Wednesday, October 2, 2013

Economic Systems

Today we talked about economic systems: traditional, market, command, and mixed.

Traditional economies are based on (wait for it...) traditions that are handed down, and often based on availability and necessity.  (Katniss can only trade what she can find.  If she shots a couple squirrels, she trades a couple squirrels.  If she gets a rabbit and some strawberries, she trades those.  She learned how to hunt and trade from her father, and we can infer that he learned from his father...)

Market economies are based on supply and demand.  Production levels are set.  Stores and markets are created, and prices are determined by supply and demand and competition.  Peeta's dad owns a bakery.  He determine how much to charge for his bread.  If people aren't buying it, the price is probably too high.  If another bakery opens up and starts under-cutting him, he may have to charge less as well.

In a command economy, the government determines what gets produced.  The Capital tells District 12 they must produce coal.  District 11 is agriculture.  District 4, fish.  They don't have a choice.  

And of course a mixed economy is a mix of the different types.  The USA uses a market system, but the government doesn't allow us to make whatever we want.  ...Even if I could make a lot of money selling illegal drugs, they're... you know... illegal.  The government won't let me produce them.  They *ahem* command *ahem* me not to produce them.  That doesn't make the US a command economy.

Most classes talked about the Marche de Fer a little bit.  Here's a picture of it.  I didn't realize it was rebuilt.  I've lost touch with my Haitian roots.

If you want the credit for reading and discussing today's blog post with an adult, without looking back up at the top, tell them the 4 types of economic systems and how they each work.

Then, write down the names of the four systems on a piece of scrap paper.  Have the adult sign it, and turn it in tomorrow.  Make sure your name, date, and hour are written on it.

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