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COURSE STANDARD ESSENTIAL QUESTIONS

6208 Exploring Entrepreneurship 3.00 Understand economic systems 3.01 Compare the four economic systems  What are the 4 economic systems?  What are the advantages and disadvantages of each?  Which economic system provides more for its consumers?

CURRICULUM RESOURCES
     EQ 3.01 o!er oint "raphic #rgani$er or Cornell %otes &1 or &2 !riting tas's (hin'gate Exploring Entrepreneurship item )an' Exploring Entrepreneurship *nstructional +orum in ,oodle

6208 - Exploring Entrepreneurship

2012

age 6.

3.edu systems.unomaha.Exploring Entrepreneurship 2012 age 6. (he students must understand the 'ey terms to )e a)le to COMPARE &B'( the economic systems and determine similarities and differences )et!een the systems. 2(he choices )ecause of scarcity.ey (erms <lan' 3.01 opcorn prepare for the lesson. INSTRUCTIONAL ACTIVITIES ACTIVITIES RELEVANCY TO OBJECTIVE RESOURCES Popcorn Economics (his fun acti3ity !ill interest http011eced!e).edu1lessons1popcorn.  /isit the !e)site0 htm http011eced!e).unomah students in the topic of economic a. scarcity5 the allocation of the students loo' at similarities resources5 and ma'ing and differences )et!een economic decisions. .01 .1.0 !ey "erms #$ank to students. economic systems )ased on ho!  6t the conclusion of the economic decisions are made.01 Economic =ystems o!er oint presentation 3. (he lesson decisions on ho! to )est use their resources. *t !ill help students understand that people ma'e 1lessons1popcorn. &hen resources are limited5 Economics 8esson !e)site details supplies people 7 societies must ma'e lan needed and steps for the teacher to follo!.ey (erms 9efined (for teacher reference) 2. (his acti3ity !ill help lesson plan. lesson5 as' the students5 "Who makes the decisions about resources in the United States?" 2go3ernment 7 )usinesses4 (hen as' students5 "What type of Economic System does the United States have?" 2mixed4 PowerPoint Present tion  9istri)ute the 3.  :a3e students !rite their o!n definitions for the terms in the )lan's as they 3ie! the o!er oint presentation. (hese decisions opped popcorn and plan also follo!s the are made differently in the paper )ags as acti3ities guide4.  6fter the students ha3e 3ie!ed the o!er oint presentation5 facilitate a discussion !ith the students5 as'ing 3arious students to share the definitions they !rote for the 'ey terms.01 .htm to 3. (he different types of economic descri)ed in the a)o3e students !ill experience systems.  &hile students 3ie! the EQ !"#$ Economic S%stems o!er oint presentation 5 facilitate a discussion. (he o!er oint presentation pro3ides an introduction and o3er3ie! of the types of economic systems5 including definitions of the 'ey terms. 6208 .

3.01 Cross!ord 3.322 Comparati3e =ystems &or'sheet 2from student !e)site a)o3e4 C*6 &orld +act)oo' !e)site0 https011!!!.econedlin'.01 .ey (erms <lan' @. :a3e students complete the Comparati3e =ystems &or'sheet. (eachers may !ant to duplicate the %omparative Systems Worksheet 2from the site4 prior to the start of class.Exploring Entrepreneurship 2012 age F0 .3227pageB teacher =tudent http011!!!. Comp r ti-e Economic S%stems  /isit the !e)site0 http011!!!. (This activity may be completed as a homework assignment.  &hen students ha3e completed the acti3ity5 facilitate a discussion a)out (his acti3ity !ill increase students? understanding of the characteristics of traditional 2de3eloping45 command and mar'et economic systems. INSTRUCTIONAL ACTIVITIES ACTIVITIES RELEVANCY TO OBJECTIVE Crosswor) P*++.e (his acti3ity !ill reinforce the 'ey terms and their definitions to  9istri)ute the 3.html  :a3e students ans!er the six Duestions listed on the !e)site.cia.org1les sons1index. org1lessons1index.econedlin'.cfmA lessonBE. (eacher http011!!!.  =tudents !ill 3isit the C*6 &orld +act)oo' !e)site for data to complete the !or'sheet0 https011!!!.go31li)rary1pu )lications1theC!orldC fact)oo'1index.01 . (he acti3ity !ill help students see the similarities and differences among the three different economic systemsE mar'et5 command5 and traditional 2de3eloping4. =tudents !ill COMPARE &B'( the geography5 people5 go3ernment5 and economy of the United =tates5 %orth . org1lessons1index.orea5 and Chad.4  Circulate and assist students as needed. types of economic systems. 6208 .3227pageBteach er to prepare for this lesson.0 assist the students in %ross&ord pu$$le to the understanding the four ma>or students.) RESOURCES 3.html =tudent note)oo's or >ournals 2or students can 'ey the ans!er to each Duestion at the !e)site and print all six ans!ers4.go31li)r ary1pu)lications1theC !orldC fact)oo'1index.  Circulate and facilitate as needed.ey (erms 9efined =tudents? comp$eted 3.cfmA lessonBE.econedlin'.cia. 2(he ans!er 'ey is on the teacher !e)site.  =tudents may !or' indi3idually or in pairs.01 Cross!ord !ey 3.  :a3e students complete the cross!ord pu$$le.cfmA lessonBE.

