1. Economic Systems Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. -Ronald Reagan-

2. 3 basic economic questions What (and how many) goods & services will be produced? What (and how many) goods & services will be produced? How will these products be produced? How will these products be produced? How will the products & the wealth generated from their sale be distributed? How will the products & the wealth generated from their sale be distributed?

3. Capitalism Free Market or Private Enterprise Free Market or Private Enterprise The people answer the questions. The people answer the questions. Consumers determine what will be produced by buying (or not buying) certain products. Consumers determine what will be produced by buying (or not buying) certain products. Supply & Demand. Supply & Demand. Government only plays a regulatory role. Government only plays a regulatory role. The basic goal is to make a profit. Wealth is retained by the owners of industries. The basic goal is to make a profit. Wealth is retained by the owners of industries. Problem: Wealth is unevenly distributed. Problem: Wealth is unevenly distributed.

4. Communism Centrally planned or Command economy Centrally planned or Command economy Government answers all the economic questions. Government answers all the economic questions. The government makes all decisions about what should be produced, how much workers will be paid & how much things will cost. The government makes all decisions about what should be produced, how much workers will be paid & how much things will cost. The government owns & operates all major farms, factories, utilities, & stores. The government owns & operates all major farms, factories, utilities, & stores. The basic goal is that everyone should be equal when it comes to the distribution of wealth. The basic goal is that everyone should be equal when it comes to the distribution of wealth. Problem: No incentive to produce quality products or more than the quota. Problem: No incentive to produce quality products or more than the quota.

5. Socialism Mixed economy Mixed economy The free market & the government jointly answer the economic questions. The free market & the government jointly answer the economic questions. For the good of society as a whole, the government owns & runs basic industries like, health care, transportation, communications, banking, etc. For the good of society as a whole, the government owns & runs basic industries like, health care, transportation, communications, banking, etc. Private enterprise operates the remaining industries. Private enterprise operates the remaining industries. The basic goal is that wealth should be distributed more evenly & everyone is entitled to certain goods and services. The basic goal is that wealth should be distributed more evenly & everyone is entitled to certain goods and services. Problem: Taxes tend to be high to pay for social services the government provides. Problem: Taxes tend to be high to pay for social services the government provides.

6. Politics & Economics Civil Rights Freedom of: Speech Press Religion Petition Assembly Bear Arms Search & Seizure Due Process of Law Legal Trials Cruel & Unusual punishment Political Systems Autocracy Control Communism Oligarchy Control Communism Democracy Protection of freedoms Capitalism