Economic Goals of Society

Efficiency Because of scarcity, it is important to use all resources efficiently in order to maximize output. Because resources are always scarce, societies. Try to maximize what they can produce using the resources they have. If a society can accurately assess what its people need and want, it increases its economic efficiency. For example, a computer producer would be wasting its resources if it produced desktop computers when people prefer laptops instead. Economic efficiency also has to do with seeking better ways to produce goods and services to make them available to consumers. An economy that cannot deliver the right goods to the right people at the right price is not efficicent.

Freedom Most people value the opportunity to make their own choices based on what is best for them as an individual. While Americans do face limits to our freedoms, individual freedom is a key cultural characteristic that we tend to value. We prize the freedom to buy what we can pay for, to pursue a career in the field we want, to own property and to become entrepreneurs. In order to obtain these benefits, we also accept the cost that comes with that freedom; for example the potential of failure or increased responsibility.

Security People want to be certain the market will be there tomorrow, that they won’t lose everything overnight.

Equity Equity: Freedom from bias or favoritism 2 Ways to look at it economically Equity of opportunity Equality of results 28- Equity or fairness is another economic goal that is defined differently in different societies. Each society has to decide how to divide its economic pie. Should everyone get the same share of goods and services a nation produces? Or should one’s consumption depend on how much one produces? How much should society provide for those who are unable or unwilling to produce? How are the benefits of economic freedom compromised by the goal of economic equity- or is inequity possibly a cost of freedom?

Growth Must grow for increased number of jobs and incomes which is usually accomplished by innovations which raises the standard of living. A nation’s economy must grow with its population so it can provide jobs for the new people joining the workforce. A nation’s economy must also grow if people are going to have more income. When that occurs, the nation improves its standard of living or level of economic prosperity. Innovation plays a huge role in economic growth and is defined as the process of bringing new methods, products, or ideas into use.

Other Goals… Environmental protection, full employment, protecting national industries, etc… Sometimes these goals are in conflict with each other. Which economic goal/goals are the most important and why? (5 sentence paragraph minimum)