CT5 CT6
CHAPTER 2 SECTION 1 CHAPTER 2 SECTION 2
Introduction to Economic
Systems
TEACHING STRATEGY
Completing this table will help students better
understand traditional economies.
1. Complete the sections on decision-making
and goals of traditional economies.
2. Complete the sections on the role of men,
women, and children in traditional economies.
3. List the advantages and disadvantages
traditional economies have for members and
for the society as a whole.
RESPONSES FOR TABLE
Basis of decisions—Customs and beliefs
that have been handed down from generation to
generation. Goal of society—Survival. Role of
men—Hunters and herders. Role of women—Tend
crops and raise children. Role of children—Help
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with chores and learn skills needed as adults.
Advantages—Produces what best ensures its
survival; uses same methods of production
and system of distribution as in the past; little
disagreement over economic goals and roles.
Disadvantages—Resists change; less productive;
limits career options; people don’t acquire wealth;
has lower standard of living.
QUESTIONS AND ACTIVITIES
1. How important would reading and writing be
in a traditional economy? (probably not very
important because it would not be necessary
to prepare people for roles in the economy)
2. What impact might the introduction of new
farm tools have on a traditional economy?
(more food and relationships might change
within the society, more leisure time)
Economics: Concepts and Choices
Command Economies
TEACHING STRATEGY
Have students work with you to complete the table.
The activity will help students understand basic
differences between three key economic systems.
1. Answer questions about who owns resources
in each of the systems.
2. Answer how resources are allocated.
3. Answer what role government plays.
RESPONSES FOR TABLE
Who owns the resources? C: Government;
S: Government owns basic resources; the rest are
privately owned; M: Resources privately owned.
How are resources allocated? C: Government
planners decide how resources are used; S:
Government planners allocate basic resources;
market forces allocate privately-owned resources;
M: Market forces allocate resources. What role
does government play? C: Government makes
all economic decisions; S: Government makes
decisions in the basic industries; M: Government’s
role limited—mostly to ensure market forces are
free to work
QUESTIONS AND ACTIVITIES
1. Why is the communist economic system
more likely to develop an authoritarian
political system? (Ownership of resources and
economic decision-making is concentrated in
one group’s hands—government’s)
2. How might a communist economy change
as it incorporates market reforms? (sell
state-owned businesses to private individuals;
reduce government’s role in economic
decisions; allow market forces to operate
freely)
Economics Concepts Transparencies User’s Guide 3