Introduction to Economic Systems
Course
Political Science I
Unit IV
Government and
the Economy
Essential
Question
How does the
role of
government in the
US free
enterprise system
vary from the role
of government in
other economic
systems?
TEKS
§130.183(c)
(5)(D)
Prior Student
Learning
None
Estimated Time
5 to 10 hours
Rationale
This is an introduction to the various economic systems around the world
and career opportunities within these economies. This information is
beneficial to a career in political science.
Objectives
The students will be able to:
1. Categorize the characteristics of different economic systems
2. Compare the role of government in the United States’ free
enterprise system and other economic systems
Engage
Give students two or three minutes to identify and list the countries that
manufacture the items presently in their possession (e.g. shoes,
electronics, etc.) Have some of the students share their lists to spark a
class discussion. Guide the conversation to topics about the locations of
manufacture, the economy, and the reasons why American goods are
manufactured in foreign countries. Use the Discussion Rubric for
assessment.
Key Points
I. What are the characteristics of various economic systems?
A. Free-Market Economy (Free-Enterprise system)
1. Is theoretically a free, unregulated market that serves the public
good (Harrison & Harris, 2011)
a) The public good is based on the demand of citizens
b) The freedom of an unregulated market leads to competition
within the economy
2. Has a “laissez-faire” economic approach
3. Is usually present in countries that have a democratic system of
government
4. Is also referred to as a “capitalist” economy
5. Is the system used in the US
a) There is competition among goods and services, but there
are also Anti-Trust laws that attempt to prevent monopolies
b) Citizens have
(1) Product choices
(2) Occupational options
(3) No income limit
B. Command Economy
1. Gives the government or other central authority the power to
make all economic decisions
a) All consumer goods and services are manufactured and
provided by the central government
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b) Individuals have very little influence over economic
functions
c) All resources are owned by the government
d) Typically exist in countries with a communist government
(e.g. North Korea)
2. Has no competition within the economic market
a) The purpose of a business is to provide goods and services,
not to make a profit
b) Consumers have limited product choice
(1) Foreign goods are not imported or exported
(2) Outside corporations are not permitted to sell goods
c) The government sets
(1) Specific quotas for manufacturing factories
(2) Exact prices for all goods and services in the country
d) There is little to no influence from outside economies
C. Traditional Economy
1. Is governed by tradition and custom
a) Economic activities
(1) Are usually centered on the family unit, tribe, or ethnic
group
(2) Might include farming, textiles, and hunting
b) Goods are produced on a very small scale, not
manufactured
c) Usually do not have currency, instead most items are
obtained by bartering or trading among families
2. Depends on the family unit
a) Resources are allocated based on family inheritance
b) Family trades are typically continued for generations
c) People rely on the resources that they produce
(1) If resources are not produced the people may relocate
or starve
(2) The government provides little to no resources for
citizens
3. Relies heavily upon the environment (e.g. the effects of drought
on crops)
4. Uses technology minimally, because most people do not have
access to or cannot afford technology
5. Is often found in countries with no stable form of government
II. How does international trade affect the US economy?
A. World Trade Organization (WTO)
1. Is an organization that promotes free trade and punishes
protectionist restrictions
a) Protectionist economies shield their countries from imports
2. Attempts to regulate international trade
a) Jobs are often outsourced to countries that have
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inexpensive labor
b) Theoretically, the increase of foreign jobs also increases the
desire for and the purchase of US exports
B. Economic Interdependency
1. Countries are now reliant upon one another due to globalization
a) The health of the US economy depends increasingly on the
prosperity of its trading partners
b) US exports and imports have increased twenty times since
1970 (Edwards, Wattenberg & Lineberry, 2011)
2. America’s largest exports include:
a) Grain
b) Computer hardware/software
c) Aircraft manufacturers
d) Moviemakers
e) Accounting and consulting services
3. Worldwide computer and communication networks have linked
international financial markets
4. It is much easier for countries to move capital from one country
to another
a) However, some countries impose a tariff (special tax) on
imported goods and services in order to
(1) Raise the price of imported goods and services
(2) Protect businesses and workers from foreign
competition
b) High tariffs often play a role in a country’s economic decline
c) In recent decades, the US has lowered tariffs and
established free trade agreements
(1) North American Free Trade Agreement (NAFTA)
(a) Was established in 1993
(b) Permits free trading between Mexico, the US, and
Canada
Activities
1. What the World Eats – For homework, have the students take a picture
of what they eat in a 7-day period. In class, show the students some
similar images of families from around the world. (Note: To find images
conduct an internet search of the following key words: hungry planet
what the world eats.) Then have students reflect on the pictures before
researching and identifying which type of economy each of these
countries has in place and how trade has affected these countries, if at
all. Have the students compile their thoughts and research into a short
paper. Have a class discussion about the students’ reflections. Use the
Writing Rubric and the Discussion Rubric for assessment.
