Download Economic Systems Part 2 - Liberty Union High School District

Economic Systems Part 2
Warm Up
•What is Competition?
•What is Self-Interest?
•How do Competition and
Self-Interest impact the
economy?
Homework: Interview the owner of a local
business
• Ask the owner of a small/local business
these questions and record their answers
1. Why did you decide to start a business?
2. Why did you start this type of business?
3. Who is your competition?
4. What are the goals for your business?
Learning Objectives
• Interpret how the economy of the USSR
collapsed
• Engage in creative expression
• Analyze the modern economies of
Russia and China
Retaining Material
•What did you learn last year about The
Soviet Union (USSR)?
•Why did The Soviet Union collapsed?
•NOTE: Collapsed=fall apart
•What type of economy did The Soviet
Union have?
Reasons why the USSR collapsed
• Government gave the best resources to the military and
space programs
• No reason for people to work hard: they all knew they
had jobs and would get paid by the government
• Illegal for people to engage in Entrepreneurial Activity
a. What is an Entrepreneur?
b. What do you think Entrepreneurial Activity means?
Check for Understanding
• What kind of economy did the USSR have?
• What are the advantages and disadvantages of
this economy? (think back to last class)
• How did this economy impact the USSR collapsing
in 1991?
• What role did Competition play in this economy?
• What role did Self-Interest play in this economy?
Create a Facebook Page
• Pretend you are a consumer living in the Soviet Union…create a
Facebook Page for yourself that shows what it was like to be a
consumer in the economy of the Soviet Union
• Be sure to:
1.Include pictures and graphics that show what is like
2.Make a list of consumer goods that you like and dislike
3.Provide comments on your standard of living
4. Create some background information about yourself
The Modern Russian Economy: Still trying to
recover from the days of the USSR
• Have you heard anything in the news about what is going on in the
Ukraine in terms of Russia?
a. Economic Sanctions: Restrictions and penalties put on a country
b. EU: European Union
• https://www.youtube.com/watch?v=AQkWkTUG3Ec
• What is the purpose of Russia’s Civil Chamber? How does this represent a
difference from the days of the USSR?
• What is it like for Russian workers in the modern day?
• What is an employment rate? How does Russia keep its employment rate
so low?
What about China?
•What type of economy did China
have during the Cold War?
•How did this economy work out for
them?
•What do you know about China’s
modern economy?
China’s Rising GDP
• GDP= Gross Domestic Product
• GDP: How much money a country makes
China’s Economy: Not as good as you would
think
• https://www.youtube.com/watch?v=h_hsgEgiCXc
• What does this video say about the relationship
between the Chinese and US economies? How do
they impact each other?
• Why might the Chinese not be as experienced with
Market economies as the US?
• Why are the Chinese people losing confidence in
their government’s ability to manage the economy?
Wrapping Up
• Do you think a country’s GDP is the best way to tell
how good their economy is? Why or why not?
• Do you think Russia and China’s past economic history
has influenced their modern economies? Why or why
not?
• What similarities do you see between Russia and
China’s economies?
• What differences do you see between Russia and
China’s economies?
Warm Up
•What are the four types of
economies?
•What type of economy do China and
Russia have in the modern day?
•Which of the four types of
economies do you think most
modern nations have?
Homework: Interview the owner of a local
business
• Ask the owner of a small/local business
these questions and record their answers
1. Why did you decide to start a business?
2. Why did you start this type of business?
3. Who is your competition?
4. What are the goals for your business?
Learning Objectives
•Retain knowledge related to the
Continuum of Mixed Economies
•Analyze how transitions impact
economies
•Interpret how the founding ideals of
the US impact the modern economy
Where would the following countries go on a
continuum
• Create a horizontal line with one end labeled Centrally-Planned
Economies and the other labeled Market Economies
• Label the middle of the line as Mixed Economies
• Place the following countries on the line
• a. North Korea
• b. Cuba
• c. China
• d. Russia
• e. United States
• f. Hong Kong
Continuum of Mixed Economies
Transition
• Both China and Russia’s economy are in “Transition”
• Transition: Period of change in which an economy moves away
from a centrally-planned economy toward a market-based system
• Give three examples of times in your own life where you went
through a transition. Explain what it was like for you to go
through these transitions. Were you immediately successful or did
you experience some failures? What do your transitional
experiences tell you about when a country is in an Economic
Transition?
Check for Understanding
• What is China’s modern economy like?
• What is Russia’s modern economy like?
• What kinds of economic transitions are
China and Russia going through?
