COURSE
STANDARD
ESSENTIAL
QUESTIONS
6208 Exploring Entrepreneurship
3.00
Understand economic systems
3.01
Compare the four economic systems
 What are the 4 economic systems?
 What are the advantages and disadvantages of each?
 Which economic system provides more for its consumers?
CURRICULUM RESOURCES





EQ 3.01 PowerPoint
Graphic Organizer or Cornell Notes
W1 or W2 writing tasks
Thinkgate Exploring Entrepreneurship item bank
Exploring Entrepreneurship Instructional Forum in Moodle
6208 – Exploring Entrepreneurship
2012
Page 69
1.
2.
INSTRUCTIONAL ACTIVITIES
ACTIVITIES
RELEVANCY TO OBJECTIVE
RESOURCES
Popcorn Economics
This fun activity will interest
http://ecedweb.unomah
 Visit the website:
students in the topic of economic a.edu/lessons/popcorn.
http://ecedweb.unomaha.edu systems. It will help students
htm
/lessons/popcorn.htm to
understand that people make
prepare for the lesson. (The choices because of scarcity.
3.01 Popcorn
website details supplies
When resources are limited,
Economics Lesson
needed and steps for the
people & societies must make
Plan
teacher to follow. The lesson decisions on how to best use
plan also follows the
their resources. These decisions Popped popcorn and
activities guide). The
are made differently in the
paper bags as
students will experience
different types of economic
described in the above
scarcity, the allocation of
systems. This activity will help
lesson plan.
the students look at similarities
resources, and making
and differences between
economic decisions.
 At the conclusion of the
economic systems based on how
lesson, ask the students,
economic decisions are made.
"Who makes the decisions
about resources in the
United States?"
(government & businesses)
Then ask students, "What
type of Economic System
does the United States
have?" (mixed)
PowerPoint Presentation
 Distribute the 3.01 Key
Terms Blank to students.
 While students view the EQ
3.01 Economic Systems
PowerPoint presentation ,
facilitate a discussion.
 Have students write their
own definitions for the terms
in the blanks as they view
the PowerPoint presentation.
 After the students have
viewed the PowerPoint
presentation, facilitate a
discussion with the students,
asking various students to
share the definitions they
wrote for the key terms.
6208 – Exploring Entrepreneurship
The PowerPoint presentation
provides an introduction and
overview of the types of
economic systems, including
definitions of the key terms.
The students must understand
the key terms to be able to
COMPARE (B2) the economic
systems and determine
similarities and differences
between the systems.
2012
3.01 Key Terms Blank
3.01 Economic
Systems PowerPoint
presentation
3.01 Key Terms
Defined
(for teacher reference)
Page 70
3.
INSTRUCTIONAL ACTIVITIES
ACTIVITIES
RELEVANCY TO OBJECTIVE
Crossword Puzzle
This activity will reinforce the key
 Distribute the 3.01
terms and their definitions to
Crossword puzzle to the
assist the students in
students.
understanding the four major
 Have students complete the
types of economic systems.
crossword puzzle.
 Circulate and facilitate as
needed.
(This activity may be completed
as a homework assignment.)
4.
Comparative Economic
Systems
 Visit the website:
http://www.econedlink.org/les
sons/index.cfm?lesson=EM3
22&page=teacher to prepare
for this lesson. Teachers
may want to duplicate the
Comparative Systems
Worksheet (from the site)
prior to the start of class.
 Students may work
individually or in pairs. Have
students complete the
Comparative Systems
Worksheet.
 Students will visit the CIA
World Factbook website for
data to complete the
worksheet:
https://www.cia.gov/library/pu
blications/the-worldfactbook/index.html
 Have students answer the
six questions listed on the
website. (The answer key is
on the teacher website.)
 Circulate and assist students
as needed.
 When students have
completed the activity,
facilitate a discussion about
the three economic systems.
6208 – Exploring Entrepreneurship
This activity will increase
students' understanding of the
characteristics of traditional
(developing), command and
market economic systems.
Students will COMPARE (B2)
the geography, people,
government, and economy of the
United States, North Korea, and
Chad. The activity will help
students see the similarities and
differences among the three
different economic systems—
market, command, and traditional
(developing).
RESOURCES
3.01 Crossword
3.01 Crossword Key
3.01 Key Terms
Defined
Students' completed
3.01 Key Terms Blank
Teacher
http://www.econedlink.
org/lessons/index.cfm?
lesson=EM322&page=
teacher
Student
http://www.econedlink.
org/lessons/index.cfm?
lesson=EM322
Comparative Systems
Worksheet (from
student website above)
CIA World Factbook
website:
https://www.cia.gov/libr
ary/publications/theworldfactbook/index.html
Student notebooks or
journals (or students
can key the answer to
each question at the
website and print all six
answers).
2012
Page 71
5.
6.
INSTRUCTIONAL ACTIVITIES
ACTIVITIES
RELEVANCY TO OBJECTIVE
Characteristics of Economic
This activity will allow the
Systems
students to review the types of
 Distribute the 3.01
economic systems and
Characteristics of
COMPARE (B2) them by listing
similarities and differences in a
Economic Systems
comparison chart to
chart format. The chart format
students.
