CE.9b Economic Systems. CE.9b The type of economy is determined by…
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Transcript of CE.9b Economic Systems. CE.9b The type of economy is determined by…
CE.9b
Economic Systems
CE.9b
The type of economy is determined by…
CE.9b
…the extent of government involvement in economic decision
making.
CE.9b
Characteristics of a free market economy
• Private Ownership of property/resources
• Individual Choice (Profit motive)
• Supply and Demand determines price
• Other
– Competition
– Consumer Sovereignty
CE.9b
Private Ownership of Property/Resources
• You the consumer have the right to own your own property and resources
What do you think this means?
CE.9b
Private Ownership of Property/Resources
• Billy Bob owns his own restaurant, while Mickey owns his own ice cream shop
• Both are privately owned businesses
CE.9b
Private Ownership of Property/Resources
• Many of your parent’s own their own homes in Prince William County
• Some of your relatives may own their own vehicle, but more and more people today lease their cars
CE.9b
Drawing Time!
• Draw your own picture of something that reminds you of a free market economy
CE.9b
Free Market Economies
• No purely Free Market Economies actually exist in the world. It is only a theory!
CE.9b
Free Market Economies
• Citizens own everything in a free market economy
• The government owns nothing
CE.9b
Government Control
CE.9b
A command economy is the opposite of a…
CE.9b
…free market economy!
CE.9b
Government Control
CE.9b
Characteristics of a command economy
• Central (government) Ownership of property/resources
• No Individual Choice
• Central Planning determines price and production
• Other
CE.9b
Command Economy
We the Government control the economy!
Not you, the citizens, like in a free market!
CE.9b
Command Economy!The ECONOMY is MINE!
Muaaaah hahahahahahhha
Muahhhhhhahahahahah
CE.9b
Command Economy
• The Government owns property and all resources
• This is called being “centrally owned”
CE.9b
Command Economy
• People work in the government to plan and control the economy
• The government decides on how much of everything will be produced and consumed
• NO consumer sovereignty
CE.9b
Command Economy
• There is no individual choice
• Everyone gets the same
• Most command economies in the world are Communist countries
CE.9b
Command Economies Today
CE.9b
Drawing Time!
• Draw your own picture of something that reminds you of a command economy
CE.9b
A mixed economy is a blend of a free market economy…
CE.9b
…and a command economy
CE.9b
Characteristics of a mixed economy
• Private and Public ownership of property/resources (2 sectors)
• Individual Choice in private sector
• Supply and Demand usually determines price and production– Gov't controls some prices and production
(energy, food, roads, etc.)
CE.9b
Government Control
CE.9b
Mixed Economy
• Private sector is the area in which the individuals own things
• Cars• House• Own Businesses• Property
CE.9b
Mixed Economy
• People can purchase what they want
• People have many choices
• Variety of brands and products
• Tons of stores
CE.9b
Mixed Economy
• The government owns many things in the public sector
• Buildings• Mass transportation
services• Major construction
projects
CE.9b
Mixed Economy
• Government plays a role in the economy
• Tax cuts• Stimulus plans• Spending proposals• Federal/State budgets• Income Taxes• Property Taxes
CE.9b
Mixed Economies
CE.9b
Drawing Time!
• Draw your own picture of something that reminds you of a mixed economy
Exit Slip
• In 4-5 Sentences, complete one of the following options:– Journal Entry (what would a typical day be
like for someone living in a command economy?)
– One Word Summary (select any one of the economic systems
– Persuasive Paragraph (which system is best and why)