systems economic -...
TRANSCRIPT
Economic Systems
EQ: What are the 4 forms of economic systems? Historically, which ones have been more successful? Why?
The 5 questions every economy (and individual business) has to answer:
1. What should we make?2. How should we make it?3. How much should we make?4. Who should we make things for?5. Who answers questions 1-4?
In a Traditional System...
-tradition (decisions made based on the way they were done in the past--cultural/religious)
-areas in developing nations (ex. Maasai in E. Africa), Amish
-goal: economic stability and security
In a Command System...
--Powerful ruler/authority (government)
--North Korea
--goal: security and equity
In a Market System...
--Decisions of individuals (producers and consumers)
--19th C. Britain, black market (basis for U.S. economy)
--goal: efficiency and freedom
___L: Pick an item to produce. Sketch the way 5 questions are answered by each system.
Product: _______________________
Traditional Command Market
Most economic systems...
Do not fit cleanly into any of these categories. Most nations (and cultural groups) have a mixture of two or more.
In a Mixed System...
--Mixture of Command and Market Systems (government and private ownership)
--U.S. (and most other nations--the mixture varies)
--goal=mixture! :) full employment, stability, efficiency, economic growth (stagnant is bad)
Historically...
Most Command economies have failed. Most historians believe that this has to do with competition. For example, let’s talk about a foot race for pie!
Positives and Negatives to both extremes...
:) :(Command:
Market:
Spectrum of Government Control:
Remember...most nations have a mixed economy, but the mixture varies widely.
Economic Systems Simulation● You and your group members are going to simulate what it is like to be in
each type of economic system. After the simulation we will analyze the results as a class.
● Each group’s good that it will produce is a drawing of either a smiley face, boat, or flower. Examples will be provided.
● Each group will be given paper, crayons, and rulers.
● Be sure you read the instructions very carefully!
Jobs during simulation
During the simulation each person will need a specific job.
● 4-5 group members will be drawers--see goals sheets for specifics
● 1 person will be quality control: You must make sure that the procedure is followed exactly and keep track of how many goods and the profit your economy makes.
Rounds● The game will be played in three 5 minutes rounds.
● At the end of each round you will calculate your score on your scoreboard sheet--I will update the class scoreboard.
● The winning team is the team at the end of the 3rd round that has the most money per person!
Round 1● Take 2 minutes to read over the values and goals sheet of your
economy.
● Assign a job to each person. The Quality Control person should have the Scoresheet.
● When I say “GO” begin making your good.
Keep in mind while making a profit is important, but so is the quality of your work.
Round 1 Calculation
● The quality control person should now calculate how much money was made. Be sure to read the Procedures carefully to see if the government over your economy gets a share of the profits.
● Share information with class when called on.
● Pass “Values and Goal Sheet” to the group closest to your right.
Round 2● Take 2 minutes to read over the values and goals sheet of your
economy.
● Assign a job to each person. The Quality Control person should have the Scoresheet.
● When I say “GO” begin making your good.
Keep in mind while making a profit is important so is the quality of your work.
Round 2 Calculation
● The quality control person should now calculate how much money was made. Be sure to read the Procedures carefully to see if the government over your economy gets a share of the profits.
● Share information with class when called on.
● Pass “Values and Goal Sheet” to the group closest to your right.
Round 3● Take 2 minutes to read over the values and goals sheet of your
economy.
● Assign a job to each person. The Quality Control person should have the Scoresheet.
● When I say “GO” begin making your good.
Keep in mind while making a profit is important so is the quality of your work.
Round 3 Calculation
● The quality control person should now calculate how much money was made. Be sure to read the Procedures carefully to see if the government over your economy gets a share of the profits.
● Share information with class when called on.
● Pass “Values and Goal Sheet” to the group closest to your right.
The Winner is…..
Simulation Debrief
1. Under which economic system did you find it most enjoyable to work in? Why?
2. Under which economic system did you find it least enjoyable to work in? Why?
3. Under which economic system did your group make the most money? Why do you think this is?
4. How are people’s lives influenced by the economic system under which they live?
5. Which economic system do you think typically provides the highest standard of living for its people? Why?
Economics explained by cowsTraditional Economy: You have a goat and refuse to buy a cow
Command Economy: You have two cows, the government takes your milk and sells the milk to you.
Socialism: You have two cows. The State takes one and gives it to your neighbor who doesn’t have a field to put it in.
Mixed Economy: You have two cows. You sell one and buy a bull
IOD 4 CornersPick the Corner based on your beliefs of the following statement (Keep in mind the court case you are reading):
Freedom of Press should NEVER be limited
Whoever gets there first?