CT7 CT8
CHAPTER 2 SECTION 3 CHAPTER 2 SECTION 4
Market Economies
TEACHING STRATEGY
Review the circular flow model of market
economies with the students.
1. Follow the green arrows representing the
flow of money in the economy. Locate the
“Households” box on the right side of chart
and begin there.
2. Follow the blue arrows representing the flow
of resources and products in the economy.
Locate the “Households” box on the right side
of chart and begin there.
QUESTIONS AND ACTIVITIES
1. What do the green arrows represent? (the
flow of money) What do the blue arrows
represent? (the flow of resources—the factors
of production—and products.)
2. What do individuals do in the product market?
(buy goods and services) What do businesses
do in the product market? (sell goods and
services.)
3. What do individuals do in the factor
market? (sell their land, capital, labor, and
entrepreneurship) What do businesses do in
the factor market? (buy land, capital, labor
and entrepreneurship)
4. In what forms does money flow from
businesses to individuals? (wages for labor,
interest on money loaned to businesses, rents
paid by businesses for space or equipment,
profits from sales made by businesses)
4 Economics Concepts Transparencies User’s Guide
Modern Economies in a Global
Age
TEACHING STRATEGY
In this activity, students look at the economies
of the United States, France, and Sweden that
incorporate elements of both command and market
economies creating a mixed economy.
1. List one or more elements of command
economies that are found in these economies.
2. List one or more elements of market
economies that are found in these economies.
RESPONSES FOR TABLE
Command Economy United States: roads,
public high schools, minimum wage, Social
Security; government safety standards;
France: government ownership of core
industries; Sweden: government ownership of
one third of all Swedish companies; “cradle
Copyright by McDougal Littell, a division of Houghton Mifflin Company
to grade” social benefits; Market Economy
United States: private property rights and
entrepreneurship of the business owners;
competitive market; exchange of France:
reduced government role in ownership role in
the economy; Sweden: private ownership of
two-thirds of Swedish companies
QUESTIONS AND ACTIVITIES
1. Describe one element of a command economy
that can be found in both the French and
Swedish economies. (government ownership
of many companies)
2. How is the United States economy different
from the economies of France and Sweden?
(The U.S. government does not own
companies as those governments do. Fewer
government-provided social benefits for
citizens in the U.S.)
Economics: Concepts and Choices