Download Modern Economies - White Plains Public Schools

Modern Economies
In this lesson, students will identify
characteristics of modern economies.
Students will be able to define and/or
identify the following concepts and terms:
Mixed Economy
Laissez-faire
Free Enterprise
E. Napp
Just as this apple is not perfect, economic
systems are not perfect. While a centrally
planned economy has many problems, a
free market economy is far from perfect.
E. Napp
A Mixed Economy
• A mixed economy combines elements of
different economic systems to meet the needs of
the society.
• While modern economies are mixed, every
mixed economy is slightly different from every
other mixed economy.
• Some nations lean more towards central
planning with some private ownership while
other nations are predominantly free market with
limited government intervention.
E. Napp
The Chinese communists seized power
in 1949. However, today, the Chinese
embrace elements of the free market.
E. Napp
The Chinese communists realized that
workers needed incentives or reasons
for increasing productivity.
E. Napp
The United States is a mostly free
market economy. However, the
government does intervene in the
market.
E. Napp
It is important to remember that many
abuses occurred in a totally free market.
Child labor is one example of this
abuse.
E. Napp
Laissez-faire
• Laissez-faire was the belief that the
government should not intervene in the
market.
• It meant “let them do (as they please).”
• It allowed businesses to operate without
any restrictions.
E. Napp
Without government intervention, warning
labels would not exist.
E. Napp
Heroin could be purchased in your
local supermarket.
E. Napp
Government intervention protects
our environment and our lives.
E. Napp
Free Enterprise
• The United States’ economic system is
called the Free Enterprise system.
• A Free Enterprise system is a mostly free
market economy with limited government
intervention.
• The government does intervene in the
economy when it is in the public interest.
E. Napp
So, modern nations have mixed economies.
However, like milkshakes, mixed economies
are not mixed the same.
E. Napp
Questions for Reflection:
• Define a mixed economy.
• What problems are created by central
planned economies?
• What problems are created by free market
economies?
• Define Laissez-faire.
• What is the Free Enterprise system of the
United States?
E. Napp