The Business Environment
How do different economies work?
- Explain the types of economic systems
Objectives - We will do this in class together
a. Define the following terms: economic system, traditional economic system, command economic
system, communism, socialism, and market economic system.
b. Explain why economic systems are needed.
c. Describe the characteristics of traditional economic systems.
d. Describe the characteristics of communism.
e. Describe the characteristics of socialism.
f. Describe the characteristics of a market economic system.
g. Explain how each type of economic system addresses the three economic questions.
h. Describe the strengths and weaknesses of traditional economies.
i. Describe the strengths and weaknesses of communist command economies.
j. Describe the strengths and weaknesses of socialist command economies.
k. Describe the strengths and weaknesses of market economies.
a. Define the following terms: economic system, traditional economic system, command economic
system, communism, socialism, and market economic system.
b. Explain why economic systems are needed.
c. Describe the characteristics of traditional economic systems.
d. Describe the characteristics of communism.
e. Describe the characteristics of socialism.
f. Describe the characteristics of a market economic system.
g. Explain how each type of economic system addresses the three economic questions.
h. Describe the strengths and weaknesses of traditional economies.
i. Describe the strengths and weaknesses of communist command economies.
j. Describe the strengths and weaknesses of socialist command economies.
k. Describe the strengths and weaknesses of market economies.
Articles/Resources
Communism
Economic system
Market-oriented economy
Pure command economy
Socialism
Economic systems
Comparative economic systems
Communism
Economic system
Market-oriented economy
Pure command economy
Socialism
Economic systems
Comparative economic systems
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Types of economic systems
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Types of economic systems
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Activity
Identify a country that is currently making news headlines and determine what that country’s type of economic system is and how the country answers the three economic questions. Each group should prepare a visual depicting its findings.
The three basic economic questions that economies must answer:
1. What will be produced?
2. How will products be produced?
3. How will products be allocated?
The way each economic system answers these economic questions is affected by each country’s government. In some countries, government runs the country and makes economic decisions. In other countries, government runs the government and allows individuals to make economic decisions.
Identify a country that is currently making news headlines and determine what that country’s type of economic system is and how the country answers the three economic questions. Each group should prepare a visual depicting its findings.
- You may work alone or with ONE partner
- Upload "visual" to Google Classroom. 30 points
- We will present on Thursday. 50 points. 1 minute per person in group.
- FBLA dress code - 20 points
The three basic economic questions that economies must answer:
1. What will be produced?
- The first economic decision to be made
- Affected by profitability, consumer demand, and resource availability
2. How will products be produced?
- The next economic decision to be made--what methods of production to choose
- Involves determining which resources to use, which technologies to employ, and what production methods are most efficient
3. How will products be allocated?
- The last economic decision to be made
- Must decide who gets its goods and services
- Price?
- Income?
- Government rationing?
The way each economic system answers these economic questions is affected by each country’s government. In some countries, government runs the country and makes economic decisions. In other countries, government runs the government and allows individuals to make economic decisions.