JUST DO IT!
•  America is a mixed
economy because
we have a free
market system with
some government
ownership.
•  In what ways does
our government
intervene in the
economy?
•  Come up with 3.
(Hint: Think about the public
sector)
NCSS THEME VII
•  Production, Distribution, and Consumption.
•  People have wants that often exceed the limited
resources available to them.
•  The unequal distribution of resources necessitates
systems of exchange, including trade, to improve
the well-being of the economy, while the role of
government in economic policy-making caries
over time and from place to place.
SOL OBJECTIVES
•  CE.11b The student will demonstrate knowledge of
how economic decisions are made in the
marketplace by comparing the differences among
tradition, free market, command, and mixed
economies.
•  CE.11c The student will demonstrate knowledge of
how economic decisions are made in the
marketplace by describing the characteristics of
the United States economy, including limited
government, private property, profit, and
competition.
CHARACTERISTICS OF
AMERICAN ECONOMY
BIG QUESTION OF THE DAY
Why are free markets, private property, profit,
competition, and consumer sovereignty
essential to the American economic process?
TODAY’S OBJECTIVES
1.
2.
3.
Students will be able to
describe the economic
structure of the United States
along with the role of the
government.
Students will be able to
gather and record
information regarding the
five characteristics of the US
economy.
Students will be to apply
their knowledge of the
essential characteristics in
creating their own examples
and non-examples.
MIXED ECONOMY
•  America has a
mixed economy
•  Most economies in
the world are
mixed.
•  Falls between a
“Command
Economy” and a
“Free Market
Economy.”
VENN DIAGRAM WORKSHEET
•  Use your Venn Diagrams to compare Command
and Free Market Economies
•  Mixed Economy is the combination of the two.
•  Use the information presented in this PowerPoint to
fill in your graph.
COMMAND ECONOMY
•  Central ownership (usually by government) of
property, resources, and other capital.
•  Centrally-planned economy: supply and prices are
regulated by the government.
•  Formulates decisions about the use of means of
production.
•  Lack of consumer choice. There are not a whole lot
of options.
•  Examples: Former Soviet Union, Cuba, and Saudi
Arabia
FREE MARKET ECONOMY
•  Private ownership of property/resources
•  Businesses are motivated by profit
•  Competition among businesses
•  Individual choice when it comes to picking a
product
•  No government involvement in the economy
•  Production is determined purely by supply and
demand
•  No pure free market exists.
MIXED ECONOMY
•  Individuals and businesses are owners and decision
makers for the private sector.
•  Government is owner and decision maker for the
public sector.
•  The government would have influence over the
economy through fiscal and monetary policies.
•  There is a range of mixed economies depending on
the amount of involvement by the government.
•  Examples: US, Germany, and Britain.
FRAME WORKSHEET
•  Use your frame to
describe the 5
characteristics of
the US economy
•  All information will
be provided in the
following slides
•  Feel free to ask
questionsJ
FREE MARKET
•  Generally little input
from government
influence.
•  Prices determined
by supply and
demand
•  Buyers and sellers
interact freely in
marketplace
PRIVATE PROPERTY
•  Citizens have the
right to own
personal property.
•  Individuals and
businesses can own
means of
production
•  Attaches a
monetary value to
land
PROFIT
•  Consists of earnings
after all expenses
have been paid.
•  Drives businesses to
produce quality
products.
•  Profit is reinvested
into the
marketplace
COMPETITION
•  Rivalry between
producers and/or
sellers of a good or
service.
•  Results in better
quality of goods/
service
•  Results in lower
prices.
CONSUMER SOVEREIGNTY
•  Consumers decide
what is produced
through their
purchasing power.
•  Government
involvement is
limited
•  Most decisions are
made in the private
sector
DON’T WRITE IT, DRAW IT!
•  Directions: Pick an economic characteristic:
1.
2.
3.
4.
5.
Free Market
Private Property
Profit
Competition
Consumer Sovereignty
•  Draw an example and a non-example of the one
you picked.
•  It can be a cartoon, drawing, poster, etc., as long as it is
visual.
•  Be ready to explain!!
CONCLUDING DISCUSSION
I need volunteers to:
•  Share your example and non-example visuals
•  Explain why they fit and don’t fit the characteristic
you chose.
Discussion Questions:
•  Why are these characteristics important?
•  What would your life be like if you didn’t have these
economic components?