Essential Question: The U.S. Economy at Work SECTION 3 Identify the 6 main goals of the U.S. economy, Create a “real-life” example that demonstrates how these goals can conflict with each other (Be sure to use two specific goals)

How nations decide how to use scarce resources: SECTION 3 The U.S. Economy at Work How nations decide how to use scarce resources: Households, businesses, and the government work together to set goals. These goals focus on addressing different needs. Sometimes two or more of these goals require the same resources (making it impossible to do both equally well)

6 major goals of the U.S. Economy: #1 Economic Freedom/#2 Efficiency SECTION 3 The U.S. Economy at Work 6 major goals of the U.S. Economy: #1 Economic Freedom/#2 Efficiency Freedom- the right for consumers to choose how to answer the 3 basic economic questions. Efficiency- Ensuring that resources are not wasted and that the product produced with the resources is worth more than the resources consumed.

#3 Economic Equity #4 Security SECTION 3 The U.S. Economy at Work #3 Economic Equity #4 Security Equity- Ensuring our economy works TOWARD being fair in terms of allocating resources and addressing needs of society EQUAL=Fair, EQUITY=Working toward fairness Security- the goal of preventing the members of a society from poverty, business and bank failures or other crises that would harm the overall economy.

#5 Economic Stability The U.S. Economy at Work SECTION 3 Stability- This goal addresses two concerns, 1.) trying to establish full employment or keep as many of the citizens employed as possible AND 2.) trying to limit the amount of change in the average prices of goods and service in the economy to protect those with limited or fixed incomes.

#6 Growth The U.S. Economy at Work SECTION 3 This goal focuses on increasing the amount of goods and services produced by each worker in an economy to address the needs of an expanding population ie: make more food than just what you need

Why economic goals sometimes conflict: SECTION 3 The U.S. Economy at Work Why economic goals sometimes conflict: differences in the goals of various socioeconomic groups Poor people want security, Rich want freedom Govt. is democratically elected and responds most to the needs of those who VOTE Guess what this means YOU should do?