The Modern Economy Economics 1
The Three Economic Questions <ul><li>What to produce… </li></ul><ul><li>How to produce… </li></ul><ul><li>For whom to prod...
Mixed Economy <ul><li>Majority </li></ul><ul><li>Government intervention is seen as a way to solve the wants and needs tha...
Balancing Control and Freedom <ul><li>Prioritize goals </li></ul><ul><ul><li>Some are better with the open market, others ...
Comparing Mixed Economies <ul><li>Government Rules! </li></ul><ul><ul><li>Owns all property </li></ul></ul><ul><ul><li>Own...
Designing an Economic System! <ul><li>P. 48 </li></ul><ul><li>Your group will play the role of an island’s first settlers....
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The modern economy

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The modern economy

  1. 1. The Modern Economy Economics 1
  2. 2. The Three Economic Questions <ul><li>What to produce… </li></ul><ul><li>How to produce… </li></ul><ul><li>For whom to produce… </li></ul><ul><li>ALL economic systems are based on these three principles!!!! </li></ul>
  3. 3. Mixed Economy <ul><li>Majority </li></ul><ul><li>Government intervention is seen as a way to solve the wants and needs that are difficult to answer in the marketplace </li></ul><ul><ul><li>Education, Health care, Mass transit </li></ul></ul><ul><ul><ul><li>p. 41-Global Connections </li></ul></ul></ul>
  4. 4. Balancing Control and Freedom <ul><li>Prioritize goals </li></ul><ul><ul><li>Some are better with the open market, others with gov’t action </li></ul></ul><ul><li>Each nation decides what it is willing to give up to meet its goals </li></ul>
  5. 5. Comparing Mixed Economies <ul><li>Government Rules! </li></ul><ul><ul><li>Owns all property </li></ul></ul><ul><ul><li>Owns output </li></ul></ul><ul><li>These countries are mostly in transition: a period of change in which an economy moves away from a centrally planned economy toward a market-based system. </li></ul><ul><li>They begin to privatize goods: sell state-run firms to individuals </li></ul><ul><li>Markets are Better! </li></ul><ul><ul><li>Government protects private property </li></ul></ul><ul><ul><li>Almost no barriers to trade </li></ul></ul><ul><li>How could the U.S. fit into this category?! </li></ul>
  6. 6. Designing an Economic System! <ul><li>P. 48 </li></ul><ul><li>Your group will play the role of an island’s first settlers. Your goals are to plan an economic system! </li></ul>

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