1. Chapter 2

2.  1.ECONOMIC FREEDOM- FREEDOM TO MAKE OUR OWN ECONOMIC CHOICES  CHOOSE YOUR OWN OCCUPATION, EMPLOYER, HOW TO SPEND MONEY  2. ECONOMIC EFFICIENCY- RESOURCES ARE SCARCE AND MUST BE USED EFFICIENTYLY, NO WASTING BECAUSE WE CAN NOT FULFILL NEED AND WANTS  3. ECONOMIC EQUITY- EQUAL PAY FOR EQUAL WORK, ILLEGAL TO DISCRIMINATE ON BASIS OF AGE, SEX ETC.,

3.  4. ECONOMIC SECURITY- WE ARE PROTECTED WHEN WE GET LAYED OFF OR ILL  INSURANCE PLANS, EXAMPLE: SOCIAL SECURITY  5. FULL EMPLOYMENT- PEOPLE WORK TOGETHER TO CREATE JOBS ETC  LOW UNEMPLOYMENY RATE  6. PRICE STABILITY, WHEN WE DON’T HAVE:  INFLATION, INCREASE IN PRICES BUT NOT IN PAY  FIXED INCOME, INCOME THAT DOES NOT INCREASE EVEN WHEN THE PRICES GO UP

4.  7. ECONOMIC GROWTH- HOPE TO BETTER YOUR LIFE  IMPROVED JOBS, MAKE MORE MONEY, BIGGER HOUSE ETC.  WHAT OTHER PROGRAMS CAN WE ADD TO IMPROVE OUR LIVES TODAY?  ENVIRONMENTAL PROTECTION  ENDANGERED SPECIES  ??????

6.  How important is it for you to have choices?  What choices can you make?  When and what choices are denied to you?

7.  EVERY SOCIETY, NO MATTER HOW LARGE OR SMALL, HAS AN ECONOMIC SYSTEM  AN ECONOMIC SYSTEM IS AN ORGANIZED WAY OF PROVIDING FOR THE NEEDS AND WANTS OF THEIR PEOPLE

8.  1. TRADITIONAL- BASED ON HABITS, RITUALS, AND CUSTOMS  EXAMPLES: INUIT OF CANADA, LIVE LIFE PASSED DOWN FROM GENERATION TO GENERATION  PARENTS TEACH THEIR CHILDREN HOW TO SURVIVE  ALIMONY???

9.  STRENGTHS- EVERYONE KNOWS THEIR ROLE  THREE QUESTIONS OF PRODUCTION ARE EASILY ANSWERED  WEAKNESSES- DISCOURAGES NEW IDEAS, MAY EVEN PUNISH THOSE THAT BREAK THE RULES (VILLAGE)  LACKS PROGRESS WHICH LEADS TO LOWER STANDARD OF LIVING

10.  What would happen if you were guaranteed an A in economics class?  What would happen if you were guaranteed a certain pay no matter how much they produced?

11.  2. COMMAND SOCIETY- IS WHEN THERE IS A CENTRAL AUTHORITY OR SMALL GROUP AT THE TOP THAT MAKE THE DECISIONS FOR THE WHAT, HOW, FOR WHOM AND PEOPLE JUST EXPECTED TO FOLLOW THEM  EXAMPLES: NORTH KOREA, PEOPLE’S REPUBLIC OF CHINA, FORMER SOVIET UNION, Cuba

12.  STRENGTH, THEY CAN CHANGE FOCUS OVER A SHORT PERIOD OF TIME  EXAMPLE: SOVIET UNION WENT FROM AN AGRICULTURAL SOCIETY TO AN INDUSTRIAL SOCIETY IN JUST A FEW YEARS  THEY IGNORE CONSUMER GOODS

13.  WEAKNESSES ARE OBVIOUS: NOT DESIGNED TO MEET THE NEEDS AND WANTS OF THE INDIVIDUAL (NO CARS ETC) SCARFICE FOR THE GOOD OF THE COUNTRY  LACKS INCENTIVES FOR PEOPLE TO WORK HARDER  NO MATTER HOW HARD WORK OR WHAT YOU DO, SAME PAY  NO INCENTIVE TO MOVE UP, BARE MINIMUM  NO FLEXIBILITY TO DEAL EVERYDAY SITUATIONS, NO NEW IDEAS