will help the students easily see
 Have students complete the
the similarities and differences
comparison chart.
among the types of economic
 Circulate and assist as
systems.
needed.
Comparing Economic
Systems
 Distribute the 3.01
Comparing Economic
Systems diagram activity to
students.
 As a culminating and review
activity, have students
complete the 3.01
Comparing Economic
Systems diagram.
 (The file may be distributed
electronically for the students
to complete rather than
duplicating the activity).
6208 – Exploring Entrepreneurship
This graphic organizer will give
the students another visual aid to
help them COMPARE (B2) the
four types of economic systems
by listing the advantages and
disadvantages of each system in
a visual format.
2012
RESOURCES
3.01 Characteristics of
Economic Systems
3.01 Characteristics of
Economic Systems
Key
3.01 Comparing
Economic Systems
3.01 Comparing
Economic Systems
Key
Page 72
INSTRUCTIONAL SUPPORT
MATERIALS
6208 – Exploring Entrepreneurship
2012
Page 73
POPCORN ECONOMICS
© lesson by Mary Suiter, adapted from a lesson found in Kaleidascope, USA.
Published by the Center for Entrepreneurship and Economic Education, UM-St. Louis.
Lesson Description
In this lesson, students experience scarcity through an activity. Following the activity, students
relate the concept of scarcity to situations in school and their community. Students learn that
people make choices because of scarcity.
Grade Levels
Grades four through eight
Economic Concepts
 Scarcity
 Capital resources
 Natural resources
Content Standards and Benchmarks
National Standard Number: 1
Productive resources are limited. Therefore, people cannot have all the goods and services they
want; as a result, they must choose some things and give up others.
People make choices because they cannot have everything they want.
Natural resources, such as land, are "gifts of nature;" they are present without human intervention
Capital goods (resources) are goods produced and used to make other goods and services.
Objectives
Students will:
 Define scarcity as the condition that exists when wants exceed resources available to satisfy
wants.
 Define and give examples of capital resources and natural resources.
 Identify scarce resources in countries or regions studied.
 Identify choices societies made as a result of scarcity.
Materials
 Popped popcorn in a brown grocery bag, staple bag closed
 Brown grocery bags stuffed with crumpled newspaper and stapled closed
 Brown paper lunch bags (several per student)
 Alternative snack such as dry cereal
6208 – Exploring Business, Marketing and Entrepreneurship
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2008
Procedure
1. Explain that a parent or the principal donated a snack for the class and that students will
come to the front of the room, row by row, and serve themselves.
2. Call the first row of students up to the front and give them brown lunch bags in which to put
their popcorn. Allow them to take as much popcorn as they want, giving them extra lunch
bags to hold popcorn if needed.
3. Continue calling tables of students until the grocery bag of popcorn is empty.
4. Students will ask for the popcorn in the other stapled grocery bags. Open the bags and act
surprised to find crumpled newspaper. Explain that you thought that all of the grocery bags
were filled with popcorn.
5. Apologize to those students who did not receive a snack. Explain that everyone thought
there was plenty of popcorn for all. Suggest that, if the first students served had known
there was a limited amount, perhaps they might have been careful to leave enough for the
rest of the class.
Note: Students are likely to be very angry at the seemingly unfair situation; however, it is
the purpose of this lesson for them to experience scarcity.
6. Discuss the following.
A. What is the problem? (There wasn't enough popcorn for everyone who wanted it.)
B. Why does this problem exist? (The amount of popcorn was limited and there were many
students who wanted popcorn. Those who were selected first got as much or more popcorn
than they could really eat.)
7. Explain that the experience students had with popcorn symbolizes a major problem that all
societies face-scarcity. Scarcity occurs because people want many things, but resources
available for producing the things people want are limited.
8. Tell students that other groups still need a snack, but there's no popcorn left. Ask student
what could be done. (Those with popcorn could share. Teacher could pop more popcorn.
Teacher could provide an alternative snack. Those without a snack could go without.)
9. Explain that when faced with scarcity, people and societies must make choices about
allocation. When people allocate, they decide how something should be used and/or who
should get something that is available.
10. Explain that people and societies make different allocation decisions. Explain that the
number of computers available at school is limited. Capital resources are things produced
and used to produce other goods and services.
11. Point out that the number of computers available is limited but students and teachers have
unlimited wants for the computers. Students and teachers want to use the computers to
write, to research, to learn to use software, and so on.
