And have out your wkst on Supply and

And have out your wkst on Supply and Demand to be checked Warm-up- Honors Journal Activity 1. What are the 4 factors of production used to make goods and services? 2. How does the interaction of supply and demand determine the price of a good or service?

Check Homework have out your wkst to be graded

Economic Systems Objectives Content Describe 4 different types of economies and determine which type the US has. Language • Students will understand the content through learning new vocabulary reading and notes to successfully complete an exit ticket.

New Vocabulary Lesson #3 Page 204

Market • Place where goods and services are bought and sold

PROFIT • Money businesses receive for its product or service after their cost

Traditional Economy Economic system where the decisions of what, how and for whom to produce are based on customs or habit

Command Economy Type of economic system where major economic decisions are made by the government

Free (market) Economy Economic System in which individuals and businesses are allowed to compete for profit with little government involvement

Mixed Economy Economic system combining characteristics of more than one type of economy

Competition Struggle between buyers and sellers to get the best products at the lowest prices

Private Property Rights Freedom to own and use property as long as it does not interfere with the rights of others

Consumer sovereignty Role of the consumer as the ruler of the marketplace determining what products will be produced

Lesson 3 - Economic Systems [page 217] Essential Questions 1. Describe the 4 types of economic systems. 2. Identify which system the US has and why.

Economic systems is about how a country decides to use its limited productive resources by answering the 3 basic questions…decide the ownership of resources… …and structure markets for the distribution of goods and services.

Notes 1. Every country needs to answer the 3 basic questions about their economy- § § § What to produce? How to produce? For whom to produce? 2. How will a country decide? § based on its limited productive resources § how much government involvement § try not to rely on just their own markets to deal with scarcity

History of Economic Systems 1700 -current 1800’s Capitalism Big Business Owners ? - current Traditional Economies Mixed Economy 1700’s Free (Market) Economy 1800’s Command Economy (gov’t rules)

TRADITIONAL ECONOMY Based on customs and traditions People perform the same work as their ancestors regardless of potential or ability

Who owns the Factors Who makes the of Production? decisions in the marketplace? Countries that use this system today. people but there are few resources available poorer, developing countries people Examples

Free Market Economy Can own private property and resources to earn profits Competition encouraged Individuals make the choices= Consumer sovereignty No gov’t involvement*****

Who owns the Factors Who makes the of Production? decisions in the marketplace? people – business owners people- consumers Countries that use this system today. no one Examples

COMMAND ECONOMY Centrally planned economy by the gov’t Property and resources owned by the gov’t Lack of consumer choice

• Who owns the Factors Who makes the of Production? decisions in the marketplace? govt Countries that use this system today. communist nations Examples

“Communism”

MIXED ECONOMY private sector- People make decisions (free market) public sector-Gov’t owns some resources and makes decisions (command economy) Govt role is greater than in free market but less than in command economy

Who owns the Factors Who makes the of Production? decisions in the marketplace? People & govt Countries that use this system today. Most countries today Examples

CHARACTERISTICS OF THE U. S ECONOMY

Notes FREE MARKETS- • Little gov’t involvement • interaction of supply and demand determines prices

Notes CONSUMER SOVEREIGNTY- • consumer choices rule the market

Notes COMPETITON- • rivalry between sellers of a good or service • results in better quality goods at lower prices

Notes PRIVATE PROPERTY RIGHTSpeople can own property and its factors of production

Notes PROFITIndividuals and businesses keep all earnings

Vocabulary Check- (practice) • Get out your journal

Conclusion 1. 2. Write a 2 -3 sentence summary 3. Get ready for the Economic Quiz #1 NOW. Homework- read and highlight pages 208 -209 “Lesson 3 - Economic Systems” and answer questions 4 -8.

Reading [page 208 -209] • Reading page 161

STORY TIME! • What type of economic system is used in this story? • What characteristics of the marketplace that helped to make your decision?

Click the mouse button or press the Space Bar to display the answer.

MIXED ECONOMIES TRADITIONAL ECONOMIES • Decision making based on customs and traditions FREE MARKET ECONOMIES • decision making by individuals and businesses COMMAND ECONOMIES • Central planning by the government • Central planning and individual decision making