Download Instructions for Traditional Economy

NAME_____________________________________ CLASS__________________ DATE_____________
Who Decides?—Student Handout 1
Instructions for Traditional Economy
You are participating in a traditional economy. You live in an isolated place and are
entirely dependent upon your community and what it can produce to survive. You
can hunt, fish, grow food, and harvest resources from the environment. From these
resources, you provide yourselves with housing, clothing, food, and all your other
needs. Members of the community have specialized skills. Some specialize in hunting,
some in growing food, others in making goods needed by the community. Everyone
pitches in as needed for the good of the community to help in all the activities, however.
Roles: Your community is made up of a variety of people of different ages, skills, and
experiences, including hunters, farmers, crafts people, young people, and the elderly.
Divide up roles and responsibilities in your community. In addition, choose one member
of your group to write down decisions and how they were reached.
Goal: To have enough bread and shoes for your community through the winter.
Round 1
It is fall. Everyone needs shoes to protect them during the coming cold months. Supplies
of bread are already short and more needs to be made to keep members of your community from getting hungry during the winter when food may become scarce.
Your community meets to decide how to meet the need for shoes and bread. As a
group, brainstorm a list of questions that should be asked and obstacles that must be
overcome to achieve your goal. Work out answers and solutions. For example:
Who will make the shoes?
What kind of shoes will be made?
Where will the materials needed to make the shoes come from?
Who will supply these materials?
Do people have enough time to get the materials for the shoes?
Repeat the questions, but for bread instead of shoes.
As a group, answer the questions and assign responsibilities.
At the end of each round, summarize your decision-making process on a
Summary Chart.
Round 2
Your teacher will give you a handout describing a change in your situation. Make
decisions on how you will meet your need for bread and shoes given the changed
circumstances.
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NAME_____________________________________ CLASS__________________ DATE_____________
Who Decides?—Student Handout 2
Instructions for Free Market Economy
You are participating in a free market economy. Your community is large and complex
and made up of people of all ages, education, experiences, and skills. Consumers and
producers exist in a constant state of give-and-take: producers try to satisfy the needs
and wants of consumers at a price that allows them to make a profit. Consumers attempt
to satisfy their needs and wants at prices they are willing and able to pay.
Roles: Each member of your group is either a consumer or a producer. Divide up roles
among members of your group, with about half in each category. In addition, choose one
member of your group to write down decisions and how they were reached.
Goals: For consumers, to acquire the bread and shoes you need and want at a price you
are willing or able to pay. For producers, to sell bread and shoes at a price that allows
you make a profit.
Round 1
It is late fall and the holidays are approaching. Everyone wants new shoes, and bread is
a necessity as well as an extra treat for parties. Your economic system must decide how
to meet the need for shoes and bread.
As a consumer, brainstorm a list of questions that should be asked and obstacles that
must be overcome to achieve your goal. Work out answers and solutions. For example:
What kind of shoes do you want?
What price will you pay for the different shoes?
As a producer, brainstorm a list of questions that should be asked and obstacles that
must be overcome to achieve your goal. Work out answers and solutions. For example:
How many producers will make shoes? Will they make the same kind? At what cost?
How much will the shoes cost to make?
Who will produce the shoes?
Both consumers and producers should ask and answer similar questions for bread.
In your role as a consumer or producer within a free-market economy, answer the questions and then work on the answers with your counterparts.
Round 2
Your teacher will give you a handout describing a change in your situation. Make
decisions on how you will meet your need for bread and shoes given the changed
circumstances.
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NAME_____________________________________ CLASS__________________ DATE_____________
Who Decides?—Student Handout 3
Instructions for Command Economy
You are participating in a command economy. Your community is large and complex.
Your government plays an important part in your economic system—setting production
goals, wages, prices, profits, and even dictating what products are produced and who
can buy them.
Roles: Members of your group are consumers, producers, or members of the Government Economic Management Committee. The committee oversees the economy. Divide
up roles among members of your group, with about one third in each of the three categories. In addition, choose one member of your group to write down decisions and how
they were reached.
Goal: For consumers, to acquire the bread and shoes you need and want at a price you
are willing or able to pay. For producers, to sell bread and shoes at a price that allows
you make a profit. For committee members, to manage the economy for the good of the
people and the country.
Round 1
It is fall, and citizens of the community are growing concerned about the approach of
winter. People need new shoes to protect them during the cold months. Supplies of
bread are limited and people worry there may be shortages during the winter. Your
community must decide how to meet the need for shoes and bread.
As a consumer, brainstorm questions that should be asked and obstacles that must be
overcome to acquire the bread and shoes you want and need. Work out answers and
solutions. For example:
What kind of shoes do you want?
What price will you pay for the different shoes?
As a producer, brainstorm a list of questions that should be asked and obstacles
that must be overcome to protect your interests. Work out answers and solutions.
For example:
What kinds of shoes will be made?
How much will the shoes cost to make?
Who will make shoes? Who will produce bread?
As a member of the Economic Management Committee, examine questions and issues
you must resolve. You get to make the final decision on the production and distribution
of shoes and bread. Meet with consumers and producers and listen to their concerns.
Make decisions you think are in the best interest of your society.
Round 2
Your teacher will give you a handout describing a change in your situation. Make
decisions on how you will meet your need for bread and shoes given the changed
circumstances.
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NAME_____________________________________ CLASS__________________ DATE_____________
Who Decides?—Student Handout 4
Changing Situations
Cut on the dashed lines.
Round 2 Situation
Traditional Economy: Winter has come early. Snow fell last night and keeps piling higher
and higher. Animals have migrated, making hunting difficult and time-consuming. How
will your community respond to this changed condition? Make a plan.
Round 2 Situation
Free Market Economy: The economy has entered a serious recession. Many people have
been laid off, so consumer confidence is down. Producers are aware of the changing
situation. How are consumers and producers likely to react? Make a plan.
Round 2 Situation
Command Economy: The government has become aware of a military buildup by an
unfriendly neighboring nation. The population still needs bread and shoes, but the
government cannot overlook this potential military threat; it must respond with a
military buildup of its own, which will siphon resources and capital away from
consumer goods. What will the Government Economic Management Committee do?
What will consumers and producers do? Make a plan.
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NAME_____________________________________ CLASS__________________ DATE_____________
Who Decides?—Student Handout 5
Summary Chart
Economic System:
Round:
Who makes
decisions?
What decisions
were made?
How were
these decisions
reached?
What are the
benefits for the
community?
What are the
costs to the
community?
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