Name: ______________________________!

Mod: ________
Date: _______________________________
Introduction to New Material
Main Idea Details

Economic Systems

Market Economy

Traditional Economy

Command Economy
 Main Idea Details

U.S. Economy

Guided Practice
Argentina was facing incredibly rough times. Crime had increased, because people had fallen ill, and
in some cases were unable to fulfill their basic needs. Roads were in shambles and public schools
were all running the risk of being shut down. Recently the cost of certain consumer services have
risen by 100% (Consumers are paying 100% more!). These services include car detailing, spa
services, sports tickets, restaurants, and golf clubs. These are services that typically only the rich can
afford. Since the increase in prices for these services, roads have been repaired, schools have been
fixed, and there have been more police on the street.
Tax Rates on Luxury Items and Services
12
Country: Argentina
9 Leader: Christina Fernández de Kirchner
Type of Government: Representative
6 Democracy
Population: 40,134,425
3
Major Religions: Catholic
0 Happiness Index: 35 / 100
1900 1950 2000 2010 Minimum Wage: $2.50/hr

What type of economy is this?

Why have prices risen by 100%?

What are the consequences of the rising

prices?

Who is making decisions in this economy?

What questions do you need answered in

order to better understand this problem?
 Independent Practice

Case #1: _________________________________________

What type of economy is this?

Who makes the decisions in

this economy?

Is this business being regulated?

If yes, what is the government
doing?

What are some major reasons

for the current status of this
product?

What questions do you need

answered in order to better
understand this problem?

Case #2: _________________________________________

What type of economy is this?

Who makes the decisions in

this economy?

What has happened in the

country that has stopped the
production of slinkies?
 Case #2: _________________________________________

What are some major reasons

for the current status of this
product?

What questions do you need

answered in order to better
understand this problem?

Case #3: _________________________________________

What type of economy does

India have?

Why are they declining to

purchase technology?

How are decisions made?

What type of economy would

be most likely to purchase the
farming equipment?

What questions do you need

answered in order to better
understand this problem?
 HOMEWORK
President Obama is tremendously upset today. He just found out that his favorite hot dog stand in
New York, Floydʼs, has gone out of business. This is a ridiculous mystery, as Floydʼs has always
made the best product and almost never had enough hot dogs to satisfy the demand. In fact, a
weekday lunch at Floydʼs could almost be the definition of scarcity--too many people, and not enough
hot dogs. Not only that, they were the cheapest hot dogs in town! Either way, we have to figure out
what happened at Floydʼs. Review the information below in order to determine why Floydʼs Hot Dogs
went out of business.

Cost of Making a Hot dog Price of Hot Dog

3

2.25

1.5

0.75

0
2007 2008 2009 2010

What type of economy does

Floyd’s work in?

Who makes the decisions in

this type of economy?

Why did Floyd’s go out of

business?

Did the government do

anything to make it happen?
How do you know?

What questions do you need

answered in order to better
understand this problem?