Summary
The U.S. economy offers grocery store
customers an abundance of choices.
Because resources are always scarce compared to people's wants, all societies must make choices about what to have and what to give up. How those choices get made depends on a society's economic system.
How do societies decide who gets what? Every society is faced with three economic questions: What goods and services should be produced? How should they be produced? Who should get what is produced? How a society answers those questions depends on its economic goals. These goals include economic freedom, efficiency, equity, growth, security, and stability.
Who decides what in different economic systems? Over time, societies have developed three economic systems to answer these questions. In a traditional economy, decisions are dictated by custom and the ways of ancestors. In a command economy, a powerful ruler or government makes decisions. In a market economy, decisions are made by the interactions of individual producers and consumers. Each system emphasizes different economic goals.
How do mixed economies divide the decision making? Most countries today have a mixed economy, in which both the government and individuals have a voice in economic decisions. Who decides what varies greatly. Some countries, including the United States, minimize government regulation of the market. Others, such as China, still exercise considerable government control over economic activities.
You have been hired to write the lyrics to a song titled “Who or What Decides What You Get?” Your song should be sung to the tune of any popular or well-known song. The lyrics must explain the difference between a market economy and a command economy. You may create one song that includes information about both market and command economies. Or you can create two versions of the song—one about market economies and one about command economies.
Your song must:
• include at least four terms from this lesson.
• include at least one of the primary goals of each type of economic system.
• explain the role of government in each type of economic system.
• highlight at least two benefits and two drawbacks of each economic system
(Verse 1)
To the tune of "Happy" by Pharrell Williams
Market economy, who gets what they want?
Supply and demand, it's no stunt.
Producers and consumers, they call the shots,
Efficiency and freedom, the goals it's got.
(Chorus)
In the market economy, you decide what you get,
Supply and demand, it's a powerful bet.
Efficiency and freedom, the goals in sight,
Market economy, it's a shining light.
(Verse 2)
Command economy, decisions made by few,
Government controls, what's produced, how and who.
Equity and stability, the goals they pursue,
But less freedom for individuals, it's true.
(Chorus)
In the command economy, others decide what you get,
Controlled by the government, it's a different mindset.
Equity and stability, the goals they believe,
Command economy, it's a different league.
(Bridge)
Mixed economy, balance is the key,
Government and individuals, both have their decree.
Blend of goals, as we go day by day,
Benefits and drawbacks, we weigh.
(Chorus)
In the mixed economy, we all have a voice,
Government and market, it's our choice.
Benefits and drawbacks, we consider them all,
Mixed economy, where decisions befall.
(Outro)
Market or command, or a mix of both,
Choices guide our growth, that's the oath.
(Verse 1)
To the tune of "Happy" by Pharrell Williams
In a market economy, who gets what they want?
It's all about supply and demand, it's no stunt.
Producers and consumers, they call the shots,
Decisions are made in this economic plot.
Efficiency is the goal, to make things run smooth,
Competition drives innovation, it's the truth.
Government steps back, lets the market flow,
Freedom and growth, the market economy's show.
(Chorus)
In a market economy, you decide what you get,
Supply and demand, it's a powerful bet.
Efficiency and freedom, the goals in sight,
Market economy, it's a shining light.
(Verse 2)
Now let's talk about the command economy,
Where decisions are made by a ruling body.
Government controls, what's produced, how and who,
Equity and stability, the goals they pursue.
But with too much power, there's always a price,
Lack of competition, innovation takes a dive.
Less freedom for individuals, it's quite clear,
Though stability and security, the command economy holds dear.
(Chorus)
In a command economy, others decide what you get,
Controlled by the government, it's a different mindset.
Equity and stability, the goals they believe,
Command economy, it's a different league.
(Bridge)
Now in a mixed economy, we find the balance,
Between market and command, it's a challenge.
Government and individuals have their say,
A blend of goals, as we go day by day.
(Chorus)
In a mixed economy, we all have a voice,
Government and market, it's our choice.
Benefits and drawbacks, we weigh them all,
Mixed economy, where decisions befall.
(Outro)
So now you know, who and what decides,
In different economic systems, the world abides.
Market or command, or a mix of both,
The choices we make, guide us on our growth.
Make it shorter
Make it sound 4th grade
(Verse 1)
To the tune of "Happy" by Pharrell Williams
In a market economy, it's like a big store,
You decide what you want, it's at your front door.
Producers make stuff, consumers buy it too,
Efficiency and freedom, that's what they pursue.
(Chorus)
In a market economy, you get to choose,
Supply and demand, it's the way it moves.
Efficiency and freedom, important to be,
Market economy, it sets us free.
(Verse 2)
Command economy, a different way to go,
The government decides, it runs the show.
Equity and stability, their goals so clear,
But less freedom for individuals, we fear.
(Chorus)
In a command economy, others decide for you,
Controlled by the government, it's something new.
Equity and stability, what they strive to be,
Command economy, that's the guarantee.
(Bridge)
Mixed economy, it's a blend, you see,
Both government and people, we all have a key.
Balance is the goal, benefits we weigh,
So we can have the best, every single day.
(Chorus)
In a mixed economy, we have a say,
Government and market, they lead the way.
Benefits and drawbacks, we consider them all,
Mixed economy, where choices stand tall.
(Outro)
Market or command, or a mix of both,
Our decisions shape our growth, that's the oath.
Understanding economies, it's pretty neat,
Now we know who or what decides what we get!