Lesson
How Economic Systems Work
Guiding question
What are the characteristics of command and market economies?
As buyers purchase goods and services, they signal to the producers what ought to be made. If people want to wear pants with farm animal designs, they buy them. Producers have to be observant to anticipate demand. As they see that the stock of cow pants is flying off the shelves, they will create many more of them. Buyers and sellers are able to communicate effectively using just money.
Guiding Questions
- What are the characteristics of command and market economies?
- How do constitutional principles promote economic growth in the United States?
Objectives
- Students will analyze primary source documents to identify the similarities and differences between command and market economies.
Materials
Educator Resources
Student Handouts
- How Economic Systems Work Essay
- Handout A: Excerpts from the Constitution of the Union of Soviet Socialist Republics (1936)
- Handout B: Economics-Related Clauses in the U.S. Constitution (1787)
- Handout C: Characteristics of Market and Command Economies Chart
- Handout D: Characteristics of Command and Market Economies
Lesson Components
EssayEssay: How Economic Systems Work
As buyers purchase goods and services, they signal to the producers what ought to be made. If people want to wear pants with farm animal designs, they buy them. Producers have to be observant to anticipate demand. As they see that the stock of cow pants is flying off the shelves, they will create many more of them. Buyers and sellers are able to communicate effectively using just money.
Lesson plan
60 minClick a phase to open it
Key Terms
- command economy
- market economy
- Union of Soviet Socialist Republics (USSR)
- buyers
- sellers