 Circulate and assist as needed.01 Characteristics of Economic =ystems 3.0 %omparing Economic Systems diagram.INSTRUCTIONAL ACTIVITIES ACTIVITIES RELEVANCY TO OBJECTIVE the three economic systems. 3.01 Comparing Economic =ystems 3.  :a3e students complete the comparison chart.0 %omparing Economic Systems diagram acti3ity to students.  2(he file may )e distri)uted electronically for the students to complete rather than duplicating the acti3ity4. (his acti3ity !ill allo! the students to re3ie! the types of economic systems and COMPARE &B'( them )y listing similarities and differences in a chart format.0 %haracteristics of Economic Systems comparison chart to students.Exploring Entrepreneurship 2012 age F1 .01 Comparing Economic =ystems .  6s a culminating and re3ie! acti3ity5 ha3e students complete the 3. RESOURCES 3.ey 6208 . r cteristics o/ Economic S%stems  9istri)ute the 3. G.01 Characteristics of Economic =ystems . Comp rin0 Economic S%stems  9istri)ute the 3.ey 6. (he chart format !ill help the students easily see the similarities and differences among the types of economic systems. C. (his graphic organi$er !ill gi3e the students another 3isual aid to help them COMPARE &B'( the four types of economic systems )y listing the advantages and disadvantages of each system in a 3isual format.

INSTRUCTIONAL SUPPORT MATERIALS 6208 .Exploring Entrepreneurship 2012 age F2 .

Continue calling ta)les of students until the grocery )ag of popcorn is empty. . Objectives Students will' • 9efine scarcity as the condition that exists !hen !ants exceed resources a3aila)le to satisfy !ants. • 9efine and gi3e examples of capital resources and natural resources. • *dentify choices societies made as a result of scarcity. Call the first ro! of students up to the front and gi3e them )ro!n lunch )ags in !hich to put their popcorn. Louis. USA. aterials • opped popcorn in a )ro!n grocery )ag5 staple )ag closed • <ro!n grocery )ags stuffed !ith crumpled ne!spaper and stapled closed • <ro!n paper lunch )ags 2se3eral per student4 • 6lternati3e snac' such as dry cereal !rocedure 1. are #gifts of nature!# they are present without human intervention $apital goods %resources& are goods produced and used to make other goods and services.POPCORNECONOMICS © lessonby MarySuiter. people cannot have all the goods and services they want! as a result. "atural resources. Grade Levels Grades four through eight Economic Concepts • =carcity • Capital resources • %atural resources Content Standards and Benchmarks National Standard Number: 1 Productive resources are limited. 6llo! them to ta'e as much popcorn as they !ant5 gi3ing them extra lunch )ags to hold popcorn if needed. Publishedby the Centerfor EntrepreneurshipandEconomicEducation. adaptedfroma lessonfoundin Kaleidascope. they must choose some things and give up others. such as land. 3. students experience scarcity through an activity. Lesson Description In this lesson. Following the activity. Explain that a parent or the principal donated a snac' for the class and that students !ill come to the front of the room5 ro! )y ro!5 and ser3e themsel3es.UM-St. • *dentify scarce resources in countries or regions studied. 2. students relate the concept of scarcity to situations in school and their community. herefore. People make choices because they cannot have everything they want. Students learn that people make choices because of scarcity.