12. Ask the students who decides how to allocate the use of computers at school. (teacher,
principal, other faculty)
13. Explain that natural resources are things that occur naturally in or on the earth. Ask the
students for examples of natural resources in their community. (land, water, trees, coal,
gold, air)
14. Explain that natural resources are scarce even in a country as wealthy as the United States.
Point out that often the western part of the United States experiences droughts and people
don't have enough water to satisfy all the wants they have for water.
6208 – Exploring Business, Marketing and Entrepreneurship
Page 76
2008
Name: _____________________________________
Class: _________
3.01 Key Terms Blank
Understand Economics and Economic systems
Term
Definition
Economics Terms
Economics
Scarcity
Capital Resources
Natural Resources
Human Resources
Entrepreneurial
Resources
Types of Economies
Command economy
Market economy
Socialist economy
Mixed Economy
Traditional Economy
6208 – Exploring Business, Marketing and Entrepreneurship
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2008
3.01 Key Terms Defined
Understand Economics and Economic systems
Term
Definition
Economics Terms
Economics
Scarcity
Capital Resources
Natural Resources
Human Resources
Entrepreneurial Resources
Making choices and satisfying the wants and needs of
consumer. Economics studies how individuals and
societies seek to satisfy needs and wants through
incentives, choices, and allocation of scarce resources
The word "economics" is from the Greek words οκος
[oikos], meaning "family, household, estate," and νόμος
[nomos], or "custom, law," and hence literally means
"household management" or "management of the state."
The condition that exists when wants exceed resources
available to satisfy wants.
Goods produced and used to make other goods and
services.
“Gifts of nature” that are present without human
intervention (ex. land)
The knowledge, efforts, and skills people bring to their
work, also known as labor.
The initiative to improve goods and services or create
new ones.
Types of Economies
Command economy
Market economy
Socialist economy
Mixed Economy
Traditional Economy
Economic system that is run by a central government or
authority
Characterized by private ownership of the means of
production (for example, farms and factories), and supply
and demand are responsible for the price and allocation
decisions. Individuals decide what, how and for whom
goods and services are produced.
Characterized by more government ownership and
central planning. Government, which relies on tax
revenues, is far less likely than private businesses to
heed price signals or to feel the discipline imposed by
market forces.
A combination of a command and market economy.
The type of economy where people believe in doing
things the same as they have always been done in the
past.
6208 – Exploring Business, Marketing and Entrepreneurship
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2008
Name: _____________________________________
Class: _________
2.01 Crossword
6208 – Exploring Business, Marketing and Entrepreneurship
Page 79
2008
3.01 Crossword Key
6208 – Exploring Business, Marketing and Entrepreneurship
Page 80
2008
Name: _____________________________________
Class: _________
3.01 Characteristics of Economic Systems
List characteristics for each type of economic system by answering questions in the left column for each type of
economic system.
Characteristics
Traditional
Market
Command
Mixed
Who makes
economic
decisions?
What is the
government's role
in the economy?
What motivates
the economy?
How are
resources
allocated?
Is the level of
competition high
or low in the
economy?
List examples of
countries with this
type of economy.
6208 – Exploring Business, Marketing and Entrepreneurship
2008
Page 81
3.01 Characteristics of Economic Systems KEY
List characteristics for each type of economic system by answering questions in the left column for each type of
economic system.
Characteristics
Traditional
Market
Command
Mixed
Who makes
economic
decisions?
What is the
government's role
in the economy?
Customs govern
decisions
Business and
Consumers
Centralized
Government
No official
Government role
Families or ethnic
traditions are the
law
What motivates the People want to do
economy?
what past
generations have
done
How are resources Resources are
allocated?
divided out by what
the past or elders
have done.
No Government role –
Run by and Invisible
hand
They make all the
decisions
Both the market
and the
government
Take care of
people’s needs
(roads, schools,
military)
Supply and Demand in
the market
The Government
The marketplace
– the buyers and
sellers
Resources are given to
the one who pays the
given price set by the
market’s demand
The government
dictates which
resources will be used
when and where
Is the level of
competition high or
low in the
economy?
List examples of
countries with this
type of economy.
Very low
Very High
Low
Government
decides some
and the market
determines the
other
High
Amish, Pygmies of
Congo, Belarus,
Eskimos
Does not exist in formal
society
China, Cuba, Sweden,
and France
6208 – Exploring Business, Marketing and Entrepreneurship
2008
United States,
England,
Australia
Page 82
3.01 Comparing Economic Systems
Name:__________________
Market Economy

