Mixed Economy

Essential QuestionWhat types of

economies exist in SWA today?

Why do most countries have a mixed economy?

What Do You Like on a Sundae?

You and your partner discuss it.

What toppings do you like on an ice cream sundae?Plain Vanilla?Or absolutely

everything (and I mean everything)?

What Do You Like on a Sundae?

Chances are, you were somewhere between plain and everything.

When discussing economies, most countries are somewhere in between too.

When a country is not completely a command economy and not completely a market economy, but somewhere in between, it is called a Mixed Economy.

Mixed Economy – “In Between”

Ms. Ward’s Easy Economics

All you have to do to know what type of economic system a country has is to ask yourself who is answering the economic questions.

What are the economic questions?

Each question will have the same general answer. Let me explain.

“Pure” Command Economies

The government controls all aspects of economy.

DRAWBACKS If government controlled everything in the economy, then

having a diversity of products would be very difficult.

With no private businesses, there would be no competition, and products would never improve and prices would be at the mercy of the government.

The government could make the economy exploit the poor and benefit the rich.

“Pure” Market Economies

If you make it and I want it….name the price!!!!! We’re in business!!!

DRAWBACKSIf an economy was pure market, people could sell

anything, even things that could hurt others.Businesses could make things cost as much as they

wanted.In order to make products cheaper, they could skimp

on safety and benefits for workers.The government also creates business contracts for

things such as military weaponry.

Most Countries Lie Somewhere in Between-However, they may be closer to one side than the other.

Economic Continuum

What is a mixed economy?

What are the elements of a more command economy?

What are the elements of a more market economy?

What types of governments would be associated with command?

What types of governments would be associated with market?

Writing Prompt

With your partner, answer the following questions:What bad things could happen if an economy

was pure market? (Be specific, at least 3 sentences)

What bad things could happen if an economy was pure command? (Be specific, at least 3 sentences).