11. G. =uggest that5 if the first students ser3ed had 'no!n there !as a limited amount5 perhaps they might ha3e )een careful to lea3e enough for the rest of the class. Capital resources are things produced and used to produce other goods and ser3ices. 2(hose !ith popcorn could share..4 . Explain that the num)er of computers a3aila)le at school is limited. (hose !ho !ere selected first got as much or more popcorn than they could really eat. (ell students that other groups still need a snac'5 )ut there?s no popcorn left.4 F. =tudents !ill as' for the popcorn in the other stapled grocery )ags. 2teacher5 principal5 other faculty4 13.4 <. 9iscuss the follo!ing. oint out that often the !estern part of the United =tates experiences droughts and people don?t ha3e enough !ater to satisfy all the !ants they ha3e for !ater. 6s' the students !ho decides ho! to allocate the use of computers at school. 6. . &hat is the pro)lemA 2(here !asn?t enough popcorn for e3eryone !ho !anted it. oint out that the num)er of computers a3aila)le is limited )ut students and teachers ha3e unlimited !ants for the computers. 6.@. =tudents and teachers !ant to use the computers to !rite5 to research5 to learn to use soft!are5 and so on. 10. 6s' student !hat could )e done. 8. Explain that !hen faced !ith scarcity5 people and societies must ma'e choices a)out allocation. (hose !ithout a snac' could go !ithout. &hen people allocate5 they decide ho! something should )e used and1or !ho should get something that is a3aila)le. Note1 =tudents are li'ely to )e 3ery angry at the seemingly unfair situationH ho!e3er5 it is the purpose of this lesson for them to experience scarcity. Explain that natural resources are scarce e3en in a country as !ealthy as the United =tates. &hy does this pro)lem existA 2(he amount of popcorn !as limited and there !ere many students !ho !anted popcorn. (eacher could pop more popcorn. 6pologi$e to those students !ho did not recei3e a snac'. 12. Explain that e3eryone thought there !as plenty of popcorn for all. (eacher could pro3ide an alternati3e snac'. Explain that the experience students had !ith popcorn sym)oli$es a ma>or pro)lem that all societies faceCscarcity. #pen the )ags and act surprised to find crumpled ne!spaper. Explain that you thought that all of the grocery )ags !ere filled !ith popcorn. 6s' the students for examples of natural resources in their community. Explain that people and societies ma'e different allocation decisions. Explain that natural resources are things that occur naturally in or on the earth. 2land5 !ater5 trees5 coal5 gold5 air4 1@. =carcity occurs )ecause people !ant many things5 )ut resources a3aila)le for producing the things people !ant are limited.

n3 Understand Economics and Economic systems Term Economics Terms Economics =carcity Capital Jesources %atural Jesources :uman Jesources Entrepreneurial Jesources Definition T%pes o/ Economies Command economy .ixed Economy (raditional Economy .ar'et economy =ocialist economy .%ame0 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Class0 IIIIIIIII !"#$ 2e% Terms B.

(he type of economy !here people )elie3e in doing things the same as they ha3e al!ays )een done in the past.!"#$ 2e% Terms De/ine) Understand Economics and Economic systems Term Economics Terms Economics Definition =carcity Capital Jesources %atural Jesources :uman Jesources Entrepreneurial Jesources . 6 com)ination of a command and mar'et economy. Characteri$ed )y more go3ernment o!nership and central planning.ar'et economy Economic system that is run )y a central go3ernment or authority Characteri$ed )y pri3ate o!nership of the means of production 2for example5 farms and factories45 and supply and demand are responsi)le for the price and allocation decisions.ixed Economy (raditional Economy . Economics studies ho! indi3iduals and societies see' to satisfy needs and !ants through incenti3es5 choices5 and allocation of scarce resources (he !ord KeconomicsK is from the "ree' !ords LMLN Ooi'osP5 meaning Kfamily5 household5 estate5K and QRSLN OnomosP5 or Kcustom5 la!5K and hence literally means Khousehold managementK or Kmanagement of the state. T%pes o/ Economies Command economy . =ocialist economy . Individuals decide what how and for whom goods and services are produced. T"ifts of natureU that are present !ithout human inter3ention 2ex. "oods produced and used to ma'e other goods and ser3ices. "o3ernment5 !hich relies on tax re3enues5 is far less li'ely than pri3ate )usinesses to heed price signals or to feel the discipline imposed )y mar'et forces. (he initiati3e to impro3e goods and ser3ices or create ne! ones.a'ing choices and satisfying the !ants and needs of consumer. land4 (he 'no!ledge5 efforts5 and s'ills people )ring to their !or'5 also 'no!n as la)or.K (he condition that exists !hen !ants exceed resources a3aila)le to satisfy !ants.

%ame0 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Class0 IIIIIIIII '"#$ Crosswor) .

