A major business and threat to the American manufacturing industry has recently failed, and there

have not been any good explanations as to why. In order to ensure that our American companies
donʼt fail in the same way, we have to understand what could have caused this to occur. As recently
as five years ago, this steel company was selling millions of tons of fine grade steel at a very high
price. Over the next four years, the price for their steel fluctuated mildly, but then plummeted in 2009.
At the beginning of 2010, the steel plant closed its doors for business. Examine the following
information to help you answer the questions below.

Price for Steel at Company X

50

37.5 Country: North Korea

Leader: Kim Jong Il

25 Type of Government: Dictatorship

Population: 23,818,753

12.5 Major Religions: None

Happiness Index: 10 / 100

0 Minimum Wage: $1.50/hr

2007 2008 2009 2010

1. What type of economy is this?

2. Who makes the decisions in this economy?

3. Is this business being regulated? If yes, what is the government doing?

4. What are some major reasons for the current status of this product?

5. What questions do you need answered in order to better understand this problem?
There is a company that makes slinkies. They have been incredibly successful at making the worldʼs
best metal slinkies for over 150 years. Demand has been higher than ever for this product in the last
ten years. Recently they have halted production of all metal slinkies, in favor of creating weaponry.
We have learned that they must produce a minimum of 5000 weapons a month, but do not
understand why. Our President is terribly upset over this tragedy, as slinkies are his favorite toy. It is
your job to help us understand why slinkies are no longer in production.

# of Slinkies Produced

2000000

Country: England
1500000
Leader: Gordon Brown

Type of Government:
1000000 Representative Democracy

Population: 51,446,000
500000
Major Religions: Protestant

Happiness Index: 80 / 100

0
Minimum Wage: $10/hr
1900 1950 2000 2010

1. What type of economy is this?

2. What has happened in the country that has stopped the production of slinkies?

3. Who is making decisions in this economy?

4. Is this business being regulated? If yes, what is the government doing?

5. What questions do you need answered in order to better understand this problem?
One of the major sectors of business in the U.S.A. is farm equipment and technology. This is industry
is at risk of failing--something that would be harmful to the U.S. economy. In order to ensure its
success, the companyʼs CEOs are now looking at selling their products to foreign countries. They
have targeted two different nations, India and Brazil. Many Brazilian farmers have already decided to
purchase the products, however that is not the case for the Indian farmers. They have refused the
tractors and technology, in favor of utilizing people and farm animals. The company is baffled as to
why the farmers of India are resistant, and refuse to move on until they understand why. Use the
information below to complete the questions that follow.

Economic Growth as Percent of Total Economy

40

Country: India
30
Leader: Pratibha Patil

Type of Government: Representative

20
Democracy

Population: 1,186,074,000
10
Major Religions: Hinduism

Happiness Index: 75 / 100

0
1900 1950 2000 2010 Minimum Wage: $0.50/hr
India Brazil

What type of economy does India have?

Why are they declining to purchase the technology?

How are decisions made?

What type of economy would be most likely to purchase the farming equipment?

What questions do you need answered in order to better understand this problem?