AMERICAN GOVERNMENT Unit 1—Note Packet 3 Coach Styles

American government: NOTE PACKET 1-3 ECONOMIC THEORIES AND GOVERNMENT

American government: NOTE PACKET 1-3 The Role of Economic Systems All economic systems must make 3 major economic decisions: How the following questions are answered determine the type of economic system is being employed. Closely linked to form of government What and how much goods and services should be produced How goods and services should be produced Who gets the goods and services that are produced

American government: NOTE PACKET 1-3 THREE MAJOR TYPES OF ECONOMIC SYSTEMS: Again, closely or directly linked to type/form of government. Capitalism—Possesses 5 main characteristics: Private ownership and control of property and economic resources Free enterprise Competition among businesses Freedom of choice Possibility of profits

American government: NOTE PACKET 1-3 Socialism: Influenced by 3 MAIN GOALS: Even distribution of wealth (property and income) Society’s control, through its government, of all major decisions concerning production Public ownership of most land, factories, and means of production (Public?)

American government: NOTE PACKET 1-3 Communism: System by which government owns and controls all aspects of political, economic, and social life. Under this philosophy, there is one major goal: To spread the communist ideology by promoting worldwide revolution. In communist countries, the “state” owns all land, natural resources, industry, banks, factories, transportation facilities, and also controls all mass communication—including newspapers, magazines, television, radio, and motion pictures. In the majority of cases, communist governments cannot provide adequate standard of living for its citizens and they are forced to choose between reform, or revolt by the people.