RECAP/ REVIEW What is scarcity? Give an example. What are goods? Give an example. What are services? Give an example. What are needs? Give an example. What are wants? Give an example What are the economic systems? How does each economic system answer the 3 basic question? What to produce? How to produce it? For whom to produce? http://www.bbc.com/news/av/world-latin-america-31989893/how-long-does-it-take-to-buy-basic-goods-in-venezuela

What has always been produced SSEF4.A Chart: Learning Target: I can compare and contrast different economic systems.   Traditional Private Ownership  Traditional Rules of the culture…commune Profit Motive  Work in the field of their ancestors……..example……..medicine man Consumer Sovereignty  What has always been produced Competition  Little to none….operation the same way as ancestors Government Regulation  Traditional leaders, chief, the elders will make decisions based on the culture and the past.

SSEF4.A Chart: Learning Target: I can compare and contrast different economic systems.   Command Private Ownership  Very Little, Central Planner can confiscate at anytime , Everyone owns everything…even the Factors of Production! Profit Motive  Extreme little, Central Planner takes all income Consumer Sovereignty  Little Choice for producers and consumers and limit what is available. Competition  Gov’t produces most goods and serves. No competition Government Regulation  Complete and total

Market Strong Property Rights, firms own the Factors of Production   Market Private Ownership  Strong Property Rights, firms own the Factors of Production Profit Motive  Incentives is the profit, Keep most if not all profits (Little taxes) Consumer Sovereignty  Firms Produce only the goods and service consumers want. Competition  Extremely high because firms can open and close freely Government Regulation  Minimal (protecting property and consumers from harm.)

Mixed Individuals, firms, and the Government can own land ]   Mixed Private Ownership Individuals, firms, and the Government can own land Profit Motive  Entrepreneurs can start a business, expect to pay taxes and follow government regulations Consumer Sovereignty  Business can produce what consumers want to buy, the government may produce certain goods and serves too. Competition  Competition exist and some monopolies are allowed to exist while others are broken up Government Regulation  Government may require licenses and government paperwork to start a business: Labor, consumer safety and environmental laws. The government will seize land for government use

7. What is Full Employment? All those who are willing to and able to work have the opportunity to do so.

Generational, based on the passed Central Planner SSEF4.B 3-econ Traditional Command Market Mixed What to produce  Generational, based on the passed Central Planner Consumers taste and preferences Consumers and governments need How to produce  Passed from generation to generation Central planner selects the methods Method that results in selling goods and services for the most profit $$$ Methods for a profit, but the government may tax firm profits or mandate production process Whom to produce  However the past methods were used Whomever the central planner says should get a good Who ever is willing and able to pay Willing and able to pay, the government may restrict people from getting goods.

SSEF4c. Scarce Resource Allocation Compare and contrast strategies for allocating scarce resources, such as by price, majority rule, contests, force, sharing, lottery, authority, first-come- first-served, and personal characteristics.

Price Auction Obtain fish by the pound, no money….no fish

Majority Rule Elective REflectives

Contest

Forced Factors of production of goods and serves are given or taken away under threats….command economies. Taxes…The Draft

Sharing

Lottery Random selection, gives everyone who wants the good, service, or factor of production equal odds of obtaining it!

First Come, First SErved Good, service or F of P if they get to it first or are one the people close enough to the front of the line to recieve …before none remain!

Personal Characteristics Based on need or merit!

Role of Government in the U.S. SSEF5: Describe the roles of government in the United State economy. Explain why government provides public goods and services, redistributes income, protects property rights, and resolves market failures. Explain the effects on consumers and producers caused by government regulation and deregulation and give examples.

Protecting Private Property Rights The Role of Government Copy the Chart below into your notebook if you did not get a handout. Use the textbook to answer. Protecting Private Property Rights Promoting competition Providing Public Goods/Services Resolving Market Failures Redistributing Income Regulation and Deregulation

Stossel in the Classroom What is the difference between Private and Public goods?

Protecting Private Property Rights Protects private property and intellectual property through laws, contracts, patents, and copyrights Key component of a market economy that is based on private ownership and voluntary exchange Disputes settled by judicial system

Provides Public Goods and Services The benefits of public goods are shared by everyone in a society. The government pays for public goods by collecting taxes There is no incentive for private companies to provide public goods Examples: roads, schools, national defense, police/fire dept., parks

Redistributing Income Taxes pay for transfer payments – supplement those who have lower incomes or cannot work Those who earn more are taxed more Gov’t maintains a min. standard of living for citizens Examples – welfare, food stamps, Social Security, disability, unemployment, WIC, Medicaid

Promoting Competition Market economy depends on free competition to keep prices low and quality high Prevents monopolies and trusts Example – AT&T

Resolving Market Failure Occurs when a private company benefits from production for which other people end up paying some of the costs Unintended consequences Pollution, BP/Gulf of Mexico Spill Regulations result from resolving market failures http://media.foxbusiness.com/050412/050312_Stossel_Houck_F BN_MED.mp4

Regulation and Deregulation Using laws to control business activity Intended to benefit the public (protect consumers) Examples – breaking up monopolies, fining polluters, taxes on alcohol and tobacco, safety regulations http://media.foxbusiness.com/102414/102414 _stossel_dudley1_FBN_MED.mp4

Writing Assignment ½ - 3/4 of a page Write a story or a narrative about what life in the United States would be like if there was no intervention or involvement from the government in the economy. Think about what kinds of things we might not have or how businesses might operate without government involvement or regulations. Be creative!