1. Answer in your Notebook
What are the three types of economic systems discussed in class yesterday?
What 3 questions do the 3 types of economic systems try to answer?
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2. TODAY IN CLASS TYPES OF ECONOMIC SYSTEMS NOTES FOLDABLE
Economic and Social Goals
FOLDABLE
FINISH BROCHURE
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3. Evaluating Economic Performance
Section 2
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4. How can you evaluate economic performance?
How can we tell if the economic system is working?
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5. Economic & Social Goals
Economic freedom
Economic efficiency
Economic equity
Economic security
Full employment
Price stability
Economic growth
Freedom to make your own economic decisions: choose your own job, how to spend $$
Resources are scarce and must be used wisely
3. We have a strong tradition of justice & fairness in our country. Discrimination based on age, gender, race, etc. is illegal
4. Protection from adverse events: layoffs, illnesses, natural disasters
5. Most people want their economic system to provide as many jobs as possible
6. Stable prices
7. Overall growth enables more people to have more goods & services
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6. Minimum wage Lowest legal wage that can be paid to most workers
Social security
Federal program of disability and retirement benefits that covers most working people
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7. Inflation Rise in general level of prices
High rates of inflation discourage business activity
Fixed income- income that does not increase even though prices go up
These people find it harder to pay & plan for future
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8. Future goals??? Cleaner environment Saving endangered species
In the end, we are the ones who decide on the goals that are most important to us
As a result, some of our goals could change in the future
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9. Foldable: Economic and Social Goals (Pages 41-44)
Identify the 7 economic/social goals of the United States.
Answer the following questions about each goal:
What is purpose of this goal?
What does this goal actually look like in the United States?
How do YOU think that U.S. is doing in their progress towards this goal? Explain.
Future goals: if you could set a future goal for the U.S. what would it be?
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10. Free Enterprise (2.3)
Capitalistic economy in which competition is allowed to flourish with a minimum of government interference.
Characteristics: Economic freedom, Voluntary exchange, Private property rights, Profit motive, Competition
The U.S. economy is based on free enterprise.
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11. Role of Entrepreneur
Manages & organizes the factors of production in order to seek profits
People who start up businesses
Many entrepreneurs fail but the dream of success is too great to resist
First…plays one of the most important roles in the free enterprise economy.
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12. Role of Consumer They ultimately determine which products are produced
Consumer sovereignty- consumer is the ruler of the market
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13. Role of Government
Stems from desires, goals, & aspirations of its citizens
They are a protector, provider, regulator, & consumer
Their role is justified whenever the benefits outweigh the costs
Protector- government enforces laws to keep consumers & citizens safe
Provider- all levels of government provide goods & services for citizens (i.e. education, highways, parks, libraries, etc.)
Regulator- preserves competition in the marketplace
Consumer- they are the second largest consuming unit in the economy, after the consumer sector
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