Understand how goods and services are allocated in command, traditional, and market economic systems; evaluate the relative efficiency of three types of economic systems; state and support an opinion.

The allocation of goods and services has posed a challenge for many societies. This challenge has been met in a variety of ways. Over the course of time, three major types of economic systems have emerged. The traditional economic system, utilized by the ancient Maya, is based on the barter system; individuals trade what they possess for what they need. When powerful nation-states like the former Soviet Union emerged, the command economic system took root; under this type of system, the leaders of a society determine which goods and services the masses receive. In market economic systems such as the United States, individuals decide on the allocation of goods and services based on what they want and need.

• CA  10.7:1-3; 11.8:4; E12.2:1,7,8,10; E12.4:1-2 Historical Interpretation: 3
• TX  113.32(13):a; (14):e; 113.33(14):a-c; 113.34(10):a-c; 113.38(1):b, d
• FL  SS.D.2.4:1-5
• NCSS  VII (HS): b,c, g

2 class periods

• Activity Sheet, Allocation of Goods and Services
• Graphic Organizer, 3-Column Table
• Persuasive Essay Rubric

Use the instructions below to guide students in writing a persuasive essay.

Which economic system is most effective at allocating goods and services?

Evaluate Students will research traditional, command, and market economic systems. Drawing upon historical examples, students will write persuasive essays that convince the reader which economic system allocates goods and services most efficiently.

Have students research the topic using the provided links. Encourage them to use the suggested graphic organizer as they read the articles.

Soviet Union, 1955: On a state-run collective farm, a tractor pulls non-mechanized farming instruments.

To start students thinking about the allocation of goods under different economic systems, have them examine the photograph.

Key questions students should answer are:

• What is taking place on this Soviet collective farm? What types of machinery are being used?
• What does this photograph reveal about the command economic system in the former Soviet Union?

Distribute the Student Activity Sheet. Assign the following topics to students, reminding them to consider the impact of traditional, command, and market economic systems in societies throughout the world. As they read, students should keep in mind the advantages and disadvantages of these three systems.

• U.S. Market System
• Soviet Command System
• Maya Traditional System
• Glossary of Soviet Terms: Gosplan
• Evolving American Economy
• Early Economic Life
• Modern Market System
• Medical Care in a Command System
• Market System Failure
• Japan: Traditional Trade

Students should use the 3-Column Table to record characteristics of each economic system. Students should support their arguments with specific historical facts and details from the articles.

Use the Persuasive Essay Rubric to assess students’ performance.

Have students reflect on their performance and use the list of expectations to judge how well they met the criteria

Ask students: In your opinion, in which economic system are goods and services allocated least effectively? Why?

Poster Have students use illustrations or photographs gathered during their Daily Life Online research to create a poster depicting the three major types of economic systems and how goods and services are allocated in each. Critical Thinking: SYNTHESIZE