American Free Enterprise

New Seating Chart Sit down in your old seats from last semester I will tell everyone where they will be sitting this semester Wait until I have called everyone’s name to go to your new seat

Why were these economic principles central to the US? Warm Up What kind of economic principles were laid out by the Founding Fathers? Why were these economic principles central to the US?

Homework: Marriage Project Surprise- You Are Having a Baby In a Bulleted List, identify the new costs that you will incur as a result of having a baby Make sure to include: Baby Shower Expenses (Paid by me) Crib, Food, Clothing, Diapers, Bottles, Toys Child Care Anything else that you want to add in

Marriage Project will be due the last week before Finals Looking Ahead Marriage Project will be due the last week before Finals Community Service Project due on April 16th

Learning Objectives Analyze economic rights guaranteed by the Constitution Interpret the role of government in the economy Engage in Creative Expression

Brainstorming In what documents were the economic principles of the US written? Do you think the modern economy of the US still represents these economic principles? If so, what examples can you provide? If not, why not?

Economic Rights Guaranteed by the Constitution Property Rights: a. No person shall be deprived of life, liberty, or property without the due process of law b. Private property cannot be taken away for public use without compensating the owner Taxation: Congress can raise or lower taxes Contracts: Individuals or businesses cannot use the political process to get excused from their contracts

Discussion-Taxes Do you think that Congress should have complete control over raising and lowering taxes? Why or why not? Are taxes good or bad? Why do you think this? What goods/services do you think are taxed too heavily?

Examples of High Taxes Gas/Oil Alcohol/Tobacco Hotel Taxes Sales Taxes (Food, Clothing) Import/Export Taxes Property

Thinking about the role of Government in the Economy The Declaration of Independence says “All men are entitled to Life, Liberty, and the Pursuit of Happiness”? Why do you think this was changed in the Constitution to be “Life, Liberty and Property?” Do you think we need to add any economic principles, ideas or regulations to the Constitution? If so, what should be added? What government agencies can you think of which exist to regulate different industries? Write down three examples

Examples of Government Agencies that Regulate Industries in the Economy FDA (Food and Drug Administration) FTC (Federal Trade Commission) FCC (Federal Communications Commission) FAA (Federal Aviation Administration) EPA (Environmental Protection Agency)

Make a Pros and Cons List Write down 5 good things about the Government regulating the economy Write down 5 bad things about the Government regulating the economy

Creative Expression Team up with a partner and on one piece of paper, compare the difference between an economy with no government regulations and an economy with a lot of government regulations Left side of the paper= economy with no government regulations Right side of the paper=economy with a lot of government regulations Have one person draw images/graphics which show what the economy would look like without government regulation and the other person draw images/graphics which show what the economy looks like when there is government regulation

Warm Up What do you think was the most important economic right that the government guaranteed in the Constitution? Why do you think this?

Homework: Marriage Project- You are having a baby In a Bulleted List, identify the new costs that you will incur as a result of having a baby Make sure to include: A. Baby Shower Expenses (Paid by me) B. Crib, Food, Clothing, Diapers, Bottles, Toys C. Child Care D. Anything else that you want to add in

Learning Objectives Synthesize the Basic Principles of the Free Enterprise System Interpret the difference between Macroeconomics and Microeconomics Analyze GDP rates of different countries

Journal 4: Expanding the First Amendment 1. In what way has the US courts separated from the First Amendment? Why have they done this according to the article? 2. What examples does the article give of court cases in which the rights of the First Amendment were protected? Why were the companies protected in these cases? 3. What types of businesses have really made the courts question this issue of First Amendment rights? 4. What reason did the US Court of Appeals give for ruling against the FDA in the case of labeling vitamin supplements? 5. What direction do the courts seem to be moving in regards to protecting the First Amendment rights of businesses? Do you agree that we should be moving in this direction?

Brainstorming What ideas/motives/forces do you think are most important to businessmen/woman in the Free Enterprise Economy? Write down three

Basic Principles of the Free Enterprise System Profit Motive: Encourages people to make money Open Opportunity: Everyone can compete in the market Legal Equality: Everyone has the same legal rights Private Property Rights: People have the right to control their possessions as they see fit Free Contract: People may decide what agreements they want to enter into Voluntary Exchange: People may decide what and when they want to buy and sell Competition: Rivalry among sellers to attract customers while lowering costs

Check for Understanding Which of these principles do you think is most important for businesses in the Free Enterprise System? Which of these principles do you think is most important for consumers in the Free Enterprise System? Do you think any of these principles are under- represented in the Free Enterprise System? How do these principles impact large and small businesses differently?

