Chapter 2 Section 4 Modern Economics in a Global Age Objectives: 1) Identify the main characteristics of a mixed economy 2) Understand why most modern economies are mixed economies 3) explain why modern economies are becoming increasingly global

Key Terms: Please Define Mixed Economy: Nationalize: Privatize: Global Economy:

Key concept #1: Today’s mixed Economy -Mixed economic systems have elements of all three economic systems -Mixed economies are the most common type of economic system in the world today. -Although in a mixed economy one type of system dominates.

Key concept #2: Trends in Modern Economics -Economies change due to natural, social, and political conditions -Nationalize vs. Privatize -Emergence of the global economy. Why? 1)Trade agreements amongst nations 2) Development of faster, cheaper and safer transportation and distribution 3) technology 4) Willingness to engage in partnerships to share the cost of research For every choice you make you give something up. The alternative is called a trade-off. Draw the picture on page 14.