1. DO NOW
If you could have anything in the world what would it
be and why?

2. COMPETENCIES/ OBJECTIVES
• Students will be able to discuss the role of the
decision-making process of the three major
economic systems.

3. AGENDA
• Do Now
• Review Syllabus
• What is economics?
• Economic System Notes
• Economic System Children’s Book
• Announcements (Tuesday and Thursday)

4. ECONOMIC SYSTEM NOTES

5. ECONOMIC SYSTEMS
• How we get things is
determined by our
countries economic
system.
• Economic systems
help people create
and obtain goods
and services.

6. THE NEED FOR ECONOMIC SYSTEMS
• Needs- basic things
we cannot live
without. (food,
water, shelter,
clothing)
• Wants- things
people want to
make their lives
more comfortable
• (write in examples)

7. THINK…
• Shelter, food, and clothing are all considered basic
needs. However, certain types of food, shelter, and
clothing can be considered wants. How can we
distinguish between the two? (answer in lined
space)

8. 3 BASIC ECONOMIC SYSTEMS
• Traditional
• Command
• Market

9. TRADITIONAL ECONOMY
• Economic decisions
are based on
tradition.
• Barter system.
• It is based on
agriculture, fishing,
hunting, gathering
or some
combination.
• )Write in examples.)

10. COMMAND ECONOMY
• Government makes all
economic decisions.
• Government owns
capital, tools, and
production equipment.
• Government answers 3
basic econ q’s.
• Communist countries
tend to have
command economies.
• Examples: North Korea
and Cuba

11. MARKET ECONOMY
• Economic decisions are
made by individuals.
• People can start
businesses to sell any
legal products they
choose.
• Government does not tell
people what to produce
or buy.
• Based on freedom.
• Opposite of command
economy.
• Does not exist in pure
form.

12. MIXED ECONOMIES
• Mix elements of
different economic
systems.
• US has a mixed
economy because
government
regulates business.
• How does the US
government regulate
business? (write in
examples)