Economic Systems Capitalism Communism and Socialism Michael Quinones

Economic Systems Capitalism, Communism and Socialism Michael Quinones, NBCT www. socialstudiesguy. com

APK: Activation of Prior Knowledge __________________________ Write at least 2 -3 sentences describing a time when… ___________________________________________________ you had absolutely no choice[s] with regard to what you __________________________ wanted/needed to buy or you had so many choices to choose __________________________ from you didn’t know where to begin [you select either of these __________________________ prompts]. ___________________________________________________ ___________________________________________________ ___________________________________________________ Question of the Day ___________________________________________________ [Use specific examples from what you learn] ___________________________________________________ How can governments impact consumers and __________________________ producers? __________________________

Terms, topics and information to keep track of and take notes on Economy n Market economy n Command Economy n Mixed economy n Capitalism n Socialism n Communism n

Economy n The mechanism [fancy word for way or device] and practice of people exchanging items of value. n Deals with the production [making], distribution [giving out] and consumption [use or buying] of goods and services.

Market Economy n n n Producers and consumers decide what, when and how the factors of production are used. Consumers have many different types of choices of products. Government’s role is very limited.

Command Economy n The government owns nearly all factors of production such as land capital. n Government makes all decisions on production. n Consumer has fewer choices. Communist Dictator Fidel Castro

Mixed economy n Most typical economy in the world. n Most businesses privately owned and most decisions left to producers. n Government regulates certain areas of business as a way to protect consumers. n Government agencies help regulate [control and make rules] companies so citizens and customers can be protected against abuse.

Capitalism n System that prevailed in the United States for many years. n Main goals: n Free and open market. Privately owned business. Generate a profit. n n

Socialism n n System common in South America and Asia. Factors of production owned collectively by groups of people. Worker Unions and other organized labor groups have forced this due to abuses by the rich. Goals: to provide equality in ownership of resources Venezuela’s president Hugo Chavez Peruvian rebels Tupac Amaru

Communism n Economic system that prevailed in the former Soviet Union and exists in a different form in present day China. n Nearly all factors of production controlled by the government. n Often corruption at the top results in suffering for country as a whole n Goals: To maintain tight government control over the economy

Closure Assignment: RAFT paper n Write a first person narrative essay as if you were person living and working under one of the economic systems or economies we have just learned about [capitalism, socialism, communism, market, mixed or command]. n Some suggested ideas include but are not limited to: 1. 2. 3. 4. n Worker Government official Consumer Producer You might choose to complain or support the practices and results of the economies and