Economic Systems LG2: 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

Which words are you familiar with, and which do you not yet

know?Traditional Economy

Command Economy

Market Economy

Control Beliefs and Customs

Supply and Demand

Communism Free Enterprise

Socialism

How are goods produced and traded here?

TRADITIONAL ECONOMY! TRADITIONAL ECONOMY! (Poorer nations, tribal (Poorer nations, tribal culture)culture)

Traditional economy

Determined by

Survival and needs of the tribe or village

Determined by

Customs and beliefs passed down

Determined by

Self, family, fellow tribe members

•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

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

COMMAND/ COMMAND/ PLANNED PLANNED ECONOMY!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

FREEFREE ENTERPRISE/ENTERPRISE/MARKET MARKET ECONOMY!ECONOMY!

How are goods produced and traded here?

MIXED/SOCIALIST MIXED/SOCIALIST ECONOMY!ECONOMY!

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.

What do you notice?

FORMER USSR

CUBA

CHINA

NORTH KOREA

SWEDEN

NETHERLANDS

FINLAND

CANADA UNITED STATES

RUSSIA

FRANCE

U.K. JAPAN

MONACO

HONG KONG

Let’s see what we know…Which are you ready to

answer, and which do you need a peek?

Using the economic spectrum, where would Canada fall in relation to the United States?A closer to socialismB closer to free enterpriseC closer to the communismD much closer to free enterprise

Where would Japan likely fall on the economic spectrum?F Command G Mixed/SocialistH TraditionalJ Free Enterprise

Let’s see what we know…Which are you ready to

answer, and which do you need a peek?The European

Union has which type of economy?A traditional economyB command economyC mixed economyD 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 ChinaB Belgians in EuropeC French in CanadaD Aborigines of Australia

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

Resources

• http://vmswebbuilders.weebly.com/• http://www.wisegeek.com/what-is-a-traditional

-economy.htm• http://economicsonline.co.uk/Competitive_ma

rkets/Economic_systems.html• http://www.web-books.com/eLibrary/NC/B0/B

66/006MB66.html