Command Economy Group Market Economy Groupmrshodgeslloyd.weebly.com/uploads/2/9/7/2/2972869/... · Command Economy Activity Reading The state, or govern-ment, decides what, how, and

© Teachers’ Curriculum Institute 1  Economic Systems

S t u d E n t H a n d o u t a

Command Economy Group

Your group will be producing bracelets. Cut a sheet of paper into strips 2 inches by 8.5 inches. Glue the two ends of a strip together to form a bracelet.

Each group member will earn one token when your group produces six bracelets.

Command Economy Group

Your group will be producing bracelets. Cut a sheet of paper into strips 2 inches by 8.5 inches. Glue the two ends of a strip together to form a bracelet.

Each group member will earn one token when your group produces six bracelets.

Market Economy Group

Your group will use the supplies at your desk to create high-quality, attrac-tive bracelets that you will later sell. You will determine the price for each bracelet depending on its quality.

Your group will earn one token for every bracelet produced.

Market Economy Group

Your group will use the supplies at your desk to create high-quality, attrac-tive bracelets that you will later sell. You will determine the price for each bracelet depending on its quality.

Your group will earn one token for every bracelet produced.

Directions for Producing Bracelets


S t u d E n t H a n d o u t B

Tokens

EA_LM_03-4_v1.epsB/W1st Proof5-26-2008




































Connecting the Reading and Activity

S t u d E n t H a n d o u t C

After reading Section 3, fill in the missing information for the type of economy your group represented in the activity. As your class reviews the answers, record information for the other type of economy.

Market Economy

Activity Reading

Workings of the market are not planned or directed. Individual buyers and sellers make decisions.

Production rewards were based on what was produced.

Factors of production are sold by households and purchased by firms according to what people are willing to produce and consume.

Prices varied and were set by producers.

People benefit more by working harder, so they tend to be more innovative and produce higher-quality goods in line with what consum-ers want.

Command Economy

Activity Reading

The state, or govern-ment, decides what, how, and for whom to produce.

Production rewards were equal, based on predetermined quotas or goals.

Factors of production are controlled by the government, which can-not possibly foresee all market needs. Shortages are common.

All products sold for the same price.

No incentive to produce high-quality goods or to innovate. Goods are often poor quality or not what consumers want or need.

Documents

Command Economy Group Market Economy Groupmrshodgeslloyd.weebly.com/uploads/2/9/7/2/2972869/... · Command Economy Activity Reading The state, or govern-ment, decides what, how, and