Mixed Economy
Essential Question
What types of
economies
exist in SWA
today?
Why do most
countries have
a mixed
economy?
What Do You Like on a Sundae?
 You and your partner
discuss it.
 What toppings do you
like on an ice cream
sundae?
Plain Vanilla?
Or absolutely
everything (and I mean
everything)?
What Do You Like on a Sundae?
Chances are, you were somewhere
between plain and everything.
When discussing economies, most
countries are somewhere in between too.
When a country is not completely a
command economy and not completely a
market economy, but somewhere in
between, it is called a Mixed Economy.
Mixed Economy – “In Between”
Ms. Ward’s Easy Economics
All you have to do to know what type of
economic system a country has is to ask
yourself who is answering the economic
questions.
What are the economic questions?
Each question will have the same general
answer. Let me explain.
“Pure” Command Economies
 The government controls all aspects of economy.
DRAWBACKS
 If government controlled everything in the economy, then
having a diversity of products would be very difficult.
 With no private businesses, there would be no
competition, and products would never improve and
prices would be at the mercy of the government.
 The government could make the economy exploit the
poor and benefit the rich.
“Pure” Market Economies
 If you make it and I want it….name the price!!!!!
We’re in business!!!
DRAWBACKS
 If an economy was pure market, people could
sell anything, even things that could hurt others.
 Businesses could make things cost as much as
they wanted.
 In order to make products cheaper, they could
skimp on safety and benefits for workers.
 The government also creates business contracts
for things such as military weaponry.
Most Countries Lie Somewhere in Between
-However, they may be closer to one
side than the other.
Economic Continuum
 What is a mixed economy?
 What are the elements of a more command economy?
 What are the elements of a more market economy?
 What types of governments would be associated with command?
 What types of governments would be associated with market?
Writing Prompt
With your partner, answer the following
questions:
What bad things could happen if an economy
was pure market? (Be specific, at least 3
sentences)
What bad things could happen if an economy
was pure command? (Be specific, at least 3
sentences).