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CALL TO ORDER

CALL TO ORDER

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CALL TO ORDER

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  1. CALL TO ORDER Read the scenario below. Then answer the questions that follow. During World War II, the United States largely took control of the American economy, forcing businesses to build tanks, planes, and ammunition instead of normal consumer goods in their factories. Supplies were also rationed. For example, to buy more toothpaste, people were obliged to return the empty tube because metal was in short supply. • Questions: • 1. What was being produced? • 2. How was it being produced? • 3. For whom was it being produced? • 4. Who made all of these decisions?

  2. Economic Questions That Every Government Must Answer Economic Questions • What to produce • How to produce • For whom to produce • When to produce • How much to produce?

  3. In other words, what things should we manufacture (make)? Cars? Houses? Computers? Canned Foods? Airplanes? Weapons? Shoes? Clothes? 1) What to produce?

  4. In other words, how are we going to make these things? Should we use more computers and lay off workers (people)? Should we give our workers more tools? Should we use only machinery and no workers at all? 2) How to produce

  5. In other words, who are we making these things for? For children ages 1-6? For teenagers? For seniors over the age of 65? For the military? For the rich? For the poor? 3) For whom to produce

  6. In other words, at what point in time should we make these things? In the spring time so they will be ready for the summer? Produce in mornings because workers are more awake and alert? Work day and night to make things faster? 4) When to produce

  7. In other words, about how many of these things should we produce? We don’t want too many (surplus), but we also don’t want to have too few (shortage) A year supply? A month supply? A three year supply? Millions? Hundreds of thousands? A few thousand? Just a few hundred? 5) How much to produce?

  8. HSA Question #1 To Try The government of China tells factory managers to increase their use of computers in manufacturing. What economic question is most affected by the government's actions? A) what to produce B) how to produce C) for whom to produce D) when to produce

  9. HSA Question #2 To Try A company decides to install more machines and lay off workers. Which economic question is being directly addressed? A) how to produce B) what to produce C) for whom to produce D) how much to produce

  10. Traditional Economy The answers to economic questions are determined by TRADITIONS OR CUSTOMS.

  11. Command Economy The answers to economic questions are determined by THE GOVERNMENT.

  12. Market Economy The answers to economic questions are determined by CONSUMERS AND PRODUCERS.

  13. The Bead Game We will practice interacting in each of these three types of economies.

  14. BEAD PRODUCTION DIRECTIONS 1) Each ring must be made from a 4-inch piece of string with 6 beads in this sequence: 2 BLACK, 2 WHITE, 2 BLACK 2) Each bracelet must be made from a 12 inch piece of string with 8 beads in this sequence: 2 BLACK - 2 WHITE - 2 BLACK - 2 WHITE 3) Each necklace must be made with a 20-inch piece of string and 12 beads in this sequence: 4 WHITE - 4 BLACK – 4 WHITE

  15. “That’s the Way We’ve Always Done It” COUNTRY OVERVIEW: • Your country is more concerned with the past than with economic growth in the future. Since this country has always produced bracelets, you must keep up tradition and produce bracelets as well. PRODUCTION PROCEDURE:  • Each person must make their entire bracelet on their own. • Each person must finish his or her entire bracelet before the next person can start. • After each bracelet is finished it must be passed around the group and each member must tell the maker how beautiful it is (an old tradition passed down through the generations). • At least 5 minutes must pass before a person can begin their second bracelet.

  16. DEBRIEF What type of economy was this? What were the advantages and disadvantages of this system? What was produced? How was it produced? For whom was it produced?

  17. “We Do What We’re Told” COUNTRY OVERVIEW: • Your country has very strict leaders in charge of it. Central planners make all decisions about what your people need and who will perform specific tasks. Their orders are described below: PRODUCTION PROCEDURE:  • The person who is tallest MUST be the string cutter. • Going from the string cutter’s RIGHT side, each person must take the following jobs: • Bead Sorter – get the colored beads in the correct sequence • Bead Stringer – put the beads on the string in the correct sequence • Knot Tier – tie the string after all of the beads have been put on • Knot Trimmer – cut off any extra string that is left over after it has been tied • You must make 5 bracelets right away, and then produce only necklaces after that.

  18. DEBRIEF What type of economy was this? What were the advantages and disadvantages of this system? What was produced? How was it produced? For whom was it produced?

  19. “We Do What We Want” COUNTRY OVERVIEW: • Your country values individual freedom and profit. This country produces whatever costs the least and makes you the most money. It is up to your group how you want to divide up the work. • PRODUCTION PROCEDURE: • It is up to you how to divide up the work among the members of your group. • Make whatever products will make you the most money and do it as quick as possible.

  20. DEBRIEF What type of economy was this? What were the advantages and disadvantages of this system? What was produced? How was it produced? For whom was it produced?