Introduction
Remember the three questions nations nations must answer in establishing their economic systems?
- What goods and services will we produce?
- How will we produce those goods and services?
- Who gets the goods and services that are produced?
Now that we know what the three questions are, we can classify the different economic systems around the world into one of the basic categories:
- command,
- traditional or
- free market.
We will learn that most nations of the world are really a mixture of command, traditional and free market characteristics.
Following successful completion of this lesson, students will be able to:
- describe command, market, traditional and mixed economic systems.
- identify the economic questions facing all nations.
- analyze the advantages and disadvantages of each of the three economic systems.
- describe and analyze the different economic goals of societies.
The above standards correspond with the Alabama Course of Study: Economics objective(s): 3, 3.1, 3.2, and 3.3.