Daily Writing Prompt

What is the difference between needs and wants?

I have 10 tacos. More people in here want these tacos than can have them. How can we decide

who will get tacos?

Three Key Economic Questions• Because resources are scarce, each society

must answer three economic questions:

1) What goods and services should be produced?

2) How should these goods and services be produced?

3) Who will consume these goods and services?

Economic Systems• Economic System - Method used by society to

produce and distribute goods and services

• Economic goals:1) Efficiency2) Economic Freedom3) Economic Security4) Economic Equity5) Economic Growth

Daily Writing Prompt

What is an economic system?

Efficiency• Maximizing what you produce using the

resources that you have• Specialization – everyone specializes in a

particular job

• Delivering the right good, in the right quantity, to the right people, at the right price.

Economic Freedom• The ability to make your own choices

• Buy what you want, work where you want, own property, and become an entrepreneur.

Economic Security• People want to know that help will be

available when they are in need.

• Safety net – set of programs to protect people who face unfavorable economic conditions such as layoffs or injuries.

• Examples of safety nets in the U.S.?

Economic Equity

• Defined differently in different societies

• Should everyone have an equal share of goods and services?

• Or, should everyone have equal opportunity to compete?

Economic Growth• A nation’s economy must grow to provide jobs &

greater income.

• Improvement in the standard of living, or level of economic prosperity

• Innovation – the process of bringing new methods, products, or ideas into use.

• Industrial Revolution• The Internet

Traditional Economy

• Relies on habit, custom, or ritual to decide what to produce & how to produce it

• Small communities• Tend to remain stagnant & resist change• Lack modern conveniences• Low standard of living

Market Economy

• Economic decisions are made by consumers• Also called free markets, or capitalism

Command Economy(Centrally Planned)

• Government decides how to answer three economic questions

• Controlled by strong, centralized government

• Usually focuses on industrial goods

Mixed Economy

• Combination of Market and Command economic systems

• Market forces control most consumer goods• Government directs industry in need areas.

Homework

•Read pgs. 23-27 and answer questions 1,2 & 4

•Due tomorrow, 9/14