Economic Systems Activity



Economic Systems Activity

Objective: Allows students to compare capitalist, communist, and socialist economies.

You will Need: Numbers 1-5 written on scrap paper in a hat or bowl, Band-aids (1 per student), pencils (1 per student), a bag of candy (I like Star Bursts), and play money (I use Monopoly $1).

Setting up the Activity:

1. Get student volunteers for the roles of nurse, teacher, banker, and shop keeper. Below is a list of their responsibilities:

Nurse: Hand out Band-aids (represents health care)

Teacher: Hand out pencils (represents education)

Banker: Hands out money for the workers (Represents employer)

Shop Keeper: Distributes the candy based on government rules (YOU determine rules)

2. Have remaining students choose a number from the hat. I put mainly ones and twos in the hat with few 3-5s. This number represents the student’s daily production rate. (I don’t tell them this until all have gotten their numbers.)

3. Tell students they will be “working in” 3 countries. These countries are North Korea Sweden, and the United States.

Conducting the Activity:

1. Welcome new workers to North Korea. Thank them for working in the factory for the day.

a. Encourage the “slack” workers to be good communists and produce more tomorrow. Hold up the hard workers as examples.

b. Have your banker pay everyone $3 for their work.

c. Provide each with a pencil and band-aid distributed by your teacher and nurse.

d. Instruct your shop keeper to give all good communists wearing red shirts (or other obvious sign) a piece of candy.

e. When all items are distributed, discuss the advantages and disadvantages of the system; discuss who made economic decisions; & discuss the type of system illustrated.

f. Collect all items except numbers and candy.

2. Welcome the new workers to Sweden. Thank them for working in the factory for the day.

a. Tell everyone they will get $2/unit of work produced, but they must pay 50% back in taxes. Each person will net $1/unit to be paid by your banker.

b. Provide each with a pencil and Band-Aid distributed by your teacher and nurse.

c. Candy is $4 per piece and will be sold by the shop keeper.

d. When all items are distributed, discuss the advantages and disadvantages of the system; discuss who made the economic decisions; and discuss the type of system illustrated.

e. Collect all items except numbers and candy.

3. Welcome the new workers to the USA. Thank them for working in the factory for the day.

a. Tell everyone they will get $3/unit of work produced, but they must pay 33% back in taxes. Each person will net $2/unit to be paid by your banker.

b. Sell each pencil for $2 and band-aids for $2 distributed by your teacher and nurse.

c. Candy is $6 per piece and will be sold by the shop keeper.

d. When all items are distributed, discuss the advantages and disadvantages of the system; discuss who made the economic decisions; and discuss the type of system illustrated. Many will “borrow” money from someone, some may steal, some may not buy anything but candy, etc. All of these factors make great discussion points about our economy!

e. Collect all items except candy.

Concluding the Activity:

1. Ask students to determine which system is best and why. This activity works great if you have at least one communist/idealist, socialist, and capitalist. I always try to be devil’s advocate if no one argues for one.

2. Bring in the government’s role in each economy.

3. I usually give a follow-up assignment. Depending on the level of the class, that may be a chart to compare the systems or writing prompt.

4. Good luck!

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