1. Economic and Social Goals of the United States Benchmarks- did the system meet the needs of the people?

2. The Seven Goals  1. Economic Freedom  2. Economic Efficiency  3. Economic Equity  4. Economic Security  5. Full Employment  6. Price Stability  7. Economic Growth

3. Trade-Offs  What goals might conflict with one another?- Discuss trade-offs among goals  What characteristics does the United States’ economy have that allows it to resolve conflicts among goals?  Rank the economic and social goals in order of importance to you. Justify your rankings.  Pres. Report

4. Capitalism and Free Enterprise!

5.  Capitalism- a system in which private citizens own the factors of production  **THRIVES on competition**  Describes US’s economy

6.  Free Enterprise: competition allowed to flourish w/minimual gov’t interference  Also describes US’s economy

7. Adam Smith, 1723-1790  Father of modern capitalism  Wealth of Nations (1776)  Predicted the US economy would be the most successful  “Invisible Hand”  “Laissez Faire”

8. Characteristics of a Free Enterprise Economy  Economic Freedom  Voluntary Exchange  Act of buyers and sellers freely/willingly engaging in market transactions  Private Property  People have right to control possessions  Profit Motive  Profit: better off at end  Profit Motive: drive that encourages well-being  Refer to pg. 44 for a picture

9. The Role of the Entrepreneur  Organizes and manages land, labor, and capital to seek profit  Most important  “Own boss”  Dream too great to resist

10. The Role of the Consumer  “Consumer Sovereignty” – Ruler of the market  “Customer is always right”  Controls what is produced

11. Role of the Government  All levels play a role that reflect goals and desires of citizen  Protector  Provider and Consumer  Regulator  Promoter of National Goods

12.  a. What aspects of the economy benefit when an entrepreneur succeeds?  b. How do American consumers express their wants?  c. Explain the role you as a consumer must play in obtaining economic equity for yourself.  d. What incentive does owing private property give people?

13. Debate  “ Government should do for the people what they wish to have done by cannot do as well or at all in their individual capacities.”