14.  MARKET ECONOMY- PEOPLE AND FIRMS WORK IN THEIR OWN BEST INTERST AND THEY ANSWER THE WHAT, HOW AND FOR WHOM

15.  CAN ADJUST TO CHANGE, EXAMPLE: GAS  CHANGE IS NEVER PROHIBITED  FREEDOM FOR EVERYONE, PRODUCERS AND CONSUMERS  RELATIVELY SMALL AMOUNT OF GOVERNMENT INTERFERENCE, EXCEPT IN CERTAIN AREAS LIKE NATIONAL DEFENSE  CONSUMER SATISFACTION, WIDE RANGE OF PRODUCTS

16.  THE YOUNG, SICK AND OLD WOULD HAVE A HARD TIME WITHOUT THE HELP OF THE GOVERNMENT  THEY DON’T WORK WELL ALL THE TIME, THINGS NEED TO BE IN PLACE  WORK BEST:  1. MARKET MUST BE REASONABLE  2. RESOURCES NEED TO BE FREE MOVING, EXAMPLE: CHANGE JOBS  3. EVERYONE NEEDS TO KNOW ALTERNATIVES TO MAKE CHOICES

17.  Most economies today are a mixture of the three types of economies  Identify traditional, market and command elements in our society.

19.  OUR ECONOMY, A MARKET ECONOMY IS BASED ON THE IDEA OF CAPITALISM PRIVATE CITIZENS OWN THE FACTORS OF PRODUCTION, AND THEY ARE??? ANOTHER WAY TO SAY AMERICA, IS FREE ENTERPRISE, MARKET COMPETITION WITH MINIMUM GOVERNMENT INTERFERENCE

20.  1. ECONOMIC FREEDOM, WE HAVE THE RIGHT TO WORK WHERE WE WANT, SPEND HOW WE WANT, LIVE WHERE WE WANT ETC.  2. VOLUNTARY EXCHANGE, BUYERS AND SELLERS ACT FREELY IN THE MARKET, YOU CAN DEPOSIT YOUR MONEY IN THE BANK, UNDER A MATRESS ETC. I CAN MAKE ALL THE WEEBLES I WANT, HURRAY!!!!

21.  3. PRIVATE PROPERTY RIGHTS, WE HAVE THE RIGHT TO CONTROL AND OWN OUR PROPERTY, GIVES PEOPLE INCENTIVE  MORE MORE MORE MORE  4. PROFIT MOTIVE, WE ARE FREE TO RISK ANY PART OF OUR MONEY IN A BANK, STOCK GAMBLE ETC.  PROFIT IS THE DRIVING FORCE IN OUR SOCIETY, BECAUSE PEOPLE WANT TO IMPROVE THEIR MATERIAL WELL BEING

22.  5. COMPETITION, OH THE IMPORTTANT ONE THIS IS THE STRUGGLE BETWEEN SELLERS TO ATTRACT CUSTOMERS THIS IS WHY WE HAVE LOWER PRICES, AND A LOT OF GOODS AND SERVICES

23.  THEY START NEW BUSINESSES  THEY CREATE WEALTH  WHEN THEY ARE SUCCESSFUL, PEOPLE ARE HAPPY  AN ENTREPRENEUR REWARDS THEMSELVES, OKAY, BUT THEN WORKERS ARE REWARDED WITH BETTER JOBS, THE GOVERNMENT IS REWARDED WITH TAXES, MORE OF THE SAME ENTREPRENEURS COME OUT TO ATTRACT CUSTOMERS

24.  WHEN WE PURCHASE WE VOTE, RIGHT?  CONSUMER SOVEREIGNTY DESCRIBES THE ROLE OF THE CONSUMER, THE RULER OF THE MARKET, THE DECIDER OF ALL DECIDERERS???

25.  1. THEY SERVE AS OUR PROTECTOR, UH YA, NATIONAL DEFENSE 2. PROVIDER AND CONSUMER, DO YOU WANT TO CLEAN YOUR SEWER?? THEY PROVIDE GOODS AND SERVICES SUCH AS UTILITIES, EDUCATION, PARKS PUBLIC WELFARE ETC. 3. REGULATOR, THEY OVERSEE PROBLEMS WITH INTERSTATE COMMERCE, BANKING INDUSTRY, NUCLEAR POWER, ZONING PERMITS ETC.

26.  4. PROMOTER OF NATIONAL GOALS, HELPS WITH EFFICIENCY, FULL EMPLOYMENT, SECURITY ETC.  OFFICIALLY THE UNITED STATES IS A MIXED ECONOMY, WHICH MEANS THAT WE ARE BASICALLY FREE TO COME AND GO BUT ARE SUBJECT TO SOME GOVERNMENT REGULATION