Economic

Systems
EQ: What are the 4 forms of economic systems?
Historically, which ones have been more
successful? Why?

The 5 questions every economy (and

individual business) has to answer:
1.
2.
3.
4.
5.

What should we make?

How should we make it?
How much should we make?
Who should we make things for?
Who answers questions 1-4?

In a Traditional System...
-tradition (decisions made based on the way
they were done in the past--cultural/religious)
-areas in developing nations (ex. Maasai in E.
Africa), Amish
-goal: economic stability and security

In a Command System...
--Powerful ruler/authority (government)
--North Korea
--goal: security and equity

In a Market System...
--Decisions of individuals (producers and
consumers)
--19th C. Britain, black market (basis for U.S.
economy)
--goal: efficiency and freedom

___L: Pick an item to produce. Sketch the way 5 questions

are answered by each system.

Product: _______________________

Traditional

Command

Market

Most economic systems...

Do not fit cleanly into any of these categories.
Most nations (and cultural groups) have a
mixture of two or more.

In a Mixed System...
--Mixture of Command and Market Systems
(government and private ownership)
--U.S. (and most other nations--the mixture varies)
--goal=mixture! :) full employment, stability,
efficiency, economic growth (stagnant is bad)

Historically...
Most Command economies have failed. Most
historians believe that this has to do with
competition. For example, lets talk about a foot
race for pie!

Whoever gets there first?

Positives and Negatives to both

extremes...
:)
Command:

Market:

:(

Spectrum of Government Control:

Remember...most nations have a mixed
economy, but the mixture varies widely.

Economic Systems Simulation

You and your group members are going to simulate what it is like to be in
each type of economic system. After the simulation we will analyze the
results as a class.
Each groups good that it will produce is a drawing of either a smiley face,
boat, or flower. Examples will be provided.
Each group will be given paper, crayons, and rulers.
Be sure you read the instructions very carefully!

Jobs during simulation

During the simulation each person will need a specific job.
4-5 group members will be drawers--see goals sheets for
specifics
1 person will be quality control: You must make sure that
the procedure is followed exactly and keep track of how
many goods and the profit your economy makes.

Rounds
The game will be played in three 5 minutes rounds.
At the end of each round you will calculate your score on your
scoreboard sheet--I will update the class scoreboard.
The winning team is the team at the end of the 3rd round that has the
most money per person!

Round 1
Take 2 minutes to read over the values and goals sheet of your
economy.
Assign a job to each person. The Quality Control person should have
the Scoresheet.
When I say GO begin making your good.
Keep in mind while making a profit is important, but so is the quality of
your work.

Round 1 Calculation
The quality control person should now calculate how much
money was made. Be sure to read the Procedures
carefully to see if the government over your economy gets
a share of the profits.
Share information with class when called on.
Pass Values and Goal Sheet to the group closest to your
right.

Round 2
Take 2 minutes to read over the values and goals sheet of your
economy.
Assign a job to each person. The Quality Control person should have
the Scoresheet.
When I say GO begin making your good.
Keep in mind while making a profit is important so is the quality of
your work.

Round 2 Calculation
The quality control person should now calculate how much
money was made. Be sure to read the Procedures
carefully to see if the government over your economy gets
a share of the profits.
Share information with class when called on.
Pass Values and Goal Sheet to the group closest to your
right.

Round 3
Take 2 minutes to read over the values and goals sheet of your
economy.
Assign a job to each person. The Quality Control person should have
the Scoresheet.
When I say GO begin making your good.
Keep in mind while making a profit is important so is the quality of
your work.

Round 3 Calculation
The quality control person should now calculate how much
money was made. Be sure to read the Procedures
carefully to see if the government over your economy gets
a share of the profits.
Share information with class when called on.
Pass Values and Goal Sheet to the group closest to your
right.

The Winner is..

Simulation Debrief
1. Under which economic system did you find it most
enjoyable to work in? Why?
2. Under which economic system did you find it least
enjoyable to work in? Why?
3. Under which economic system did your group make the
most money? Why do you think this is?
4. How are peoples lives influenced by the economic system
under which they live?
5. Which economic system do you think typically provides the
highest standard of living for its people? Why?

Economics explained by cows

Traditional Economy: You have a goat and refuse to buy a cow
Command Economy: You have two cows, the government takes your milk and
sells the milk to you.
Socialism: You have two cows. The State takes one and gives it to your
neighbor who doesnt have a field to put it in.
Mixed Economy: You have two cows. You sell one and
buy a bull

IOD 4 Corners
Pick the Corner based on your beliefs of the following statement (Keep in mind
the court case you are reading):

Freedom of Press should NEVER be limited