March 29-April 2 Online competition April 13 State Finals Capitol April 26 National Finals Online David Ricardo Division National Semi-finals Online Adam Smith Division National Finals NYC Adam Smith Division
Identify the historic origins of the economic systems of Capitalism and communism
Self-interest Competition Government Regulation Markets Market Economy
Focus: Think, Pair, Share 1.What types of products do you like to buy? 2.What attracts you to those products?
What role do price and quality play in a market economy?
1. Wealth of Nations, 1776 2. Invisible Hand 3. Self-interest
1. As you read the article, look for Smiths major points. 2. Read Adam Smith and the Concept of Individual Self-Interest 3. Discuss the article, particularly the role of self-interest.
Group 1: Producers Innkeepers The Kings Arms Inn The Bells and Motley Inn The Three Feathers Inn Read Activity 2 Look for what you would like to produce Group 2: Investors Three groups of investors Read Activity 3 Look for your investment
1. Decision Time: Confidential 2. Plan a marketing presentation InnkeepersChoose one menu item. Write the name of your inn, the menu item, and the price you will charge. InvestorsChoose only one business opportunity. Record the name of your company and the product in which you will invest.
1. Group A Presents What is your menu item? Write the menu on the board. What is the price? Present an ad or reasons for group B to dine in your inn. 2.Each member of Group B will vote with 3.Ballot A using a secret ballot. 3.Group A: tally your profits (number sold x income) -cost of production=profits.
1.Present your best sales pitch as to why people should buy your product. 2.Group A members will each receive ballot B. 3.Tally results 4.Would you have made much money based on how many people were willing to buy?
Will you reconsider your menu/investment? Why or why not? Answer the questions on Activity 5. Discuss your answers.
Objective: Analyze the effects of incentives present in the Soviet communist economic system upon the performance of the Soviet economy prior to market reforms.
Concepts Economic System Command Economy Market Economy Incentives
Think, pair, share: What are incentives that encourage you to work, do your homework and school work?
What are the goals of communism? How do you respond to this statement of goals? Each person in a society should receive an equal share of the output of goods and services that an economy produces…Each person should work, not for his or her personal gain, but for the good of the whole society.
What & how much to produce How to produce (method of production) How to distribute Market Command
Read the three articles individually, then pair and share. 1.How are economic decisions made? 2.What role do incentives play? 3.What are your thoughts?
U. S. Market Economy USSR Command Economy Advantages Disadvantages
Will you use these lessons in your classroom? If so, how will you use them? What was helpful about them?
Laura Ewing President/CEO Texas Council on Economic Education www.economicstexas.org Laura@economicstexas.org 713-655-1650