ECONOMIC SYSTEMS SIMULATION- SEPT. 3
• Traditional Economies – the allocation of scarce resources, and
nearly all other economic activity, stems from ritual, habit or
custom.
• Command Economies – are economies in which a central
authority makes most of WHAT, HOW, and FOR WHOM decisions.
• Economic decisions are made by the government.
• Market Economies – People and firms act in their own best
interests to answer the WHAT, HOW, and FOR WHOM questions.
ROCK, PAPER, OR SCISSORS
Students will be playing a simulation game to understand the similarities and
differences between economies.
9/4: BELLWORK
What type of economy is the United States? Why?
MIXED OR FREE
Most economies in the world today feature some
mix of traditional, command, and market
economies.
• The United States has a combination of command
(planned) and market economies.
• We have a market (free enterprise) economy with
some government intervention.
REVIEW PRIOR TO TODAY’S ACTIVITY
Economic System: a collection of laws, institutions and,
activities, that provide a framework for
economic decision-making
Command Economy: economic decision-making is made
largely by a government authority
Market Economy: economic decision-making is made by
individuals in the marketplace that reflects
supply and demand
Scarcity: limited quantities of resources that are never
enough to satisfy human wants
ANDERSONVILLE PRISON
•
Students will be developing an economic system for this Civil War prison camp. To
decide on a command or market economic system, you will need to refer to their
homework in Activity 1. REMEMBER, your economic system should best provide
the prisoners with food, clothing and shelter, and other basic human wants.
ANDERSONVILLE- BREAK UP INTO 6 GROUPS
•
Each card will indicate a want that the prisoners had at the prison camp. In the
space provided, each student should propose a method for providing this want
using the economic system indicated. Students will complete their cards in
groups.
•
Students will then find similar cards from other groups and work together, i.e. all
students with food/command system, etc., compare their solutions.
PRESENTATION OF INFORMATION
In your presentations be certain to include the following:
How are basic economic questions answered?
How will the prison administration utilize the human resources available?
What can be done to support prisoners by creating new wealth and increasing
production?
WHAT REALLY HAPPENED
The rations provided by the Confederacy were not the only resources made available
to the prisoners. Goods and money flowed into the stockade from newly captured
prisoners, local civilians, and guards looking to make a profit. It was by these
methods that inmates, whose daily rations were at best meager, were able to add
to their diet. Food, clothing and supplies were traded with guards, or local
patrons. With the availability of these limited resources, all that remained was a
system for the division of these goods among the population.
Inside the Andersonville prison, a group of prisoners called the Raiders banded
together to improve their situation by preying on fellow prisoners. By operating in
large groups, the Raiders were able to steal food, money, clothing and property by
force. Prison authorities did nothing to stop the Raiders from attacking fellow
inmates. New prisoners with good clothes, blankets, jewelry, and money were the
favorite prey of the thieves. After selecting a victim, they would seize his
possessions, club any friends who tried to assist him, and flee. One new shipment
of 2000 new prisoners were dressed in new uniforms and carried well-filled
knapsacks and large sums of money. Kindly appearing men would offer to show
newcomers where they could sleep. Then during the night, they would come back
and rob them.
Finally, in July of 1864, a group of prisoners known as the 'Regulators' banded
together to oppose the Raiders. The Raiders were rounded up and held captive
with the commander’s permission. They were then put on trial for their deeds and
six who were identified as the ring-leaders were hung. The Regulators continued
to patrol the camp and, according to many, adopted some of the plundering
mannerisms of the Raiders.
Like most cities (Andersonville was the fifth largest "city" in the Confederacy), it
included a host of tradesmen and merchants. There were representatives of
many occupations. Barbers and laundries flourished. There were dentists,
doctors, watchmakers, bakers, tailors, and many a cobbler repairing rotting
shoes.
Prisoners who had money could buy almost anything imaginable to eat. James
Selman's shanty periodically offered cucumbers, watermelons, muskmelons,
onions, and potatoes. Selman's prices were high because he paid enormous
premiums to the farmers and women who brought their produce and baked
goods to the camp. (He still made a profit). Selmans' sutlery, was only the most
obvious of several grocery alternatives. Over 200 small businesses operated on
Market Street inside of the stockade. Full time vendors cried out "who wants
wood?", and "Here goes a bully dress coat, only $4."
FINAL QUESTION
"Is it appropriate to label the Andersonville system as a market economy?“
Discuss in Groups
BELLWORK- 9/5
How do you define a developing country?
http://www.youtube.com/watch?v=jbkSRLYSojo
EVALUATING ECONOMIC PERFORMANCE AND
DEVELOPMENT
1) Economic Freedom –freedom to make your
own economic decisions
2) Economic Efficiency –benefits gained must be
greater than costs incurred
3) Economic Equity –a strong sense of justice,
impartiality, and fairness
ECONOMIC PERFORMANCE AND DEVELOPMENT
4) Economic Security – protection from
adverse economic events as layoffs and
illnesses
5) Full Employment – to produce as many
jobs as possible
6) Price Stability – steady prices, void of
inflation
7) Economic Growth – to meet the needs
of population growth
ANALYSIS OF COUNTRIES- MDC OR LDC?
COMPARITIVE ECONOMIC SYSTEMS
Students will:
•
Analyze CIA WORLD FACTBOOK
•
Complete the Following Handout
BELLWORK: 9/6
Why is the United States Considered an MDC?
CHARACTERISTICS OF A CAPITALISTIC
ECONOMY
1. Economic Freedom
2. Voluntary Exchange
3. Private Property Rights
4. Profit Motive
5. Competition
THE ROLE OF THE ENTREPRENEUR
• The entrepreneur is one of the most important people
in a free enterprise (capitalistic) economy. The
entrepreneur organizes and manages land, labor, and
capital in order to seek the reward called profit. In
other words – Entrepreneurs make things happen.
THE ROLE OF THE CONSUMER
• They control what is produced when they
express their wants through purchasing
goods and services.
THE ROLE OF THE GOVERNMENT
• Protector – The government protects property
rights and enforces contracts to ensure an
efficient and fair economy.
• Regulator – The national government is charged
with preserving competition. Local and state
governments control businesses with zoning
regulations, taxes, insurance rates, etc.
QUIZ!!!!!