How Do People (Households) In A Market Economy Obtain Income That Is Used To Buy Goods And Services?

The Inuit people of northern Canada provide an example of a traditional economy. For thousands of years, Inuit parents have taught their children the survival skills needed to survive in the Arctic Circle's severe climate. Students will inquiry the Inuit economy and compare and contrast it with the United States' marketplace economy.

Introduction

A traditional economy, an economy based on custom and tradition, may seem like something that is but read about in history books. To most of us, it but doesn't seem possible that rituals and habits developed generations ago, as well as customs that accept been passed down for hundreds, if not thousands of years, could exist the nigh important pieces of an economic organization. However, there are nevertheless places in the world where a traditional economy guides the choices of children, adults, and elders as they brand decisions equally producers or consumers. The Inuit of northern Canada serve as a prime number example of a traditional economy. For thousands of years, the Inuit parents have taught their children the survival skills needed to survive in the Arctic Circumvolve's astringent climate. The children are taught to fish, hunt, and make constructive tools. Once learned, these skills are passed down to the next generation. When the Inuit hunt, it is traditional for them to distribute the harvest with other families in the community. If a walrus or conduct is harvested, hunters carve up information technology evenly into as many pieces as at that place are heads of families in the hunting political party. The hunter nigh responsible for the successful hunt has beginning choice, the second-virtually helpful hunter chooses next, and and so on. Because of this custom of distribution, as long as skilled hunters live in the village, the Inuit survive the long, cold winters with the food and goods required to sustain themselves.

Unlike traditional economies, in a market economy individuals generate wealth past pursuing those activities that others value and are willing to pay for. Income earned is then used to buy the clothes, food, and other items needed, wanted or desired. People in market place economies are seldom dependent on others as are the Inuits. However they are interdependent because they need others to provide the goods and services they themselves exercise not produce because of high opportunity costs.

Learning Objectives

Investigate the Inuit people indigenous to northern Canada (and the Arctic Circle) and their traditional economy.
Compare and contrast a traditional economy and a market economy.
Evaluate the costs and benefits of traditional and market economical system.

Resource Listing

Introduction to Traditional Economies: A worksheet past the Quango for Economic Pedagogy.
www.econedlink.org/lessons/docs_lessons/795_An%20Introduction%20to%20Traditional%20Economies1.pdf
Traditional Economies: These sites provide definitions and explanations of traditional economies.
https://www.wisegeek.com/what-is-a-traditional-economy.htm
https://world wide web.economywatch.com/traditional-economy/
Marketplace Economy: These sites provide definitions and explanations of marketplace economies.
https://www.investopedia.com/terms/m/marketeconomy.asp
https://world wide web.investopedia.com/terms/m/marketeconomy.asp
Inuit Communities: Provides a map and related data most Inuit communities
https://www.aadnc-aandc.gc.ca/eng/1100100014187/1100100014191
The Inuit: Provides detailed information about the history of the Inuit, their culture, and their economy.
https://world wide web.everyculture.com/multi/Ha-La/Inuit.html
The Inuit People: This site offers basic data about the Inuit civilisation and their traditional economy.
www.snowwowl.com/peopleinuit5.html
Venn Diagram Worksheet Maker: A site that provides a bare copy of a Venn Diagram, which you tin fill out and print for students.
world wide web.teach-nology.com/web_tools/graphic_org/venn_diagrams/
North America map: A map showing the students the location of the Inuit's homeland.
Map
A Traditional Economy: What Is It?: A worksheet past the Quango for Economical Teaching.
www.econedlink.org/lessons/docs_lessons/795_A%20Traditional%20Economy%20-%20What%20is%20it1.pdf
Learning About the Inuit: A worksheet by the Council for Economical Education.
world wide web.econedlink.org/lessons/docs_lessons/795_Learning%20about%20the%20Inuit1.pdf
Costs and Benefits of a Traditional and Market Economies: T Charts past the Council for Economic Education.
www.econedlink.org/lessons/docs_lessons/795_Costs%20and%20Benefits%20of%20Traditional%20and%20Market%20Economy1.pdf

Procedure

Pique students' interest almost traditional vs. market economies by asking them to respond the questions on the worksheet entitled, An Introduction to Traditional Economies. Subsequently students have completed this work, facilitate a class discussion in which students compare their thoughts.

What do you remember would be the near challenging part of having to grow or catch all of the food that you ate? What would exist the easiest part of this? Practise yous think that it would exist easier or harder to practise this than ownership your food? Why? [Most would not like this, some may like the thought for some of their food.]
Would you similar to habiliment apparel that you made yourself? Would information technology be improve to take ane outfit that you made yourself or only be able to get clothes if you made them yourself? [Not many students would like this way of life — it wouldn't be "cool".]
Would information technology be like shooting fish in a barrel to exercise these things-abound your own food, hunt for your ain meat, or make your own dress? Why? [No, they haven't had the experiences necessary to practice these things for themselves.]
Do you prefer buying these types of goods and services? Why? [Most students will prefer to purchase.]
Next provide the students with the definition of Market place Economy. Talk over with the form how this definition relates to appurtenances and services.
Does everybody in the world today buy these types of goods and services? [No.]