• How might this concept of China and Russia
transitioning into a new economy explain
their current economic conditions?
The United States: Fun With White Boards
• After each question, write the answers on your White
Boards:
1. What economic ideas were central to the Founding
Fathers of the United States?
2. In what documents were these economic ideas written?
3. Do you think the modern economy of the United States
still represents these economic ideas? If so, what
examples can you provide? If not, why not?
Main Economic Rights Guaranteed by the
Constitution
• Property Rights: No person shall be
deprived of life, liberty, or property
without the due process of law
a.What is property?
b.What does deprived mean?
c.What does “due process of law” mean?
Main Economic Rights Guaranteed by the
Constitution
• Taxation: Only Congress can raise or
lower taxes
a.What is Congress?
b.What are taxes?
c.Why was Taxation such a big deal to
the “Founding Fathers”?
Discussion
• Are taxes good or bad? Why do you think this?
• Do you think we need to add any economic
principles, ideas or regulations to the
Constitution? If so, what should be added?
• The Declaration of Independence says “All men
are entitled to Life, Liberty, and the Pursuit of
Happiness”…do you think this is true in the
modern day?
Government Regulations
• Regulations: Rules that are enforced
• What type of economy has no government
regulations?
• What type of economy is fully regulated by the
government?
• Write down 3 ways in which government
regulations can be good and write down 3 ways in
which government regulations can be bad
Creative Expression
• Team up with a partner and on one piece of paper, compare the
difference between an economy with no government regulations
and an economy with a lot of government regulations
• Left side of the paper= economy with no government regulations
• Right side of the paper=economy with a lot of government
regulations
• Have one person draw images/graphics which show what the
economy would look like without government regulation and the
other person draw images/graphics which show what the economy
looks like when there is government regulation
Warm Up
•What are the two main economic
rights that the government
guarantees?
•What documents were written
which guarantee these rights?
Homework
Learning Objectives
•Analyze the Free Enterprise
system
•Interpret the 6 Basic Principles
•Synthesize Economic Systems
The Free Enterprise Economy
• Free Enterprise: Economic System based on private and
individual decisions, rather than state control
• Private Property: Property that is owned by individuals
or companies
• To what extent were these economic terms part of the
founding principles of the US?
• To what extent have these economic terms been applied
to the economies of Russia and China in the modern day?
Brainstorming
•What ideas/motives/forces do
you think are most important to
businessmen/woman in the Free
Enterprise Economy? Write down
three
Basic Principles of the Free Enterprise System
• Profit Motive: Encourages people to make money
• Open Opportunity: Everyone can compete in the market
• Legal Equality: Everyone has the same legal rights
• Private Property Rights: People have the right to control their property
• Free Contract: People may make their own decisions
• Voluntary Exchange: People may decide what and when they want to
buy and sell
• Competition: Rivalry among sellers to attract customers while lowering
costs
Check for Understanding
• Which of these principles do you think is most important for
businesses in the Free Enterprise System?
• Which of these principles do you think is most important for
consumers in the Free Enterprise System?
• Do you think any of these principles are under-represented in the
Free Enterprise System?
• How do these principles impact large and small businesses
differently?
Fun With White Boards: Write down the
correct principle that applies to the scenario
•Biggie Inc. and Tupac Inc.
want to get more
customers so they both
lower prices
Fun With White Boards: Write down the
correct principle that applies to the scenario
•Biggie goes to court
because he feels his
company is not getting the
same rights as Tupac’s
company
Fun With White Boards: Write down the
correct principle that applies to the scenario
•Biggie creates a new cure for
cancer and starts selling it. He is
selling it because he wants to
become rich, not because he
really cares about cancer
patients
Fun With White Boards: Write down the
correct principle that applies to the scenario
•Biggie decides that he
wants to sell his
company to Tupac
Fun With White Boards: Write down the
correct principle that applies to the scenario
•Both the Biggie company and the
Tupac company are allowed to
open new businesses in
Brentwood, even though La Costa
and Willy’s don’t want them
coming to Brentwood
Fun With White Boards: Write down the
correct principle that applies to the scenario
•Biggie’s company and
Tupac’s company agree
that they will share the
same trucks to ship their
products
Fun With White Boards: Write down the
correct principle that applies to the scenario
•Biggie runs his private
company the way that
he wants to
Review Sheet
•Fill out the Review
Sheet for Quiz 2
Charades
•Act out the word that you are
given
•The rest of the class has to guess
the word that you are acting out
•You can’t talk or draw