economic decisions are left up to individual producers and consumers • Command: Economic decisions are left up to a powerful ruler in the government • Mixed: Both the government and individuals play important roles in production and consumption • Traditional: Traditions, customs, and beliefs shape the goods and the services that are produced

  10. Check For Understanding • What type of economy did you create in the previous activity? • What type of economy do you think most countries have in the modern day? • Which type of these economies do we have in the United States? • Which type of economy does Cuba have? • Which type of economy does Russia have? • Which type of economy does China have? • What examples of traditional economies can you think of?

  11. Journal 2: Traditional Economies • Go to your Journal Section of your Notebook • After reading the article, summarize the article in two paragraphs(10 or more sentences) • Title of this Journal Activity: Journal 2- Traditional Economies • In the paragraph(s), be sure to fully answer all the questions

  12. Questions for Journal 2: Traditional Economies • 1. Do you agree with the author that people who live in Traditional Economies “appear to be living in poverty”? • 2. What role do elders, or older people, play in Traditional Economies? • 3. What role does cash play in a Traditional Economy? • 4. What are three advantages and three disadvantages of Traditional Economies? • 5. What examples of Traditional Economies are given and why are these examples of Traditional Economies?

  13. Exit Ticket • What are the four different Economic Systems?

  14. Warm Up • Why do you think purely Market economies are rare in the modern day? • During what time period in history do we see the growth of market economies and why? • During what time period in history do we see the growth of centrally-planned economies?

  15. Homework: Research Project Part 1 • You will be researching the economies of three different nations • For each nation, print out three different articles that describe what kind of economy that nation has • For each article, in one paragraph, summarize what type of economic system and explain the primary economic goals and values

  16. Homework: Research Project part 1 • The countries that you can choose to research are: • Russia • China • Afghanistan • Venezuela • Cuba

  17. Learning Objectives • Contemplate what economic systems exist in different countries • Analyze and Interpret Economic Goals and Values • Engage in Creative/Artistic Learning

  18. Traditional Economists in the United States • https://www.youtube.com/watch?v=Mg-yHjLEeM0 • https://www.youtube.com/watch?v=XTwJz8c4wcY • https://www.youtube.com/watch?v=ARHBd08SeCY • Why are these all examples of people living in Traditional Economies? • Which type of economy would you rather live in? Why?

  19. Where would the Following Countries fit on a Line Graph? • Create a horizontal line with one end labeled Centrally-Planned Economies and the other labeled Market Economies • Label the middle of the line as Mixed Economies • Place the following countries on the line • North Korea • Cuba • China • Russia • United States • Hong Kong

  20. Goals and Economics • Identify three goals that you have. What role do they play in your life? • What role do economic goals play in our nation’s economy? • How do your personal goals and the economic goals of the nation connect?

  21. Economic Goals and Societal Values • Economic Efficiency: Making the most of resources • Economic Freedom: Freedom from government intervention in economic affairs • Economic Security and Predictability: Assurance that economic affairs run smoothly • Economic Equity: Fair distribution of wealth • Economic Growth and Innovation: Working towards a higher standard of living • Other Goals: Goals that are created based on a nation’s priorities and values

  22. Check for Understanding • Which of these goals/values work well together? • Which goals/values could not work together in an economic system? • What is the trade off of these goals/values? • Rank the goals/values that you think are most important in an economy and next to each briefly explain why

  23. Brainstorming • What does it mean to be “safe”? • What is the purpose of a net? • What do you think it means to have a “safety net”? • Under which Goal and Value would the concept of a “safety net” fit in • Identify 3 “safety nets” that you have in your own life

  24. Safety Nets • Safety Net: Government programs that protect people experiencing unfavorable economic conditions • Can you think of any examples of Safety Nets in the US economy? • Why are Safety Nets important?

