Students produce badges as rewards for the best economists in class.
People, acting individually or collectively through government, must choose which methods to use to allocate different kinds of goods and services. There are essential differences between a market economy, in which allocations result from individuals making decisions as buyers and sellers, and a command economy, in which resources are allocated according to a central authority. Describe the basic characteristics of market and command economies. Divide the class into groups of 6 - 7 students. Explain that each group represents a country and its economy.