2. Start a Business – Divide the class into three groups. Have each group
create and briefly describe three businesses (one for each of the three
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economic systems). Have each group create a computer-based
presentation explaining its business. The presentations should include
all of the following for each of the businesses:
 The goods and services exchanged
 How the goods are manufactured
 The currency that is used, if any
 Whether the business makes a profit, and if so, what the business
does with the profit
Use the Presentation Rubric, the Peer Evaluation Rubric, and the
Group Evaluation Rubric for assessment.
Assessments
The Role of Government in the Economy Quiz and Key
Discussion Rubric
Group Evaluation Rubric
Individual Work Rubric
Peer Evaluation Rubric
Presentation Rubric
Research Rubric
Writing Rubric
Materials
The Role of Government in the Economy computer-based presentation
Computers with Internet access and presentation software
Computer with projector and Internet access
Resources
Edwards, George, Martin Wattenberg, and Robert Lineberry. Government
in America: People, Politics and Policy. 15. New York City: Longman,
2011. Chapter 17 & 21. Print.
Harrison, Brigid, and Jean Harris. American Democracy Now. 2. New
York City: McGrawHill Comapny, 2011. Chapter 15 & 18. Print.
O'Conner, Karen, Larry Sabato, and Alixandra Yanus. American
Government: Roots and Reform. 2011. New York City: Longman,
2011. Chapter 4 & 18. Print.
Patterson, Thomas. The American Democracy. 9th. New York City:
McGraw Hill Higher Education, 2009. Ch. 15 & 18. Print.
Schmidt, Steffan, Mack Shelley, Barbara Bardes, and Lynne Ford.
American Government and Politics Today. 2011-2012. Boston:
Wadsworth Cenage Learning, 2012. Chapter 17 &19. Print.
Conduct an Internet search of the following key words: hungry planet what
the world eats
Accommodations for Learning Differences
For reinforcement, students will create a Venn Diagram in which they
identify the similarities and differences between the three types of
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economic systems. Use the Individual Work Rubric for assessment.
For enrichment, students will write a 3-5 page research paper about the
World Trade Organization, identifying how the organization regulates
international trade and why. Use the Research Rubric for assessment.
State Education Standards
Texas Essential Knowledge and Skills for Career and Technical Education
§130.183. Political Science I (One to Two Credits).
(5)
The student identifies the roles played by local, state, and
national governments in public and private sectors of the
United States free enterprise system. The student is
expected to:
(D)
compare the role of government in the United States
free enterprise system and other economic systems;
College and Career Readiness Standards
English/Language Arts Standards
V. Research
A. Formulate topic and questions.
2. Explore a research topic.
B. Select information from a variety of sources.
1. Gather relevant sources.
2. Evaluate the validity and reliability of sources.
3. Synthesize and organize information effectively.
5
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Name________________________________
Date__________________________
Introduction to Economic Systems Quiz
1. _____Which of the following is also referred to as a “capitalist” economy?
A. Free-Market Economy
B. Command Economy
C. Traditional Economy
D. All of the above
2. _____Which of the following uses technology minimally, because most people do not
have access to or cannot afford technology?
A. Free-Market Economy
B. Command Economy
C. Traditional Economy
D. All of the above
3. _____Which of the following has a “laissez-faire” economic approach?
A. Free-Market Economy
B. Command Economy
C. Traditional Economy
D. All of the above
4. _____Which of the following gives the government or other central authority the power to
make all economic decisions?
A. Free-Market Economy
B. Command Economy
C. Traditional Economy
D. All of the above
5. _____Which of the following is often found in countries with no stable form of
government?
A. Free-Market Economy
B. Command Economy
C. Traditional Economy
D. All of the above
6. _____Which of the following is theoretically a free, unregulated market that serves the
public good?
A. Free-Market Economy
B. Command Economy
C. Traditional Economy
D. All of the above
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7. _____Which of the following has no competition within the economic market?
A. Free-Market Economy
B. Command Economy
C. Traditional Economy
D. All of the above
8. _____Which of the following is governed by tradition and custom?
A. Free-Market Economy
B. Command Economy
C. Traditional Economy
D. All of the above
9. _____Which of the following is usually present in countries that have a democratic
system of government?
A. Free-Market Economy
B. Command Economy
C. Traditional Economy
D. All of the above
10. _____Which of the following depends on the family unit?
