Why are we learning about economies?

• Because economies have a huge impact on the way people live!

• Occupy movements/ Election

Which economic term is used to describe a lack of a particular resource, such as water, food, or oil?

A supplyB demandC scarcityD surplus

System Who decides what to produce?

Who decides how to produce?

Who decides who is going to produce?

Key Words and

Examples

Traditional

Command

Market

Mixed

Economic Systems

System Who decides what to produce?

Who decides how to produce?

For whom to produce?

Traditional

- Customs and traditions of the past

are used to determine what

goods to produce

- Customs and traditions of the past

are used to determine how to produce

goods

-Jobs are handed down from

generation to generation.

-People produce what they need

to survive

If your father and grandfather were farmers then YOU would be a farmer

Traditional Economies

Key Words and examples• Tradition• People barter• Examples: parts of Africa,

the Aborigines in Australia, parts of Latin America

In a traditional economy what decides what people produce?

a. Supply and demand b. The government c. Traditions and customsd. Teachers

System Who decides what to produce?

Who decides how to produce?

For Whom to Produce?

Command

- The governments decides what the

country is going to produce

- The government regulates production

of all goods

- The government decides how the

country will produce their goods

- The government regulates ALL

industries

-The government decides for whom

to produce

- The government would decide who would be farmers, what they would grow, and how much would be turned over to the

government.

Command Economies

Key Words and Examples • The government makes all

economic decisions • Communism • Examples: Cuba, North

Korea, any communist country

The economic system of communist countries is most closely related to which of the following:

A Command economy.B Market economy.C Traditional economy.D Mixed economy.

System Who decides what to produce?

Who decides how to produce?

For Whom to produce?

Market

Consumers decide what goods will be produced,

because they are the “need” for the goods

Individuals and businesses will make products, and provide

services that will earn a profit.

Prices and profit are determined by

supply and demand.

“Consumers are king!”

Market Economies

Key Words and Examples • Same as capitalism –

economies based on free trade (competition or the right to make a profit)

• Examples of this Economy: No true market economies, but United States and United Kingdom are closest

A market economy is very different from a command economic system or a traditional system. Which of the following is found in a market economy?

A Free laborB Free enterpriseC Government control of industryD Government control of agriculture

System Who decides what to produce?

Who decides how to produce?

For whom to produce?

Mixed- The citizens decide

what goods the country will produce

- Citizens, prices, and profits all decide how goods are going to be

produced

-The Government also regulates some

industries

-There is free enterprise so the citizens have to

compete for production

Examples and key words: - Free enterprise but some government controlFrance, Spain, and most nations