Who better to learn about Capitalism than from me the President
Look this court room reminds me of our economy, does anyone remember what kind of economy the U.S. has?
Mr. Wright has decided to take his business class on a trip to Washington D.C, in Washington they will learn all about the Economy and Capitalism.
Yes, a Market Economy is where economic decisions are made by individuals competing to earn profits based on supply and demand.
Ok, so Malik answered last time so Sarah do you know what a Market economy is?
The President taught the kids about Freedom Of Choice which is the ability to freely make choices, and except the consequences. The President as a large freedom of choice for what he will do for the country, but he must deal with all the consequences from his choices.
I remember, a Traditional Economy is an economic system where traditions and custom govern economic decisions.
Now who remembers what a traditional economy?
Malik answered and told Mr. Wright that a mixed economy is an economy where the government guides and regulations production of good and services, but resources are owned by individuals. The U.S. is a mixed economy because private corporations can produce what they want, but the government puts regulation on what and how it's produced. Competition is when two businesses compete for business from a consumer. Competition is very common in the U.S. due to the fact that businesses can control what they produce.
Lastly Sophia, why don't you tell the rest of the class what a Command Economy is.
Ok Mr. Wright, if I remember correctly Command Economy is when the government or other central authority makes all economic decisions.
Rosy realizes that the U.S. couldn't possibly be a Market economy, due to the fact that the government makes sure things are safe for the people. She also realizes that Private Property's are probably the majority of a Market Economy, because a Private Property is when the government doesn't have any control over what is being produced.
Sophia also adds that people who live in places like Antarctica and other very little developed areas probably have Traditional Economy's due to the fact that they are more like hunter gathers in the older generations.
Mr. Wright said, "Great! Thank you for sharing and one reason a country might have this kind of economy is because of profit. Profit is a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something."