Economic Economic SystemsSystems

Capitalism, Communism and Capitalism, Communism and Socialism Socialism

Michael Quinones, NBCTwww.socialstudiesguy.com

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APK: Activation of Prior KnowledgeWrite at least 3-5 sentences describing a time when…

you had absolutely no choice[s] with regard to what you wanted/needed to buy or you had so many choices to choose

from you didn’t know where to begin [you select either of these prompts].

Question of the Day [Use specific examples from what you learn]

How can governments impact consumers and producers?

Terms, topics and information to keep Terms, topics and information to keep track of and take notes ontrack of and take notes on

EconomyEconomy Market economyMarket economy Command EconomyCommand Economy Mixed economyMixed economy CapitalismCapitalism SocialismSocialism CommunismCommunism

EconomyEconomy

The mechanism [fancy The mechanism [fancy word for word for wayway or or devicedevice] and practice ] and practice of people exchanging of people exchanging items of value.items of value.

Deals with the Deals with the productionproduction [making], [making], distributiondistribution [giving [giving out] and out] and consumptionconsumption [use or [use or buying] of goods and buying] of goods and services.services.

Market EconomyMarket Economy

Producers and Producers and consumers decide consumers decide what, when and how what, when and how the the factors of factors of productionproduction are used. are used.

Consumers have many Consumers have many different types of choices of products..

Government’s role is Government’s role is very limited. very limited.

Command EconomyCommand Economy

The government The government owns nearly all owns nearly all factors of production factors of production such as land and such as land and capital.capital.

Government makes Government makes all decisions on all decisions on production.production.

Consumer has fewer choices.. Communist Dictator Fidel

Castro

Mixed economyMixed economy Most typical economy in Most typical economy in

the world.the world.

Most businesses privately Most businesses privately owned and most decisions owned and most decisions left to producers.left to producers.

Government regulates Government regulates certain areas of business as certain areas of business as a way to protect a way to protect consumers.consumers.

Government agencies help help regulate [control and make regulate [control and make rules] companies so rules] companies so citizens and customers can citizens and customers can be protected against abuse.be protected against abuse.

CapitalismCapitalism System that prevailed System that prevailed

in the United States in the United States for many years.for many years.

Main goals:Main goals:

Free and open Free and open market.market.

Privately owned Privately owned business.business.

Generate a Generate a profitprofit..

SocialismSocialism System common in System common in

South America and South America and Asia.Asia.

Factors of production Factors of production owned collectively by owned collectively by groups of people.groups of people.

Worker Unions and Worker Unions and other organized labor other organized labor groups have forced groups have forced this due to abuses by this due to abuses by the rich.the rich.

GoalsGoals: to provide : to provide equality in ownership equality in ownership of resourcesof resources

Venezuela’s president Hugo Chavez

Peruvian rebels Tupac Amaru

CommunismCommunism Economic system that Economic system that

prevailed in the former Soviet prevailed in the former Soviet Union and exists in a different Union and exists in a different form in present day China.form in present day China.

Nearly all factors of production Nearly all factors of production controlled by the government.controlled by the government.

Often corruption at the top Often corruption at the top results in suffering for country results in suffering for country as a wholeas a whole

GoalsGoals: To maintain tight : To maintain tight government control over the government control over the economyeconomy

Closure AssignmentClosure Assignment:: RAFT RAFT paperpaper

Write a Write a first personfirst person narrative essay as if you narrative essay as if you were person living and working under one of were person living and working under one of the economic systems or economies we have the economic systems or economies we have just learned about [capitalism, socialism, just learned about [capitalism, socialism, communism, market, mixed or command].communism, market, mixed or command].

Some suggested ideas include but are not Some suggested ideas include but are not limited to:limited to:

1.1. WorkerWorker2.2. Government officialGovernment official3.3. ConsumerConsumer4.4. ProducerProducer

You might choose to complain or support the You might choose to complain or support the practices and results of the economies and practices and results of the economies and economic systems that you choose to write economic systems that you choose to write about.about.