ECONOMICS
VOCABULARY TERMS TO KNOW
• Economics
• Law of supply
• Free market
• Law of demand
• Profit
• Free enterprise
• Scarcity
• monopoly
• Capital
GALLERY WALK TO GET YOUR VOCAB
• As you QUIETLY move around the room, write
–Word
– easy definition
–sentence
EXIT SLIP
• How are you affected
by the economy?
• How do you
participate in the
economy?
“HOW DO ECONOMIC SYSTEMS HELP
SATISFY PEOPLE’S NEEDS (AND
WANTS)?”
• The nature of economic
systems varies widely from
place to place
• All systems help people
obtain the goods and services
they need (and want)
• 3 types:
– Traditional
– Command
– Market
**most countries use a mix of
these
TRADITIONAL ECONOMY
• Based on how activity has occurred in the past
• People either grow and make what they need, or trade to obtain
what they can’t make or grow
• Trade may or may not rely on money; may use the barter system
Examples: SE Asia, parts of Africa, historically this is how most
economies were
COMMAND ECONOMY
• Government makes all economic decisions
• Government owns/controls all means of production
– capital, tools, production equipment, factory, usually land
– What to produce, how much, and price
Examples: China, North Korea, Cuba (USSR)
Communism and Socialism
MARKET ECONOMY
• Economic decisions made by individuals looking out for their best
interests
• Privately owned businesses-capitalism
– Profit, supply/demand and competition determine price, free
enterprise
• Based on the idea of free market
Example: The US-mixed market economy; free enterprise with
government regulations for protection of the consumers.
AMERICAN ECONOMIC FREEDOMS
• Freedom to compete
• Freedom of workers to compete for jobs
• Freedom to own property
• Freedom to earn profits
• Freedom to buy and sell
COMPARE AND CONTRAST
• Compare and contrast the US economy with an example of a command
economy (your choice). Work today, due tomorrow.
• Venn diagram, drawing, essay…your choice just show the difference
• Research to get more information than what is in your notes.
ECONOMIC CONCEPT COLLAGE
• Choose concept or economic system (think vocabulary)
• Search newspapers/magazines for pictures to create a collage that
shows that idea.
• Due Tuesday