1. Economic Goals of Governments Ms. Ramos Alta Loma High School

2. How do societies decide? A society’s answers depends on its economic goals Ms.Ramos

3. Freedom Efficiency Equity Growth Security Stability Economic Goals (Not all may be addressed by a govt) Ms.Ramos

4. Freedom Ability of people to make their own economic decisions Ms.Ramos

5. Efficiency Make most of resources, least amt of waste  Includes workers Full employment Ms.Ramos

6. Equity Fairness & just distribution of society’s wealth  What is fair?- often debated Ms.Ramos

7. Growth Produce more G&S Leads to improved standard of living KEY---- science & technology Ms.Ramos

8. Security Provide for less fortunate  Food, shelter, healthcare Also debated Ms.Ramos

9. Stability G&S we count on are available  Elec, food, clothing, jobs, prices Ms.Ramos

10. Who decides what in different economic systems? Insert markets handout here in your notes Ms.Ramos

11. 3 Economic Systems Traditional Economies  Decisions by custom Command Economies  Decisions by pwrful rulers Market Economies  Decisions by individuals Ms.Ramos

12. Capitalism gives rise to Socialism- Closer Look: Soviet Union 1 st modern command economy Communist–-- authoritarian (social goal by force) Economic planning by govt  Shortages common…lines  Lack of choice  Ignore incentives…work/products inferior Ms.Ramos

13. How do mixed economies divide the decision making? No Pure Economies!!! All are mixed to varying degrees Ms.Ramos

14. All govts: Legal Law enforcement Currency Regulations (food, work) – vary Public Goods (dams, roads, hospitals) Ms.Ramos

15. Circular Flow Model http://dreamofbiz.blogspot.com/2007/09/economic-problem-scarcity-wants-and.html Ms.Ramos

16. Circular Flow in a Mixed Economy kisdwebs.katyisd.org/campuses/THS/teacherweb/.../CircFlowModel.ppsx Ms.Ramos

17. http://02b8223.netsolhost.com/blog/wp-content/uploads/2008/10/index2007_econfreedommap.jpg Ms.Ramos