Economics 2/3 The Goals of a Nation

Goals of Free Enterprise Economic Freedom Economic Efficiency Economic Equity Economic Security Economic Stability Economic Growth Trade-Offs Among Goals

Economic Freedom Everyone is free to start a business, own property, work several jobs, move from place to place looking for work. Free to fail. Must accept the costs of failing in business.

Economic Efficiency Use limited resources wisely. Because of scarcity, if resources are wasted, fewer goods and services can be produced. Costs of our actions must not exceed benefits.

Economic Equity Should be fair and just. Pass laws to keep it fair. (Equal work for equal pay, etc.)

Economic Security Profits mean risk, but still want protection against risk beyond our control. Gov’t protects us against bank failures, accidents on the job, natural disasters, etc.

Economic Stability Reduce extreme ups and downs of standard of living. (The average value of goods and services used by the average citizen in a given period of time.)

Economic Growth Producing increasing amounts of goods and services over long term. As population grows, economy must expand to keep up with needs and wants.

Trade-Offs Among Goals Scarcity means achieving national goals requires trade-offs. Officials must make difficult decisions in making economic policy.

Rights and Responsibilities You have many rights, but also responsibilities. Support yourself and family. Elect responsible officials. Know the issues. “There’s no free lunch!”