Advantage:

Disadvantage:
Command Economy

Advantage:

Disadvantage:
Global
Economic
Systems
Mixed Economy


Traditional
Economy
Advantage:
Disadvantage:
6208 – Exploring Business, Marketing and Entrepreneurship
2008

Advantage:

Disadvantage:
Page 83
3.01 Comparing Economic Systems
Page 2
Name: ___________________________
1. Name some similarities between Command and Traditional economic systems.
2. Name some similarities between Command and Mixed economic systems.
3. Name some similarities between Market and Traditional economic systems.
4. Name some similarities between Market and Command economic systems.
5. Name some similarities between Market and Mixed economic systems.
6. In addition to all these being Global Economic Systems, name one major similarity in all systems.
6208 – Exploring Business, Marketing and Entrepreneurship
2008
Page 84
3.01 Comparing Economic Systems Key
Name:__________________
Market Economy
 Advantage;
Strive to have the best
products
High competition
 Disadvantage:
Huge rift between the
wealthy & poor
Command Economy
 Advantage;
Equal standard of living.
Government oversees the
necessities
 Disadvantage:
Fewer choices
Unavailability of items.
Global
Economic
Systems
Traditional Economy
 Advantage;
Specific roles for people
Security in the same way
 Disadvantage:
Difficult for people to
improve
Technology is not used
Mixed Economy
 Advantage;
A balance of needs met by
government and wants met in
the marketplace
 Disadvantage:
Leads to different classes in
society.
Citizens have to pay for
government services (taxes)
6208 – Exploring Business, Marketing and Entrepreneurship
2008
Page 85
3.01 Comparing Economic Systems KEY
Page 2
1. Name some similarities between Command and Traditional economic systems.
Choices are limited.
Tries to take care of their society
2. Name some similarities between Command and Mixed economic systems.
Has a central government that helps meet people’s needs
Government oversees national security, social reforms and school system
3. Name some similarities between Market and Traditional economic systems.
Both Market & Traditional do not have any government intervention
4. Name some similarities between Market and Command economic systems.
There are no similarities between these two systems
5. Name some similarities between Market and Mixed economic systems.
Supply and Demand determines the price in the marketplace in both systems
The marketplace takes care of people’s wants
6. In addition to all these being Global Economic Systems, name one major similarity in all systems.
All the systems were formed to help allocate resources.
6208 – Exploring Business, Marketing and Entrepreneurship
2008
Page 86