1. Economic
Systems of the
World.
What are the major types of
Economic systems ?
How does each answer the 3
Basic Economic Questions?
Traditional
Market
Command

2. The 3 Questions
 What should be produced?
 How should it be produced?
 Who gets what is produced?

3. Quick Draw: Pizza Party…its just
pizza how hard can it be??—5
groups
 How many Pizzas should we order for the
class???
 Coppell High School????
 All high schools in Dallas County???
 All high schools in Texas???
 All high schools in the USA????

4. Traditional Economic Systems

5. Tradition, Tradition, Tradition
 What, how and for whom to produce are answered by
ritual, habits, customs
 Tribal Societies Across the world
 Communal living, little private property
 Advantages Disadvantages
 Methods Work Subsistence living
 Everyone knows Role Low standard of living
Discourages new ideas
Never changes

6. Time to Get Creative!!!!!
3 groups
 Describe what each of the following
would look like in a traditional economy
 Waking up in the morning
 You and your friends hangout in the
afternoon
 Going to get food for dinner

7. Communism : Command
 Gov’t answers 3 Basic Economic Questions
 No Private Property Total Government Control
Rights
Government owns all resources!!!!!
 Strengths Weaknesses
Quick Changes Central Planning
Basic needs met Consumers Wants Ignored
Everyone know role No incentives to work
Massive Bureaucracy
Day to Day Inflexibility

8. Which words fit with
Command Economies?
Lots of Choices government housing
Economic freedom Karl Marx
Merit Pay Joseph Stalin Cuba
Incentives to work Basic needs met
Get what you need Slow to change
No Technology Equal distribution of Wealth
Happy Consumers Government control
Private Property Fast to change
Day to day flexibility Central Planning
North Korea Tribes Adam Smith

9. Expansion of Communism


11. Stop, Collaborate and Listen
 What are the similarities and differences
of Traditional and Command Economies?
Command
Traditional

12. Market Economy: Capitalism
USA, Japan, UK, South Korea, South Africa, Canada

13. Market economies: Capitalism
 People/individuals answer the What, How, For
Whom to Produce
 Adam Smith- laissez faire “leave it alone”
 Invisible hand of self interest
Strengths Weakness
Flexible Slow to change
Individual Freedom Allows Failure
No government Does not meet needs
Decentralized
decision making
Large Variety of Products
High consumer Satisfaction
Private Property Rights

14. Time to Think……
 How would your life be different if you
lived in a market economy??

15. Home work: Letter to a friend
 You are living in Boys Communism, girls
Traditional economic systems.
 Write a letter to a friend living here in the
USA. Discuss how your lives are different.
Discuss what you like and do not like
about your economic system and if you
would prefer to live in the USA.
 ¾ to 1 page in length

16. -Socialism is a blend of communism
and capitalism.
-The 3 Basic Economic Questions are
answered by the government and
individuals
-The government owns and controls
only key resources and industries while
individuals own the rest of the
resources and have private control of
most businesses
-Basic needs of the people are met by
the government
-People pay high taxes to fund things
like healthcare, insurance, and other
social services
Limited
-Economic Freedom
-Voluntary Exchange
-Profit Motive
-Private Property Rights
-There is a shared control of the
economy between the government and
people.
Lets Mix things up with Socialism!!!!!!
China, Vietnam, Sweden, Venezuela

17. Fill in the blanks
Economic
System
Private
Ownership of
resources
Profit
Motive
Consumer
Sovereignty
Competition Government
Regulation
Distribution
of Wealth
Traditional
Market/
Capitalism
Command/
Communis
m
Mixed/
Socialism