3 Questions
3 questions every society
must answer
allocation of resources
• What goods shall be produced?
• How will the goods be produced?
• For whom will the goods be produced?
How a society answers those questions
defines its economic system.
Think about a very small society
• What goods shall be
produced?
• How will the goods be
produced?
• For whom will the
goods be produced?
___________
X
Capitalism
• “Market Economy”
• Free Enterprise
• Characteristics:
Socialism
• “Command Economy”
• Communism
• Characteristics
Private Ownership of Resources
Government Ownership of Resources
Government plays a small role
Government Controls the Economy
No central economic plan
Government creates a central plan
Variable Income Distribution
Government may redistribute income
(income distribution)
Market supply and demand sets
prices so prices fluctuate
May use price controls to regulate market
___________
Free Enterprise
Socialism
X
MIXED ECONOMY
Ownership of resources; private property?
Governments Role in the Economy?
Intervention in the Market; the role of price?
Why is the United States considered a mixed economy?
Why is the United States considered a mixed economy?
• With your partner, create a list in your
notes of all the ways you can think that
prove that the US is a mixed economy.
Homework:
• Create a spectrum.
Free Enterprise________________________Socialism
• Research these 5 countries. (Hint: CIA World Factbook)
– India, Cuba, Canada, Australia, Sweden
– One additional country of your choice
• Place them in their appropriate place on the spectrum
• Write a brief explanation of why you placed them where
you did.
Homework: Create a mini-poster.
• For the country you’ve selected, please research the following:
– Where is it?
– What are the natural resources?
– What is its economic system?
– What is produced?
– How is it produced?
– For whom is it produced?
•
•
•
•
–
–
–
–
What is government’s role in the economy?
Does it have a “free market”?
Is there private property?
Role of exports and imports?
GDP
Per capita income
Population
Other Economic Facts ?
Hint: User CIA World Factbook
United States
It’s located….
Mixed Economy because…
300,000,000+
• Visually
attractive
• Include all info