Transcript 3 Questions
3 Questions 3 questions every society must answer allocation of resources • What goods shall be produced? • How will the goods be produced? • For whom will the goods be produced? How a society answers those questions defines its economic system. Think about a very small society • What goods shall be produced? • How will the goods be produced? • For whom will the goods be produced? ___________ X Capitalism • “Market Economy” • Free Enterprise • Characteristics: Socialism • “Command Economy” • Communism • Characteristics Private Ownership of Resources Government Ownership of Resources Government plays a small role Government Controls the Economy No central economic plan Government creates a central plan Variable Income Distribution Government may redistribute income (income distribution) Market supply and demand sets prices so prices fluctuate May use price controls to regulate market ___________ Free Enterprise Socialism X MIXED ECONOMY Ownership of resources; private property? Governments Role in the Economy? Intervention in the Market; the role of price? Why is the United States considered a mixed economy? Why is the United States considered a mixed economy? • With your partner, create a list in your notes of all the ways you can think that prove that the US is a mixed economy. Homework: • Create a spectrum. Free Enterprise________________________Socialism • Research these 5 countries. (Hint: CIA World Factbook) – India, Cuba, Canada, Australia, Sweden – One additional country of your choice • Place them in their appropriate place on the spectrum • Write a brief explanation of why you placed them where you did. Homework: Create a mini-poster. • For the country you’ve selected, please research the following: – Where is it? – What are the natural resources? – What is its economic system? – What is produced? – How is it produced? – For whom is it produced? • • • • – – – – What is government’s role in the economy? Does it have a “free market”? Is there private property? Role of exports and imports? GDP Per capita income Population Other Economic Facts ? Hint: User CIA World Factbook United States It’s located…. Mixed Economy because… 300,000,000+ • Visually attractive • Include all info