SETTING UP TO TRADE

TRADITIONAL ECONOMY:

The concept of traditional economy relies on the following premises:

*Social roles and culture determine what goods and services are produced, what prices are charged, and which consumers are allowed to buy certain goods.

*Most factors of production are owned by families, clans, or leaders.

*Production is on a limited and need-by-need basis. There is no mass production.

*Usually, goods and services are handmade and distribution of those goods and services are on a one-on-one basis and sold when the need arises for money.

Because most goods in a traditional economy are made by hand, the volume is usually small in quantity. Most countries with a traditional economy have very low per capital income.

1. Therefore, bring and display between two to 10 handmade items to sell at the market. These goods should come from your “farm” or family “ranch” or create some arts, crafts, or fashion items that you made.

2. Bring out “change” for your customers. You need the following denominations: all your ones and fives, and one 10.

3. Do not bring out any other denominations as you may cause inflation—too much money in circulation chasing too little goods and services. If the elders/powers-that-are see your other currencies, they will seize the money or levy a heavy fine. Please follow directions.

4. Set up your store, but put a “closed” sign until itis your turn to do so. (Design your store sign for your country.)

5. Buy or sell when it is your turn. Anything in violation of this arrangement will cause your wares to be seized or levied with a fine.

COMMAND ECONOMY:

  1. If you picked “sell” when you came into the government’s store, you are a seller. Please set up your ware(s). No one cares how your goods look, substandard or not.
  1. Display only three quantities of the same item.
  1. Bring out “change” for your customers. You need the following denominations: all your ones, all your fives, and two 10’s.
  1. Follow directions 3 – 5 under traditional economy.

MARKET ECONOMY:

  1. Follow directions 3- 5 under traditional economy.
  1. Display as many different and number of items as you would like to sell. Make them presentable and attractive. Competition is tough!
  1. Bring out all the money you have made so far; include the 20, 50, and 100 bills/notes you “minted.”
  1. When the trading is over, put away all your unsold and/or bought merchandise and return to class.

Date of trading: ______

Name of Trader: ______

Country of “origin:” ______

Failure to follow directions will cause the entire event planned to be cancelled!