1. Economic Goals & Systems

2. Economics systems Economic Goals
Each country has an economic system, or a method used to produce, allocate, and distribute its natural resources in order to produce goods and services.
Economic Goals
Goal: Efficiency
Maximizing efficiency of resources.

3. c. Goal: Security and Predictability
b. Goal: Freedom
Government intervention hinders economic freedom of a country
Example: minimum wage, taxes...
When freedom increases, so does GDP
c. Goal: Security and Predictability
People want to live in a country that is predictable
Goods and services will always be present (no shortages)
Banking institutions are stable (FDIC, Fed Reserve)
Government will provide a safety net for people (Medicare, Medicaid, Welfare, etc.)

4. d. Goal: Economic Equality
all people receive equal pay for equal work.
e. Goal: Growth and Innovation
Governments try to regulate economies to grow at a slower and steady rate in order to prevent bubbles, crashes, recessions.

5. Free Market, Command, Mixed Market
Economic Systems
Traditional – relies on habit, custom, or ritual to decide what is made, how much is made, and who makes it.
Small, inefficient, little technology, and communal based.
Hunter & Gather tribes/families
Barter – an economy that uses no money.
Free Market, Command, Mixed Market