Unit 3 Notes: The Mixed Economy. Warm-Up. REVIEW: What are the THREE ECONOMIC QUESTIONS? List them Provide a summary **If you don’t remember, look at your notes from last unit or get a textbook and open to page 34. HOW TO PRODUCE??? .
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Warm-Up • REVIEW: What are the THREE ECONOMIC QUESTIONS? • List them • Provide a summary • **If you don’t remember, look at your notes from last unit or get a textbook and open to page 34.
HOW TO PRODUCE??? • For every economy, the goods are produced by private enterprise, the government, or a combination of both. Government OR Private Businesses
Command (Pure Centrally Planned Economy) • Government produces everything. All resources are government owned and production is coordinated by the central plans of government. • Pure Capitalistic (Pure Market Economy) • Private enterprise produces everything. There is no government at all. • Mixed Capitalism(Mixed Economy) • Combination of government and private enterprise
Stop, Drop, and Draw • Draw one big circle map and write “The Three Different Economic Systems” as your subject • Use a different color to symbolize each system draw two symbols for each system • Create a legend to color code your symbols
Read about Pure Market Economies and Pure Centrally Planned Economies • Read on pages 35-38 • Create a tree map with and write about the weaknesses associated with each economic systems.
PURE CAPITALISM(PME) • PRIVATE ENTERPRISE PRODUCES EVERYTHING…meaning, INDIVIDUALS make the economic decisions…looking out for themselves and their families. Profit is the one and only motive • Advantages: People have the freedom to choose, provides competition so consumers get the best • Disadvantages: What happens to those that need help…the young, old, disabled…without the help of government?
COMMAND(PCPE) • GOVERNMENT DECIDES HOW, AND PRODUCES EVERYTHING!!! • Only a few countries today still have much of a command economy. (i.e.-North Korea, China) • Advantages: ability to quickly reroute resources in case of emergencies [war], nationwide goals can be set • Disadvantages: creates no incentive to work hard, lack of consumer choice, inefficient
Dear Abby… Dear Abby, 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??? Sincerely, Confused Leader
MIXED CAPITALISM • BOTH GOVERNMENT AND PRIVATE ENTERPRISE • Most countries today are mixed!!! (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???? (think about it!!!)
REVIEW:Advantages and Disadvantages • On your paper, create a chart that lists the advantages and disadvantages of the three different economic systems.
Review: • Draw a tree map on your page. Label the left branch, “pure market economy” and the right branch, “pure centrally planned economy”. Place each of the following nations under the branch you think accurately represents the current state of its economy. • United States, Mainland China, North Korea, Russia, Mexico
More Review… Writing Prompt: -Explain why a MIXED ECONOMY is the best way for countries to operate. Include the advantages that comes with being a mixed economy, rather, than a command or pure capitalistic economic system. -Create a CAMPAIGN BUTTON that illustrates the advantages of having a mixed economy. You need: • A Slogan • A Symbol
The U.S. Today There are 3 levels of government: a. Federal (National) b. State (50 Individual States) c. Local (thousands and thousands of cities/counties)
Stop, Drop, and Draw! • Draw tree map and label each branch with one of the three levels of government then draw a picture below to represent each one!!!
What Powers Does Our Gov’t Have? • Collect Taxes ($$$) -money, money, money • Provide Services -Medicare, Welfare, National Defense, etc… • Issue Regulations -laws for you and me to follow for society’s general welfare
By taxing, spending and regulating, a government is able to somewhat alter the answers to the 3 basic questions. • What: Production can be based on govt demand: schools, road • How: Government regulations can prevent the production of some goods and/or services • Who: By taxing, the govt redistribute these funds to help the old and the poor
Homework • Read Activity 3 – Student Diary B and create a double bubble map comparing and contrasting a Command & Mixed Economy • Read the handout on Specialization and answer questions 1-4 (minimum 1 pg.) Command Mixed