Chapter+2+-+Economic+Systems

In this chapter you will be introduced tothe ecnomic issues and goals shared by all societies and the four principal economic systems: traditional, market, cetrally planned, and mixed. Students will learn the advantages and disadvantages of each system and how they are similar and different.

The BIG Idea: All countries must answer three basic economic questions in deciding how to use their scarce resources.
 * Section 1 - Answering the Three Economic Questions **

Listen to this BizEd podcast to find out more about the three economic questions: media type="file" key="systems_intro three economic questions.mp3"

**Section 2 - The Free Market** The BIG Idea: The free market system, based on self-interest and competition, has many advantages for societie that are attempting to meet their economic goals.

Listen to this podcast describing Free Market economies: media type="file" key="systems_market podcast.mp3"

The BIG Idea: Centrally planned economies have disadvantages not found in market economies. //This is what I think of when I consider the lack of choice in command economies. - Mr. Brinling media type="custom" key="3084080" Listen to the following podcast from BizEd while you complete the task of finding pictures showing the USSR economy of the 1940's to 1991.//
 * Section 3 - Centrally Planned Economies **

media type="file" key="systems_command podcast.mp3"

The BIG Idea: Most nations have mixed economies, which combine features of both centrally planned and free markets.
 * Section 4 - Modern Economies **

Listen to this podcast from BizEd that describes mixed economies: media type="file" key="systems_mixed podcast.mp3"