Tuesday WarmUp In your warmup section What comes
- Slides: 8
Tuesday Warm-Up In your warm-up section: What comes to mind when you see the word ECONOMY? `````` `
WHAT IS AN ECONOMY? ▪ An economy consists of the production, distribution or trade , and consumption of limited goods and services by individuals in a society
ECONOMIC SYSTEMS OVERVIEW • Economic Systems Video
ECONOMIC SYSTEMS 1. Sign in to Google Classroom and open the assignment for today 2. Read the information sheets about the economic system 3. Complete the graphic organizer for each system 4. Glue your completed graphic organizer into your notebook
TRADITIONAL ECONOMY All economic activity comes from rituals, habits, or customs • ADVANTAGES • DISADVANTAGES • Everyone understands what role to play in society • Discourages new ideas • Hunters – Hunters • Farmers - Farmers • Leads to lower standard of living
COMMAND ECONOMY All economic decisions are made by the government • ADVANTAGES • DISADVANTAGES • Can shift resources in short amount of time • Does not always serve the wants of the people • Everyone has access to health and public services • Does not give incentive to work hard • Requires a large bureaucracy • Does not change easily • Citizens cannot “get ahead” in this type of economy
MARKET ECONOMY All economic decisions are made by buyers and sellers • ADVANTAGES • DISADVANTAGES • Can adjust to change • Does not provide services for everyone • Individual freedom • Cannot provide all services – gov’t must provide with tax dollars • Limited government interference • Decisions made by consumers • Wide variety of goods are produced • High consumer satisfaction • High degree of uncertainty • Can fail if certain conditions aren’t met
MIXED ECONOMY • Most economies in the world are mixed. There are no true market economies.
