Criteria for Success: Define Free Enterprise, Mixed/Socialist, and Command Economies

1. Economic SystemsLG2: Describe how the distribution of goods and services is determined in a Free Enterprise, Mixed/Socialist and a Command economy. Classify where various countries fall along the economic spectrum. Criteria for Success: Define Free Enterprise, Mixed/Socialist, and Command Economies Explain what groups hold the power in these economic systems and who determines how goods/services are distributed Classify where various countries belong on the eco spectrum

2. Which words are you familiar with, and which do you not yet know?

3. Determined by Survival and needs of the tribe or village Determined by Customs and beliefs passed down Traditional economy Determined by Self, family, fellow tribe members How are goods produced and traded here? • Individuals, families, and tribes produce the goods and products that they need. • The goods produced through: customs, beliefs, and traditions passed directly to the young. • Individuals produce & consume goods, but trade occurs when special skills or surplus goods are available through direct barter. Ex.: Australian Aborigines TRADITIONAL ECONOMY! (Poorer nations, tribal culture)

4. COMMAND/ PLANNED ECONOMY! How are goods produced and traded here? A system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods will be offered for sale. The command economy is a key feature of any communist society. Ex.: Cuba, North Korea and the former Soviet Union

5. FREE ENTERPRISE/MARKET ECONOMY! How are goods produced and traded here? An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses and there is little government intervention or central planning. Ex.: Japan, USA, Hong Kong

6. MIXED/SOCIALIST ECONOMY! How are goods produced and traded here? An economic system that includes a mixture of free enterprise/market and socialism. This type of economic system includes a combination of private economic freedom and centralized economic planning and government regulation. Ex.: France, Sweden, U.K.

7. What do you notice? CUBA CHINA NORTH KOREA FORMER USSR SWEDEN NETHERLANDS FINLAND CANADA UNITED STATES RUSSIA FRANCE U.K. JAPAN MONACO HONG KONG

8. Using the economic spectrum, where would Canada fall in relation to the United States? A closer to socialism B closer to free enterprise C closer to the communism D much closer to free enterprise Where would Japan likely fall on the economic spectrum? F Command G Mixed/Socialist H Traditional J Free Enterprise Let’s see what we know…Which are you ready to answer, and which do you need a peek?

9. The European Union has which type of economy? A traditional economy B command economy C mixed economy D limited economy Which of the following is an example of an economy where economic decisions are made based on customs and beliefs? A Han in China B Belgians in Europe C French in Canada D Aborigines of Australia Let’s see what we know…Which are you ready to answer, and which do you need a peek?

10. Talk to each other, and then talk to me… EXIT SLIP!! Venn Diagram& Turn In….. • How do economic systems and political systems compare & contrast to one another? • Draw a Venn Diagram and Label one side Centralized eco/govt & the other side Decentralized eco/govt. Organize the Economic & Political systems based on the characteristic of each…MEANING…Which economic system would you typically find in which political system? • Questions??? Ask now or forever hold your peace

11. Resources • http://vmswebbuilders.weebly.com/ • http://www.wisegeek.com/what-is-a-traditional-economy.htm • http://economicsonline.co.uk/Competitive_markets/Economic_systems.html • http://www.web-books.com/eLibrary/NC/B0/B66/006MB66.html