Transitioning: Macroeconomics and Microeconomics What does it mean for something to be “Microscopic”? What do you think is the difference between “micro” and “macro”? What is the difference between Macroeconomics and Microeconomics?

Vocabulary Macroeconomics: Study of the behavior and decision making of entire economies Microeconomics: Study of economic behavior and decisions of small units, such as individuals, families, and businesses GDP (Gross Domestic Product): Total Value of all final goods and services in a particular economy Is a country’s GDP part of Macroeconomics or Microeconomics?

Macroeconomics and Microeconomics Take five minutes to list three different things that we would study in Macroeconomics and three different things that we would study in Microeconomics

Macroeconomics vs. Microeconomics Would the following topics go under Macroeconomics or Microeconomics? Employment rates Operations of an individual bank How a company uses technology Operations of the US Stock Exchange Work ethic of an employee Competition between US businesses

Analyzing modern GDPs Do you think that a GDP is a good indicator of how wealthy a country is? If not, what would be a better indicator?

Top Ten GDPs in 2016 (According to International Monetary Fund) 1. USA 6. United Kingdom 2. EU 7. France 3. China 8. India 4. Japan 9. Italy 5. Germany 10. Brazil

Speculating: 1 Paragraph Take ten minutes to write a paragraph about why you believe these countries have the highest GDP’s. Think about where in the world they are located, resources they have, the political climate, international relations, employment rates, etc.

Factors that impact GDP Government: Stability and Spending Consumer spending and Confidence Exports/Imports Interest Rates and Banking Sector Value of Exchange Rate Infrastructure Human Capital Technological Development

Create your own nation and explain how you are going to ensure a high GDP 1. Where in the world would you start your country? Why? 2. What resources are you going to utilize? What are you going to spend your money on? 3. What economic policies would your nation follow? 4. How is your government going to play a role in your economy? 5. How are neighboring countries going to influence your economy? 6. What economic/political policies are you going to focus on or introduce in the future based on the direction that you predict the international economy is heading?

What is the difference between Macroeconomics and Microeconomics? Warm Up What is the difference between Macroeconomics and Microeconomics? Identify three economic topics that would go under each

Homework: Marriage Project- You are having a Baby In a Bulleted List, identify the new costs that you will incur as a result of having a baby Make sure to include: A. Baby Shower Expenses (Paid by me) B. Crib, Food, Clothing, Diapers, Bottles, Toys C. Child Care D. Anything else that you want to add in

Synthesize Vocabulary Terms Learning Objectives Synthesize Vocabulary Terms Analyze Public Goods and their use in modern society Interpret the Free Rider Problem

Retaining Material Pretend you are the owner of the small business…rank the basic principles of the Free Enterprise system in order of most important to least important for the owner of the small business that you interviewed

Public Goods Public Good: Shared good/service that doesn’t make sense to exclude people who don’t pay for it, or to make consumers pay individually for it Who should be responsible for paying for Public Goods if not individual consumers? Where does this money come from? What examples of Public Goods can you think of? List at least five Public Goods

Examples of Public Goods Roads/Highways Dams Street Lights Harbors National Parks Airport Security

Public Good Role Playing Project- 20 minutes In groups of 4-5 people, you will be showing the need for a public good that would benefit Liberty students You will be creating a skit to show the need for this good and writing a script for the skit The skit needs to include Detailed description of the project Benefits of the project Costs of the project

Public vs. Private Sectors Public Sector: Part of the economy that involves transactions of the government Private Sector: Part of the economy that involves transactions of individuals and businesses Which sector pays for Public Goods?

The Free Rider Problem Free Rider: Someone who would not choose to pay for a good/service but gets the benefits of it anyway through a public good Discussion questions: What is wrong with someone getting something that they don’t pay for? Is this a problem in the United States? Why or why not? If you think it is a problem, how could it be solved? What specific examples of Free Riders can you think of in the United States? What arguments might an extreme Capitalist present in favor of a Free Rider? Do you think Free Riders are more prevalent in a Communist or Capitalist society?

Artistic/Creative Expression Show the Free Rider problem by using only graphics and images Allow someone who doesn’t understand the concept of the Free Rider to understand it Make your drawings unique!-You want to call attention to your work You must have at least 10 graphics/images You cannot use any words other than “Free Rider”

Chapter 3 Vocabulary Review Sheet Fill out the Vocabulary Review Sheet for Chapter 3

Identify three examples of Public Goods Exit Ticket Identify three examples of Public Goods How does the Free Rider Problem connect to Public Goods