Do Now

• What is the difference between micro economics and macro economics? Can you give me an example of each?

Economic SystemsThinking Macro

Notes Question

How does a country decide which type of economic system best suits their needs?

Economics

Micro• Choosing which car to

buy

• Me & I focused

Macro• Choosing to give tax

cuts to a certain group of people

• Gov’t focused

The study of how people make decisions in a world where wants are unlimited but resources are limited

Balancing Needs & Wants

• Just like we have to make decisions about how to get what we need and some of the things we want… so does a country

• Governments forced to consider the 3 economic Qs

3 Economic Qs

• Governments forced to consider the 3 economic Qs

• What to produce?• Build a school, repair a freeway,

or build a rec center?• Can only pick 1

• How to produce it?• How do we obtain oil, how much

pollution should we allow factories to create, how should we raise livestock for food• Pros and cons to all choices

• Who consumes what is produced?• Who gets the limited number of

flu vaccines, who benefits from the construction of a new school• Some people will benefits while

others don't

Who decides?

• Consumers? Producers? Governments?• Whose opinion matters more?

• A nation’s economic system drives the decision

Economic System

• A particular set of social institutions which deals with the production, distribution, and consumption of goods and services in a particular society• Based on morals and

values of a country

• 4 major types• Traditional, command,

market, mixed

Discussion Questions

Look over the descriptions of each type of economy

• What are some of the similarities and differences between them?

• What are some of the advantages and disadvantages of each?

• What do you think a country values in a traditional economy? Command? Market? Mixed?

Wednesday – Do Now

• Review the handout that describes the 4 types of economies

Scenarios

• Read each scenario• Follow along as I read aloud

• Determine which type of economy is present

• What evidence supports your answer

Be prepared to share your thoughts if called on.

Act It Out!

• Each group will be given a card with a type of economic system on it

• Create a 2-3 minute scene that depicts what it is like to live in your specified economic system

• Every group member must participate

• Now that you’ve completed the activity• Provide definitions and examples of the different types

of economic systems in the Mega Packet

• Respond to the question –

How does a country decide which type of economic system best suits their needs?