Download THE UNITED STATES` MIXED ECONOMY OBJECTIVE

ACTIVITY
B
T HE U NITED S TATES’ M IXED E CONOMY
OBJECTIVE:
To identify characteristics of the U.S. economy.
Teaching Notes and Activity
Mark the following on the Country table and Mixed Economy continuum.
Have students follow along on the Describing Economies activity sheet.
1. The United States has the largest economy in the world today.
The United States accounts for one-fifth of the world’s GDP. Most
economic activity in the United States is non-governmental.
a. Businesses can generally make and sell what they want, free
enterprise. People trade goods and services freely for mutual
benefit, voluntary exchange. On the Country table, under United
States, underline Free enterprise and Voluntary exchange.
b. Private individuals and companies control most land and capital.
Underline Private property and Private investments.
c. Businesses and individuals use their resources to make more
money. This profit motive drives companies to expand and be
efficient. Next to Profit motive, write $.
d. As more people try to acquire resources and make profits, a
competitive free market develops. Competition forces the entire
economy to operate efficiently. Next to Competitive free market,
draw a star ★.
e. Have students identify other characteristics of the U.S. economy.
Choose one and write it in the blank space under Characteristics.
2. Local, state, and federal governments regulate the free market
to prevent certain economic and social problems. Government
regulation in the United States places some limits on the use of
land, labor, capital, and information.
a. Competition is protected by antitrust laws. These stop large
companies from using their size to prevent competition. Next to
Antitrust Laws, write COMPETITION.
b. The monetary policy of the Federal Reserve sets a minimum
interest rate. Next to Monetary policy, write CAPITAL.
CHART
7 C OMPARING E CONOMIES
c. Patents and copyrights restrict how people use original ideas.
Next to Patent, copyright, write INFORMATION.
d. As a class, discuss how other regulations on the chart control the
use of the four main resources. Add the main resource regulated next to the regulation.
e. Governments regulate resources in other ways. For example,
communities use zoning laws to restrict the use of land. Have
students identify examples of how governments in the United
States regulate resources. Write one on the blank line.
3. In addition to regulating resources, the U.S. government also
guarantees some services for the common good.
a. Income support, such as Social Security and health care
programs, insure that Americans have a minimum standard of
living. Next to Income support and Limited health care, write S.O.L.
for standard of living.
b. As a class, discuss how other social guarantees are used for the
common good.
c. Have students identify other government social guarantees, such
as anti-discrimination laws. Write one on the blank line.
4. Because the U.S. economy contains elements of both market and
command economies, it is a mixed economy.
a. At the top of the table, under Type of System, circle MIXED.
b. Now find the United States on the Mixed Economic continuum.
Circle its name.
c. Because most of the economy is unregulated and market-driven,
the United States is listed near the top of the continuum. At the
top of the continuum, underline Market.
Extending the Activity
Have students complete their Describing Economies activity sheet
for another mixed economy.
C H A R T 7 C OMPARING E CONOMIES
NAME
Describing Economies
Country
ECONOMIC SYSTEMS
Traditional
Country
United States
Economic System
Decisions are based on customs and beliefs
passed down from generation to generation.
Economic System
Type of System
Examples:
Type of System
Mixed
Characteristics
• Free enterprise
• Competitive free market
Characteristics
•
• Voluntary exchange • Profit motive
•
• Private property
•
• Private investments
•
Market
Decisions are made by individuals who own factors of
production and buy and sell goods in a free market.
Examples:
•
Role of Government
Role of Government
Regulation of Resources
Regulation of Resources
land, labor, capital, information
land, labor, capital, information
• Antitrust laws
• Patents, copyright
•
• Bank regulations
• Environmental protection
•
• Monetary policy
• Minimum wage
•
•
Mixed
Individual decision-making is combined with different
degrees of government regulation and intervention.
Examples:
•
Social Guarantees
• Income support
• Right to public education
Social Guarantees
•
• Limited health care • Law and order
•
•
•
NYSTROM
HERFF JONES EDUCATION DIVISION
Command
Government controls factors of production
and makes all decisions about their use.
Examples:
The Nystrom ECONOMICS Series