!"#$ Crosswor) 2e% .

r cteristics &ho ma'es economic decisionsA &hat is the go3ernment?s role in the economyA &hat moti3ates the economyA :o! are resources allocatedA *s the le3el of competition high or lo! in the economyA 8ist examples of countries !ith this type of economy. C. M r3et Comm n) Mi4e) . Tr )ition .%ame0 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Class0 IIIIIIIII !"#$ C. r cteristics o/ Economic S%stems 8ist characteristics for each type of economic system )y ans!ering Duestions in the left column for each type of economic system.

r cteristics &ho ma'es economic decisionsA &hat is the go3ernment?s role in the economyA Tr )ition . /ery lo! (he "o3ernment (he go3ernment dictates !hich resources !ill )e used !hen and !here 8o! 6mish5 ygmies of Congo5 <elarus5 Es'imos 9oes not exist in formal society China5 Cu)a5 =!eden5 and +rance United =tates5 England5 6ustralia . r cteristics o/ Economic S%stems 2EY 8ist characteristics for each type of economic system )y ans!ering Duestions in the left column for each type of economic system.!"#$ C. Customs go3ern decisions M r3et <usiness and Consumers %o "o3ernment role Jun )y and *n3isi)le hand =upply and 9emand in the mar'et Jesources are gi3en to the one !ho pays the gi3en price set )y the mar'etVs demand /ery :igh Comm n) Centrali$ed "o3ernment (hey ma'e all the decisions Mi4e) <oth the mar'et and the go3ernment (a'e care of peopleVs needs 2roads5 schools5 military4 (he mar'etplace .the )uyers and sellers "o3ernment decides some and the mar'et determines the other :igh %o official "o3ernment role +amilies or ethnic traditions are the la! &hat moti3ates the eople !ant to do economyA !hat past generations ha3e done :o! are resources Jesources are allocatedA di3ided out )y !hat the past or elders ha3e done. *s the le3el of competition high or lo! in the economyA 8ist examples of countries !ith this type of economy. C.

Economi c S%stems Mi4e) Econom% 6d3antage0 6d3antage0 9isad3antage0 9isad3antage0 Tr )ition .!"#$ Comp rin0 Economic S%stems N me1555555555555555555 M r3et Econom% 6d3antage0 Comm n) Econom% 6d3antage0 9isad3antage0 9isad3antage0 6.o7 . Econom% !"#$ Comp rin0 Economic S%stems N me1 555555555555555555555555555 .

P 0e ' 1.ar'et and Command economic systems. %ame some similarities )et!een Command and (raditional economic systems.ixed economic systems.ixed economic systems. G.ar'et and . %ame some similarities )et!een . %ame some similarities )et!een . 2. %ame some similarities )et!een . *n addition to all these )eing "lo)al Economic =ystems5 name one ma>or similarity in all systems. 6. . %ame some similarities )et!een Command and .ar'et and (raditional economic systems. @. 3.

o7 . )iti*ens have to pay for government services (ta+es) Tr )ition . Economi c S%stems Mi4e) Econom% 6d3antageH ' balance of needs met by government and wants met in the marketplace 9isad3antage0 (eads to different classes in society. %overnment oversees the necessities 9isad3antage0 &ewer choices Unavailability of items. Econom% 6d3antageH !pecific roles for people !ecurity in the same way 9isad3antage0 Difficult for people to improve Technology is not used .!"#$ Comp rin0 Economic S%stems 2e% N me1555555555555555555 M r3et Econom% 6d3antageH !trive to have the best products "igh competition 9isad3antage0 "uge rift between the wealthy # poor Comm n) Econom% 6d3antageH E$ual standard of living. 6.

.ar'et and . (here are no similarities )et!een these t!o systems G.ixed economic systems. %ame some similarities )et!een Command and (raditional economic systems. %ame some similarities )et!een . %ame some similarities )et!een .ar'et and Command economic systems. 6ll the systems !ere formed to help allocate resources. *n addition to all these )eing "lo)al Economic =ystems5 name one ma>or similarity in all systems. =upply and 9emand determines the price in the mar'etplace in )oth systems (he mar'etplace ta'es care of peopleVs !ants 6. :as a central go3ernment that helps meet peopleVs needs "o3ernment o3ersees national security5 social reforms and school system 3.ar'et 7 (raditional do not ha3e any go3ernment inter3ention @. %ame some similarities )et!een .ar'et and (raditional economic systems.!"#$ Comp rin0 Economic S%stems 2EY P 0e ' 1. Choices are limited. %ame some similarities )et!een Command and .ixed economic systems. <oth . (ries to ta'e care of their society 2.