The Mixed Economy Unit 3 Notes. Standard 12.2: Students analyze the elements of America’s market economy in a global setting Standard 12.6: Students analyze issues of international trade and explain how the U.S. economy affects, and is affected by, economic forces beyond the U.S. borders.
Standard 12.2: Students analyze the elements of America’s market economy in a global setting
Standard 12.6: Students analyze issues of international trade and explain how the U.S. economy affects, and is affected by, economic forces beyond the U.S. borders.
SWBAT: Describe and provide examples of the similarities and differences between a command, pure market and mixed economy
Government OR Private Businesses
(Pure Centrally Planned Economy)
(Pure Market Economy)
Difficult enforcing property rights Economies
Some people have few resources
Some firms try to monopolize markets
No public goods
Consumers get low priority
Little choice of freedom
Central planning can be inefficient
Resources owned by the State are sometimes wasted
Environmental damagePME PCPE
I am the leader of a new country and our Parliament is in the middle of a heated debate on whether to design an economy that is primarily command-oriented or pure capitalistic-oriented. What should I advise our new Parliament members to do? And Why???
(United States, Great Britain, Mexico, France, Canada, Italy, Japan, etc….and the list goes on and on)
WHY DO YOU THINK MOST COUNTRIES TODAY ARE MIXED??
Government make up??
Free Enterprise -- “The Market”The U.S. Economy Today*Mixed Capitalism*
There are 3 levels of government:
a. Federal (National)
b. State (50 Individual States)
c. Local (thousands and thousands of cities/counties)
-money, money, money
-Medicare, Welfare, National Defense, etc…
-laws for you and me to follow for society’s
By taxing, spending and regulating, a
government is able to somewhat alter the
answers to the 3 basic questions.
By trading, buying, selling, Loaning and borrowing
money and goods, buyers and sellers are able to
somewhat alter the answers to the 3 basic
Larger Market (more buyers and sellers)
More Division of Labor
More Opportunities to be Efficient
More Opportunities to make a profit
Division of Labor
=>Look up each of these words for HW!