A. Free-Market Economy
B. Command Economy
C. Traditional Economy
D. All of the above
11. _____Which of the following is an organization that promotes free trade and punishes
protectionist restrictions?
A. World Health Organization (WHO)
B. World Trade Organization (WTO)
C. Global Trade Association
D. None of the above
12. _____Which of the following is the reason countries are now reliant upon one another?
A. Recession
B. Internet
C. Taxes
D. Globalization
13. _____Which of the following is NOT one of the largest US exports?
A. Moviemakers
B. Grain
C. Naval manufacturers
D. Computer hardware
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14. _____Worldwide computer and communication networks have almost linked international
financial markets.
A. True
B. False
15. _____Some countries impose a tariff (special tax) on imported goods and services in
order to do which of the following?
A. Raise the price of imported goods and services
B. Protect businesses and workers from foreign competition
C. Both A and B
D. Neither A nor B
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Introduction to Economic Systems Quiz Key
1. A
2. C
3. A
4. B
5. C
6. A
7. B
8. C
9. C
10. C
11. B
12. D
13. C
14. B
15. C
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Name_______________________________
Date________________
Group Evaluation
Group 1
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
9
Yes
10
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
9
Yes
10
Was the group portrayal creative?
No
1
2
3
4
5
6
8
9
Yes
10
8
9
Yes
10
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
Group 2
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
9
Yes
10
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
9
Yes
10
Was the group portrayal creative?
No
1
2
3
4
5
6
8
9
Yes
10
8
9
Yes
10
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
10
Copyright © Texas Education Agency, 2013. All rights reserved.
Group 3
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
9
Yes
10
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
9
Yes
10
Was the group portrayal creative?
No
1
2
3
4
5
6
8
9
Yes
10
8
9
Yes
10
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
Group 4
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
9
Yes
10
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
9
Yes
10
Was the group portrayal creative?
No
1
2
3
4
5
6
8
9
Yes
10
8
9
Yes
10
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
11
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Group 5
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
9
Yes
10
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
9
Yes
10
Was the group portrayal creative?
No
1
2
3
4
5
6
8
9
Yes
10
8
9
Yes
10
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
Group 6
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
9
Yes
10
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
9
Yes
10
Was the group portrayal creative?
No
1
2
3
4
5
6
8
9
Yes
10
8
9
Yes
10
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
12
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Your Name___________________________________ Your Group Number_______
Peer Evaluation
1) Name of Student________________________________________
At what level of seriousness did they take this activity?
Not Very Serious
Very Serious
0
1
2
3
4
Did they make a significant contribution to the brainstorming process?
No
Yes
0
1
2
3
4
Did they make a significant contribution to preparing for the activity?
No
Yes
0
1
2
3
4
What was the level of their participation in the activity(s)?
None
A Lot
0
1
2
3
4
Would you want to work with this person in a group again based on
their level of productivity?
No
Yes
0
1
2
3
4
Total Score_______
2) Name of Student________________________________________
At what level of seriousness did they take this activity?
Not Very Serious
Very Serious
0
1
2
3
4
Did they make a significant contribution to the brainstorming process?
No
Yes
0
1
2
3
4
Did they make a significant contribution to preparing for the activity?
No
Yes
0
1
2
3
4
What was the level of their participation in the activity(s)?
None
A Lot
0
1
2
3
4
Would you want to work with this person in a group again based on
their level of productivity?
No
Yes
0
1
2
3
4
Total Score_______
13
Copyright © Texas Education Agency, 2013. All rights reserved.
3) Name of Student________________________________________
At what level of seriousness did they take this activity?
Not Very Serious
Very Serious
0
1
2
3
4
Did they make a significant contribution to the brainstorming process?
No
Yes
0
1
2
3
4
Did they make a significant contribution to preparing for the activity?
No
Yes
0
1
2
3
4
What was the level of their participation in the activity(s)?
None
A Lot
0
1
2
3
4
Would you want to work with this person in a group again based on
their level of productivity?
No
Yes
0
1
2
3
4
Total Score_______
4) Name of Student________________________________________
At what level of seriousness did they take this activity?
Not Very Serious
Very Serious
0
1
2
3
4
Did they make a significant contribution to the brainstorming process?
No
Yes
0
1
2
3
4
Did they make a significant contribution to preparing for the activity?
No
Yes
0
1
2
3
4
What was the level of their participation in the activity(s)?
None
A Lot
0
1
2
3
4
Would you want to work with this person in a group again based on
their level of productivity?
No
Yes
0
1
2
3
4
Total Score_______
14
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5) Name of Student________________________________________
At what level of seriousness did they take this activity?
Not Very Serious
Very Serious
0
1
2
3
4
Did they make a significant contribution to the brainstorming process?
