1. Objective
SWBAT compare how traditional, command, and
market economies answer their production questions
in order to evaluate economic scenarios.
Warm-Up
1. What is one way government fulfills its
mission of maintaining social order?
2. In a Unitary system, what two levels of
government have power?
3. Give an everyday example of scarcity and
opportunity cost.

2. Agenda
• Objective and Warm-Up
• Introduction to New Material: Types of Economies
• Guided Practice: How to Evaluate a Scenario
• Independent Practice: Evaluating Scenarios
• Exit Slip

3. Agenda
• Objective and Warm-Up
• Introduction to New Material: Types of Economies
• Guided Practice: How to Evaluate a Scenario
• Independent Practice: Evaluating Scenarios
• Exit Slip

4. Economic Systems
• Key Actors:
• Government
• Consumers (People)
• Businesses
• Determines the ways the actors interact in
an economy

5. Market Economy
• Consumers and Producers decide how
resources are used and distributed
• Businesses compete for business
• If you don’t run an efficient business,
then you fail
• Government does not interfere

6. Traditional Economy
• Based on the traditional roles from
past generations
• Economic growth is not important
• Governments plays a small role
• Occurs locally, not nationally

7. Command Economy
• Government leaders decide how goods will
be produced by setting national
production goals and prices
• Governments have the MOST control
over a country’s economy
• Some nations adopt command economies
during war to focus resources on essential
industries

8. U.S. Economy
• Has a mixed economy
• Individuals and businesses answer the basic
economic questions, such as supply and
demand
• Government can still regulate business
• taxes
• laws and regulations

9. Guided Practice
1. I need all focus to the board.You will receive
instructions for an activity that you MUST complete
by the end of class.
2. We have been hired by the U.S. Government to
evaluate different economic situations.
3. We must do this quickly and efficiently.
4. Have your Cornell Notes ready to go, and be
prepared to write.
5. Listen carefully and be thoughtful.

10. Argentina’s Problems
Argentina was facing incredibly rough times. Crime had
increased, because people had fallen ill, and in some
cases were unable to fulfill their basic needs. Roads were
in shambles and public schools were all running the risk
of being shut down. Recently the cost of certain
consumer services have risen by 100% (Consumers are
paying 100% more!). These services include car detailing,
spa services, sports tickets, restaurants, and golf clubs.
These are services that typically only the rich can afford.
Since the increase in prices for these services, roads
have been repaired, schools have been fixed, and there
have been more police on the street.

11. Tax Rates on Luxury Items and Services
Country: Argentina
12
Leader: Christina
9 Fernández de Kirchner
6 Type of Government:
Representative Democracy
3
Population: 40,134,425
0 Major Religions: Catholic
1900 1950 2000 2010
Happiness Index: 35 / 100
Minimum Wage: $2.50/hr

12. What type of economy is this?
Why have prices risen by 100%?
What are the consequences of
the rising prices?
Who is making decisions in this
economy?
What questions do you need
answered in order to better
understand this problem?

13. What type of economy is this? Mixed Economy
Why have prices risen by 100%?
What are the consequences of
the rising prices?
Who is making decisions in this
economy?
What questions do you need
answered in order to better
understand this problem?

14. What type of economy is this? Mixed Economy
The government has increased the
Why have prices risen by 100%?
tax for luxury goods and services.
What are the consequences of
the rising prices?
Who is making decisions in this
economy?
What questions do you need
answered in order to better
understand this problem?

15. What type of economy is this? Mixed Economy
The government has increased the
Why have prices risen by 100%?
tax for luxury goods and services.
The government has more tax
What are the consequences of revenue to spend on public services.
the rising prices?
Who is making decisions in this
economy?
What questions do you need
answered in order to better
understand this problem?

16. What type of economy is this? Mixed Economy
The government has increased the
Why have prices risen by 100%?
tax for luxury goods and services.
The government has more tax
What are the consequences of revenue to spend on public services.
the rising prices? The rich get angry because their
money is being taken away.
Who is making decisions in this
economy?
What questions do you need
answered in order to better
understand this problem?

17. What type of economy is this? Mixed Economy
The government has increased the
Why have prices risen by 100%?
tax for luxury goods and services.
The government has more tax
What are the consequences of revenue to spend on public services.
the rising prices? The rich get angry because their
money is being taken away.
Who is making decisions in this Businesses, Consumers, and the
economy? Government
What questions do you need
answered in order to better
understand this problem?

18. What type of economy is this? Mixed Economy
The government has increased the
Why have prices risen by 100%?
tax for luxury goods and services.
The government has more tax
What are the consequences of revenue to spend on public services.
the rising prices? The rich get angry because their
money is being taken away.
Who is making decisions in this Businesses, Consumers, and the
economy? Government
Why would they only tax luxury
items?
What questions do you need
answered in order to better
understand this problem?

19. What type of economy is this? Mixed Economy
The government has increased the
Why have prices risen by 100%?
tax for luxury goods and services.
The government has more tax
What are the consequences of revenue to spend on public services.
the rising prices? The rich get angry because their
money is being taken away.
Who is making decisions in this Businesses, Consumers, and the
economy? Government
Why would they only tax luxury
items?
What questions do you need
How does raising the tax rate help
answered in order to better
the poor?
understand this problem?

20. What type of economy is this? Mixed Economy
The government has increased the
Why have prices risen by 100%?
tax for luxury goods and services.
The government has more tax
What are the consequences of revenue to spend on public services.
the rising prices? The rich get angry because their
money is being taken away.
Who is making decisions in this Businesses, Consumers, and the
economy? Government
Why would they only tax luxury
items?
What questions do you need
How does raising the tax rate help
answered in order to better
the poor?
understand this problem?
Why do they have these problems?

21. Independent Practice
1. Listen carefully.
2. You will be split up into a group of 3 to 4
people.
3. You will have 10 minutes for each case.
4. Once you receive a case, your time begins.
5. You must read the information carefully, and
everyone must write the answer for each
question.

22. Independent Practice
Listen carefully as you are assigned to a group.

23. Independent Practice
Listen carefully as you are assigned to a group.
Finally, for your last case, we will share out if you have time.
Complete your cases as fast as possible with your group.
It might be worth a reward.

24. Exit Slip
1. You will have 5 minutes to complete today’s exit slip.
2. Please only write the letter of your answer in the
appropriate blank.
3. Complete it in silence.
4. When you are done, carefully check over your
answers.
5. After checking your answers, please begin your
homework.

25. Homework:
Read the FINAL case study, and answer all of
the questions for it. The Homework is included
in your packet.
Extra Credit:
Pick up the Red Slip on the Homework Table.
We were unable to find poster paper for the
assignment, so you must find your own.

26. 3, 2, 1, See Ya!
What are 3 things that you learned today?
What are 2 things that confused you?
What is 1 thing you want to know more
about?