TYPES OF ECONOMIC SYSTEMS
Economic Systems
• An economic system describes how a
country’s economy is organized.
• Because of the problem of scarcity, every
country needs a system to determine how to
use its productive resources.
• An economic system must answer 3 basic
questions…
Economic Systems
• 1. What to Produce? (What kinds of good and
services should be produced?
• 2. How to Produce? (What productive resources
are used to produce goods and services?)
• 3. For Whom to Produce? (Who gets to have the
good and services?)
• The way a society answers these questions
determines its economic system.
The types of Economic Systems
that Exist
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1) Traditional Economy:
Few exist today, those that are around
operate in remote areas
Based on subsistence farming. This is when
individuals produce basic crops or raise
livestock in only enough quality to meet the
needs of their family. Anything that is left
over may be shared with others or traded for
other items.
The equipment use is primitive and the
process of production is passed down from
generation to generation.
Some developing countries still have
traditional economies, since some people still
rely on hunting, gathering or subsistence
farming.
Estimates are that around 400 million
aboriginal people across the world live in a
traditional economy in under developed areas
of South America, Africa, Australia, and Asia.
2) Command Economy:
• In a command economy the
government, dictatorship or
single political party decide
what will be produced, how it
will be produced and how
much products will be worth.
• Usually lower standard of
living than in a free market
economy.
• This type of economy tends to
be unresponsive to wants of
consumers.
• Cuba, North Korea, Iran and
Burma are examples of
command economies.
3) Market Economy:
• Goods and services owned by
individuals who try and sell them at
the highest price people are willing
to pay and make a profit.
• The government does not interfere.
• Prices are determined based on
supply and demand.
• Usually the standard of living is
higher in a market economy than
other economies
• Hong Kong, Singapore, Australia and
Ireland are among the top countries
with economic freedom. Canada is
ranked 7th behind the United States.
The types of Economic Systems
that Exist
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Mixed Economy:
Many countries like Canada, have a mixed
economy.
Economic freedom intermixed with some
centralized government planning and regulation
of the market for reasons such as environmental
concern or social welfare.
Corporations may even be government owned.
These include, The Bank of Canada, The
Canadian Broadcasting Corporation, Canada
Post, Via Rail.
the basic idea of the mixed economy is that the
means of production are mainly under private
ownership; that markets remain the dominant
form of economic coordination.
The standard of living in a mixed economy is
generally relatively high.
Do you remember?
• Test your memory.
• Categorizing Activity.
Four Corner Activity
• Four corners:
• Using the textbook, pages 132-143, You will be
given 25 minutes to read & prepare a
minimum of 5 advantages (arguments) to your
economic system and why it is the best.
• After each group will present their reasons,
and you will be able to debate against one
another.
Debate Roles and Rules
• Opening Statement Presenter:
• Gathers the main arguments into an introductory
statement. Does not give specific information; just says
"this is true because of A and B and
C." 1.________________________________________
• Topic Presenters:
Present the main arguments for the team. Each presenter
give specific details that prove A and B and C.
1.________________________________________
2.________________________________________
3.________________________________________
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Rebuttal Presenters:
Answer the arguments of the other team. These presenters must take notes as the other team is
presenting their arguments and respond to every argument, using specific information to disprove
them.
1.________________________________________
2.________________________________________
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Closing Statement Presenter:
Presents the closing arguments for the team. Repeats the main idea for this and this and this
reasons. 1.________________________________________
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Debate Rules No put downs.
You must raise your hand if it's not your time to speak.
Teams lose 1 point for each interruption.
Teams lose 1 point for whispering while another speaker is talking.
TIMES
Opening statements for both sides = 1-2 minutes each
Arguments for both sides = 3 minutes each
Rebuttal conference = 1 minute
Rebuttals = 2 minutes each
Closing statements for both sides = 3 minutes each
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You need to gather evidence to support your group’s position.
Using this evidence as an aid, the team prepares a set of persuasive arguments designed to
sway the judges to your side.
Use the best of what you have found to deliver your point.
Think through possible arguments your opponents will make.
Success in a debate is the to show that the opposing team’s reasoning is weaker that yours.
Guiding Questions:
How is your economic system the best? What are the benefits?
Who decides what is produced in your economic system? Is this harmful to the economy?
Who decides how to produce good and services? Does your system make you more or less
dependent on the government?
4. Who are the goods and services produced for?
GROUPS
• Group 1: (Traditional) Daniel A, Carlson, Amanda,
Ester, Jacob, Ethan.
• Group 2: (Command) Mitchell, Matthew, Maya,
Robby, Nicholas, Sebastian.
• Group 3: (Market) Alyssa, Adrian, Steven, Alessia,
Robert.
• Group 4: (Mixed) Daniel B, Megan, Nicole,
Samantha, Marc.
• Roles: Recorder, Time Keeper, Presenter(s) (1.
opening statement presenter, 2. Topic Presenter,
3.Rubuttal Presenter, 4. Closing Presenter )
HOMEWORK
• Complete Map assignment Due Tuesday
April 16.
• Using your map; find & label 1 country
for each type of economic system
(traditional, market, command, mixed)
that exist in the world today.
• Create a legend using different colours to
label countries.
• Then research one type of trade that
goes on between the countries, also
include a symbol for this in your legend.
Using red pen, draw a line displaying the
trading route between the two
countries.