1. Understand the United States’ economic system.
U.S. Economy
Understand the United States’ economic system.

2. Mixed Economy
A combination of a free enterprise (or market) and a command economy.
Privately owned businesses and government both play important roles.
The marketplace produces:
cars
health care
technology
food (with some government regulations)
The government provides:
defense
education

3. United States’ Mixed Economy
Free Enterprise/Market Economy

4. Market Economy Characteristics
Private property ownership.
Freedom of enterprise and Choice
Motive of self-interest
Competition
System of markets and prices
The market addresses consumer wants

5. Market Economy Advantages Individuals can own businesses and resources
Individuals can buy and sell goods and services
Competition in the market leads to greater choices
Consumers play a great role in the economy

6. Market economy Disadvantage
The critical role of the consumer in the market can create a tremendous divide between the poor and the wealthy

7. United States’ Mixed Economy
Command Economy

8. Limited Government
The government helps protect people by being a body that monitors public safety through regulatory agencies such as:
Food & Drug Administration (FDA)
Occupational Safety and Health Administration (OSHA)

9. The government provides some services to take care of people’s needs
Highways--roads and other transportation services
Schools and other public education services
Social Security
Medicare
Defense and public safety

10. Command Economy Advantages
Consumers have some protection in the marketplace
Essential services are provided for citizens

11. Command Economy Disadvantages
Citizens have to pay taxes so the government can provide services
Some think there is too much government control in the marketplace

12. United States’ Economy Summary
Government has a minimal role in the domestic economy.
Business firms in the U.S. have much less regulation than those in many other nations.
Largest national economy in the world
A mixed economy
Corporations and other private firms make the majority of microeconomic decisions.