Economic Goals of Governments Ms. Ramos Alta Loma High School

How do societies decide? A society’s answers depends on its economic goals Ms.Ramos

Freedom Efficiency Equity Growth Security Stability Economic Goals (Not all may be addressed by a govt) Ms.Ramos

Freedom Ability of people to make their own economic decisions Ms.Ramos

Efficiency Make most of resources, least amt of waste  Includes workers Full employment Ms.Ramos

Equity Fairness & just distribution of society’s wealth  What is fair?- often debated Ms.Ramos

Growth Produce more G&S Leads to improved standard of living KEY---- science & technology Ms.Ramos

Security Provide for less fortunate  Food, shelter, healthcare Also debated Ms.Ramos

Stability G&S we count on are available  Elec, food, clothing, jobs, prices Ms.Ramos

Who decides what in different economic systems? Insert markets handout here in your notes Ms.Ramos

3 Economic Systems Traditional Economies  Decisions by custom Command Economies  Decisions by pwrful rulers Market Economies  Decisions by individuals Ms.Ramos

Capitalism gives rise to Socialism- Closer Look: Soviet Union 1 st modern command economy Communist–-- authoritarian (social goal by force) Economic planning by govt  Shortages common…lines  Lack of choice  Ignore incentives…work/products inferior Ms.Ramos

How do mixed economies divide the decision making? No Pure Economies!!! All are mixed to varying degrees Ms.Ramos

All govts: Legal Law enforcement Currency Regulations (food, work) – vary Public Goods (dams, roads, hospitals) Ms.Ramos

Circular Flow Model Ms.Ramos

Circular Flow in a Mixed Economy kisdwebs.katyisd.org/campuses/THS/teacherweb/.../CircFlowModel.ppsx Ms.Ramos

Ms.Ramos