Module E.1.1: Types of Economies

Standard: EPF.E.1.1

Objective: Compare characteristics of traditional, command, market, and mixed economies.

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Lesson Overview

• Define and describe each type of economy
• Compare and contrast their characteristics
• Discuss real-world examples

Teacher Notes

• Use visuals (charts, diagrams) to illustrate differences
• Facilitate a class debate on which system is most effective
• Connect to current events (e.g., news about different countries)

Activities

• Group research: Assign each group an economy type to present
• Case study analysis: Match countries to their economic systems
• Exit ticket: "Which system do you think is best and why?"

Assessment

• Short quiz on characteristics
• Group presentation rubric

Questions

1. Multiple Choice: Which of the following is NOT a characteristic of a traditional economy?

   • a) Customs and traditions guide decisions
   • b) Central government makes all decisions
   • c) Economic roles are inherited
   • d) Barter is common

2. Short Answer: Name one country that is an example of a command economy.

3. Multiple Choice: In a market economy, who primarily decides what goods are produced?

   • a) The government
   • b) Consumers and producers
   • c) Religious leaders
   • d) Military officials

4. Short Answer: List one advantage and one disadvantage of a mixed economy.

5. Multiple Choice: Which type of economy is most likely to encourage innovation?

   • a) Traditional
   • b) Command
   • c) Market
   • d) None of the above

6. Short Answer: Explain how incentives work differently in command vs. market economies.

7. Multiple Choice: Which of the following best describes a mixed economy?

   • a) All decisions by government
   • b) All decisions by tradition
   • c) Combination of government and market forces
   • d) No government involvement

8. Short Answer: Why might a country choose to shift from a command to a mixed economy?