Government’s Role in Economy
Term
Definition
Economy
The production and
consumption of goods
and services in a country
First: Important Vocabulary
Term
Definition
Currency Coin or paper money used
to purchase goods and
services
Currency
Second: Important Vocabulary
Term
Definition
Allocate To spend a specific amount
of money on a specific
thing
Allocate
• How did you suggest the government
reallocate its spending in your essay?
Third: Important Vocabulary
Term
Market
Definition
The exchange of goods
and services between
two or more people
Important Vocabulary Continued
Term
Definition
Scarcity The problem of having
limited resources to
meet unlimited wants
Scarcity
What is the scarce resource
for this guy?
• He has $300 to spend
• Yet, he wants over $1500 worth of goods
• He has a scarcity of…
He has a scarcity of money
Scarcity
• Jimmy returns home from school at 5:00 pm.
He has work at 7:30 pm. Before work he needs
to complete his homework, do his laundry,
clean his room and help his younger brother
with his homework. The total time it will take
to get all this done is 4 hours, but remember
that Jimmy has work.
• What is the scarce resource in this scenario?
There is a scarcity of time
Important Vocabulary Continued
Term
Definition
Opportunity What is given up when a
Cost
person chooses
something else
This guy decides to buy the iPod. What is his
opportunity cost?
His opportunity cost is the
Air Jordan Sneakers
Important Vocabulary Continued
Term
Definition
Tax
Revenue
The income of the
government when it
takes tax money from
the people
Tax Revenue
Government
Tax Revenue
• Government uses its tax revenue for…
• Public Services
-Schools, Roads, Hospitals, Parks
• Protect National Security
-Military Forces, Counter-Terrorist Programs
• Maintain Social Order
-Police Salary, Build Prisons, Natural Disasters
There are 4 types of Economy
• Traditional
• Command
• Market
• Mixed
Traditional Economy
Keywords/Phrases:
• Long-standing customs (values)
• Inherited (born into) occupations (jobs)
• Hunting and farming are common
Traditional Economy
Traditional Economy
Traditional Economy
Command Economy
Keywords/Phrases:
• Government control
• National production goals
• Public (government) ownership
Command Economy
Market Economy
Keywords/Phrases:
• Individual choice
• Business competition
• Private (individual) ownership
Market Economy
Mixed Economy
Keywords/Phrases:
• Government Regulation
• Protect Public Interest
Mixed Economy - United States
• This kind of economy includes some parts of
traditional, command and market
• Government plays a role, but businesses are
given many freedoms
• Government sets rules for the economy so
that people are protected
Mixed Economy
In order for Hopkins to build the Bio Tech
Park in E. Baltimore…
Affordable Housing
Must Be Included
Your Ideas
• What should be done to improve the economy
here in Baltimore?
Discussion Rubric:
Points
+2
+1
0
-1
-2
Actions
Makes or responds to a statement quoting information from the text
or government vocabulary to support your opinion.
Makes a statement or gives an opinion that contains misconceptions
but students gave a worthy attempt.
Student does not participate. Student makes a statement that is off
topic and not relevant to the discussion.
Students calls out.
Student is having a side conversation / engaged in other distractions.