Types of Economies

Types of Economies

By Miss Herndon

What is an economy?

Everyone!

​Who is involved?

the way goods and services are produced and consumed

Definition

something that can be used or consumed

Goods

​

intangible products or actions that are produced and consumed at the same time

Services

Multiple Choice

All of these are examples of goods EXCEPT _.

• donut

• pet groomer

• shoes

• cell phone

Multiple Choice

This is an example of a service.

• True

• False

Have you ever bought anything or paid someone to do something for you?

Then you are a consumer!

Have you every worked as a babysitter or sold chips at school?

Then you are a producer!

Consumers, producers, and the market

Producers are people who make goods or offer services to others.

​

In a market economy, producers are free to decide what to produce and consumers are free to buy whatever they need and want.

​

Guess who has a market economy? Yes.... your country. ​

​

Open Ended

What is a profit?

A profit is the money you gain after selling something for more money than it cost to make it.​

​

Incentive is the motivation to do something. (this is your why)

​

Producers have incentive to produce items that bring in profits.​

Multiple Choice

When two or more producers are offering the same goods or services is called ____________. (Hint: Look at the picture)

• profit

• unfair

• bankruptcy

• competition

Multiple Choice

Supply is the amount of something that is available.

• True

• False

Multiple Choice

I own an oil refinery. Summer is coming, and people are going to be driving everywhere! They're going to need LOTS of gasoline.

Will the price go UP or DOWN?

• UP

• DOWN

Multiple Choice

I sell landscape rocks. I just ordered TONS, but a new gardening show has got everyone decorating with gnomes instead. What am I going to do with all these rocks?

Will the price go UP or DOWN?

• UP

• DOWN

Multiple Choice

I manufacture the world's best cupcakes! I just heard a storm wiped out a lot of the sugar cane crop. Now there's going to be less sugar to meet everyone's demands!

Will the price go UP or DOWN?

• UP

• DOWN

Draw

The way goods and services are produced and consumed is called:

the limited amount of resources available

​

EX: toilet paper during the pandemic​

scarcity

the benefit you give up by choosing to do one thing instead of another

​

EX: choosing candy over glow sticks ​

​Opportunity cost

scarcity and opportunity cost

Imagine your class is deciding whether to sell candy or glow sticks for a fundraiser. Which will make more money?

Command economy

the opposite of a market economy

​

• the government decides what will be produced, how much will be produced, and how much goods and services will cost​

​Traditional economy

found in primitive cultures

​

​focused on providing food; people follow methods and traditions their ancestors have always used

Multiple Choice

A ____________ economy exists in primitive cultures.

• market

• command

• traditional

• free

Multiple Choice

A ________ is someone who receives goods and services for their own personal use.

• government

• consumer

• producer

• company

Multiple Choice

An economy is the way goods and services are produced and consumed.

• True

• False

Multiple Choice

True or False: In a market economy, the government controls the way goods and services are produced.

• True

• False

Multiple Choice

______ is the amount of something that is available.

• demand

• producer

• profit

• supply

Multiple Choice

________ is the limited amount of resources available.

• scarcity

• supply

• economy

• market