Week of 1052015 Journal Prompt Examine your clothes and make a like of Made In country it was made in Answer the following questions How do you benefit from being able to buy clothes made in other countries ID: 458069
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Slide1
Economy
Week of 10/5/2015Slide2
Journal Prompt
Examine your clothes and make a like of “Made In______” (country it was made in).
Answer the following questions:
How do you benefit from being able to buy clothes made in other countries?
Would you be in favor of a policy that will raise the price of tennis shoes but reduce the amount available? Why or why not.Slide3
Standard
SS6E5 The student will describe different economic systems (traditional, command, market, mixed) and how they answer the basic economic questions (What to produce? For whom to produce?
).Slide4
Learning Targets
I can explain traditional, command, and market economies.
I can explain how traditional, command, and market economies decide what do produce, how to produce it, and for whom to produce.Slide5
Create a statement…
Below are the terms will will cover in this unit. Define each term . Make and educated guess.
Economy
Command market
Mixed market
Trade
produceSlide6
Economic Systems
Because of the problem of
scarcity
(a limited supply of something) every country needs a system to determine how to use its resources.
Countries develop
economic systems
to determine how to use the limited resources to answer the three economic questions. Slide7
Three Questions
We classify economic systems according
to how they answer these 3 questions.
What to produce?
How to produce?
For whom to produce?Slide8
Tariffs
Taxes placed on imported goods
Make imported products cost more
Increases the demand for a lower-priced item produced domestically
Example: America may charge a tariff on imported cheese to make it more expensive. This would make Americans buy the cheaper, American-made cheese. In the end, by enforcing a tariff, America helps support its farmers and makes more moneySlide9
Quotas
Put a legal limit on how much of a product can be imported
Can cause shortages
Causes prices to rise
Example: America may put a quota on how many BMW automobiles can be imported form Germany. This would make the price of BMW cars rise. It would also encourage Americans to buy cheaper, American-made cars. America benefits by selling more locally made cars and Germany benefits by selling more expensive BMWs.Slide10
Embargoes
When trade is not allowed between two countries
No goods can be sold or bought between two countries
Like putting the countries in
“
Time Out
”
Example: America as a trade embargo with Cuba. America cannot buy or sell anything from Cuba and Cuba cannot buy or sell anything from America. It is illegal to buy Cuban cigars in America, for example, because they are an import from CubaSlide11
Traditional Economy
“
That
’
s The Way We
’
ve Always Done It
”Slide12
Traditional Economy
Who decides what to produce?
People follow their customs and make what their ancestors made.
Who decides how to produce goods & services?
People grow & make things the same way that their ancestors did.
Who are the goods & services
produced for?
People in the village who need them.Slide13
Command Economy
“
We Do What We
’
re Told
”Slide14
Command Economy
Who decides what to produce?
Government makes all economic decisions
Who decides how to produce goods and services?
Gov
’
t decides how to make goods/services
Who are the goods and services
produced for?
Whomever the government decides to give them toSlide15
Market Economy
“
Make As Much As We Want and Do It Any Way We Want
”Slide16
Market Economy
Who decides what to produce?
Businesses base decisions, like price, on supply and demand and free enterprise
Who decides how to produce goods and services?
Businesses decide how to produce goods
Who are the goods and services
produced for?
consumersSlide17
Mixed Economy
No system in the world is 100% command, market, or traditional. It is a mixture of two systems.
Mixed economy
- economic system that incorporates elements of different systems (usually command and market)
UK, Germany, and Russia are mixed:
Market
- malls, restaurants, entrepreneurship
Command - minimum wage, labor laws
Most countries have
this systemSlide18
Economic Continuum
A group of financial experts set up a rating system to help us understand how much command and market each country has in it.
This Index of Economic Freedom gives each country a number that can be plotted on a economic continuum.
Slide19
Economic Systems
Pure
Market
Pure
Command
Mixed EconomySlide20
Economic
Systems
Pure
Market
Pure
Command
Mixed Economy
100
0
Russia
51%
Germany
71%
United Kingdom
79%Slide21
Economic
Systems
Pure
Market
Pure
Command
Mixed Economy
100
0
Cuba
28%
Brazil
57%
Canada
81%Slide22
Economic
Systems
Pure
Market
Pure
Command
Mixed Economy
100
0
Australia
83%Slide23
Economic Terms of Importance IRA
C
hoose
from the following ways to explain 10 economic terms:
A)
pictoword
- draw a picture and include the definition of the word
B)
acrostic poem
- write an acrostic poem about the term (include a definition in the poem)
C)
charades
- create a symbol/gesture (without words/number) which explains the meaning of the termSlide24
Summary Question
What are the three types of economic systems?
Traditional
Command
MarketSlide25
Summary
Question
Most countries are _____________ economies, because ___________________________.
Most countries are
mixed
economies, because
they have characteristics of 2 or more economic systems
. They most often fall between command and market.