Warm-up- Honors Journal Activity
1. What are the 4 factors of production used to make goods and services?
2. How does the interaction of supply and demand determine the price of a good or service?
And have out your wkst on Supply and Demand to be checked
Check HomeworkTrue False
___ ___ 1. Money is needed to produce capital resources.
___ ___ 2. A person who starts a new business is called an entrepreneur.
___ ___ 3. The physical and mental efforts of the people are called natural resources.
___ ___ 4. The 4 factors of production are natural, capital, consumption and entrepreneurs.
___ ___ 5. Water is a natural resource.
___ ___ 6. Incentives attempt to change economic behavior
___ ___ 7. A machine is a labor resource.
___ ___ 8. Supply is what people want to buy at certain prices.
___ ___ 9. The amount of money exchanged for a good is called service.
___ ___ 10. Demand is the desire, willingness and ability to buy a good or service.
___ ___ 11. The factors of production are the resources necessary to produce goods and services.
___ ___ 12. If products A and B are similar, but product B is cheaper, consumers will buy more of product A.
Circle the statement that is true:
13. You go to the store to buy apples for a pie. You need 6 apples, but the store only has three left.
Supply is high Demand is low Supply is low
14. A movie theater holds 200 people. There are 300 people in line to buy tickets.
Demand is high Supply is high Demand is low
For the questions # refer to the “Cuddle Pets” graphing activity on the other side.
15. How does an increase in the price affect the supply of Cuddle Pets? _____________________________
16. The demand for Cuddle Pets will increase if _______________________________________________
17. At what point will the supply of Cuddle Pets meet the demand in quantity? _________ In price? ______
18. According to the graph, how the amount of supply and demand for the Cuddle Pets will be based on the ___________
have out your wkst to be grade
d
Economic Systems Objectives
Describe 4 different types of economies and determine which type the US has.
Language• Students will understand
the content through learning new vocabulary reading and notes to successfully complete an exit ticket.
Content
Traditional Economy
Economic system where the decisions of what, how and for whom to produce are based on customs or habit
Free (market) Economy
Economic System in which individuals and businesses are allowed to compete for profit with little government involvement
Private Property Rights
Freedom to own and use property as long as it does not interfere with the rights of others
Consumer sovereignty
Role of the consumer as the ruler of the marketplace determining what products will be produced
Lesson 3- Economic Systems
[page 217]
Essential Questions
1.Describe the 4 types of economic systems.
2.Identify which system the US has and why.
Economic systems is about how a country decides to use its limited productive
resources by answering the 3 basic questions-…decide the ownership of resources…
…and structure markets for the distribution of goods and services.
Notes
1.Every country needs to answer the 3 basic questions about their economy-
What to produce?
How to produce?
For whom to produce?
2.How will a country decide?
based on its limited productive resources
how much government involvement
try not to rely on just their own markets to deal with scarcity
History of Economic Systems
?- current Traditional Economies
1800’s Capitalism Big Business
Owners
1700-current
Mixed Economy
TRADITIONAL ECONOMY
Based on customs and traditions
People perform the same work as their ancestors regardless of potential or ability
Who owns the Factors of Production?
Who makes the decisions in the marketplace?
Countries that use this system today.
people but there are few
resources available
people poorer, developing countries Examples
Free Market Economy Can own private
property and resources to earn profits
Competition encouraged
Individuals make the choices= Consumer sovereignty
No gov’t involvement*****
Who owns the Factors of Production?
Who makes the decisions in the marketplace?
Countries that use this system today.
people – business owners
people- consumers
no oneExamples
COMMAND ECONOMY
Centrally planned economy by the gov’t
Property and resources owned by the gov’t
Lack of consumer choice
•
Who owns the Factors of Production?
Who makes the decisions in the marketplace?
Countries that use this system today.
govt govt communist nations
Examples
MIXED ECONOMY
private sector- People make decisions (free market)
public sector-Gov’t owns some resources and makes decisions (command economy)
Govt role is greater than in free market but less than in command economy
Who owns the Factors of Production?
Who makes the decisions in the marketplace?
Countries that use this system today.
People & govt People & govt Most countries today
Examples
Notes
COMPETITON-
• rivalry between sellers of a good or service
• results in better quality goods at lower prices
Conclusion
1. Write a 2-3 sentence summary
2. Homework- read and highlight pages 208-209 “Lesson 3- Economic Systems” and answer questions 4-8.
3. Get ready for the Economic Quiz #1 NOW.
Reading [page 208-209]
• Reading page 161
Which type of economy is the government in complete control? ____________________________
Which type of economy has some government involvement but is primarily allows the markets to
operate freely? _________________________________________________________________
Explain a traditional economy. ____________________________________________________
List the characteristics of a free market economy.
What type of economy does the United States have and why?
STORY TIME!
• What type of economic system is used in this story?
• What characteristics of the marketplace that helped to make your decision?
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