Ask students to respond to the questions on the worksheet entitled: A Traditional Economic system – What is it?

[Worksheet Answers:

How to earn and spend money.
An economic system in which the allocation of scarce resources and other economic activity is the event of ritual, habit, or custom.
An economic system in which the allotment of scarce resources and other economic action is the result of decisions made by individuals.
The U.s. has a marketplace economy.
Some places in the developing world: Africa, South America, and the Inuit of northern Canada and the Arctic Circle.]

Ask students how far north in the globe they have been? You might consider holding a competition in the form to see who has been furthest north. Employ this map to show the students where the Inuit alive.

Ask students to describe the kinds of living weather condition they call back would exist in this region of the earth. (Students should recognize that the region is very cold, has few inhabitants and roads are often not present.)

Explicate that 1 of the few groups of people who live in this Chill region are the Inuit. The Inuit continue to lead very traditional life-styles. They have sustained their culture for thousands of years, despite the harsh conditions of the Arctic. They utilize a traditional economy in which they fish, chase, and make primitive tools in social club to get the nutrient they need for survival. The spoils of any hunting are shared among the community. And they buy and sell very little, often simply trading for basic necessities.

Ask students to consummate the worksheet entitled, Learning Nigh the Inuit.

[Guiding Questions Worksheet Sample Answers:

Nigh 80 per centum of Inuit hunt, fish, or trap caribou, fish, marine mammals, and other wild fauna. The people were traditionally nomadic, traveling in winter by dog team and in summer by foot. Their culture and economy is based on wildlife harvesting; their environment is more than just a source of food and income.
The traditional economy of many Inuit groups of the Chill was based on the hunting of sea mammals, including whales, seals, and walruses. They also fish and hunt other types of animals, and assemble food from their environment.
Aye, the family is the base of the Inuit's social organization.
Yes. Social, technological, and economic changes accept occurred in the Chill. Withal, the Inuit civilisation remains built on the belief that, above all else, they are hunters and very much a function of their surround. The meaning of life for the Inuit is still found close to nature.]

Give student pairs a Venn Diagram to complete (or do 1 together as a class) that shows the similarities and differences between the traditional economy of the Inuit and the market economy of the U.s..

[Venn Diagram Sample Answers:

Traditional Economy/Inuit: customs, rituals, habits are of import; gender roles are conspicuously defined; ideas and skills are passed down to the side by side generation; and the employ of technology is zilch.
Market place Economy/Us: free enterprise ; people create their own businesses and jobs; people sell whatever they want; people set their own prices; and technology is of import.
Both: people go goods they need, family unit is important.]

Now ask students to complete the two T-Charts entitled "Costs and Benefits of a Traditional and Marketplace Economies". After students have completed this piece of work, invite several students to share their answers with the class. [Students should recognize that the cost of a traditional economy is that yous do not accept the benefits of a marketplace economic system. On the other hand, the costs of a marketplace economic system is that you practice non have the benefits of a traditional economy. Y'all tin can not have both a marketplace economy and a traditional economy. Choices must be made. The answers for this worksheet tin can be constitute on the Teacher's Answer Central.]

Conclusion

To conclude the lesson, ask the students discuss their research and the information on their Venn Diagrams with their classmates. Use these questions to lead the give-and-take:

What have they learned well-nigh the differences betwixt traditional and market economies?
What were the similarities?
What have they learned nearly the Inuit people?
Did they find any evidence that the Inuit'due south traditional economy is irresolute?
If and then, what did they find, and how is information technology changing?
Practice they think this volition accept a positive or negative effect on the Inuit community? Why?

Now ask students to evaluate the traditional economy of the Inuit.

Do they call up that this is an effective manner for the Inuit to live?
Practice they think that the United states of america could survive economically with a traditional economy? Why or why not?
What types of changes can they imagine if that were to happen?

[Students' answers volition vary.]

Finally, have students use all of the noesis they have gained throughout this lesson to write an editorial, which offers their perspective on the Inuit and on traditional economies.

Extension Action

Students can inquiry to find other modern-solar day examples of traditional economies.

Students can develop skits based on what they have learned about traditional or market place economies. Take the form guess which type of economy the skit portrays.

Assessment

Have students complete an exit slip that addresses the following big ideas:

Define a traditional economic system. [An economical system in which the allocation of scarce resources and other economic activity is based on ritual, habit, or custom.]
Define a market economic system. [An economical system in which economic decisions and the pricing of goods and services are guided solely by citizens and businesses, with trivial government intervention or key planning.]
Give at least one reason why the Inuit'southward economic system is considered traditional. [The Inuit share the food that they catch when they hunt. They buy and sell very little.]
Requite at to the lowest degree one reason why the Us economic system is considered free market. [American companies can decide what to buy/sell on their own. They can set up whatever cost they desire.]