  25. Examples of Safety Nets in the US Economy • Welfare • Social Security • Tennessee Valley Authority • SNAP- Food Stamps • Medicaid • Unemployment Benefits • Securities and Exchange Commission- eliminate monopolies and enforce fair business practices • IRS: Assist people with tax questions/problems

  26. Creative Expression • Using graphics and images, express what you think the United States would look like if it didn’t have any economic Safety Nets

  27. Exit Ticket • Do you think we have enough Safety Nets in the US Economy? Why or why not? • Based on what you know about the Republican Party and the Democratic Party, as well as Trump and Clinton’s policies, how do the two political parties differ in regards to economic Safety Nets in the United States

  28. Warm Up • What are the six Economic Goals/Societal Values?

  29. Homework: Research Project Part 2 • Write a short essay (1-2 pgs.) on the economy of a nation you researched. • Be sure to include CLEAR THESIS STATEMENT • Break essay down into paragraphs (Introduction, Conclusion, Body Paragraphs)

  30. Research Project part 2 • In your essay, you should include: The type of economic system represented in the country The economic goals and values of the country Background information about the country’s economy (traditional economic practices, resources, government inference, employment, etc.)

  31. Learning Objectives -Contemplate what economic systems exist in different countries -Interpret the Free Market System -Analyze the Circular Flow Model of a Market Economy

  32. Factor Payments • Factor Payments: The income people receive for supplying factors of production • What are Factors of Production? • My example of a Factor Payment: Biggie sold a diamond to a jewelry company for $50,000. He paid $5,000 for equipment fees and $100 for transportation. What is his Factor Payment?

  33. Transitioning: The Free Market • Think of three economic conditions that are necessary for a society to function • Hint: Think about Ancient Mesopotamia- what economic conditions allowed for this to become the first civilization

  34. Markets • Market: An arrangement that allows buyers and sellers to exchange things • Specialization: Different people have different jobs • Why is a Market necessary in an economy? • Why is Specialization necessary in an economy?

  35. Research Project Sharing • Groups: 4-5 People • Identify which of the four economies are existent in the countries that you researched • Identify the three most important economic goals and values of the countries that you researched • Explain the connection between the economic values/goals and the type of economy of the country • Pick one country and create a poster that includes the above information • Be sure to include graphics/maps/artwork to go along with your research

  36. Reminders about Presentations • Look at the Class while you are speaking • Write down speaking notes on Index Cards • Enthusiastic/engaging voice • Good Pacing

  37. The Free Market • Free Market Economic System: Individuals and privately owned businesses own the factors of production, make what they want, and buy what they want • Discussion Questions: 1. Do we have a Free Market System in the United States? Why? • How does the government protect the Free Market System? • How does the government take away from the Free Market System? • What advantages and disadvantages do you see to the Free Market System? • What is the opposite of the Free Market System called?

  38. The Circular Flow Diagram • Diagram that represents the Free Market System by showing how individuals and businesses exchange money, resources, and products • Inner ring= Flow of resources/products • Outer ring= Flow of money • Household: Person or group of people living in the same place • Firm: Organization that uses resources to make a product and then sell the product • Factor Market: Firms purchase the factors of production from households • Product Market: Households purchase goods/services that firms produce

  39. Circular Flow Diagram of a Market Economy

  40. Circular Flow Diagram of a Market Economy (Old Textbook)

  41. Make your own Circular Flow Diagram • On the back of the sheet, write out a specific economic scenario (1 paragraph) that includes households, firms, product and factor markets, factors of production, and goods/services being produced • Once you are done writing your scenario, switch with a partner, and make a Circular Flow Diagram, under their paragraph, which depicts their scenario • Once you and your partner have completed drawing your Circular Flow Diagram, check to see if you both agree on where everything goes

  42. Check for Understanding • Give three examples of a factor market • Give three examples of a product market

  43. Circular Flow Simulation with Gum • I need three volunteers • The situation is that Orbit Gum is selling a lot of gum in Brentwood and wants to sell even more gum • To do this, Orbit Gum is looking for land in Brentwood to start a new Gum Factory • The three volunteers have two minutes to show how both the factor and product market would work in this scenario • Volunteer 1: Land Owner in Brentwood • Volunteer 2: CEO (Owner) of Orbit Gum • Volunteer 3: Consumer of Orbit Gum

  44. Review Sheet • Fill out the Review Sheet on Economic Systems Part 1

  45. Exit ticket • For the scenario we just saw, draw a circular flow model which shows • The Household • The Firm • The Factor of Productions • The good/service • Explain what the Factor and Product market are in one sentence

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