Lesson 2.2

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Essential Question

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​​How does an economic system help a society deal with the fundamental problem of scarcity?

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• Determine how each type of economic system answers the questions of WHAT, HOW and FOR WHOM to produce.

• Explain the advantages and disadvantages of each economic system.

• Identify the relationship between wages and individual incentives in each of the economies.

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Students will be able to:

​Mixed Economy - economic systems in which tradition, government, and markets each answer so of the WHAT, HOW, and FOR WHOM. Basically, a Mixed Economy is a combination of a Free Market and Command/Planned economic system.

​Depending on the level of government involvement and the capacity for private ownership in answering WHAT, HOW, & FOR WHOM.

​Disadvantages of "Pure" Economies