Answer in your Notebook What are the three types of economic systems discussed in class yesterday? What 3 questions do the 3 types of economic systems try to answer? 6/2/2018

TODAY IN CLASS TYPES OF ECONOMIC SYSTEMS NOTES FOLDABLE Economic and Social Goals FOLDABLE FINISH BROCHURE 6/2/2018

Evaluating Economic Performance Section 2 6/2/2018

How can you evaluate economic performance? How can we tell if the economic system is working? 6/2/2018

Economic & Social Goals Economic freedom Economic efficiency Economic equity Economic security Full employment Price stability Economic growth Freedom to make your own economic decisions: choose your own job, how to spend $$ Resources are scarce and must be used wisely 3. We have a strong tradition of justice & fairness in our country. Discrimination based on age, gender, race, etc. is illegal 4. Protection from adverse events: layoffs, illnesses, natural disasters 5. Most people want their economic system to provide as many jobs as possible 6. Stable prices 7. Overall growth enables more people to have more goods & services 6/2/2018

Minimum wage Lowest legal wage that can be paid to most workers Social security Federal program of disability and retirement benefits that covers most working people 6/2/2018

Inflation Rise in general level of prices High rates of inflation discourage business activity Fixed income- income that does not increase even though prices go up These people find it harder to pay & plan for future 6/2/2018

Future goals??? Cleaner environment Saving endangered species In the end, we are the ones who decide on the goals that are most important to us As a result, some of our goals could change in the future 6/2/2018

Foldable: Economic and Social Goals (Pages 41-44) Identify the 7 economic/social goals of the United States. Answer the following questions about each goal: What is purpose of this goal? What does this goal actually look like in the United States? How do YOU think that U.S. is doing in their progress towards this goal? Explain. Future goals: if you could set a future goal for the U.S. what would it be? 6/2/2018

Free Enterprise (2.3) Capitalistic economy in which competition is allowed to flourish with a minimum of government interference. Characteristics: Economic freedom, Voluntary exchange, Private property rights, Profit motive, Competition The U.S. economy is based on free enterprise. 6/2/2018

Role of Entrepreneur Manages & organizes the factors of production in order to seek profits People who start up businesses Many entrepreneurs fail but the dream of success is too great to resist First…plays one of the most important roles in the free enterprise economy. 6/2/2018

Role of Consumer They ultimately determine which products are produced Consumer sovereignty- consumer is the ruler of the market 6/2/2018

Role of Government Stems from desires, goals, & aspirations of its citizens They are a protector, provider, regulator, & consumer Their role is justified whenever the benefits outweigh the costs Protector- government enforces laws to keep consumers & citizens safe Provider- all levels of government provide goods & services for citizens (i.e. education, highways, parks, libraries, etc.) Regulator- preserves competition in the marketplace Consumer- they are the second largest consuming unit in the economy, after the consumer sector 6/2/2018