Economic SystemsChapter 2 starting on p33Vocabulary Termsminimum wagecommunismmarketSocial SecuritycapitalismInflationFixed IncomeaccomodatesocialismAdverse

Essential Questions:1. What is the significance of studying various economic systems?2. How does the development of countries influence our economies?3. What is poverty?4. How ar enterprise, free market, and capitalism related?5. What are our social goals in the US?6. What economic roles do you think federal, state, and local governments play in your life?Learning Goals:Students will Compare how the various economic systems (traditional, market, command, mixed)answer the questions: (1) What to produce?; (2) How to produce?; and (3) For whom to produceStudents will Identify and explain broad economic goals.Students will Use a decision-making model to analyze a public policy issue affecting the student's community that incorporates defining a problem, analyzing the potential consequences, and considering the alternatives.Students will Diagram and explain the problems that occur when government institutes wage and price controls, and explain the rationale for these controls.Students will Analyze how capital investments may impact productivity and economic growth.Students will Construct a circular flow diagram for an open-market economy including elements of households, firms, government, financial institutions, product and factor markets, and international trade.Students will Compare the current United States economy with other developed and developing nations.Students will Differentiate and draw conclusions about historical economic thought theorized by economists.

Traditional EconomyLG:Students will Compare how the various economic systems (traditional, market, command, mixed)answer the questions: (1) What to produce?; (2) How to produce?; and (3) For whom to produce

Define:Economic system in which the allocation of scarce resources and other economic activities are based on ritual, habit or custom

Characteristics: include who makes the decisions for whom to produce, what to produce, and how to produce. Elders and ancestors make decisions.

Examples: Australian Aborigines, indigenous people, Inuit natives.

Advantages:You know your role,if your family are farmers you become a farmer, if your family are the gatherers (hunters) you have the honor of providing food for the village.

Disadvantages: discourages new ideas, lack of progress or stagnation creates lower standards of living.COMMAND EconomyLG:Students will Compare how the various economic systems (traditional, market, command, mixed)answer the questions: (1) What to produce?; (2) How to produce?; and (3) For whom to produceDefine: economic system with a central authority that makes the major economic decision. Headed by a king, president or dictator that decides What, How, For Whom to produce.Characteristic: Government makes the major economic decsions. Decides if houses or apartments will be built. Severely limit private property rights. You do not own your own home.

Example: North Korea, Cuba, Former Soviet Union.

Advantage: Government allocates resources to establish quotas for major industries. Government can fund agricultural society to an industrial nation in just a few decades.

Disadvantage: Individual freedom is limited. Ignores basic wants and needs of consumers. If the government wants engineers rather than social workers the university trains more engineers. Government allocates resources to establish quotas for major industries. Bureaucracy. Slowed decision making and raised cost of production. Lacks flexibility of day to day problem solving. Government expects you to do your job.

Market EconomyLG:Students will Compare how the various economic systems (traditional, market, command, mixed)answer the questions: (1) What to produce?; (2) How to produce?; and (3) For whom to produceDefine: economic system which supply, demand and the price system help people make economic decisions and allocate resources.

Characteristic:

Example:

Advantage:

Disadvantage:

Mixed EconomyLG:Students will Compare how the various economic systems (traditional, market, command, mixed)answer the questions: (1) What to produce?; (2) How to produce?; and (3) For whom to produceDefine:

Characteristic:

Example:

Advantage:

Disadvantage:

Learning Goal:Students will Identify and explain broad economic goals. Students turn to page 45-46. Read the Economic and Social Goals. 1. As you approach graduation, what kinds of goals have you set for your future? Look at the reading to see the goals of the nation. List the 7 major economic and social goals of our nation.1.2.3.4.5.6.7.Adam Smith p.18LG:Students will Use a decision-making model to analyze a public policy issue affecting the student's community that incorporates defining a problem, analyzing the potential consequences, and considering the alternatives.New Economic IdeasDescribe each new ideagive examples of how it can be seen in our economy1. What can Americans do to influence the economic goals of the nation?2. How do laws against false or misleading advertising promote the goal of economic equity?3. How many Diesel Pickup trucks does our county offer for sale in 2013? (http://news.pickuptrucks.com/diesels/) Who gets the best gas mileage?4. Predict why VW Amarok diesel trucks are not sold here in the US, what is its gas mileage?.

p. 47 read the On the job Video Gaming.LG: Analyze how companies may impact productivity1. How has the on the job video gaming made workers and companies more productive?2. How do companies make video training games appealing for their employees?

Tony Hawk p. 54LG:Research contributions of entrepreneurs, inventors, and other key individuals from various gender, social, and ethnic backgrounds in the development of the United States

1.How has Tony Hawk used his sport to develop into an entrepreneur?________2.How do you know that Hawk is careful about Which products he brands? Explain.______3. What characteristics did Tony Hawks daily skateboarding illustrate? Is this a characteristic that an entrepreneur needs? Why or why not?___________p. 48 American Free EnterpriseCreate a graphic organizer to identify the 5 characteristics of a free enterprise economy and give an example.

CharacteristicExample include a picture.

Choose a competitive market and non competitive market.LG: Students will Analyze how capital investments may impact productivity and economic growth.

1. Compare the two industries. examples Fast-Food Restaurants Big Box stores

Price Control and Wage ControlLG: Students will Diagram and explain the problems that occur when government institutes wage and price controls, and explain the rationale for these controls.

Directions: Students please read the article on the link below and answer the questions below. Also using the interactive map below answer questions.Minimum Wage Increase in U.S. Will Probably Promote SpendingWage and Hour Division (WHD) Minimum Wage Laws in the States1. Which states have no minimum wage laws and how would legislation to implement a law demanding an increase effect companies in those states?2. What is the top 5 highest paid states and what is the lowest 5 paid states?Comparing National vs world economiesLG: Students will Compare the current United States economy with other developed and developing nations.Map: GDP of US states compared to other countriesWorld Development indicators Map:World Development indicators chart.How do we measure poverty?1. What are some factors that may influence the development of a country? Name 14 of them.

Statistical influences on countriesLG: Students will Compare the current United States economy with other developed and developing nations.1 Human Development Index and its components 2 Human Development Index trends, 19802012 3 Inequality-adjusted Human Development Index 4 Gender Inequality Index 5 Multidimensional Poverty Index 6 Command over resources 7 Health

8 Education p. 2279 Social integration 10 International trade flows of goods and services 11 International capital flows and migration 12 Innovation and technology 13 Environment 14 Population trends

Governmental Role p. 521. What economic roles do you think federal, state, and local governments play in your life?2. What are 5 interesting Governmental careers/jobs and what is the earnings? http://www.bls.gov/ooh/a. b.c.d.e.3. In what situations do you think the cost of government actions outweigh the benefits?