Today’s Warm Up – 4/20/11

List everything you need to survive. You have five minutes to list everything that comes to mind.(Be ready to share!!! )

Good GREEF – How will we survive?

• Government – for protection• Religion – belief system• Education – to pass down skills from

generation to generation• Economic System – means of trading

goods and services• Family – reproduction,

companionship, etc.

Economic Systems

Unit 7

What is an Economic System?

• The organized way a nation answers the following questions:–What goods and services will

be produced?–How will they be produced?–For whom will they be

produced?

Why do we need economic systems?

Resources are scarce(supply < demand)Societies must figure out who gets what and how!!

Bead Game Recap

• Each round of the bead game represents a different economic system:

– Command: “We Do What We’re Told Ville”– Market: “Make as Much as We Want Ville”– Traditional: “That’s the Way We’ve Always

Done it Ville”

“We Do What We’re Told Ville”

• Command Economic System–Gov’t and central planners determine

what, how, and for whom to produce–Gov’t owns productive resources

“Make as Much as We Want Ville”

• Market Economic System–Consumers and Producers interact and

answer the basic questions of what, how, and for whom to produce–Resources are owned by the individual

“That’s the Way We’ve Always Done It Ville”

• Traditional Economic System–Basic economic questions of what,

how, and for whom to produce are answered by custom–No one has ownership of the

productive resources

Today’s Lesson Essential Question

• How do the underlying goals for each economic system impact their choices and decisions?

Because of scarcity, tradeoffs have to be made among the six primary goals.

EfficiencyGetting the most out of one’s resources for the least cost

EquityFair; equal access to goods and services

Freedombeing able to live and work where you want; owning and controlling your own resources

GrowthIncreasing the amount of goods and services produced in an economy

SecurityKnowing you have a job and can support yourself and your family

StabilityLevel of prices remains about the same

Remember…

• Throughout this unit, think economically… The regular definition of words like stability, security, and equity are different than their economic definitions.