1. I. Economic and Social Goals 1. economic freedom 1. economic freedom 2. economic efficiency 4. economic equality 4. economic equality 5. economic security 5. economic security 3. economic growth 3. economic growth 6. price stability 7. full employment 7. full employment

2. 1. economic freedom individuals businesses

3. 2. economic efficiency 2. economic efficiency cause (if) then

4. 3. economic equality

5. 4. economic security 4. economic security cause (if) then Social Security

6. 5. full employment then if then

7. 6.price stability If_____ _________ people need more______ to buy food, clothing and shelter. If_____ _________ people need more______ to buy food, clothing and shelter. If people live on fixed income (income that does not change) then______ __________ then______ __________

8. 7. economic growth people want… * people want… * more growth More_____ and ________ More_____ and ________

9. future goals as society evolves (________)

10. II. Resolving Trade-Offs Among Goals Goal: How are trade offs resolved…. How are trade offs resolved…. opportunity cost (trade off) opportunity cost (trade off) opportunity cost (trade off) opportunity cost (trade off)

11. Section 3;. American Free Enterprise A. Economic Freedom B. Voluntary Exchange C. Private Property Rights D. Profit Motive

12. A. Economic Freedom B. Voluntary Exchange C. Private Property Rights D. Profit Motive Example: PEOPLE Example: Example: BUSINESS I. CHARACTERISTICS OF FREE ENTERPRISE CAPITALISM

13. Why do entrepreurs risk their money? PROFIT MOTIVE!!! They want to earn MORE $$$ Which restaurant will make the most profit? The 3 restaurants will ___________ with each other for consumer spending. compete

14. II. Role of the Entrepeneur Organizes: 1._________________ 2._________________ 3._________________ Wants to see reward called _____________________ Organizes: 1._________________ 2._________________ 3._________________ Wants to see reward called _____________________

15. III. Role of the Consumer Who is always right?_______________ “The __________ is always ________” This is called c___________S________

16. A. Protector B. Provider C. Regulator D. Consumer Example: IV. The Role of the Government

17. v. Modified Free Enterprise people and business buy and sell government must protect, provide, regulate and consume How much do we want government involved? government must protect, provide, regulate and consume How much do we want government involved?