The United States Economy & Culture Chapter 4, Section 3 & 4

United States: An Economic World Leader The United States has a free-enterprise/market economy. This has allowed the U.S.A. to become one of the wealthiest nations in the history of the world.

Goods & Services A good is any object you can buy to satisfy a want or need. Some examples are as follows: CD’sClothingCars

Goods & Services A service is an action that meets a need or want. Some examples are as follows: Massage Therapy Medical Care Auto Mechanic

What to Buy Often times people buy what they need first such as: medical care, clothing, & food. They can choose to do whatever they want with what’s left over. The government should operate the same way.

A Growing Economy To sustain a growing economy, business owners have to produce at high levels. Production is the making of goods & services. “The Four Factors of Production” are the elements needed for production to occur.

Natural Resources Raw materials are used to make goods. Some examples are as follows: Land, Water, Forests, Minerals, Soil, & Climate

Labor Resources Labor Resources include workers with appropriate knowledge, skills, & experience to make goods or provide services.

Capital Resources Capital Resources include the following: machines, factories, & supplies that are needed to produce goods.

Entrepreneurs Entrepreneurs are the people who bring natural resources, labor resources, and capital resources together to produce goods & services.

GDP One way to measure a country’s economy is to look at it’s GDP, or “Gross Domestic Product.” This tells the total value of the goods & services that a country produces each year.

Free Enterprise/Market Economy In the U.S.A., the government doesn’t really determine what will be produced or how much. The business owners are free to decide these things with little government interference. In this type of economy, business owners have to compete with each other to get your business. How do they do this?

Supply & Demand In a free-enterprise economy, the consumers, or the people who buy goods & services, help decide what will be produced.

Profit The money that remains after all the costs of producing a product have been paid is called the profit.

Competition In a free enterprise or market economy, many businesses produce similar goods or services. They compete to attract customers. Competition is the rivalry between businesses to sell goods to consumers and make the greatest profit.

Other Economic Systems In the Command Economy System, the government decides what will be produced, how much will be produced, and at what price it will be sold.

Other Economic Systems In the Traditional Economy System the social roles & the culture determine how goods & services are produced, including what the prices are, & which consumers are allowed to buy certain goods.

The Global Economy Today, there are more free enterprise economies around the world than ever before. This, combined with modern communications & transportation, allows these countries to work together to maximize profits.

Trade Barriers Sometimes, countries establish barriers to restrict trade, because they prefer to produce their own goods or services. Countries may restrict or raise taxes on imported goods, making it difficult for other countries to make money off of their people.

American Way of Life People of the United States have brought diverse customs, traditions, & foods from their homelands. Pizza was brought over by the Italian immigrants. However, most Americans share many of the same values. Values are the principles & ideals by which people live. U.S. citizens care about individual rights; equal opportunities for jobs & education; fair treatment of people regardless of race, religion, or gender; & private ownership of property. Many of these values are part of the U.S. Constitution & help define American culture. People of the United States have brought diverse customs, traditions, & foods from their homelands. Pizza was brought over by the Italian immigrants. However, most Americans share many of the same values. Values are the principles & ideals by which people live. U.S. citizens care about individual rights; equal opportunities for jobs & education; fair treatment of people regardless of race, religion, or gender; & private ownership of property. Many of these values are part of the U.S. Constitution & help define American culture.

American Way of Life U.S. citizens believe they can improve their lives through education & through their religious groups. In 1647, Massachusetts established the first colonial public school system. Today, state laws require that all children attend school or be taught at home until they are at least 16 years of age. About 85 percent of U.S. children finish high school. Also, about 70 percent of U.S. citizens are members of religious groups. Many colonists, such as British Protestants or Spanish Catholics, settled in America so they could worship as they wished. Therefore, many U.S. citizens believe that education & religious faith with prayer are needed to have a knowledgeable & morale society.

Arts & Entertainment & Science & Technology Most U.S. citizens are very concerned with leisure activities like tennis, golf, soccer, baseball, basketball, football, & hockey. U.S. citizens are concerned with the latest movies & the newest television programs; including keeping up with the latest new musical forms like rock ‘n’ roll that was developed in the United States. The U.S. culture has spread its influence around the world through music or even through its newest sodas, blue jeans, or foods from fast food restaurants like McDonalds. U.S. citizens are very concerned with the latest technology, new inventions in science, & with the new developments in these field being used in the greatest medical culture since the beginning of time can be found here in the United States of America. This is why people from all over the world want to come to the United States to live. Therefore, be thankful for what you have. We are only 5 percent of the worlds population, but we have over 70 percent of the world’s resources.