No
Yes
0
1
2
3
4
Did they make a significant contribution to preparing for the activity?
No
Yes
0
1
2
3
4
What was the level of their participation in the activity(s)?
None
A Lot
0
1
2
3
4
Would you want to work with this person in a group again based on
their level of productivity?
No
Yes
0
1
2
3
4
Total Score_______
6) Name of Student________________________________________
At what level of seriousness did they take this activity?
Not Very Serious
Very Serious
0
1
2
3
4
Did they make a significant contribution to the brainstorming process?
No
Yes
0
1
2
3
4
Did they make a significant contribution to preparing for the activity?
No
Yes
0
1
2
3
4
What was the level of their participation in the activity(s)?
None
A Lot
0
1
2
3
4
Would you want to work with this person in a group again based on
their level of productivity?
No
Yes
0
1
2
3
4
Total Score_______
15
Copyright © Texas Education Agency, 2013. All rights reserved.
Name_______________________________________
Date_______________________________
Discussion Rubric
Objectives
4 pts.
Excellent
3 pts.
Good
2 pts. Needs Some
Improvement
1 pt. Needs Much
Improvement
N/A
Pts.
Participates in group discussion
Encourages others to join the
conversation
Keeps the discussion progressing
to achieve goals
Shares thoughts actively while
offering helpful recommendations to
others
Gives credit to others for their ideas
Respects the opinions of others
Involves others by asking questions
or requesting input
Expresses thoughts and ideas
clearly and effectively
Total Points (32 pts.)
Comments:
16
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Name______________________________________
Date_______________________________________
Individual Work Rubric
4 pts.
Excellent
Objectives
3 pts.
Good
2 pts. Needs Some
Improvement
1 pt. Needs Much
Improvement
N/A
Pts.
Follows directions
Student completed the work as directed,
following the directions given, in order and to the
level of quality indicated
Time management
Student used time wisely and remained on task
100% of the time
Organization
Student kept notes and materials in a neat,
legible, and organized manner. Information was
readily retrieved
Evidence of learning
Student documented information in his or her
own words and can accurately answer questions
related to the information retrieved
*Research/Gathering information (if relevant)
Student used a variety of methods and sources
to gather information. Student took notes while
gathering information
Total Points (20 pts.)
Comments:
17
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Name:____________________________________
Date:_____________________________
Presentation Rubric
4 pts.
Excellent
Objectives
3 pts.
Good
2 pts. Needs Some
Improvement
1 pt. Needs Much
Improvement
N/A
Pts.
Topic/Content
 Topic discussed completely and in-depth
 Includes properly cited sources (if used)
Creativity/Neatness
 Integrates a variety of multimedia effects to
create a professional presentation (transition
and graphics) or appropriate visual aid used
 Title slide, table of contents, bibliography are
included, using acceptable format
Mechanics
 Grammar, spelling, punctuation, and
capitalization are correct
 Image and font size are legible to the entire
audience
Oral Presentation
 Communicates with enthusiasm and eye
contact
 Voice delivery and projection are dynamic
and audible
Audience Interaction
 Presentation holds audience’s attention and
relates a clear message
 Clearly and effectively communicates the
content throughout the presentation
Total Points (20 pts.)
Comments:
18
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Name______________________________________
Date_______________________________________
Research Rubric
4 pts.
Excellent
Objectives
3 pts.
Good
2 pts. Needs Some
Improvement
1 pt. Needs Much
Improvement
N/A
Pts.
Question/goal
Student identified and communicated a question
or goal of the research
Research/Gathering information (if relevant)
Student used a variety of methods and sources
to gather information. Student took notes while
gathering information
Conclusion/Summary
Student drew insightful conclusions and
observations from the information gathered.
Information is organized in a logical manner
Communication
Student communicated the information gathered
and summary or conclusions persuasively.
Student demonstrated skill in the use of media
used to communicate the results of research
Reflection
Student reflected on the importance of the
research and its potential application
Total Points (20 pts.)
Comments:
19
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Name:____________________________________
Date:_____________________________
Writing Rubric
4 pts.
Excellent
Objectives
3 pts.
Good
2 pts. Needs Some
Improvement
1 pt. Needs Much
Improvement
N/A
Pts.
The writing has all required parts from
introduction to conclusion in smooth
transition.
The writing is interesting, supportive,
and complete.
The writing demonstrates that the
writer comprehends the writing
process.
Accurate spelling, grammar, and
punctuation
The content of paragraphs
emphasizes appropriate points.
The writer shows an understanding of
sentence structure, paragraphing, and
punctuation.
All sources and references are clearly
and accurately documented.
Total Points (28 pts.)
Comments:
20
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