Tuesday September 1, 2015
Mr. Goblirsch – Economics
OBJECTIVE – Students Will Be Able To – SWBAT:
- Explain why most modern economies today are mixed economic systems.
AGENDA:
1)
2)
3)
4)
WARM-UP: Index of Economic Freedom (Handout)
CONCEPT: Modern Mixed Economies
ASSIGNMENT: Mixed Economy Circular Flow Diagram
CLOSURE: Mixed Economies Wrap-Up
***Chapter 2 Quiz TOMORROW***
Index of Economic Freedom WARM-UP: (Follow the directions below)
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***5 minutes***
Turn on & Log-in to your ChromeBook
Go to www.heritage.org
At the top of the page click on “more” to get a drop down menu
In the drop down menu, click on “Index of Economic Freedom”
Answer the questions below in your notebook. According to the website:
Which country has the most economic freedom?
Which country has the least economic freedom?
Where does the U.S. rank on the economic freedom index?
Presentation Pro
MODERN MIXED
ECONOMIES
CHAPTER 2 SECTION 4
The Rise of Mixed Economies
Market economies, with all their advantages, have
certain drawbacks.
Limits of Laissez Faire
Laissez faire is the doctrine that
government generally should not
interfere in the marketplace.
Chapter 2
Section
Governments create laws
protecting property rights and
enforcing contracts. They also
encourage innovation through
patent laws.
Main Menu
Government’s Role
• Government Intervention
– National Defense
– Roads & Highways
• Social goals
– Public transportation
– Education
– Healthcare
• Gov as an umpire
– Protect Private Property Rights
– Passing laws to protect competition
Government’s Role in a Mixed Economy
In a mixed economy,
Circular Flow Diagram of a Mixed Economy
Product market
• The government
purchases land, labor,
and capital from
households in the
factor market, and
• Purchases goods and
services in the product
market.
monetary flow
physical flow
Households
expenditures
Government
physical flow
monetary flow
Factor market
Chapter 2
Section
Main Menu
expenditures
Firms
Modern Mixed Economy
Flow Chart
• Create your own Modern Mixed Economy flow
chart.
• Personalize it by adding pictures that apply to
you or that you have chosen to represent the
flow of goods/services and money.
• Use the template as a guide and find a picture
that represents each label in the circular flow
chart.
• Complete your diagram using DocHub.
– You will need to use the tool “Insert Image” in
DocHub in order to add your pictures.
Circular Flow Diagram of a Mixed Economy
Product market
PICTURE
monetary flow
physical flow
Government
Households
expenditures
expenditures
Firms
PICTURE
PICTURE
physical flow
monetary flow
Factor market
PICTURE
Circular Flow Diagram of a Mixed Economy
Product market
monetary flow
physical flow
EXPENDITURES
GOVERNMENT
physical flow
monetary flow
Factor market
EXPENDITURES
CLOSURE: Mixed Economy Wrap-Up
• Discuss with your partner why the
“modern” economy is a mix of the
Free Market and Centrally Planned
economic systems.
Chapter 2
Section
Main Menu
CLOSURE: What I NEED
To Know For TOMORROW’S Quiz
Advantages & Disadvantages of Free Market
& Centrally Planned economies
3 key economic questions
Identify the economic goals (describe how they
sometimes conflict)
Specialization
Capitalism characteristics
“Invisible hand”
Factor & Product markets
Why most modern economies are mixed