what is scarcity? the idea that there are not enough resources to meet everyone’s needs &...
TRANSCRIPT
What is Scarcity?
The idea that there are not enough resources to meet everyone’s needs &
wants.
What is Economics??????Economics is the study of how people
manage their resources.
Today’s Standard
SS6E5 The student will analyze different economic systems.
a. Compare how traditional, command, and market, economies answer the economic questions of 1 -what to produce, 2-how to produce, and 3-for whom to produce.
b. Explain how most countries have a mixed economy located on a continuum between pure market and pure
command.
Intro to our……. “Essential
Question(s)”
What types of economic systems exist in the world today?
Types of Economic Systems
Traditional- customs & habits of a society will determine what will be produced & how it will be distributed & consumed
(Usually includes bartering, rather than money). Traditional economies are becoming more rare.
Types of Economic Systems
Command- Government will determine what will be produced & how it will be distributed & consumed.
Government will set prices and set regulations (rules) that industries must follow.
Types of Economic Systems
Market- Individuals, private companies, & consumers will determine what will be produced & how it will be distributed & consumed (Supply & Demand). Individuals and companies
are allowed to produce freely without government interference.
Types of Economy
MIXED- May have aspects of both market & command. Most common type in the world.
EXAMPLES
The United States is thought to have a “mixed” economy.The government does not decide what will be produced & how much it will cost, but it does regulate certain goods & services, such as illegal drugs
Canada is thought to have a “mixed” economy. The government does not decide what will be produced & how much it will cost, but it does regulate certain goods & services, such as illegal drugs. The government also directly controls healthcare & education. A little bit closer to command than the USA.
Return to our……. “Essential
Question(s)”
What types of economic systems exist in the world today?
ECONOMY What is Produced?
How Goods are Produced
How People Get Products
Traditional
Command
Market
Types of Economic Systems
What people need to survive
(food, shelter, & tools)
FarmingHunting
Gathering
People make their own, share, or trade
ECONOMY What is Produced?
How Goods are Produced
How People Get Products
Traditional
Command
Market
Types of Economic Systems
What people need to survive
(food, shelter, & tools)
FarmingHunting
Gathering
People make their own, share, or trade
Whatever the government decides
However the government decides
However the government decides
-Class-Reward System-Waiting in Line
ECONOMY What is Produced?
How Goods are Produced
How People Get Products
Traditional
Command
Market
Types of Economic Systems
What people need to survive
(food, shelter, & tools)
FarmingHunting
Gathering
People make their own, share, or trade
Whatever the government decides
However the government decides
However the government decides
-Class-Reward System-Waiting in Line
Whatever people are willing to buy & sell
Business Owners determine the most
efficient (cheap) legal methods of production
Determined by how much a person is able
or willing to pay